Denmark
CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE KINGDOM OF DENMARK FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME Article 1 PERSONAL SCOPE This Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES COVERED This Convention shall apply to taxes on income imposed on behalf of each Contracting State or of its political subpisions or local authorities, irrespective of the manner in which they are levied. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable property and taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. The existing taxes to which the Convention shall apply are in particular; (a) In the case of Indonesia the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983) and to the extent provided in such income tax law, the company tax imposed under the Ordonansi Pajak Perseroan 1925 (State Gazette No. 319 of 1925 as lastly amended by Law No. 8 of 1970) and the tax imposed under the Undang-undang Pajak atas Bunga, Dividen dan Royalti 1970 (Law No. 10 of 1970); (hereinafter referred to as “Indonesian tax”). (b) In Denmark (i) the income tax to the state (indkomstskatten til staten); (ii) the municipal income tax (den kommunale ind- komstskat); (iii) the income tax to the county municipalities (den amtskommunale indkomstskat); (iv) the old age pension contribution (folkepensionsbidraget); (v) the seamen’s tax (somandsskatten); (vi) the special income tax (den saerlige indkomstskat); (vii) the church tax (kirkeskatten); (viii) the tax on pidends (udbytteskatten); (ix) the contribution to the sickness “per diem” fund (bidrag til dagpengefonden); (x) taxes imposed under the Hydrocarbon Tax Act (skatter i henhold til kulbrinteskatteloven); (hereinafter referred to as “Danish tax”). The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify to each other any substantial changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS In this Convention, unless the context otherwise requires : (a) the terms “a Contracting State” and “the other Contracting State” mean Denmark or Indonesia as the context requires; (b) the term “Denmark” means the Kingdom of Denmark including any area outside the territorial sea of Denmark which in accordance with international law has been designated under Danish laws as an area within which Denmark may exercise sovereign rights with respect to exploration and exploitation of the natural resources of the sea-bed or its subsoil; the term does not comprise the Faroe Islands and Greenland; (c) the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws and such parts of the continental shelf and adjacent seas, over which the Republic of Indonesia has sovereignty, sovereign rights or other rights in accordance with international law; (d) the term “person” comprises an inpidual, a company and any other body of persons; (e) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; (f) the term “tax” means Danish tax or Indonesian tax as the context requires; (g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean, respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by the other Contracting State; (h) the term “nationals” means : (1) all inpiduals possessing the nationality of a Contracting State; (2) all legal persons, partnerships and associations deriving their status as such from the law in force in a Contracting State; (i) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (i) the term “competent authority” means : (1) in the case of Denmark, the Minister for Inland Revenue, Customs and Excise or his authorized representative; (2) in the case of Indonesia, the Minister of Finance or his authorized representative. As regards the application of the Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of the Convention. Article 4 FISCAL DOMICILE For the purpose of this Convention, the term “resident of a Contracting State” means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that Contracting State in respect only of income from sources therein or capital situated in that State. Where by reason of the provisions of paragraph 1 an inpidual is a resident of both Contracting States, then his status shall be determined as follows: he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests); if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; if he has an habitual abode in