Jepang (Japan)
AGREEMENT BETWEEN JAPAN AND THE REPUBLIC OF INDONESIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME Article 1 This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 The taxes which are the subject of this Agreement are : (a) in Japan : (i) the income tax; and (ii) the corporation tax (hereinafter referred to as “Japanese tax”); (b) in Indonesia : (i) the income tax (Pajak Pendapatan), and (ii) the company tax (Pajak Perseroan) including any with holding tax, prepayment or advance payment with respect to the aforesaid taxes; and (iii) the tax on interest, pidend and royalty (Pajak Atas Bunga, Divident dan Royalty) (hereinafter referred to as “Indonesian tax”). This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, those referred to in paragraph 1. The competent authorities of the Contracting States shall notify each other of any changes which have been made in their respective taxation laws within a reasonable period of time after such changes. Article 3 For the purposes of this Agreement, unless the contact otherwise requires : (a) the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws and 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; (b) the term “Japan”, when used in a geographical sense, means all the territory of Japan, including its territorial sea, in which the laws relating to Japanese tax are in force, and all the area beyond its territorial sea, including the seabed and sub-soil thereof, over which Japan has jurisdiction in accordance with international law and in which the laws relating to Japanese tax are in force; (c) the terms “a Contracting State” and “the other Contracting State” mean Japan or Indonesia, as the context requires; (d) the term “tax” means Japanese tax or Indonesian tax, as the context requires; (e) the term “person” includes an inpidual, a company and any other body of persons; (f) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purpose; (g) the term “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 “nationals” means all inpiduals possessing the nationality of either Contracting State and all juridical persons created or organized under the laws of that Contracting State and all organizations without juridical personality treated for the purposes of tax of that Contracting State as juridical persons created or organized under the laws of that 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; (j) the term “competent authority”, in relation to a Contracting State, means the Minister of Finance of that Contracting State or his authorized representative. As regards the application of this Agreement by a Contracting State, any term not defined in this Agreement shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State concerning the taxes to which this Agreement applies. Article 4 For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of head or main office, place of management or any other criterion of a similar nature. Where by reason of the provisions of paragraph 1 a person is a resident of both Contracting States, then the competent authorities of the Contracting States shall determine by mutual agreement the Contracting State of which that person shall be deemed to be a resident for the purposes of this Agreement. Article 5 For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. The term “permanent establishment” includes especially: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; (f) a farm or plantation; (g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months. Notwithstanding the provisions of the preceding paragraphs, the term “permanent establishment” shall be deemed not to include: (a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of advertising, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise; (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting