Iran
IN THE NAME OF ALLAH AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN 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 ISLAMIC REPUBLIC OF IRAN Desiring to conclude an Agreement for the avoidance of double, taxation and the prevention of fiscal evasion with respect to taxes on income HAVE AGREED AS FOLLOWS: Article 1 PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES COVERED 1. This Agreement shall apply to taxes on income imposed on behalf of each Contracting State 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 total 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 Islamic Republic of Iran: the income tax (hereinafter referred to as the income tax of the Islamic Republic of Iran); b in the case of the Republic of Indonesia: the income tax (hereinafter referred to as the income tax of the Republic of Indonesia) 4. The Agreement shall apply also to any identical or substantially similar taxes classified in accordance with definition of paragraph 1 of this Article which 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 within a reasonable period of any changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS 1. For the purposes of this Agreement, unless the context otherwise requires: a) the terms “a Contracting State” and “the other Contracting State” mean the Islamic Republic of Iran or the Republic of Indonesia as the context requires; (i) the term “the Islamic Republic of Iran” means the territories under the sovereignty and/or jurisdiction of the Islamic Republic of Iran; (ii) the term “the Republic of Indonesia” means the territories under the sovereignty of the Republic of Indonesia in accordance with international law; b) the term “tax” means any tax covered by Article 2 of this Agreement; c) the term “person” includes an inpidual, a company and any other body of persons; d) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; e) 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; f) 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; g) the term “competent authority” means: (i) in the case of the Islamic Republic of Iran, the Minister of Economic Affairs and Finance or his authorized representative; (ii) in the case of Indonesia, the Minister of Finance or his authorized representative; h) the term “national” means: (i) any inpidual possessing the nationality of a Contracting State; (ii) any legal person, deriving its status as such from the laws in force in a Contracting State. 2. As regards the application of the Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State concerning the taxes to which the Agreement applies. Article 4 RESIDENT 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, or any other criterion of a similar nature, and also includes that State or any local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State. 2. Where by reason of the provisions of paragraph 1 of this Article an inpidual is a resident of both Contracting States, then his status shall be determined as follows: a) he shall be deemed to be a resident of the State in which he has a permanent home available to him. If he has a permanent home available to him in both States, he shall be deemed to be a resident of the. State with which his personal and economic relations are closer (center of vital interests); b) if the State in which he has his center of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c) if he has an habitual abode in both Contracting States or in neither of them, he shalI be deemed to be a resident of the State of which he is a national; d) if the status of resident can not be determined according to subparagraphs a) to c), the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, by reason of the provisions of paragraph 1, a person other than an inpidual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated. Article 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through