Kroasia (Croatia)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE REPUBLIC OF CROATIA FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of Indonesia and The Government of the Republic of Croatia DESIRING to conclude an Agreement for the avoidance of double taxation with respect to taxes on income, HAVE AGREED AS FOLLOW: Article 1 PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES CONVERED (1) This Agreement shall apply to taxes on income imposed on behalf of a Contractiong State or of its local authorities, 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 existing taxes to which this Agreement shall apply are: a) in the Republic of Indonesia: the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law Number 7 of 1983 as arrended). (hereinafter referred to as Indonesian tax); b) in the Republic of Croatia: (i) the profit tax, (ii) the income tax; (hereinafter referred to as Croatian 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. At the end of each year, the competent authorities of the Contracting States shal notify each other of any substantial changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS (1) 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; b) the term Croatia means the territory of the Republic of Croatia as well as those maritime areas adjacent to the outer limit of territorial sea, including seabed and subsoil thereof, over which the Republic of Croatia in accordance with international law (and the laws of the Republic of Croatia) exercises its sovereign rights and jurisdiction; c) the terms a Contracting State and the other Contracting State means, as the context requires, Indonesia or Croatia; d) the term person includes an inpidual, a company and any other body of persons; e) the term company means any body coporate 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 international traffic means any transport by a ship or aircraft operated by an enterprise of Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; h) the terms national means any inpidual possessing the citizenship of a Contracting State and any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State; 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 Croatia, the Minister of Finance or his authorized representative. (2) 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 that it has at that time under the law of that State for the purpose of the taxes to which the Agreement applies, any meaning under the applicable tax laws of the State prevailing over a meaning given to the term under other 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. But this term does not include any person who is liable to tax in that State in respecty only of income from sources in that State. (2) Where by reason of the provision of paragraph I 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 only 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 (center of vital interests); b) if the State in which he has his center of vital interest 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 only of the State in which he has an habitual abode; c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national; d) 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. (3) Where by reason of the provisons of paragraph I a person other than an inpidual is a resident of both Contracting States, then itu shall be deemed to be a resident only of the State in which its place of effective management is situated. Article 5 PERMANENT ESTABLISHMENT (1) For the purpose 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. (2) The term permanent establishment includes especially: a)