Perancis (France)
CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE FRENCH REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL Article 1 PERSONAL SCOPE This Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES COVERED 1. This Convention shall apply to taxes on income and on capital imposed on behalf of each Contracting State or of its political subpisions or local authorities, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. 3. The existing taxes to which the Convention shall apply are: (a) in the case of Indonesia : (1) the income tax; (2) the corporation tax; (3) the net wealth tax; including any withholding tax, prepayment or advance payment with respect to the aforesaid taxes, and (4) the tax on pidends, interest and royalties, (Pajak atas Bunga, Dividen dan Royalty), (hereinafter refereed to as “Indonesian Tax”). (b) in the case of France : (1) the income tax; (2) the corporation tax; including any withholding tax, prepayment (precompte) or advance payment with respect to the aforesaid taxes; (hereinafter refereed to as “French Tax”); 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this Convention, in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify to each other any substantial changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS 1. In this Convention, unless the context otherwise requires : (a) the terms “one of the Contracting States” and “the other Contracting State” mean France or Indonesia, as the context requires; (b) 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; (c) the term “France” means the European and overseas departments of the French Republic, including the area outside the territorial sea adjacent to those departments which is, in accordance with international law, an area within which France may exercise rights with respect to the sea bed and sub-soil and their natural resources; (d) the term “person” comprises an inpidual, a company and any other body of persons; (e) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; (f) 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; (g) the term “nationals” means: (1) all inpiduals possessing the nationality of a Contracting State; (2) all legal persons, partnerships and associations deriving their status as such from the law in force in a Contracting State; (h) the term “competent authority” means: (1) in the case of Indonesia, the Minister of Finance or his authorised representative; (2) in the case of France, the Minister of the Budget or his authorised representative. 2. As regards the application of the Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of the Convention. Article 4 FISCAL DOMICILE 1. For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the law of that State, is liable to taxation 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 Contracting State in respect only of income from sources therein or capital situated in that State. 2. 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: (a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closest (centre of vital interests); (b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting 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, 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 Contracting State in which its place of effective management is situated. If a place of effective management is considered as situated in both Contracting States, the competent authorities of the Contracting States shall settle the question by mutual agreement. Article 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business in which the business of the enterprise is wholly or partly carried