Seychelles (Seychelles)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE REPUBLIC OF SEYCHELLES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESFECT 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, as well as taxes on the total amounts of wages or salaries paid by enterprises. The existing taxes to which the Agreement shall apply are in particular: (a) in the case of Seychelles: the business tax, (hereinafter referred to as “Seychelles tax”); (b) in the case of Indonesia: the income tax imposed under the Undang-undang Pajak Penghasilan l984 (Law Number 7 of l983 as amended); hereinafter referred to as “Indonesian tax”). The agreement shall apply also to any identical or substantially similar taxes which are impossed after the that 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 law. Article 3 GENERAL DEFINITIONS For the purposes of this Agreement, unless the context otherwise requires: (a) (i) the term “Indonesia” means the territory of the Republic of Indonesia as defined in its laws; (ii) the term “Seychelles” means the Republic of Seychelles; when used in a geographical sense, it means all the territories, including all the islands which, in accordance with the laws of Seychelles, constitute the State of Seychelles and includes the territorial sea of Seychelles and any area outside the territorial of Seychelles which, in accordance with international law, has been or may hereafter be designated under the laws of Seychelles as an area including the territorial shelf, within which the rights of Seychelles with respect to the sea, the seabed and subsoil and their natural resources may be exercised; (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 the 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 Contracting State and an enterprise carried on by a 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: (i) in the case of Indonesia: the Minister of Finance or his authorized representative; (ii) in the case of Seychelles: the Minister of Finance or his authorised representative; (g) the term “national” of a Contracting State means: (i) any inpidual possessing the nationality of that Contracting State; (ii) any legal person, partnership and association deriving their status as such from the laws in force in that Contracting State. As regards the application of the Agreement 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 purpose 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 respect only of income from sources in that State. 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 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 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 States or in neither of them he shall be deemed to be a resident 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. 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 is wholly or partly carried on. 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 warehouse, in relation to person providing storage facilities for other persons; (g) a farm or plantation; (h) a mine, an oil or gas well, a quarry or any other place