Yordania (Jordan)
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE HASHEMITE KINGDOM OF JORDAN 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 Contacting 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. The existing taxes to which the Agreement shall apply are: a in lndonesia: the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983 as amended.) (hereinafter referred to as Indonesian tax). b In Jordan: – the income tax; – the distribution tax; – the social service tax; (hereinafter referred to as Jordanian 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 any substantial 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 i the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws; ii the term “Jordan” means the territories of the Hashemite Kingdom of Jordan, the territorial waters of Jordan and the seabed and subsoil of the territorial waters, and includes any are extending beyond the limits of the territorial waters of Jordan, the seabed and subsoil of any such area, which has been or may hereafter be designated, under the laws of Jordan, in accordance with international law, as an are over which Jordan has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non-living; 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 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 a Contracting State and an enterprise carried on by a resident of the other Contracting State; e 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 Indonesia: the Minister of Finance or his authorised representative; ii in the case of Jordan: the Minister of Finance or his authorised representative; g the term “national” means: i any inpidual possessing the nationality of a Contracting State; ii any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State; h the term “fixed base” means a permanent place in which professional activities are exercised. 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 laws 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 persons who, under the laws of that State, is liable to tax therein by reason of this domicile, residence, place of management or any other criterion of similar nature. But this term does not include any person who is liable to tax in that State 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 (center 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 the status of resident cannot be determined according to sub-paragraphs a-c, 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 shall include especially: a a place of management; b a branch; c an office; d a factory; e a workshop; f a warehouse or premises used as sales outlet; g a farm or plantation; h a mine, an oil of gas well, a quarry or other place of extraction of natural resources, drilling rig or working ship used for exploration or exploitation of natural resources. The term permanent