Filipina (Philippines)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES 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 1. This Agreement shall apply to taxes on income imposed on behalf of each 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, and taxes on the total amounts of wages or salaries paid by enterprises. 3. The taxes which are the subject of this Agreement are: (a) in Indonesia : (i) the Income Tax (Pajak Pendapatan); (ii) the Company Tax (Pajak Perseroan); (iii) the Tax on Interest, Dividend and Royalty (Pajak atas Bunga, Dividen dan Royalty), (hereinafter referred to as “Indonesian tax”); b) in the Philippines : – the income taxes imposed by the Government of the Republic of the Philippines, (hereinafter referred to as “Philippine tax”). 4. The Agreement shall apply also to any identical or substantially similar taxes on income which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of substantial changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS 1. In this Agreement, unless the context otherwise requires : (a) (i) 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; (ii) the term “Philippines” means the Republic of the Philippines and when used in a geographical sense means the national territory comprising the Republic of the Philippines; (b) the terms “a Contracting State” and “the other Contracting State” mean the Philippines or Indonesia; (c) the term “person” includes an inpidual, an estate, a trust, 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 “national” means: (i) any inpidual possessing the nationality of a Contracting State; (ii) a juridical person created or organized under the laws of a 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; (h) the term “competent authority” means: (i) in the case of Indonesia, the Minister of Finance or his duly authorized representative; (ii) in the case of the Philippines, the Minister of Finance or his duly authorized representative. 2. As regards the application of this 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 this Agreement applies. Article 4 FISCAL DOMICILE 1. 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 treated as a resident for tax purposes in the Contracting State. 2. Where by reason of the provision 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 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 State with which his personal and economic relations are closer (centre of vital interests); (b) if the 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 State, he shall be deemed to be a resident of the 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 two Contracting States shall settle the question by mutual agreement. 3. Where by reason of the provision of paragraph 1, a person other than an inpidual is a resident of both Contracting States, the competent authorities of the Contracting States shall settle the question by mutual agreement. provisions of paragraph 1, a person other than an inpidual is a resident of both Contracting State, the competent authorities of the Contracting State shall settle the question by mutual agreement. Article 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of the enterprise is wholly or partly carried on. 2. 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; (h) a place of exploration of natural resources; (i) a building site or construction project or supervisory activities in connection therewith, where such site,