Korea Utara (North Korea)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME 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 This Agreement 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 or immovable property and taxes on the total amounts of wages or salaries. The existing taxes to which the Agreement shall apply are in particular: in the Republic of Indonesia : income tax; (hereinafter referred to as “the Republic of Indonesia tax”); in the Democratic People’s Republic of Korea : enterprise income tax; personal income tax; (hereinafter referred to as “the DPRK tax”); This Agreement shall apply also to any identical or substantially similar taxes 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 of any substantial changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS For the purposes of this Agreement, unless the context otherwise requires: (a) the term “Indonesia” means 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 jurisdiction in accordance with international law; the term “the Democratic People’s Republic of Korea” when used in a geographical sense, means all the territory of DPRK including its territorial sea and airspace as well as exclusive economic zone and the continental shelf where the DPRK exercises sovereign rights and jurisdiction in accordance with its internal law and the international law. (b) the term “person” includes an inpidual, a company and any other body of persons; (c) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; (d) 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 resident of the other Contracting State; (e) 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; (f) the term “competent authority” means : in the case of Republic of Indonesia : the Minister of Finance or his authorized representative; in the case of Democratic People’s Republic of Korea : the Ministry of Finance or it’s authorized representative; (g) the term “nationals” means : any inpidual possessing the nationality of a Contracting State; any legal persons, partnerships and associations deriving its status as such from the laws in force in a Contracting State; (h) the terms “a Contracting State” and “the other Contracting State” mean the Republic of Indonesia or the Democratic People’s Republic of Korea as the context requires. 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 which it has under the law of that State concerning the taxes to which the Agreement applies. Article 4 RESIDENT 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. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein. 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 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 (centre of vital interest); if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; if he has a habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. Where by reason of the provisions of paragraph 1 a person other than an inpidual is a resident of both Contracting States, the competent authorities of the States shall settle the question by mutual agreement. Article 5 PERMANENT ESTABLISHMENT For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise of a Contracting State is wholly of partly carried on in other Contracting State. The term “permanent establishment” includes especially : a place of management; a branch; an office; a factory; a workshop; a warehouse or premises used as sales outlet; a farm or plantation; a mine, an oil or gas well, a quarry or any other place