Swiss (Switzerland)
AGREEMENT BETWEEN THE GOVERMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE SWITZERLAND CONFEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WTH RESPECT TO TAXES ON INCOME Article 1 PERSONAL SCOPE This Agreement shall apply to person who are resident of one or both of the Contracting State. Article 2 TAXES COVERED This Agreement shall apply to taxes on income imposed on behalf of a 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, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. The existing taxes to which the Agreement apply are in particular ; (a) in Indonesia : the income tax (Pajak Penghasilan) including the company tax and any withholding tax, prepayments or advance payment with respect to the aforesaid tax. (hereinafter referred to as “Indonesian tax”); (b) in Switzerland : the federal, cantonal and communal taxes on income (total income, earned income, income from capital, industrial and commercial gains, and other items of income) (hereinafter referred to as “Swiss tax”). 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 changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS For the purposes of this Agreement, unless the context otherwise requires : (a) the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws and the adjacent areas over which the Republic of Indonesia has sovereign rights or jurisdiction in accordance with international law; (b) the term “Switzerland” means the Swiss Confederation; (c) the term “a Contracting State” and “the other Contracting State” means Indonesia or Switzerland, as the context requires; (d) the term “person” includes 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 “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; (h) the term “nationals” means: (i) all inpiduals possessing the nationality of a Contracting State; (ii) all legal persons, partnerships and associations deriving their status as such from the laws in force in a Contracting State; (i) the term “competent authority” means: (i) in Indonesia, the Minister of Finance or his authorized representative, and (ii) in Switzerland, the Director of the Federal Tax Administration or his authorized representative; (j) the term “tax” means Indonesian tax or Swiss tax, as the context requires. 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 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. 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, 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 Contracting States shall settle the question by mutual agreement. Article 5 PERMANENT ESTABLISMENT 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 mine, an oil or gas well, a quarry or any other place of extraction of natural resources; (g) a farm of plantation; (h) a building site, a construction, installation or assembly project or supervisory activities in connection therewith, where such site, project or activity continues for a period of more than 183 days. The term “permanent establishment” shall be deemed not to include: (a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of