Taiwan (Taipei
AGREEMENT BETWEEN THE INDONESIAN ECONOMIC AND TRADE OFICE TO TAIPEI AND THE TAIPEI ECONOMIC AND TRADE OFFICE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME Article 1 PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the countries of the contracting parties. Article 2 TAXES COVERED The existing taxes to which the Agreement shall apply are: (a) in the country represented by the Taipei Economic and Trade Office: the profit seeking enterprise income tax and the inpidual consolidated income tax; (b) in the country represented by the Indonesian Economic and Trade Office to Taipei; the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983 as amended). The Agreement shall also apply 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 countries of the Contracting Parties shall notify each other of significant changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS For the purpose of this Agreement, unless the context otherwise requires: (a) (i) the term “the country represented by the Taipei Economic and Trade Office” comprises the territory of the said country and the territorial sea thereof as well as any area outside the territorial sea over which the said country has sovereignty, sovereign rights or jurisdiction in accordance with international law; (ii) the term “the country represented by the Indonesian Economic and Trade Office to Taipei” comprises the territory of the said country and the adjacent areas over which the said country has sovereignty, sovereign rights or jurisdiction in accordance with international law; (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 the country of a Contracting Party” and “enterprise of the country of the other Contracting Party” mean respectively an enterprise carried on by a resident of the country of a Contracting Party and an enterprise carried on by a resident of the country of the other Contracting Party; (e) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of the country of a Contracting Party, except when the ship or aircraft is operated solely between places in the country of the other Contracting Party; (f) the term “competent authority” means: (i) in the country represented by the Taipei Economic and Trade Office: the Director General, Department of Taxation, Ministry of Finance or his authorised representative; (ii) in the country represented by the Indonesian Economic and Trade Office to Taipei: the Director General of Taxation, Ministry of Finance or his authorised representative; (g) the term “national” means: (i) any inpidual possessing the nationality of the country of a Contracting Party; (ii) any legal person, partnership and association deriving its status as such from the laws in force in the country of a Contracting Party; (h) the terms “the country of a Contracting Party” and “the country of the other Contracting Party” mean the country represented by the Taipei Economic and Trade Office and the country represented by the Indonesian Economic and Trade Office to Taipei as the context required. As regards the application of this Agreement, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of the country to which the Agreement applies. Article 4 RESIDENT For the purposes of this Agreement, the term “resident of the country of a Contracting Party” means any person who, under the laws of that country, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature. Where by reason of the provisions of paragraph 1 an inpidual is a resident of both countries of the Contracting Parties, then his status shall be determined as follows: (a) he shall be deemed to be a resident of the country in which he has a permanent home available to him; if he has a permanent home available to him in both countries, he shall be deemed to be a resident of the country with which his personal and economic relations are closer (centre of vital interests); (b) if the country 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 country, he shall be deemed to be a resident of the country in which he has an habitual abode; (c) if he has an habitual abode in both countries or in neither of them, the competent authorities of both countries 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 countries of the Contracting Parties, then it shall be deemed to be a resident of the country in which its place of incorporation is situated. 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 farm or plantation; (g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. The term “permanent establishment” likewise encompasses: (a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site or project or activities continue in one of the countries of the Contracting Parties for a period