India
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE REPUBLIC OF INDIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of Indonesia and the Government of the Republic of India, DESIRING to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic cooperation between the two countries, HAVE AGREED AS FOLLOWS: CHAPTER I SCOPE OF THE AGREEMENT Article 1PERSONS COVERED This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2TAXES COVERED 1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities. Irrespective of the manner in which they are levied. 2. 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 or immovable property and taxes on the totals amounts of wages or salaries paid by enterprises. 3. The existing taxes to which the Agreement shall apply are in particular: (a) in the case of the Republic of Indonesia: the income tax: (hereinafter referred to as “Indonesian tax”); (b) in the case of the Republic of India: the income tax, including any surcharge thereon; (hereinafter referred to as “Indian tax”). 4. The Agreement shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their respective taxation laws. CHAPTER II DEFINITIONS Article 3GENERAL DEFINITIONS 1. For the purposes of this Agreement, unless the context otherwise requires: (a) the term “Republic of Indonesia” means the territory of the Republic of Indonesia as defined in its laws, and parts of the continental shelf, exclusive economic zone and adjacent seas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with the United Nations Convention on the Law of the Sea 1982; (b) the term “India” means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the United Nations Convention on the Law of the Sea 1982; (c) the terms “a Contracting State” and “the other Contracting State” mean the Republic of Indonesia or the Republic of India as the context requires; (d) the term “person” includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States; (e) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes; (f) the term “enterprise” applies to the carrying on of any business; (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 a resident of the other Contracting State; (h) 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 “national” means: (1) any individual possessing the nationality of a Contracting State; and (2) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State; (j) the term “competent authority” means: (1) in the case of the Republic of Indonesia, the Minister of Finance or his authorised representative; (2) in the case of the Republic of India, the Finance Minister or his authorised representative; (k) the term “tax” means Indonesian or Indian tax. as the context requires, but shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Agreement applies or which represents a penally or fine imposed relating to those taxes; 2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. Article 4RESIDENT 1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation, or any other criterion of a similar nature, and also includes that state and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to lax in that State in respect only of income from sources in that State. 2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident only of the State in which he has a permanent homo available to him, if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests); (b) if the State in which he has his centre of