Papua Nugini (Papua New Guinea)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA 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 INDEPENDENT STATE OF PAPUA NEW GUINEA 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: CHAPTER I SCOPE OF THE AGREEMENT Article 1 PERSONS COVERED 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 a Contracting State, 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. 3. The taxes which are the subject of this Agreement are: (a) in the case of Indonesia: the income tax. (hereinafter referred to as Indonesian tax). (b) in the case of Papua New Guinea: the income tax imposed under the law of Papua New Guinea, including: (i) the salary or wages tax; (ii) the additional profits tax upon additional profits from mining operations; (iii) the additional profits tax upon additional profits from petroleum operations; (iv) the additional profits tax upon additional profits from gas operations; (v) the pidend withholding tax upon taxable pidend income; (vi) the foreign contractor withholding tax; (vii) the management fee withholding tax; (viii) the business payments tax; and (ix) the interest withholding tax. (hereinafter referred to as Papua New Guinea tax) 4. The 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 significant changes which have been made in their respective taxation laws. CHAPTER II DEFINITIONS Article 3 GENERAL DEFINITIONS 1. For the purposes of this Agreement, unless the context otherwise requires: (a) i) the term Indonesia comprises the territory of the Republik of Indonesia as defined in its laws and parts of the continental shelf and adjacent seas over which the Republik of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with International Law; ii) the term Papua New Guinea means the Independent State of Papua New Guinea and, when used in a geographical sense, includes any area adjacent to territorial limits of Papua New Guinea in respect of which there is, consistent with international law, a law of Papua New Guinea dealing with the exploitation of any of the natural resources of the Continental Shelf, its sea bed and sub-soil; (b) the term a Contracting State and the other Contracting State mean Indonesia or Papua New Guinea as the context requires; (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 tax means Indonesian tax or Papua New Guine tax as the context requires; (g) the term national means: (i) any inpidual possessing the nationality of a Contracting States; (ii) any legal person, partnership, association or any other entity deriving its status as such from the laws in force in a 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 States; (i) the term competent authority means: (i) in the case of Indonesia, the Minister of Finance or his authorized representative. (ii) in the case of Papua New Guinea, the Commissioner General of Internal Revenue or an authorised representative of the Commissioner General of Internal Revenue; and 2. In this Agreement the terms Indonesian tax and Papua New Guinea tax do not include any amount which represents a penalty or interest imposed under the law of either Contracting State relating to the taxes to which this Agreement applies. 3. 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 at that time under the laws 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 laws of that State. 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 and any political subpision or local authority thereof. This term, however, does not include any person who is liable to tax it that State in respect only of income from sources in that State. 2. Where by reason of the provisions of paragraph 1, a person, being an inpidual, is a resident of both Contracting States, then the status of that person shall be determined in accordance with the following rules: (a) the person shall be deemed to be a resident of the Contracting State in which the person has a permanent home; (b) if a permanent home is available to the person in both States, or in neither