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Approving The Agreement Between The Portuguese Republic And The Republic Of Indonesia For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income, Signed At Lisbon On 9 July 2003

Original Language Title: Aprova o Acordo entre a República Portuguesa e a República da Indonésia para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Impostos sobre o Rendimento, assinado em Lisboa em 9 de Julho de 2003

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MOTION FOR RESOLUTION No. 28 /X

Considering that on the visit of His Excellency the Minister of Foreign Affairs of the

Republic of Indonesia to Lisbon, made on July 9, 2003, the representatives of the

Portuguese Republic and the Republic of Indonesia signed an Agreement to Prevent the

Double Taxation and Preventing Tax Evasion in Tax Matters on the

Income;

Aware that this Agreement will fundamentally allow to avoid double taxation of the

different categories of income earned by residents in any of the States

Contractors;

Attending to which establishes rules that delimit the tax competence of each

State to tax the income, notably the derivatives of real estate,

of business activities, dividends, interest, royalties , income from work

dependent and pensions;

Considering that its entry into force will contribute to the creation of a framework

more stable and transparent tax for investors of both states and to that extent

positively influence the development of capital flows;

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following motion for a resolution:

Approves the Agreement between the Portuguese Republic and the Republic of Indonesia to Prevent the

Double Taxation and Preventing Tax Evasion in Tax Matters on the

Income, signed in Lisbon, on July 9, 2003, the text of which, in version

authenticated in the Portuguese, Indonesian and English languages, it publishes in annex.

Seen and approved in Council of Ministers of November 17, 2005

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs

AGREEMENT

BETWEEN

THE PORTUGUESE REPUBLIC

And

THE REPUBLIC OF INDONESIA

TO AVOID DOUBLE TAXATION

And

PREVENTING TAX EVASION

IN THE MATTER OF

TAXES ON

THE THROUGHPUT

The Portuguese Republic and the Republic of Indonesia,

Wishing to enter into an Agreement to avoid double taxation and prevent avoidance

tax on income tax,

They agreed in the following provisions:

Article 1º

PEOPLE TARGETED

This Agreement applies to the resident persons of one or both of the States

Contractors.

Article 2º

TAX VISED

1. This Agreement applies to taxes on income required by a State

Contractor, by its political or administrative subdivision or local municipality, be

what is the system used for your perception.

2. Are considered income taxes the taxes incidents on the

total income or on parcels of income, included the taxes on the

gains derived from the disposal of the securities or real estate, the taxes on the

overall amount of salaries or salaries paid by the companies.

3. The current taxes to which this Agreement applies are, inter alia:

a) In the case of the Portuguese Republic:

(i) The Income Tax on Singular Persons-IRS;

(ii) The Income Tax of Collective People-IRC;

(iii) The additional municipal tax on the IRC-Derrama;

(hereinafter referred to by the designation of "Portuguese tax");

b) In the case of the Republic of Indonesia:

(i) The Income Tax;

(hereinafter referred to by the designation of "Indonesian tax").

4. The Agreement shall also be applicable to taxes of an identical or similar nature as

come into force thereafter at the date of the signing of the Agreement and to come to

add to the current or replace them. The competent authorities of the States

Contractors shall communicate one to the other the important modifications made to the

respective tax legislations.

Article 3º

GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context requires different interpretation:

a) The term "Portugal" comprises the territory of the Portuguese Republic

situated on the European continent, the archipelagos of the Azores and Madeira, the

respective territorial sea and well the other areas where, in

compliance with Portuguese legislation and international law, the

Portuguese Republic has jurisdiction or sovereign rights in respect of

prospecting and exploitation of the natural resources of the sea bed and the subsoil

and of the overjacking waters;

b) The term "Indonesia" comprises the territory of the Republic of Indonesia such

as defined in the respective legislation, and the areas of the continental shelf

and the adjacent waters for which the Republic of Indonesia has

sovereignty, sovereign rights or jurisdiction in accordance with the law

international;

c) The expressions "a Contracting State" and "the other Contracting State"

mean Portugal or Indonesia, as a result of the context;

d) The term "person" comprises a natural person, a society and

any other grouping of persons;

e) The term "society" means any legal person or any

entity treated as a legal person for tax purposes;

f) The expressions "company of a Contracting State" and " company of the other

State Contractor " means, respectively, an explored company

by a resident of a Contracting State and a company operated by

a resident of the other Contracting State;

g) the expression "international traffic" means any transport by ship

or aircraft operated by a company of a Contracting State, except

if the ship or aircraft is operated only between places situated in the

another Contracting State;

h) the expression "competent authority" means:

(i) Relatively to Portugal: the Minister of Finance, the Managing Director

of the Taxes or their authorised representatives;

(ii) Regarding Indonesia: the Minister of Finance or his

authorized representative;

i) The term "national" means:

(i) A natural person who has the nationality of a State

Contractor;

(ii) A legal person, society of persons or association constituted

of harmony with the legislation in force in a Contracting State.

2. As regards the implementation of the Agreement, at a given point in time, by a State

Contractor, any undefined expression of another mode should have, unless the

context requires different interpretation, the meaning that is assigned to it

moment by the legislation of that State which regulates the taxes to which the Agreement applies,

prevailing the interpretation resulting from this tax legislation on what it decorates from

other legislation from that state.

Article 4º

RESIDENT

1. For the purposes of this Agreement, the expression "resident of a Contracting State"

means any person who, by virtue of the legislation of that State, is there subject to

tax due to your domicile, your residence, the place of direction or any

another criterion of a similar nature, and applies equally to that State and to its

political or administrative subdivisions or local authorities. However, this expression

does not include any person who is subject to tax in that state only relatively

to the income of sources located in that state.

2. When, by virtue of the provisions of paragraph 1, a natural person is a resident of

both the Contracting States, the situation shall be resolved as follows:

a) It will be considered resident only of the State in which it has a dwelling

permanent at your disposal; if you have a permanent dwelling to your

provision in both states, will be considered resident only of the

State with which they are narrower their personal relationships and

economic (centre of vital interests);

b) If the state in which it has the centre of vital interests cannot be

determined or if it does not have permanent housing at its disposal in

none of the States, shall be considered resident only of the State in which

remains usually;

c) If it stays customarily in both states or if it does not remain

usually in none of them, will be considered resident only of the

State of which it is national;

d) If it is national of both States or is not national of any of them,

the competent authorities of the Contracting States shall solve the case of

common agreement.

3. When, by virtue of the provisions of paragraph 1, a person, who is not a person

singular, for resident of both the Contracting States, shall be considered resident

only from the State in which its actual direction is located.

Article 5º

STABLE ESTABLISHMENT

1. For the purposes of this Agreement, the expression "stable establishment" means a

fixed installation, through which the company exercises all or part of its business.

2. The expression "stable establishment" comprises, inter alia:

a) A place of direction;

b) A branch;

c) An office;

d) A factory;

e) A workshop;

f) a warehouse or facilities used as a sales post;

g) A fifth or plantation;

h) A mine, an oil or gas well, a quarry or any other

site of extraction of natural resources;

i) A drilling equipment or operating vessel used in the

prospecting or exploitation of natural resources.

3. The expression "stable establishment" comprises also:

a) A site or a construction site, a construction project, of

installation or assembly, as well as the supervisory activities

related, but only when their duration is extended by a period

greater than 6 months;

b) the provision of services, including consultancy services, by a

company, through employees or other personnel hired by the

company for the purpose, but only when the activities of that nature if

extend (relatively to the same project or to a conexo project),

within the territory of the country, during a period or periods totaling

more than 183 days in any period of 12 months.

4. Notwithstanding the previous provisions of this Article, the expression

"stable establishment" does not understand:

a) The facilities used solely to store, expose or deliver

goods or goods belonging to the company;

b) A deposit of goods or goods belonging to the company, maintained

solely to store them, expose or deliver;

c) A deposit of goods or goods belonging to the company, maintained

solely to be transformed by another company;

d) A fixed installation, maintained solely to purchase goods or

goods or gather information for the company;

e) A fixed installation, maintained solely to exercise, for the company,

any other activity of a preparatory or auxiliary character;

f) a fixed installation, maintained solely for the exercise of any

combination of the activities referred to in points (a) to and), provided that the

fixed installation joint activity resulting from this combination is

of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, when a person-who is not a

independent agent, to which paragraph 6 is applicable-act on account of a company and has,

and habitually exercise, in a Contracting State, powers to conclude contracts in

name of the company, it will be considered that this company has a stable establishment

in that State in respect of any activity that such person exercises for the

company, unless the activities of such a person are limited to those indicated in paragraph 4, the

which, if they were exerted through a fixed installation, would not allow to consider

this fixed installation as a stable establishment, in accordance with the provisions

of that number.

6. It does not consider that a company has a stable establishment in a State

Contractor for the simple fact of carrying out its business in that State through

of a broker, of a commissioner-general or of any other independent agent,

provided that such persons act in the normal scope of their activity.

7. The fact that a resident corporation of a Contracting State controls or is

controlled by a resident company of the other Contracting State Contracting or which exercises the

its activity in that other state (whether it is through a stable establishment,

whether otherwise) is not, in and of itself, quite a lot to make of any of these societies

stable establishment of the other.

Article 6º

INCOME FROM REAL ESTATE

1. The income that a resident of a Contracting State auffers from goods

real estate (included the incomes of agricultural or forestry holdings) situated

in the other Contracting State may be taxed in that other State.

2. The expression "real estate" shall have the meaning assigned to it by the

right of the Contracting State in which such goods are situated. The expression

always comprises the accessories, cattle and equipment of the farms and

forest, the rights to which the provisions of the private law relating to the

property of immovable property, the enjoyment of real estate and the rights to retribution

variable or fixed by the holding or by the granting of the exploitation of mineral deposits,

sources and other natural resources; the ships, boats and aircraft are not considered

real estate.

3. The provision of paragraph 1 shall apply to the income derived from direct use, of the

leasing or any other form of use of the real estate.

4. The provisions of paragraphs 1 and 3 shall also apply to income from those

real estate owned by a company and the income of the real estate used

for the exercise of independent occupations.

5. The above provisions also apply to the income derived from

securities, or to the earned income from services provided in connection with

the use or the granting of the use of real estate, which, in accordance with the tax law

of the Contracting State in which such goods are situated, are assimilated to the

income derived from real estate.

ARTICLE 7º

PROFITS OF COMPANIES

1. The profits of a company from a Contracting State can only be taxed

in that State, unless the company exercises its activity in the other State

Contractor by means of a stable establishment there. If the company exercises the

its activity in this way, its profits can be taxed in the other state, but

solely to the extent that they are attributable to that stable establishment.

2. With the proviso of the provisions of paragraph 3, when a company of a State

Contractor to carry out its activity in the other Contracting State by means of a

stable establishment there located, will be charged, in each Contracting State, to that

stable establishment the profits this would get if it were a distinct company and

separate who carried out the same activities or similar activities, in the same

conditions or in similar conditions, and treated with absolute independence with the

company of which is permanent establishment.

3. In determining the profit of a stable establishment, it is permitted to deduct the

expenses that have been made to carry out the purposes pursued by that

stable establishment, including steering expenses and general expenses of

administration, carried out with the said end, or in the State in which that

stable establishment is situated want out of it. However, it will not be allowed

deduct the paid importances (save for the title of reimbursement of expenses carried out), if

where appropriate, by the stable establishment to the company's registered office or to any of the

your offices, in the title of royalties , honorariums or other similar payments as

remuneration for the use of patents or other rights, or the title of commission by the

provision of specific or managerial services, or, save in the case of a company

bank, in the title of interest on loans granted to the stable establishment.

Similarly, in the determination of the profits of a stable establishment, they will not be

taken into account the importances charged (save for the title of refund of

expenses incurred) by the stable establishment to the company's registered office or to any

of its offices, in the title of royalties , fees or other similar payments

as remuneration for the use of patents or other rights, or the title of commission

for the provision of specific or managerial services, or, save in the case of a company

bank, by way of interest on loans granted to the company's head office or the

any of your other offices.

4. If it is usual in a Contracting State to determine the profits attributable to a

stable establishment on the basis of a breakdown of the total profits of the company between the

its various parties, the provisions of paragraph 2 shall not prevent such Contracting State from

determine taxable profits in accordance with the usual allocation; the method of

apportionment adopted shall, however, lead to a result as with the

principles set out in this Article.

5. No profit shall be charged to a stable establishment by the fact of the simple

purchase of goods or goods, by that stable establishment, for the company.

6. For the purposes of the preceding paragraphs, profits to be charged to the establishment

stable will be calculated, in each year, according to the same method, unless there are

valid and sufficient grounds to proceed differently.

7. When the profits understand elements of the specially treated yield

in other Articles of this Agreement, the respective provisions will not be affected by the

of this Article.

ARTICLE 8º

MARITIME AND AIR NAVIGATION

1. The profits of a company from a Contracting State from the holding

of ships or aircraft in international traffic can only be taxed in that state.

2. The provisions of paragraph 1 shall apply equally to profits from participation

in a pool , on an exploration in common or in an international operating body.

3. When companies from different countries are in order to engage in an activity of

air transport in the form of a consortium, the provisions of paragraph 1 shall apply to the Party

of the profits of the consortium corresponding to the participation held in that consortium by a

resident society of a Contracting State.

ARTICLE 9º

ASSOCIATED COMPANIES

1. When:

a) A company of a Contracting State to participate, direct or

indirectly, in the direction, control or capital of a company of the

another Contracting State; or

b) The same persons participate, directly or indirectly, in the direction, in the

control or in the capital of a company of a Contracting State and of a

company of the other Contracting State,

and in any of the cases, the two companies, in their commercial or financial relations,

are connected by accepted or imposed conditions that differ from those that would be

established between independent companies, the profits that, if they did not exist these

conditions, would have been obtained by one of the companies, but they were not because of

of these conditions, may be included in the profits of that company and, consequently,

taxed.

2. When, in accordance with the provisions of paragraph 1, a Contracting State shall include in the

profits of a company from that state-and tax in that compliance-the profits by the

which one company from the other Contracting State was taxed in that other State, and the

competent authorities of the Contracting States to agree, after consultation, that the

all or part of the profits included in this way constitute profits that would have been

obtained by the company of the first State if the conditions imposed between the two

companies had been the conditions that would have been established between companies

independent, the other State shall make the appropriate adjustment of the amount of the

tax there charged on the profits referred to. In the determination of this adjustment, they will

taken into account the other provisions of this Agreement.

Article 10º

DIVIDENDS

1. The dividends paid by a resident corporation of a Contracting State to a

resident of the other Contracting State may be taxed in that other State.

2. These dividends may, however, be equally taxed in the State

Contractor that it is a resident of the society that pays the dividends and in accordance with

legislation from that state, but if the beneficial owner of the dividends is a resident

of the other Contracting State, the tax thus established shall not exceed 10% of the

gross amount of dividends. The competent authorities of the Contracting States

will establish, by mutual agreement, the way to apply this limit. This number does not affect

the taxation of society for the profits from which dividends are paid.

3. The term "dividends", used in this Article, means the income from

of shares, shares or bonuses of fruition, parts of mines, parts of founders or other

rights, with the exception of credits, allowing to participate in the profits, as well as the

income derived from other social parties subject to the same tax regime as the

income from actions by the legislation of the State of which it is a resident of the society that the

distributes. The term "dividends" also includes the profits awarded in the terms of a

profit share agreement.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends,

resident of a Contracting State, engage in activity in the other Contracting State of

who is a resident of the society that pays the dividends, by means of an establishment

stable there situated, or exercise in that other state an independent profession, by means of

of a fixed installation there situated, and the participation for which the dividends

are paid are actually connected to such a stable establishment or to that

fixed installation. In this case, the provisions of Article 7º or Article 14º shall apply,

depending on the case.

5. With the proviso of the other provisions of this Agreement, when a society

resident of a Contracting State to have a permanent establishment in the other State

Contractor, the profits of the stable establishment may become subject to a tax

additional in that other State, pursuant to the respective domestic legislation, but the

additional tax thus established will not exceed 10% of the amount of those

profits after deduction of tax on income and other tax incidents

on income in that other state.

6. The provisions of paragraph 5 of this Article shall not affect the constant provisions of a

contractures of participation in production, concerning the oil and gas sector,

entered into between the Government of Indonesia and a resident person of the other State

Contractor, and thus its instrumentality, the relevant state society in the

domain of oil and gas or any other entity.

7. When a resident company of a Contracting State obtains profits or

income from the other Contracting State, this other State shall not be able to

demand no tax on dividends paid by the company, except to the extent

in which such dividends are paid to a resident of that other state or to the extent

where the participation relatively to which dividends are paid is

actually connected to a stable establishment or to a fixed installation located

in that other state, nor subject the undistributed profits of the society to a tax

on undistributed profits, even if dividends paid or profits do not

distributed, in whole or in part, consist of profits or income from

of that other state.

ARTICLE 11º

INTEREST

1. Interest accruing from a Contracting State and paid to one resident of the other

State Contracting may be taxed in that other State.

2. However, these interest may also be taxed in the Contracting State

of which they originate and in accordance with the legislation of that State, but if the beneficiary

effective interest for a resident of the other Contracting State, the tax so

established will not exceed 10% of the gross amount of interest. The authorities

competent of the Contracting States shall establish, by common accord, the form of

apply this limit.

3. Notwithstanding the provisions of paragraph 2, the interest arising from a Contracting State

and auwounded by the Government of the other Contracting State, including the respective

local authorities, a political or administrative subdivision and institutions

government, the Central Bank or any financial institution controlled by that

Government, whose capital is held in full by the Government of the other State

Contractor, depending on whether it is agreed periodically between the competent authorities

of the Contracting States, shall be exempt from tax in the first mentioned State.

4. The term "interest", used in this Article, means the earnings of credits of

any nature with or without a mortgage guarantee and with a right or not to participate

in the profits of the debtor, and in particular the income from the public debt and

obligations, including premiums reaching those securities. For the purposes of this Article, not if

consider interest to be penalizations for late payment.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest,

resident of a Contracting State, engage in activity in the other Contracting State of

which originate the interest, by means of a stable establishment there, or exercise

in that other state an independent profession, by means of a fixed installation there

situated, and the credit for which interest is paid is actually

linked to that stable establishment or to that fixed installation. In this case, they are

applicable the provisions of Article 7º or Article 14º, as the case may be.

6. Interest shall be deemed to arise from a Contracting State when the debtor

for a resident of that state. However, when the debtor of interest, whether or not

resident of a Contracting State, has in a Contracting State an establishment

stable or a fixed installation in relation to which there has been contracted the obligation

by which interest is paid and such a stable establishment or such fixed installation

support the payment of these interest, such interest is considered from the State

in which the stable establishment or the fixed installation are situated.

7. When, due to existing special relationships between the debtor and the beneficiary

effective or between both and any other person, the amount of interest paid, having in

account for the credit for which they are paid, exceed the amount that would be agreed between the

debtor and the beneficial owner in the absence of such relationships, the provisions of this

Article are applicable only to this last amount. In this case, the excess can

continue to be taxed in accordance with the legislation of each State

Contracting, taking into account the other provisions of this Agreement.

ARTICLE 12º

ROYALTIES

1. The royalties coming from a Contracting State and paid to a resident of the

another Contracting State may be taxed in that other State.

2. However, these royalties can also be taxed in the State

The contractor to which they originate and in accordance with the legislation of that State, but if the

beneficial owner of the royalties for a resident of the other Contracting State, the

Tax so established will not exceed 10% of its gross amount. The authorities

competent of the Contracting States shall establish, by common accord, the form of

apply this limit.

3. The term " royalties ", used in this Article, means the retributions of any

nature assigned by the use or by the granting of the use of an author's right on a

literary, artistic or scientific oeuvre, including cinematographic films as well as the

films or recordings for transmission by radio or television, of a patent, of

a manufacturing or trade mark, of a drawing or a model, of a plan,

of a formula or of a secret process, as well as by the use or grant of the

use of an industrial, commercial or scientific equipment, or by information

relating to an experience gained in the industrial, commercial or scientific sector.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties ,

resident of a Contracting State, engage in activity in the other Contracting State of

which originate the royalties , by means of a stable establishment located there, or exercise

in that other state an independent profession, by means of a fixed installation there

situated, and the right or well relatively to which the royalties are paid are

actually connected to that stable establishment or to that fixed installation. In this

case, the provisions of Article 7º or Article 14º shall apply, as the case may be.

5. The royalties consider themselves coming from a Contracting State when the

debtor for a resident of that state. However, when the debtor of the royalties , be

or non-resident of a Contracting State, have in a Contracting State a

stable establishment or a fixed installation in relation to which there has been

contraption the obligation by which the royalties are paid, and this establishment stable

or this fixed installation supports the payment of these royalties , such royalties are

considered from the State in which the establishment is stable or the installation

fixed are situated.

6. When, due to existing special relationships between the debtor and the beneficiary

effective or between both and any other person, the amount of royalties , having in

account for the use, the right or the information by which they are paid, exceed the amount that

would be agreed between the debtor and the beneficial owner, in the absence of such relationships, the

provisions of this Article are applicable only to the latter amount. In this case, the

surplus may continue to be taxed in accordance with the legislation of each

State Contracting Officer, taking into account the other provisions of this Agreement.

ARTICLE 13º

MAIS-VALIAS

1. The gains that a resident of a Contracting State auffers from the divestance of

real estate considered in Article 6º and located in the other Contracting State

can be taxed in that other state.

2. The gains from the disposal of the securities that are part of the

active establishment of a stable establishment that a company of a Contracting State has

in the other Contracting State or of transferable securities to a fixed installation of

that a resident of a Contracting State possesses in the other Contracting State for

the exercise of an independent profession, including the gains from the

alienation from that stable establishment (isolated or with the company's ensemble) or

of this fixed installation, can be taxed in that other state.

3. The gains from the disposal of ships or aircraft explored in the

international traffic by a company of a Contracting State, or of goods

securities assigned to the holding of such ships or aircraft, can only be taxed

in that Contracting State.

4. The gains from the disposal of any other goods other than the

mentioned in paragraphs 1, 2 and 3 can only be taxed in the Contracting State of which the

alienating is a resident.

Article 14º

INDEPENDENT OCCUPATIONS

1. The income earned by a resident individual from a Contracting State

by the exercise of a liberal profession or other activities of character

independent can only be taxed in that State, except in the circumstances below

set out, in which case those income may also be taxed on the other

Contracting State:

a) If that resident is customary, in a customary manner, in the other Contracting State

of a fixed installation for the exercise of its activities; in this case,

may be taxed in the other Contracting State, solely, the

income that is attributable to that fixed installation; or

b) If the resident remains in the other Contracting State for a period

or periods that totalize or exceed, as a whole, 183 days, in

any period of twelve months; in this case, it can only be taxed on the other

State Contracting the share of income with origin in the activities

exerted in that other state.

2. The expression "liberal professions" covers, in particular, activities

independent of scientific, literary, artistic, educational or pedagogical character, well

as the independent activities of doctors, lawyers, engineers, architects,

dentists and accountants.

Article 15º

DEPENDENT PROFESSIONS

1. With caveat of the provisions of Articles 16º, 18º, 19º and 20º, wages, maturities

and similar remunerations obtained from a job by a resident of a State

Contractors can only be taxed in that state, unless employment is

exercised in the other Contracting State. If the employment is exercised there, the remunerations

correspondents can be taxed in that other state.

2. Notwithstanding the provisions of paragraph 1, the remuneration obtained by a resident of a

State Contracting Officer of a job exercised in the other Contracting State may only be

taxed in the first mentioned state if:

a) The beneficiary remains in the other State for a period or periods

that do not exceed, in total, 183 days in any period of twelve months

with start or term in the calendar year concerned; and

b) remunerations are paid by an employer or in the name of

an employer who is not a resident of the other State; and

c) remunerations are not supported by a stable establishment or

by a fixed installation that the employer has in the other State.

3. Notwithstanding the previous provisions of this Article, the remuneration of a

employment exercised on board a ship or an aircraft operated in traffic

international by a company of a Contracting State may be taxed in that

Contracting State.

ARTICLE 16º

PERCENTAGES OF MEMBERS OF COUNCILS

1. The percentages, passwords of presence and similar remunerations obtained by a

resident of a Contracting State in the capacity of a member of the board of

administration or the tax council or other similar body of a society

resident of the other Contracting State may be taxed in that other State.

2. The remuneration obtained from a corporation by a person to which paragraph 1 applies,

regarding the performance of daily functions of a gestor or technical nature, may

be taxed in accordance with the provisions of Article 15º.

Article 17º

ARTISTS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14º and 15º, the income earned by a

resident of a Contracting State in the quality of professional of spectacles, such

as an artist of theatre, film, radio or television, or musician, as well as of sportsman,

from your personal activities exerted, in that capacity, in the other State

Contractors, can be taxed in that other state.

2. Notwithstanding the provisions of Articles 7º, 14º and 15º, the income of the activity

exerted personally by the professionals of spectators or sportsmen, in that

quality, assigned to one other person, can be taxed in the Contracting State

where such activities of the professionals of spectacles or of the

sportsmen.

3. Notwithstanding the provisions of paragraphs 1 and 2, the income earned from the activities

referred to in nº1, within the framework of a cultural or sports exchange programme

agreed by both the Contracting States, shall be exempt from tax in the State

Contractor in which such activities are carried out.

ARTICLE 18º

PENSIONS

With the proviso of the provisions of paragraph 2 of Article 19º, pensions and other

similar remunerations paid to a resident of a Contracting State in

consequence of a previous employment can only be taxed in that state.

ARTICLE 19º

PUBLIC REMUNERATION

1. (a) The wages, salaries and other similar remunerations, excluding those

pensions, paid for by a Contracting State or by a subdivision

policy or administrative or local authority or statutory body to a

natural person, as a result of services provided to that State or to

that subdivision or autarky or organ, can only be taxed in that

State;

b) The wages, salaries and other similar remunerations, can only,

however, be taxed in the other Contracting State, if the services are

provided in that State and if the natural person is a resident of that State:

(i) Being your national; or

(ii) That it has not become its resident solely for the purpose of providing

the so-called services.

2. a) The pensions paid by a Contracting State or by a subdivision

political or administrative or local authority or statutory body, whether

directly, either through funds by them constituted, to a person

singular, as a result of services provided to that State or to that

subdivision or autarchy or organ, can only be taxed in that State;

b) These pensions can only, however, be taxed in the other State

Contractor, if the natural person is a resident and a national of that

State.

3. The provisions of Articles 15º, 16º, 17º and 18º apply to wages, salaries and

other similar remuneration, and well so to pensions, paid as a result of

services provided in connection with a commercial or industrial activity exercised by

a Contracting State or by a political or administrative subdivision or

local municipality or statutory body.

Article 20º

PROFESSORS AND RESEARCHERS

1. A person who is, or has been, resident of a Contracting State immediately

before moving to the other Contracting State, with a view solely to teaching or

carry out scientific research at a university, college, school or other institution

similar for teaching or scientific research, recognized as having no purpose

lucrative by the Government of that other State, or in the framework of an official program of

cultural exchange, during a non-surplus period to two years from the date of

arrival in that other State, is exempt from tax in that other State by the

compensation received as a result of such teaching or research.

2. The provisions of the preceding paragraph of this Article shall also apply to persons who

make research in the framework of a scholarship awarded by an organisation

government, religious, beneficent, scientific, literary or pedagogical, provided that the

said scholarship is exempt from tax.

ARTICLE 21º

STUDENTS

The importances that a student or trainee who is or has been,

immediately prior to their stay in a Contracting State, resident of the other

State Contracting and whose stay in the first mentioned State has as

only end there to continue your studies or your training receive to cope with the

expenses for their maintenance, studies or training are not taxed in that state,

provided that they come from sources located outside that state.

ARTICLE 22º

OTHER INCOME

1. The elements of the income of a resident of a Contracting State and donde

want provenham, not treated in the previous Articles of this Agreement, with exclusion

of income in the form of lotteries and prizes, can only be taxed in that

State.

2. The provisions of paragraph 1 shall not apply to income, which is not income of goods

real estate as they are defined in Article 6º (2), earned by a resident of a

State Contracting Officer which carries out activity in the other Contracting State by means of a

stable establishment in it situated or that exercises in that other State a profession

independent through a fixed installation on it situated, being the right or the

property in respect of which the income is paid actually connected with that

stable establishment or fixed installation. In this case, the provisions of the

Article 7º or Article 14º, as the case may be.

Article 23º

METHOD OF ELIMINATION OF

DOUBLE TAXATION

1. Regarding Portugal, double taxation will be eliminated as follows:

a) When a resident of Portugal obtains income that, in

compliance with the provisions of this Agreement, may be taxed in the

Indonesia, Portugal to deduct from tax on income from that

resident an importance corresponding to income tax

paid in Indonesia. The importance deduced may not, however, exceed the

fraction of the income tax, calculated before the deduction,

corresponding to the income that can be taxed in Indonesia.

b) When a resident of Portugal obtains income that, in

compliance with the provisions of this Agreement, are exempt from tax in

Portugal, Portugal will, however, be able to calculate the tax quantitation

on the other income of that resident, take into account the incomes

exempt.

2. Regarding Indonesia, when a resident of Indonesia obtains

income from Portugal, the importance of tax on those income paid in

Portugal in accordance with the provisions of this Agreement may be charged in the tax

incident in Indonesia with respect to that resident. The imputed importance not

may, however, exceed the fraction of the Indonesian income tax,

calculated in accordance with the respective tax legislation and regulations.

ARTICLE 24º

NON DISCRIMINATION

1. Nationwide nationals of a Contracting State shall not be subject in the other State

Contractor for no taxation or obligation with it related to different or more

gravy than those to which they are or may be subject to nationals of that other

State that they find themselves in the same situation, in particular with regard to the residence.

Notwithstanding the established in Article 1º, this provision will also apply to the

persons who are not residents of one or both of the Contracting States.

2. The taxation of a stable establishment that a company of a State

Contractor to have in the other Contracting State shall not be in that other State less

favorable than that of the companies in that other State who exercise the same

activities. This provision cannot be interpreted in the sense of obliging a

State Contracting to be granted to the residents of the other Contracting State the deductions

personal, rebates and reductions for tax purposes assigned as a function of the state

civil service or family charges granted to their own residents.

3. Unless the provisions of Article 9º (1), paragraph 7 of Article 11º or in Article 11º shall apply.

article 6 of Article 12º, the interest, royalties and other importances paid by a company of

a Contracting State to a resident of the other Contracting State shall be deductible,

for the purposes of determining the taxable profit of such a company, as if they were paid

a resident of the first mentioned state.

4. Companies of a Contracting State whose capital, in whole or in part, direct

or indirectly, be owned or controlled by one or more residents of the other

State Contracting Officer will not be subject, in the State first mentioned, to

no taxation or obligation with it related to it different or more gravy than

those to which they are or may be subject to similar undertakings from that first

State.

5. In the present Article, the term "taxation" means the taxes under this

Agreement.

Article 25º

FRIENDLY PROCEDURE

1. When a person considers that the measures taken by one or both of the

The Contracting States shall conduct or be able to conduct, in relation to you, a taxation

not in accordance with the provisions of this Agreement, may, regardless of the resources

set out in the national legislation of those States, submit their case to the authority

competent State of the Contracting State of which you are a resident or, if your case is

understood in paragraph 1 of Article 24º, of the Contracting State of which it is national. The case

is to be submitted within the two years following the date of the first communication

of the measure that gives cause to taxation not conforming to the provisions of the Agreement.

2. Such competent authority, if the complaint appears to be founded and is not

in conditions of giving you a satisfactory solution, will strive to resolve the issue

through friendly agreement with the competent authority of the other Contracting State,

in order to avoid taxation not as per the Agreement.

3. The competent authorities of the Contracting States shall endeavour to resolve,

through friendly arrangement, the difficulties or the doubts to which it can give way to

interpretation or the application of the Agreement. They will also be able to consult in order to remove

double taxation in cases not provided for by the Agreement.

4. The competent authorities of the Contracting States shall be able to communicate

directly to each other, including through a joint committee consisting of

those authorities or by their representatives, in order to reach agreement in the terms

indicated in the previous numbers.

Article 26º

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange among themselves the

information required to apply this Agreement or the internal laws of the States

Contractors relating to taxes covered by this Agreement, in so far as the

taxation in them provided for is not contrary to this Agreement. The information obtained by

a Contracting State shall be deemed secret, in the same way as the

information obtained on the basis of the domestic legislation of that State, and may only be

communicated to persons or authorities (including courts and authorities

administrative) entrusted with the liquidation or collection of the taxes covered by

this Agreement, or of the declarative or executive procedures relating to these

taxes, or the decision of appeals regarding these taxes. These people or

authorities will use the information thus obtained only for the purposes referred to. These

information could be disclosed in the course of public courtrooms hearings or

in court decisions.

2. The provisions of paragraph 1 can never be interpreted to impose a

State Contracting the obligation:

a) To take administrative measures contrary to its legislation and practice

administrative or those of the other Contracting State;

b) To provide information that cannot be obtained on the basis of your

legislation or in the context of its normal administrative practice or those of the

another Contracting State;

c) Of transmitting revealing information of secrets or processes

commercial, industrial or professional, or information whose communication

is contrary to public order.

ARTICLE 27º

MEMBERS OF DIPLOMATIC MISSIONS

AND FROM CONSULAR POSTS

The provisions of this Agreement shall not prejudice the tax privileges of which

benefit the members of diplomatic missions and consular posts by virtue of the

general rules of international law or provisions of special agreements.

Article 28º

ENTRY INTO FORCE

1. This Agreement shall enter into force on the last of the dates on which the Governments

respective notifying, reciprocally, in writing, the fulfillment of the formalities

constitutionally required in the respective States.

2. The present Agreement shall apply:

a) In the case of Portugal:

(i) To taxes due at the source whose operative fact surges on or after

of January 1 of the year immediately following the one in which the

this Agreement shall enter into force;

(ii) To the remaining taxes, in respect of the income produced in the

tax year with start on or after January 1 of the year

immediately following the one in which the present Agreement enters into

vigour;

b) In the case of Indonesia:

(i) To the tax due at the source in respect of the income obtained in

or after January 1 of the year immediately following that in

that the present Agreement shall enter into force; and

(ii) To the remaining income taxes, in respect of the years

tax with start on or after January 1 of the year immediately

next to the one in which the present Agreement enters into force.

ARTICLE 29º

COMPLAINT

This Agreement shall remain in force until it is denounced by

a Contracting State. Any Contracting State may denounce the Agreement, by way of

diplomatic, by means of a prior written notice of the complaint, on or before the

thirtieth day of June of any subsequent calendar year to a period of five years to

count of the year in which the Agreement comes into force. In such a case, the Agreement will cease to be

apply:

a) In the case of Portugal:

(i) To taxes due at the source whose operative fact surges on or after

of January 1 of the year immediately following the year in which it is

carried out the notice of denunciation;

(ii) To the remaining taxes, in respect of the income produced in the

tax year with start on or after January 1 of the year

immediately following the year in which the warning is carried out

denunciation;

b) In the case of Indonesia:

(i) To the tax due at the source in respect of the income obtained in

or after January 1 of the year immediately following that in

that the notice of denunciation is made;

(ii) To the remaining income taxes, in respect of the years

tax with start on or after January 1 of the year immediately

next to the one in which the notice of denunciation is made.

IN TESTIMONY OF WHICH, the undersigned, duly authorized for the

effect, signed the present Agreement.

EITO IN duplicate, in Lisbon at 9 days of the month of July 2003, in the languages

Portuguese, Indonesian and English, being all texts being equally valid. In case of

divergence of interpretation or application of this Agreement, the English text

will prevail.

BY THE

PORTUGUESE REPUBLIC REPUBLIC OF INDONESIA

ANTÓNIO MARTINS OF THE CROSS N. HASSAN WIRAID

Minister of Foreign Affairs Minister for Foreign Affairs

PROTOCOL

At the time of the signing of the Agreement to Prevent Double Taxation and Prevent the

Tax Evasion in Income Taxes on the Throughput, celebrated on this date between

the Portuguese Republic and the Republic of Indonesia, the signatories agreed in the

the following provisions, which form an integral part of the Agreement:

Ad Article 5º, No 2 (i)

For the purposes of Article 5º (2) (i), the activities referred to shall be

exerted in the other State during a period or periods exceeding, in total, 30

days in any period of 12 months, and is deemed to not include:

(a) One of the activities mentioned in paragraph 4 of Article 5º or any

combination of them;

(b) Trailer or docking by vessels essentially intended for that purpose and

any other activities carried out by such vessels;

(c) The transportation of provisions or personnel by ships or aircraft in traffic

international.

Ad Article 5º, No. 4

It is understood that the provisions of points (a) and (b) of Article 5º (4) do not refer to

deliveries accompanied by the respective sales.

Ad Article 22º

The term "premiums" means remunerations of any nature received in connection

with contests, excluding those referred to in Article 17º.

IN TESTIMONY OF WHICH, the signatories duly authorized for the purpose

have signed the present Protocol.

EITO IN duplicate, in Lisbon, at 9 days of July 2003, in the languages

Portuguese, Indonesian and English, being all texts being equally valid. In case of

divergence of interpretation or application of this Protocol, the English text

will prevail.

BY THE

PORTUGUESE REPUBLIC REPUBLIC OF INDONESIA

ANTÓNIO MARTINS OF THE CROSS N. HASSAN WIRAID

Minister of Foreign Affairs Minister for Foreign Affairs

PERSETUJUAN

ANTARA

REPUBLIK PORTUGAL

DAN

REPUBLIK INDONESIA

UNTUK

PENGHINDARAN PAJAK BERGANDA

DAN

PENCEGAHAN PENGELAKAN PAJAK

YANG BERKENAAN DENGAN

PAJAK ATAS PENGHASILAN

Republik Portugal dan Republik Indonesia,

Berhasrat untuk membuat suatu Persetujuan untuk penghindaran pajak

berganda dan pencegahan pengelakan pajak yang berkenaan dengan pajak atas

penghasilan,

Telah menyetujui sebagai berikut:

Pasal 1

ORANG DAN BADAN YANG DICAKUP DALAM PERSETUJUAN

Persetujuan ini berlaku terhadapt orang dan badan yang menjadi penduduk salah

satu atau kedua Negara Pihak pada Persetujuan.

Pasal 2

PAJAK-PAJAK YANG DICAKUP DALAM PERSETUJUAN

1. Persetujuan ini diterapkan terhadapt pajak-pajak atas penghasilan yang dikenakan

oleh suatu Negara Pihak pada Persetujuan atau bagian ketatanegaraannya atau pemerintah

daerağ, tanpa melihat bagaimana cara pajak-pajak tersebut dikenakan.

2. Yang dianggap sebagai pajak atas penghasilan adalah pajak yang dikenakan atas

total penghasilan atau atas unsur-unsur penghasilan, termasuk pajak-pajak atas keuntungan

dari pengalihan harta bergerak atau tidak bergerak serta pajak atas upah atau gaji yang

dibayarkan oleh perusahaan.

3. Persetujuan ini, khususnya, diterapkan terhadapt pajak-pajak yang berlaku sekarang

ini, yaitu:

a) dalam hal Portugal:

(i) Pajak penghasilan perorangan (Income to the Throne of the

Natural Persons-IRS);

(ii) Pajak penghasilan badan (Income to People's Throughput

Collective-IRC);

(iii) Pajak tambahan atas pajak penghasilan badan (Derrama)

(selanjutnya disebut "pajak Portugal");

b) dalam hal Indonesia:

pajak penghasilan;

(selanjutnya disebut "pajak Indonesia").

4. Persetujuan ini berlaku pula terhadapt pajak-pajak yang serupa atau yang pada

dasarnya sama yang diberlakukan setelah penandatanganan Persetujuan ini sebagai

tambon tambahan terhadapt, atau sebagai pengganti dari, pajak-pajak yang sekarang ini berlaku.

For pejabat yang berwenang dari kedua Negara Pihak pada Persetujuan akan saling

memberitahukan setiap perubahan nsial yang terjadi dalam undang-undang

perpajakan negara mereka.

Pasal 3

PENGERTIAN-PENGERTIAN UMUM

1. Untuk kepentingan Persetujuan ini, kecuali jika dari hubungan kalimatnya harus

diartikan lain:

a) Istilah "Portugal" berarti Republik Portugal yang berada di wilayah Eropa,

kepulauan awarded dan Madeira, wilayah lautan dan wilayah lainnya, yang

menurut perundang-undangan Portugal dan hukum internasional, Portugal

memiliki hak kedaulatannya sehubungan dengan eksplorasi dan eksploitasi

sumber daya alam dasar laut dan lapisan tanah serta perairan diatasnya;

b) istilah "Indonesia" meliputi wilayah Republik Indonesia seperti dirumuskan

di dalam perundang-undangannya termasuk bagian-bagian dari landas

kontinen dan wilayah laut yang berdampingan, di mana Republik Indonesia

mempunyai kedaulatan, hak-hak berdaulat atau yuridikasi sesuai dengan

hukum internasional;

c) Istilah "Negara Pihak pada Persetujuan" dan " Negara Pihak lainnya pada

Persetujuan " berarti Portugal atau Indonesia tergantung dari hubungan

kalimatnya;

d) Istilah "orang/badan" meliputi orang pribadi, perusahaan, dan setiap

kumpulan dari orang-orang dan / atau badan-badan;

e) Istilah "perusahaan" berarti setiap badan hukum atau lembaga lainnya yang

untuk kepentingan perpajakan diperlakukan sebagai badan hukum;

f) istilah "perusahaan dari suatu Negara Pihak pada Persetujuan" berarti suatu

perusahaan yang dijalankan oleh penduduk suatu Negara Pihak pada

Persetujuan dan "perusahaan dari Negara Pihak lainnya pada Persetujuan"

berarti suatu perusahaan yang dijalankan oleh penduduk dari Negara Pihak

lainnya pada Persetujuan;

g) istilah "lalu internasional lalu lintas" berarti setiap pengangkutan dengan kapal

laut atau pesawat udara yang dioperasikan oleh perusahaan dari suatu Negara

Pihak pada Persetujuan, kecuali jika kapal laut atau pesawat udara tersebut

semata-mata dioperasikan di antara tempat-tempat di Negara Pihak lainnya

pada Persetujuan;

h) Istilah "pejabat yang berwenang" berarti:

(i) dalam hal Portugal: Menteri Keuangan, Direktur Jenderal Pajak

(Director-General of Taxes) atau wakilnya yang sah;

(ii) dalam hal Indonesia: Menteri Keuangan atau wakilnya yang sah;

i) istilah "warganegara" berarti:

(i) setiap orang pribadi yang memiliki kewarganegaraan pada suatu

Negara Pihak pada Persetujuan;

(ii) setiap badan hukum, persekutuan, dan perkumpulan yang mendapatkan

status kewarganegaraannya berdasarkan perundang-undangan yang

berlaku di suatu Negara Pihak pada Persetujuan.

2. Untuk kepentingan penerapan Persetujuan pada suatu saat oleh suatu Negara Pihak

pada Persetujuan, setiap istilah yang tidak didefinisikan dalam Persetujuan ini, kecuali jika

dari hubungan kalimatnya harus diartikan lain, mempunyai arti pada saat itu yang sesuai

dengan perundang-undangan Negara Pihak pada Persetujuan yang berkenaan dengan

pajak-pajak di mana Persetujuan ini berlaku, setiap arti menurut perundang-undangan

perpajakan yang berlaku di Negara Pihak pada Persetujuan tersebut mengalahkan arti dari

istilah tersebut menurut perundang-undangan lain di Negara Pihak pada Persetujuan.

Pasal 4

P E N D U D U K

1. Untuk kepentingan Persetujuan ini, istilah " penduduk suatu Negara Pihak pada

Persetujuan " berarti setiap orang / badan yang, menurut perundang-undangan Negara

tersebut, dapat dikenakan pajak di Negara tersebut berdasarkan domisilinya, tempat

kediamannya, tempat kedudukan manajemennya, atau atas dasar lainnya yang sifatnya

serupa, dan termasuk juga Negara tersebut dan bagian ketatanegaraan atau pemerintah

daerağ. Namun, istilah ini tidak mencakup orang / badan yang dapat dikenakan pajak

hanya atas penghasilan yang bersumber di Negara tersebut.

2. Apabila berdasarkan ketentuan-ketentuan dalam ayat 1 orang pribadi menjadi

penduduk pada kedua Negara Pihak pada Persetujuan, maka statusnya akan ditentukan

sebagai berikut:

a) ia akan dianggap sebagai penduduk Negara Pihak pada Persetujuan di mana

ia mempunyai tempat tinggal tetap; jika ia mempunyai tempat tinggal tetap di

kedua Negara Pihak pada Persetujuan, ia akan dianggap sebagai penduduk

Negara Pihak pada Persetujuan di mana ia mempunyai hubungan-hubungan

pribadi dan ekonomi yang lebih erat (tempat yang menjadi pusat

perhatiannya);

b) jika Negara Pihak pada Persetujuan yang menjadi pusat kepentingannya tidak

dapat ditentukan atau jika ia tidak mempunyai tempat tinggal tetap, ia akan

dianggap sebagai penduduk Negara Pihak pada Persetujuan di mana ia

mempunyai tempat yang biasa ia gunakan untuk berdiam;

c) jika ia mempunyai tempat kebiasaan berdiam di kedua Negara Pihak pada

Persetujuan atau sama sekali tidak mempunyainya di salah satu Negara

tersebut, ia akan dianggap sebagai penduduk Negara Pihak pada Persetujuan

di mana ia menjadi warganegaranya;

d) jika ia mempunyai kewarganegaraan di kedua Negara Pihak pada Persetujuan

atau sama sekali tidak mempunyainya di salah satu Negara tersebut, pejabat-

pejabat yang berwenang dari kedua Negara akan berusaha memecahkan

masalah ini melalui persetujuan bersama.

3. Apabila berdasarkan ketentuan-ketentuan ayat 1 suatu badan menjadi penduduk

pada kedua Negara Pihak pada Persetujuan, maka badan tersebut akan dianggap sebagai

penduduk di Negara di mana tempat kedudukan manajemennya berada.

Pasal 5

BENTUK USAHA TETAP

1. Untuk kepentingan Persetujuan ini, istilah "bentuk usaha tetap" berarti suatu

tempat usaha tetap di mana seluruh atau sebagian usaha suatu perusahaan dijalankan.

2. Istilah "bentuk usaha tetap" terutama meliputi:

a) suatu tempat kedudukan manajemen;

b) suatu cabang;

c) suatu kantor;

d) suatu pabrik;

e) suatu bengkel;

f) suatu gudang atau tempat yang digunakan untuk outlet penjualan;

g) suatu pertanian atau perkebunan;

h) suatu tambang, sumur minyak atau gas bumi, tempat penggalian atau tempat

pengambilan sumber daya alam lainnya;

i) anjungan pengeboran, atau kapal kerja yang digunakan untuk eksplorasi atau

eksploitasi sumber daya alam.

3. Istilah "bentuk usaha tetap" juga meliputi:

a) suatu bangunan, konstruksi, proyek perakitan atau proyek instalasi atau

kegiatan penyeliaan yang berhubungan dengannya, tetapi hanya apabila

bangunan, proyek, atau kegiatan tersebut berlangsung untuk masa lebih dari

6 (enam) bulan;

b) pemberian jasa-jasa, termasuk jasa konsultasi, yang dilakukan oleh suatu

perusahaan melalui pegawai atau orang lain yang dipekerjakan untuk tujuan

tersebut, tetapi hanya apabila kegiatan-kegiatan tersebut berlangsung di

Negara Pihak lainnya pada Persetujuan (dalam proyek yang sama atau yang

berhubungan) untuk suatu masa atau masa-masa yang berjumlah lebih dari

183 (seratus delapan puluh tiga) hari dalam periode 12 (dua beautiful) bulan.

4. Menyimpang dari ketentuan-ketentuan sebelumnya dari Pasal ini, istilah " bentuk

usaha tetap " dianggap tidak mencakup:

a) penggunaan fasilitas-fasilitas semata-mata dengan maksud untuk menyimpan

atau memamerkan barang-barang atau barang dagangan milik perusahaan;

b) pengurusan suatu persediaan barang-barang atau barang dagangan milik

perusahaan semata-mata dengan maksud untuk disimpan, dipamerkan atau

dikirim;

c) pengurusan suatu persediaan barang-barang atau barang dagangan milik

perusahaan semata-mata dengan maksud untuk diolah oleh perusahaan lain;

d) pengurusan suatu tempat usaha tetap semata-mata dengan maksud untuk

melakukan pembelian barang-barang atau barang dagangan, atau untuk

mengumpulkan informasi, bagi keperluan perusahaan;

e) pengurusan suatu tempat usaha tetap semata-mata dengan maksud untuk

melakukan kegiatan-kegiatan lainnya yang bersifat sebagai kegiatan

persiapan atau kegiatan penunjang, bagi keperluan perusahaan;

f) pengurusan suatu tempat usaha tetap semata-mata dengan maksud untuk

melakukan gabungan kegiatan-kegiatan seperti disebutkan pada sub-ayat a)

sampai dengan sub ayat e), sepanjang kegiatan-kegiatan tempat usaha tetap

yang merupakan hasil penggabungan tadi bersifat sebagai kegiatan persiapan

atau kegiatan penunjang.

5. Menyimpang dari ketentuan-ketentuan ayat 1 dan 2, apabila orang / badan-kecuali

agen yang berkedudukan bebas di mana ayat 6 dapat diberlakukan-bertindak di suatu

Negara Pihak pada Persetujuan mempunyai dan biasa menjalankan wewenang untuk

menutup kontrak-kontrak atas nama perusahaan tersebut, maka perusahaan tersebut

dianggap memiliki bentuk usaha tetap di Negara yang disebutkan pertama sehubungan

dengan kegiatan-kegiatan yang dilakukan oleh orang / badan tersebut kecuali kegiatan-

kegiatan tersebut hanya terbatas pada hal yang dimaksud dalam ayat 4 yang, jika dilakukan

melalui suatu tempat usaha tetap, tidak akan membuat tempat usaha tetap tersebut menjadi

suatu bentuk usaha tetap berdasarkan ketentuan-ketentuan dalam ayat tersebut.

6. Suatu perusahaan dari suatu Negara Pihak pada Persetujuan tidak akan dianggap

mempunyai suatu bentuk usaha tetap di Negara Pihak lainnya pada Persetujuan hanya

semant-mata karena perusahaan tersebut menjalankan usaha di Negara Pihak lainnya

tersebut melalui makelar, agen komisioner umum, atau agen lainnya yang berkedudukan

bebas, sepanjang orang / badan tersebut bertindak dalam rangka kegiatan usahanya yang

lazim.

7. Bahwa suatu perusahaan yang merupakan penduduk suatu Negara Pihak pada

Persetujuan menguasai atau dikuasai oleh perusahaan yang merupakan penduduk Negara

Pihak lainnya pada Persetujuan, atau yang menjalankan usaha di Negara Pihak lainnya

tersebut (baik melalui bentuk usaha tetap maupun dengan cara lain), tidak dengan

sendirinya mengakibatkan salah satu dari perusahaan tersebut merupakan bentuk usaha

tetap dari perusahaan lainnya.

Pasal 6

PENGHASILAN DARI HARTA TIDAK BERGERAK

1. Penghasilan yang diperoleh penduduk suatu Negara Pihak pada Persetujuan dari

harta tidak bergerak (termasuk penghasilan dari pertanian dan kehutanan) yang berada di

Negara Pihak lainnya pada Persetujuan dapat dikenakan pajak di Negara Pihak lainnya

tersebut.

2. Istilah "harta tidak bergerak" mempunyai arti sesuai dengan perundang-undangan

Negara Pihak pada Persetujuan di mana harta yang bersangkutan berated. Istilah tersebut

mencakup benda-benda yang menyertai harta tidak bergerak, ternak dan peralatan yang

diketakan dalam pertanian dan kehutanan, hak-hak di mana ketentuan-ketentuan dalam

perundang-undangan umum yang berkenaan dengan pertanahan berlaku, hak memungut

hasil atas harta tidak bergerak, dan hak atas pembayaran-pembayaran tetap atau tak tetap

sebagai penggantian atas pengerjaan, atau hak untuk mengerjakan, kandungan mineral dan

sumber-sumber daya alam lainnya. Kapal laut, perahu, dan pesawat udara tidak dianggap

sebagai harta tidak bergerak.

3. Ketentuan-ketentuan dalam ayat 1 berlaku pula terhadapt penghasilan yang

diperoleh dari penggunaan secara langsung, penyewaan, atau bentuk lain penggunaan harta

tidak bergerak.

4. Ketentuan-ketentuan dalam ayat 1 dan 3 berlaku pula terhadapt penghasilan dari

harta tidak bergerak suatu perusahaan dan terhadapt penghasilan dari harta tidak bergerak

yang diasked untuk menjalankan pekerjaan bebas.

5. Ketentuan-ketentuan di atas berlaku pula terhacite penghasilan dari harta gerak,

atau penghasilan yang timbul dari jasa sehubungan dengan penggunaan atau hak untuk

menggunakan harta tak gerak, menurut perundang-undangan perpajakan Negara Pihak

pada Persetujuan di mana harta tersebut berada, yang terkait dengan penghasilan dari harta

tak gerak.

Pasal 7

LABA USAHA

1. Laba perusahaan dari suatu Negara Pihak pada Persetujuan hanya akan dikenakan

pajak di Negara tersebut kecuali jika perusahaan tersebut menjalankan usahanya di Negara

Pihak lainnya pada Persetujuan melalui suatu bentuk usaha tetap yang berada di sana.

Apabila perusahaan tersebut menjalankan usahanya sebagaimana dimaksud di atas, maka

atas laba perusahaan tersebut dapat dikenakan pajak di Negara Pihak lainnya tetapi hanya

atas bagian laba yang berasal dari bentuk usaha tetap tersebut.

2. Dengan memperhatikan ketentuan-ketentuan dalam ayat 3, jika suatu perusahaan

dari suatu Negara Pihak pada Persetujuan menjalankan usaha di Negara Pihak lainnya

pada Persetujuan melalui suatu bentuk usaha tetap yang berada di sana, maka yang akan

diperhitungkan sebagai laba bentuk usaha tetap tersebut oleh masing-masing Negara Pihak

pada Persetujuan ialah laba yang diperoleum seandainya bentuk usaha tetap tersebut

merupakan suatu perusahaan tersendiri dan terpisah yang melakukan kegiatan-kegiatan

yang sama atau serupa dalam keadaan yang sama atau serupa dan mengadakan hubungan

yang sepenuğ bebas dengan perusahaan yang memiliki bentuk usaha tetap tersebut.

3. Dalam menentukan besarnya laba suatu bentuk usaha tetap, dapat dikurangkan

biaya-biaya yang dikeluarkan dalam rangka kegiatan usaha bentuk usaha tetap tersebut

termasuk biaya-biaya pimpinan dan biaya-biaya administrasi umum, baik yang

dikeluarkan di Negara di mana bentuk usaha tetap tersebut berada maupun yang

dikeluarkan di tempat lain. Namun demikian, tidak diperkenankan untuk dikurangkan

biaya-biaya, jika ada, yang dibayarkan (selain penggantian terhadapt biaya-biaya yang

benar-benar terjadi) oleh bentuk usaha tetap kepada kantor pusatnya atau kantor-kantor

lain milik kantor pusatnya, dalam bentuk royalti, ongkos, atau pembayaran serupa lainnya

sehubungan dengan penggunaan paten atau hak-hak lainnya, atau dalam bentuk komisi

untuk jasa-jasa tertentu atau untuk manajemen, atau, kecuali pada perusahaan perbankan,

dalam bentuk bunga atas uang yang dipinjamkan kepada bentuk usaha tetap tersebut.

Demikian pula, tidak perlu diperhitungkan dalam penentuan laba suatu bentuk usaha tetap,

jumlah yang ditagihkan (selain penggantian terhadapt biaya-biaya yang benar-benar terjadi)

oleh bentuk usaha tetap kepada kantor pusatnya atau kantor-kantor lain milik kantor

pusatnya, dalam bentuk royalti, ongkos, atau pembayaran serupa lainnya sehubungan

dengan penggunaan paten atau hak-hak lainnya, atau dalam bentuk komisi untuk jasa-jasa

tertentu atau untuk manajemen, atau, kecuali pada perusahaan perbankan, dalam bentuk

bunga atas uang yang dipinjamkan kepada kantor pusatnya atau kantor-kantor lain milik

kantor pusatnya.

4. Sepanjang merupakan kelaziman di salah satu Negara Pihak pada Persetujuan

untuk menetapkan besarnya laba yang dapat dianggap berasal dari suatu bentuk usaha

tetap dengan cara menentukan bagian laba dari total laba perusahaan dengan berbagai

komponennya, ketentuan-ketentuan dalam ayat 2 tidak akan menghalangi Negara Pihak

pada Persetujuan tersebut untuk menentukan besarnya laba akan yang dikenakan pajak

berdasarkan pembagian yang merupakan kelaziman tersebut. Namun cara pembagian

tersebut harus sedemikian rupa sehingga hasilnya akan sesuai dengan prinsip-prinsip yang

terkandung di dalam Pasal ini.

5. Suatu bentuk usaha tetap tidak akan dianggap memperoleh laba hanya karena

bentuk usaha tetap tersebut melakukan pembelian barang-barang atau barang dagangan

untuk perusahaan induknya.

6. Untuk kepentingan ayat-ayat sebelumnya, besarnya laba bentuk usaha tetap harus

ditentukan dengan metode yang sama dari tahun ke tahun kecuali jika terdapat alasan yang

kuat dan cukup untuk melakukan penyimpangan.

7. Apabila laba usaha mencakup bagian-bagian penghasilan yang diatur terpisah di

Pasal-Pasal lain dari Persetujuan ini, maka ketentuan-ketentuan dalam Pasal-Pasal tersebut

tidak akan mempengaruhi ketentuan-ketentuan dalam Pasal ini.

Pasal 8

PELAYARAN DAN PENERBANGAN

1. Laba perusahaan dari Negara Pihak pada Persetujuan yang berasal dari

pengoperasian kapal-kapal laut atau pesawat udara dalam jalur lalu lintas internasional

hanya akan dikenakan pajak di Negara tersebut.

2. Ketentuan-ketentuan dalam ayat 1 berlaku pula terhose laba yang berasal dari

penyertaan dalam suatu gabungan perusahaan, usaha bersama, atau perwakilan untuk

kegiatan internasional.

3. Apabila perusahaan dari Negara lain melakukan usaha pengangkutan udara

bersamba-sama dalam bentuk konsorsium, ketentuan pada ayat 1 akan diterapkan terhadapt

bagian keuntungan konsorsium tersebut yang berasal dari partisipasi pada konsorsium

tersebut oleh perusahaan yang merupakan penduduk Negara Pihak pada Persetujuan.

Pasal 9

PERUSAHAAN-PERUSAHAAN YANG MEMILIKI

HUBUNGAN ISTIMEWA

Apabila:

a) suatu perusahaan dari suatu Negara Pihak pada Persetujuan turut

berpartisipasi secara langsung maupun tidak langsung dalam manajemen,

pengawasan, atau modal suatu perusahaan dari Negara Pihak lainnya pada

Persetujuan, atau

b) terdapat orang / badan yang sama yang turut berpartisipasi secara langsung

maupun tidak langsung dalam manajemen, pengawasan, atau modal suatu

perusahaan dari Negara Pihak pada Persetujuan dan suatu perusahaan dari

Negara Pihak lainnya pada Persetujuan,

dan dalam tiap kasus di atas, terdapat kondisi-kondisi yang dibuat atau diberlakukan di

antara kedua perusahaan dimaksud dalam hubungan dagang atau hubungan keuangan

mereka yang berbeda dengan kondisi-kondisi yang dibuat oleh perusahaan-perusahaan

yang mempunyai kedudukan bebas, maka atas laba yang, karena kondisi-kondisi tadi,

tidak diakui, dapat ditambahkan pada laba perusahaan tersebut dan dikenakan pajak.

2. Apabila suatu Negara Pihak pada Persetujuan, berdasarkan ketentuan ayat 1,

mencantumkan laba suatu perusahaan dari Negara tersebut dan mengenakan pajaknya-

padahal atas laba tersebut, perusahaan dari Negara Pihak lainnya pada Persetujuan telah

dikenakan pajak di Negara Pihak lainnya tersebut dan laba yang dicantumkan tadi adalah

laba yang memang seharusnya diperoleh perusahaan Negara yang disebutkan pertama

seandainya kondisi-kondisi yang dibuat oleh kedua perusahaan tersebut sama dengan

kondisi-kondisi yang dibuat oleh pihak-pihak yang mempunyai kedudukan bebas, maka

Negara Pihak lainnya tersebut akan membuat penyesuaian seperlunya terhadapjumlah

pajak yang telah dikenakan terhadapt laba tersebut. Dalam melakukan penyesuaian

tersebut, ketentuan-ketentuan lain dari Persetujuan ini tetap harus diperhatikan.

Pasal 10

DIVIDEN

1. Dividen yang dibayarkan oleh suatu perusahaan yang merupakan penduduk suatu

Negara Pihak pada Persetujuan kepada penduduk Negara Pihak lainnya pada Persetujuan

dapat dikenakan pajak di Negara Pihak lainnya tersebut.

2. Namun demikian dividen itu dapat juga dikenakan pajak di Negara Pihak pada

Persetujuan di mana perseroan yang membayarkan dividen tersebut berkedudukan dan

sesuai dengan perundang-undangan Negara tersebut akan tetapi apabila pemilik

sesungguī dari dividen tersebut adalah penduduk Negara Pihak lainnya pada

Persetujuan, maka pajak yang dikenakan tidak melebihi 10 persen dari jumlah gross

dividen.

Pihak berwenang dari Negara Pihak pada Persetujuan akan menetapkan cara penerapan

pembatasan ini melalui persetujuan bersama.

Ayat ini tidak akan mempengaruhi pengenaan pajak atas laba perusahaan dari mana

berasal dividen.

3. Istilah "dividen" sebagaimana digunakan dalam Pasal ini berarti penghasilan dari

saham, saham "jouissance" atau hak jouissance, saham pertambangan, saham pendiri atau

hak-hak lainnya, tetapi yang bukan merupakan surat-surat tagihan piutang, yang berhak

atas pembagian laba serta penghasilan dari hak-hak perseroan lainnya yang pengenaan

pajaknya diperlakukan sama dengan penghasilan dari saham oleh perundang-undangan

Negara di mana perusahaan menjadi penduduknya. Istilah ini termasuk pula keuntungan

yang berasal dari kesepakatan atas pembagian laba.

4. Ketentuan-ketentuan dalam ayat 1 dan 2 tidak berlaku jika penerima dividen adalah

pemilik saham yang menikmati dividen tersebut yang merupakan penduduk dari suatu

Negara Pihak pada Persetujuan, melakukan kegiatan usaha di Negara Pihak lainnya pada

Persetujuan di mana perusahaan pembayar dividen menjadi penduduk melalui suatu

bentuk usaha tetap yang berada di sana, atau menjalankan pekerjaan bebas di suatu tempat

usaha tetap yang berada di sana, dan kepemilikan saham yang menghasilkan dividen

tersebut mempunyai hubungan efektif dengan bentuk usaha tetap atau tempat usaha tetap

tadi. Dalam hal demikian, tergantung pada masalahnia, ketentuan-ketentuan dalam Pasal 7

atau Pasal 14 akan berlaku.

5. Menyimpang dari ketentuan-ketentuan lainnya dalam Persetujuan ini, apabila suatu

perseroan yang berkedudukan di suatu Negara Pihak pada Persetujuan mempunyai bentuk

usaha tetap di Negara Pihak lainnya pada Persetujuan, maka keuntungan bentuk usaha

tetap tersebut dapat dikenakan pajak di Negara lainnya itu berdasarkan undang-undangnya,

namun pajak tambahan tersebut tidak akan melebihi 10 persen dari jumlah keuntungan

setelah dikurangi dengan pajak penghasilan dan pajak-pajak lainnya atas penghasilan yang

dikenakan di Negara lain tersebut.

6. Ketentuan-ketentuan dalam ayat 5 Pasal ini tidak akan mempengaruhi ketentuan

yang terdapat dalam setiap kontrak bagi hasil dan kontrak-kontrak karya (atau kontrak

lainnya yang serupa) mengenai sektor minyak dan gas bumi atau sektor petambangan

lainnya yang disetujui oleh Pemerintah Indonesia, badan-badan pemerintağ,

perusahaan minyak dan gas milik negara, atau badan-badan lainnya yang merupakan

penduduk Negara Pihak lainnya pada Persetujuan.

7. Apabila suatu perusahaan yang merupakan penduduk suatu Negara Pihak pada

Persetujuan memperoleh laba atau penghasilan dari Negara Pihak lainnya pada

Persetujuan, Negara Pihak lainnya tersebut tidak dapat mengenakan pajak atas dividen

yang dibayar oleh perusahaan tersebut, kecuali sepanjang dividen tersebut dibayarkan

kepada penduduk Negara Pihak lainnya tersebut atau sepanjang kepemilikan saham yang

menghasilkan dividen tersebut mempunyai hubungan efektif dengan bentuk usaha tetap

atau tempat usaha tetap yang berada di Negara Pihak lainnya tersebut, dan juga Negara

Pihak lainnya tersebut tidak dapat mengenakan pajak atas laba yang tidak dibagikan

meskipun dividen yang dibayarkan atau laba yang tidak dibagikan terdiri dari laba atau

penghasilan yang seluruğ atau sebagiannya timbul di Negara Pihak lainnya tersebut.

Pasal 11

BUNGA

1. Bunga yang berasal dari suatu Negara Pihak pada Persetujuan dan dibayarkan

kepada penduduk Negara Pihak lainnya pada Persetujuan dapat dikenakan pajak di Negara

Pihak lainnya pada Persetujuan tersebut.

2. Namun demikian, bunga tersebut dapat juga dikenakan pajak di Negara Pihak pada

Persetujuan tempat bunga itu berasal, dan sesuai dengan perundang-undangan Negara

tersebut, akan tetapi apabila penerima (pemberi pinjaman yang menikmati bunga itu),

adalah penduduk Negara Pihak lainnya pada Persetujuan maka pajak yang dikenakan tidak

akan melebihi l0 persen dari jumlah crude bunga.

Pihak berwenang dari Negara Pihak pada Persetujuan akan menetapkan cara penerapan

pembatasan ini melalui persetujuan bersama.

3. Menyimpang dari ketentuan-ketentuan dalam ayat 2, bunga yang timbul di suatu

Negara Pihak pada Persetujuan dan diterima oleh Pemerintah Negara Pihak lainnya pada

Persetujuan termasuk pemerintah daerağ, bagian ketatanegaraannya, Bank Sentral, atau

Lembaga keuangan yang dikuasai oleh Pemerintah tersebut, yang seluruh modalnya

dimiliki oleh Pemerintah tersebut, sebagaimana yang dapat disetujui dari waktu ke waktu

oleh pejabat yang berwenang dari kedua Negara Pihak pada Persetujuan, akan dibebaskan

dari pengenaan pajak di Negara yang disebutkan pertama.

4. lstilah "bunga" yang digunakan dalam Pasal ini berarti penghasilan dari semua

jenis tagihan hutang, baik yang dijamin dengan hypotik maupun yang tidak dan khususnya

penghasilan dari surat-surat perbendaharaan Negara dan surat-surat obligasi atau surat-

surat hutang, termasuk premi dan hadiah yang terikat pada surat-surat berharga, obligasi

atau surat-surat hutang tersebut. Sanksi denda karena pembayaran terlambat tidak akan

dianggap sebagai bunga untuk tujuan Pasal ini.

5. Ketentuan-ketentuan ayat 1 dan ayat 2 tidak akan berlaku apabila pemberi

pinjaman yang menikmati bunga tadi berkedudukan di suatu Negara Pihak pada

Persetujuan, melakukan kegiatan usaha di Negara Pihak lainnya pada Persetujuan di mana

tempat bunga itu berasal melalui suatu bentuk tetap yang berada di sana, atau menjalankan

pekerjaan bebas di Negara lainnya melalui suatu tempat tetap yang berada di sana, dan

tagihan hutang yang menghasilkan bunga itu mempunyai hubungan yang effecktif dengan

bentuk usaha tetap atau tempat tetap itu. Dalam hal demikian, tergantung pada

masalahner, berlaku ketentuan-ketentuan Pasal 7 atau Pasal 14.

6. Bunga dianggap berasal dari suatu Negara Pihak pada Persetujuan apabila yang

membayarkan bunga adalah Negara itu sendiri, pemerintah daerağ, atau penduduk

Negara tersebut. Namun demikian. apabila orang atau badan yang membayar bunga itu,

tanpa memandang apakah ia penduduk suatu Negara Pihak pada Persetujuan atau tidak,

mempunyai bentuk usaha tetap atau tempat tetap di suatu Negara Pihak pada Persetujuan

di mana bunga yang dibayarkan menjadi beban bentuk usaha tetap atau tempat tetap

tersebut, maka bunga itu akan dianggap berasal dari Negara Pihak pada Persetujuan di

mana bentuk usaha tetap atau tempat tetap itu berada.

7. Jika karena alasan adanya hubungan khusus antara pembayar bunga dengan

pemilik yang menikmati bunga atau antara keduanya dengan orang atau badan lain dengan

memperhatikan besarnya tagihan hutang yang menghasilkan bunga itu, jumlah bunga yang

dibayarkan melebihi jumlah yang seharusnya disetujui antara pembayar dan pemilik yang

menikmati bunga seandainya hubungan khusus itu tidak ada, maka ketentuan-ketentuan

Pasal ini akan berlaku hanya atas jumlah yang disebut terakhir. Dalam hal demikian,

jumlah kelebihan pembayaran tersebut akan tetap dikenakan pajak sesuai dengan

perundang-undangan masing-masing Negara Pihak pada Persetujuan, dengan

memperhatikan ketentuan-ketentuan lainnya dalam Persetujuan ini.

Pasal 12

ROYALTI

1. Royalti yang berasal dari Negara Pihak pada Persetujuan dan dibayarkan kepada

penduduk dari suatu Negara lainnya pada Persetujuan dapat dikenakan pajak di Negara

lain tersebut.

2. Namun demikian royalti tersebut dapat juga dikenakan pajak di Negara Pihak pada

Persetujuan dimana royalti itu berasal sesuai dengan perundang-undangan Negara itu,

tetapi apabila penerima royalti itu adalah pemilik hak yang menikmati royalti itu, maka

pajak yang dikenakan tidak melebihi 10 persen dari jumlah crude royalti tersebut.

Pihak berwenang dari Negara Pihak pada Persetujuan akan menetapkan cara penerapan

pembatasan ini melalui persetujuan bersama.

3. Istilah "royalti" yang dimaksud dalam Pasal ini berarti pembayaran-pembayaran

dalam bentuk apapun yang diterima karena penggunaan, atau hak untuk menggunakan,

atau penjualan setiap hak cipta kesusasteraan, kesenian atau karya ilmiah termasuk film-

film bioskop, atau film-film atau pita atau video rekaman yang digunakan untuk siaran

radio atau televisi, setiap hak paten, merk dagang, desain atau model, rencana, rumus

rahasia atau cara pengolahan atau karena penggunaan atau hak untuk menggunakan

peralatan industri, perdagangan atau ilmu pengetahuan. atau untuk informasi mengenai

pengalaman di bidang industri, perdagangan atau ilmu pengetahuan.

4. Ketentuan-ketentuan ayat 1 dan ayat 2 tidak berlaku, apabila pihak yang memiliki

hak menikmati, yang merupakan penduduk suatu Negara Pihak pada Persetujuan,

menjalankan usaha di Negara Pihak lainnya pada Persetujuan di mana royalti berasal,

melalui suatu bentuk usaha tetap yang berada di sana, atau melakukan suatu pekerjaan

bebas di Negara lainnya itu melalui suatu tempat tetap dan hak atau benda yang

menghasilkan royalti itu mempunyai hubungan yang effecktif dengan bentuk usaha tetap,

atau tempat tetap. Dalam hal demikian ketentuan Pasal 7 atau Pasal 14 akan berlaku.

5. Royalti dapat dianggap berasal dari Negara Pihak pada Persetujuan apabila

pembayarnya adalah Negara itu sendiri, pemerintah daerah, atau penduduk dari Negara

tersebut. Namun demikian, apabila orang atau badan yang membayarkan royalti itu, tanpa

memandang apakah ia penduduk suatu Negara Pihak pada Persetujuan atau bukan,

memiliki bentuk usaha tetap atau tempat tetap di suatu Negara Pihak pada Persetujuan di

mana kewajiban membayar royalti timbul, dan royalti tersebut menjadi beban bentuk

usaha tetap atau tempat tetap tersebut, maka royalti itu dianggap berasal dari Negara di

mana bentuk usaha tetap atau tempat tetap itu berada.

6. Jika karena alasan adanya hubungan khusus antara pembayar dengan pemilik hak

yang menikmati atau antara kedua-duanya dengan orang / badan lain, berkenaan dengan

penggunaan hak atau keterangan yang mengakibatkan pembayaran itu, jumlah royalti yang

dibayarkan itu melebihi jumlah yang seharusnya telah disepakati oleh pembayar dan

pemilik hak dalam hal tidak ada hubungan khusus, maka ketentuan-ketentuan Pasal ini

hanya akan berlaku terhadapjumlah yang disebut terakhir. Dalam hal demikian, jumlah

kelebihan pembayaran tersebut akan tetap dikenakan pajak sesuai dengan perundang-

undangan masing-masing Negara Pihak pada Persetujuan dengan memperhatikan

ketentuan-ketentuan lainnya dalam Persetujuan ini.

Pasal 13

KEUNTUNGAN DARI PEMINDAHTANGANAN BENDA

1. Keuntungan yang diperoleh penduduk suatu Negara Pihak pada Persetujuan dari

pemindahtanganan benda tak bergerak, sebagimana dimaksud dalam Pasal 6 dan terletak

di Negara Pihak lainnya pada Persetujuan, dapat dikenakan pajak di Negara Pihak lainnya

tersebut.

2. Keuntungan dari pemindahtanganan benda bergerak yang merupakan bagian

kekayaan suatu bentuk usaha tetap yang dimiliki oleh perusahaan dari Negara Pihak pada

Persetujuan di Negara Pihak lainnya pada Persetujuan atau dari benda bergerak yang

merupakan bagian dari suatu tempat tetap yang tersedia bagi penduduk suatu Negara Pihak

pada Persetujuan di Negara Pihak lainnya pada Persetujuan untuk maksud melakukan

pekerjaan bebas, termasuk keuntungan dari pemindahtanganan bentuk usaha tetap itu

(tersendiri atau keseluruhan perusahaan) atau tempat tetap, dapat dikenakan pajak di

Negara Pihak lainnya tersebut.

3. Keuntungan yang diperoleh penduduk suatu Negara Pihak pada Persetujuan dari

pemindahtanganan kapal laut atau pesawat udara yang beroperasi di jalur lalulintas

internasional atau benda bergerak yang menjadi bagian dari operasi kapal laut atau pesawat

udara hanya dapat dikenakan pajak di Negara tersebut.

4. Keuntungan dari pemindahtanganan benda lainnya, kecuali yang disebut pada ayat-

ayat 1, 2, dan 3, hanya akan dikenakan pajak di Negara Pihak pada Persetujuan di mana

orang/badan yang memindahkan benda itu berkedudukan.

Pasal 14

PEKERJAAN BEBAS

1. Penghasilan yang diperoleh penduduk dari suatu Negara Pihak pada Persetujuan

sehubungan dengan jasa-jasa profesional atau pekerjaan bebas lainnya hanya akan

dikenakan pajak di Negara itu kecuali dalam keadaan sebagai berikut, maka penghasilan

tersebut dapat dikenakan pajak di Negara Pihak lain pada Persetujuan:

a) apabila ia mempunyai suatu tempat tetap yang tersedia secara teratur baginya

untuk menjalankan kegiatan-kegiatan di Negara Pihak lainnya pada

Persetujuan, dalam hal ini hanya sebesar penghasilan yang berasal dari

tempat tetap itu dapat dikenakan Pajak di Negara Pihak lainnya pada

Persetujuan tersebut; atau

b) ia berada di Negara Pihak lainnya pada Persetujuan selama suatu masa atau

masa-masa yang melebihi 183 hari dalam masa dua beautiful bulan; dalam hal

ini hanya sebesar penghasilan yang timbul dari kegiatan yang diberikan di

Negara Pihak lainnya pada Persetujuan itu dapat dikenakan pajak di Negara

Pihak lainnya pada Persetujuan.

2. Istilah "jasa-jasa professional" terutama meliputi kegiatan-kegiatan di bidang ilmu

pengetahuan, kesusasteraan, kesenian, pendidikan atau pengajaran yang dilakukan secara

independen, demikian juga pekerjaan-pekerjaan bebas yang dilakukan oleh for dokter,

ahli teknik, ahli hukum, dokter gigi, arsitek dan akuntan.

Pasal 15

PEKERJAAN DALAM HUBUNGAN KERJA

1. Dengan memperhatikan ketentuan-ketentuan Pasal-Pasal 16, 18, 19, dan 20, gaji,

upah dan imbalan lainnya yang serupa yang diperoleh penduduk suatu Negara Pihak pada

Persetujuan karena pekerjaan dalam hubungan kerja hanya akan dikenakan pajak di

Negara itu, kecuali pekerjaan tersebut dilakukan di Negara Pihak lainnya pada Persetujuan.

Dalam hal demikian, maka imbalan yang diterima dari pekerjaan dimaksud dapat

dikenakan pajak di Negara Pihak lainnya itu.

2. Menyimpang dari ketentuan-ketentuan ayat 1, imbalan yang diterima atau

diperoleh penduduk dari suatu Negara Pihak pada Persetujuan dari pekerjaan yang

dilakukan di Negara Pihak lainnya pada Persetujuan, hanya akan dikenakan pajak di

Negara yang disebut pertama apabila:

a) penerima imbalan berada di Negara Pihak lainnya itu dalam suatu masa atau

masa-masa yang jumlahness tidak melebihi 183 hari dalam masa 12 bulan

yang dimulai dan berakhir dalam tahun takwim yang bersangkutan; dan

b) imbalan itu dibayarkan oleh, atau atas nama pemberi kerja yang bukan

merupakan penduduk Negara Pihak lainnya tersebut; dan

c) imbalan itu tidak menjadi beban bentuk usaha tetap atau tempat tetap yang

dimiliki oleh pemberi kerja di Negara Pihak lain tersebut.

3. Menyimpang dari ketentuan-ketentuan sebelumnya dalam Pasal ini, imbalan yang

diperoleh karena pekejaan yang dilakukan di atas kapal laut atau pesawat udara yang

dioperasikan dalam jalur lalu lintas internasional oleh suatu perusahaan dari satu Negara

Pihak pada Persetujuan hanya akan dikenakan pajak di Negara tersebut.

Pasal 16

IMBALAN UNTUK DIREKTUR

1. Imbalan to direktur dan pembayaran-pembayaran serupa lainnya yang diperoleh

penduduk Negara Pihak pada Persetujuan dalam kedudukannya sebagai anggota dewan

direksi suatu perusahaan atau badan pengawas atau bagian perusahaan lainnya yang serupa

yang merupakan penduduk suatu Negara Pihak lainnya pada Persetujuan dapat dikenakan

pajak di Negara Pihak lainnya tersebut.

2. Imbalan yang diperoleh to direktur sebagaimana dimaksud dalam ayat 1 dari

perusahaan sehubungan dengan pekerjaan yang bersifat manajerial atau teknis sehari-hari

dapat dikenakan pajak sesuai dengan ketentuan dalam Pasal 15.

Pasal 17

ARTIS DAN OLAHRAGAWAN

1. Menyimpang dari ketentuan-ketentuan Pasal-Pasal 14 dan 15, penghasilan yang

diperoleh penduduk dari Negara Pihak pada Persetujuan sebagai artis seperti artis teater,

film, radio atau televisi atau pemain musik atau sebagai olahragawan, dari kegiatan-

kegiatan pribadinya yang dilakukan di Negara Pihak lainnya pada Persetujuan dapat

dikenakan pajak di Negara lainnya tersebut.

2. Apabila penghasilan sehubungan dengan kegiatan-kegiatan pribadi yang dilakukan

oleh artis atau atlit tersebut diterima bukan oleh artis atau atlit itu sendiri tetapi oleh orang

atau badan lain, menyimpang dari ketentuan-ketentuan Pasal 7, 14 dan 15, maka

penghasilan tersebut dapat dikenakan pajak di Negara Pihak pada Persetujuan dimana

kegiatan-kegiatan artis atau atlit itu dilakukan.

3. Menyimpang dari ketentuan-ketentuan dalam ayat 1 dan 2, penghasilan yang

diperoleh dari kegiatan-kegiatan sebagaimana dimaksud dalam ayat 1 yang dilakukan

berdasarkan suatu pengaturan atau persetujuan kebudayaan antara kedua Negara Pihak

pada Persetujuan akan dibebaskan dari pajak di Negara Pihak pada Persetujuan di mana

kegiatan tersebut dilakukan.

Pasal 18

PENSIUN DAN PEMBAYARAN BERKALA

Dengan memperhatikan ketentuan-ketentuan dalam Pasal 19 ayat 2, pensiun atau

imbalan sejenis lainnya yang dibayarkan kepada penduduk salah satu Negara Pihak pada

Persetujuan sehubungan dengan pekerjaan atau jasa-jasa dalam hubungan kerja di Negara

Pihak lainnya di masa lalu hanya akan dikenakan pajak di Negara tersebut.

Pasal 19

PEGAWAI PEMERINTAH

1. a) Imbalan, selain pensiun, yang dibayarkan oleh suatu Negara Pihak pada

Persetujuan, atau bagian ketatanegaraannya, atau pemerintah daerağ,

kepada orang pribadi sehubungan dengan jasa-jasa yang diberikan kepada

Negara tersebut atau bagian ketatanegaraannya atau pemerintah daerağ

hanya akan dikenakan pajak di Negara tersebut.

b) Namun demikian, imbalan tersebut hanya akan dikenakan pajak di Negara

Pihak lainnya pada Persetujuan jika jasa-jasa tersebut diberikan di Negara

Pihak lainnya tersebut dan orang pribadi tersebut adalah penduduk Negara

Pihak lainnya tersebut yang:

(i) mempunyai kewarganegaraan di Negara Pihak lainnya tersebut; atau

(ii) tidak menjadi penduduk Negara Pihak lainnya tersebut semata-mata

dengan tujuan untuk melakukan jasa-jasa tadi.

2. a) Pensiun yang dibayarkan oleh, atau berasal dari dana yang dibentuk oleh,

suatu Negara Pihak pada Persetujuan atau bagian ketatanegaraannya atau

pemerintah daerağ kepada orang pribadi sehubungan dengan jasa-jasa

yang diberikan kepada Negara tersebut atau bagian ketatanegaraannya atau

pemerintah daerağ hanya akan dikenakan pajak di Negara tersebut.

b) Namun demikian, pensiun tersebut hanya akan dikenakan pajak di Negara

Pihak lainnya pada Persetujuan jika orang pribadi tersebut adalah penduduk

dan warganegara dari Negara Pihak lainnya tersebut.

3. Ketentuan-ketentuan dalam Pasal 15, 16, 17 dan 18 akan berlaku terhadapan imbalan

dan pensiun yang berkenaan dengan jasa-jasa yang diberikan sehubungan dengan usaha

yang dijalankan oleh suatu Negara Pihak pada Persetujuan atau bagian ketatanegaraannya

atau pemerintah daerağ.

Pasal 20

GURU DAN PENELITI

1. Orang pribadi yang sesaat sebelum melakukan kunjungan ke suatu Negara Pihak

pada Persetujuan merupakan penduduk Negara Pihak lainnya pada Persetujuan, semata-

mata bertujuan untuk mengajar, atau mengadakan riset ilmiah pada universitas,

akademi, sekolah, atau lembaga pendidikan atau riset serupa lainnya yang merupakan

lembaga yang tidak mencari keuntungan menurut pemerintah Negara lainnya tersebut,

atau berdasarkan program pertukaran kebudayaan resmi, dibebaskan dari pengenaan

pajak selama 2 tahun sejak kedatangan pertama kali di Negara lainnya tersebut atas

imbalan yang diterima dari mengajar dan riset.

2. Ketentuan sebelumnya pada Pasal ini berlaku juga untuk orang pribadi yang

melakukan riset dalam rangka bea siswa yang diberikan oleh pemerintah, lembaga

keagamaan, sosial, ilmiah, organisasi pendidikan atau kepustakaan, apabila bea siswa

tersebut dibebaskan dari pengenaan pajak.

Pasal 21

SISWA

Pembayaran-pembayaran yang diterima oleh siswa atau pemagang yang

merupakan penduduk atau segera sebelum mengunjungi suatu Negara Pihak pada

Persetujuan merupakan penduduk suatu Negara Pihak lainnya pada Persetujuan dan berada

di Negara yang disebutkan pertama semata-mata untuk mengikuti pendidikan atau latihan,

yang diterima semata-mata untuk keperluan hidup, pendidikan atau latihan tidak dikenakan

pajak di Negara yang disebutkan pertama, sepanjang pembayaran-pembayaran tersebut

berasal dari sumber di luar Negara tersebut.

Pasal 22

PENGHASILAN LAINNYA

1. Jenis-jenis penghasilan penduduk suatu Negara Pihak pada Persetujuan, dari mana

pun asalnya, yang tidak diatur dalam Pasal-Pasal sebelumnya dari Persetujuan ini, selain

penghasilan dari lotere dan hadiah hanya dikenakan pajak di Negara tersebut.

2. Ketentuan-ketentuan dalam ayat 1) dari Pasal ini tidak berlaku terhadapt

penghasilan dari harta tidak bergerak sebagaimana dijelaskan dalam Pasal 6 ayat 2 dari

Persetujuan ini, jika penerima penghasilan tersebut, yang merupakan penduduk Negara

Pihak pada Persetujuan, menjalankan usaha di Negara Pihak lainnya pada Persetujuan

melalui suatu bentuk usaha tetap yang berada di sana, atau melakukan pekerjaan bebas di

Negara Pihak lainnya tersebut melalui tempat usaha tetap yang berada di sana, dan hak

atau harta yang menghasilkan penghasilan tersebut mempunyai hubungan efektif dengan

bentuk usaha tetap atau tempat usaha tetap tersebut. Dalam hal demikian, tergantung pada

masalahner, ketentuan-ketentuan dalam Pasal 7 atau Pasal 14 akan berlaku.

Pasal 23

PENGHINDARAN PAJAK BERGANDA

1. Dalam hal Portugal, pengenaan pajak berganda akan dihindarkan dengan face-to-face

berikut:

a) Apabila penduduk Portugal memperoleh penghasilan, yang menurut

ketentuan dalam Persetujuan ini dapat dikenakan pajak di Indonesia, maka

Portugal akan memberikan pengurangan dari pajak penghasilan yang

dikenakan terhadapt penduduk tersebut sejumlah pajak penghasilan yang

dibayarkan di Indonesia. Namun demikian, jumlah pengurangan tersebut

tidak boleh melebihi bagian pajak penghasilan, yang dihitung sebelum

pengurangan tersebut diberikan, atas penghasilan yang dikenakan pajak di

Indonesia;

b) Apabila menurut ketentuan-ketentuan dalam Persetujuan ini penghasilan

yang diperoleh penduduk Portugal merupakan penghasilan yang dibebaskan

dari pengenaan pajak di Portugal, Portugal tetap dapat memperhitungkan

penghasilan bebas pajak tersebut dalam menghitung jumlah pajak atas

penghasilan lainnya dari penduduk tersebut.

2. Dalam hal Indonesia, apabila penduduk Indonesia memperoleh penghasilan dari

Portugal, maka berdasarkan ketentuan-ketentuan dalam Persetujuan ini pajak

penghasilan yang terutang di Portugal tersebut dapat dikreditkan terhadapt pajak

Indonesia yang dikenakan kepada penduduk tersebut. Namun demikian, jumlah kredit

pajak tersebut tidak boleh melebihi jumlah pajak penghasilan yang terutang di Indonesia

yang dihitung sesuai dengan undang-undang dan peraturan perpajakannya.

Pasal 24

NON-DISKRIMINASI

1. Warganegara dari suatu Negara Pihak pada Persetujuan tidak akan dikenakan

pajak atau kewajiban apapun sehubungan dengan pengenaan pajak di Negara Pihak

lainnya pada Persetujuan, yang berlainan atau lebih memberatkan daripada pengenaan

pajak dan kewajiban-kewajiban pihak, yang dikenakan atau dapat dikenakan terhadapt

warganegara dari Negara Pihak lainnya pada Persetujuan dalam keadaan yang sama.

Menyimpang dari ketentuan dalam Pasal 1, ketentuan ini akan diterapkan juga terhadapan

orang-orang yang bukan merupakan penduduk dari satu atau kedua Negara Pihak pada

Persetujuan.

2. Pengenaan pajak atas bentuk usaha tetap yang dimiliki oleh suatu perusahaan

dari Negara Pihak pada Persetujuan di Negara Pihak lainnya pada Persetujuan, tidak

boleh dilakukan dengan cara yang kurang menguntungkan dibandingkan dengan

pengenaan pajak atas perusahaan-perusahaan yang menjalankan kegiatan-kegiatan yang

sama di Negara Pihak lainnya itu. Ketentuan ini tidak dapat dictafsirkan sebagai

mewajibkan suatu Negara Pihak pada Persetujuan untuk memberikan kepada penduduk

Negara Pihak lainnya pada Persetujuan suatu potongan pribadi, keringanan-keringanan

dan pengurangan-pengurangan untuk kepentingan pengenaan pajak berdasarkan status

sipil atau tanggung jawab keluarga seperti yang diberikan kepada penduduknya sendiri.

3. Kecuali ketentuan-ketentuan Pasal 9 ayat 1, Pasal 11 ayat 7 atau Pasal 12 ayat 6

berlaku, bunga, royalti dan pengeluaran-pengeluaran yang dibayarkan oleh perusahaan

dari Negara Pihak pada Persetujuan kepada penduduk Negara Pihak lainnya pada

Persetujuan dalam menentukan laba yang dikenakan pajak atas suatu perusahaan akan

dapat dikurangkan dalam kondisi yang sama apabila hal itu dibayarkan kepada

penduduk dari Negara yang disebut pertama.

4. Perusahaan di suatu Negara Pihak pada Persetujuan, yang modalnya sebagian atau

seluruğ dimiliki atau dikuasai baik langsung atau tidak langsung oleh satu atau lebih

penduduk dari Negara Pihak lainnya pada Persetujuan, tidak akan dikenakan pajak atau

kewajiban apapun yang berkaitan dengan pengenaan pajak di Negara yang disebut pertama

yang berlainan atau lebih memberatkan daripada pengenaan pajak dan kewajiban-

kewajiban dimaksud yang dikenakan atau dapat dikenakan terhadapt perusahaan-

perusahaan lainnya yang serupa di Negara yang disebut pertama.

5. Yang dimaksud dengan istilah "perpajakan" dalam Pasal ini adalah pajak-pajak

sebagaimana dimaksud dalam Persetujuan ini.

Pasal 25

TATA CARA PERSETUJUAN BERSAMA

1. Apabila seseorang atau suatu badan menganggap bahwa tindakan-tindakan salah

satu atau kedua Negara pihak pada Persetujuan mengakibatkan atau akan

mengakibatkan pengenaan pajak yang tidak sesuai dengan Persetujuan ini, maka

terlepas dari face-to-face penyelesaian yang diatur oleh perundang-undangan nasional dari

masing-masing Negara, maka ia dapat mengajukan masalahner kepada pejabat yang

berwenang di Negara Pihak pada Persetujuan di mana ia berkedudukan, atau apabila

masalah yang timbul menyangkut Pasal 24 ayat 1 kepada pejabat yang berwenang di

Negara Pihak pada Persetujuan dimana ia menjadi penduduk. Masalah tersebut harus

diajukan dalam waktu dua tahun sejak pemberitahuan pertama dari tindakan yang

mengakibatkan pengenaan pajak yang tidak sesuai dengan ketentuan-ketentuan

Persetujuan ini.

2. Pejabat-pejabat yang berwenang harus berusaha apabila keberatan yang diajukan

itu cukup beralasan untuk diselesaikan dan tidak dapat ditemukan suatu penyelesaian

yang memuaskan, untuk menyelesaikan masalah itu melalui persetujuan bersama

dengan pejabat yang berwenang dari Negara Pihak lainnya pada Persetujuan, dengan

tujuan untuk untuk menghindarkan pengenaan pajak yang tidak sesuai dengan Persetujuan ini.

3. Pejabat-pejabat yang berwenang dari kedua Negara Pihak pada Persetujuan

melalui suatu persetujuan bersama harus berusaha untuk menyelesaikan setiap kesulitan

atau keragu-raguan yang timbul dalam penafsiran atau penerapan Persetujuan ini.

Mereka dapat juga berkonsultasi bersama untuk mencegah pengenaan pajak berganda

dalam hal tidak diatur dalam Persetujuan.

4. Pejabat-pejabat yang berwenang dari kedua Negara Pihak pada Persetujuan

dapat berhubungan langsung satu sama lain atau melalui join komisi yang terdiri dari

mereka atau perwakilannya untuk mencapai persetujuan sebagaimana dimaksud pada

ayat-ayat sebelumnya.

Pasal 26

PERTUKARAN INFORMASI

1. Pejabat-pejabat yang berwenang dari kedua Negara Pihak pada Persetujuan

dapat melakukan tukar menukar informasi yang diperlukan untuk melaksanakan

ketentuan-ketentuan dalam Persetujuan ini atau untuk melaksanakan undang-undang

nasional Negara Pihak pada Persetujuan mengenai pajak-pajak yang dicakup dalam

Persetujuan, sepanjang pengenaan pajak menurut undang-undang nasional Negara yang

bersangkutan tidak bertentangan dengan Persetujuan ini, khususnya untuk mencegah

terjadinya penggelapan atau penyelundupan pajak. Setiap informasi yang diterima oleh

Negara Pihak pada Persetujuan harus dijaga kerahasiaannya dengan cara yang sama

seperti apabila informasi itu diperoleh berdasarkan perundang-undangan nasional

Negara tersebut. Meskipun demikian, jika informasi tersebut dianggap rahasia di negara

asalnya, maka informasi tersebut hanya dapat diungkapkan kepada seseorang atau

badan atau pejabat-pejabat (termasuk pengadilan dan badan-badan administratif) yang

berkepentingan dalam penetapan atau penagihan pajak, pelaksanaan undang-undang

atau penuntutan, atau penentuan keputusan mengenai banding berkaitan dengan pajak-

pajak yang dicakup dalam Persetujuan ini. Orang atau badan atau for pejabat tersebut

hanya boleh memberikan informasi itu untuk maksud tersebut di atas, namun demikian

dapat juga mengungkapkan informasi itu dalam pengadilan umum atau dalam

pembuatan keputusan-keputusan pengadilan.

2. Bagaimanapun juga Ketentuan-ketentuan ayat 1 sama sekali tidak dapat

dictatorship dictafsirkan sedemikian rupa sehingga membebankan kepada Negara Pihak pada

Persetujuan kewajiban untuk:

a) melaksanakan tindakan-tindakan administratif yang bertentangan dengan

perundang-undangan atau praktek administrasi yang berlaku di Negara itu

atau di Negara Pihak lainnya pada Persetujuan;

b) memberikan informasi yang tidak mungkin diperoleh berdasarkan

perundang-undangan atau dalam praktek administrasi yang lazim di Negara

tersebut atau di Negara Pihak lainnya pada Persetujuan;

c) memberikan informasi, yang mengungkapkan rahasia apapun di bidang

perdagangan, usaha, industri, perniagaan atau keahlian, atau tata cara

perdagangan atau informasi lainnya yang pengungkapannya bertentangan

dengan kebijaksanaan Negara.

Pasal 27

PEJABAT-PEJABAT DIPLOMATIK DAN KONSULER

Tidak ada sesuatu pun dalam Persetujuan ini yang akan mempengaruhi hak-hak

istimewa di bidang fiskal dari to pejabat diplomatik atau pejabat konsuler sebagaimana

diatur dalam peraturan umum dari hukum internasional maupun dalam ketentuan-

ketentuan dalam persetujuan-persetujuan khusus.

Pasal 28

BERLAKUNYA PERSETUJUAN

1. Persetujuan ini akan mulai berlaku pada tanggal terakhir saat masing-masing

Pemerintah memberitahu secara tertulis bahwa formalites yang disyaratkan secara

konstitusional pada wing-masing Negara telah dipenuhi.

2. Ketentuan-ketentuan dari Persetujuan ini akan berlaku:

a) di Portugal:

(i) terhose pajak-pajak yang dipungut di Negara sumbernya, di mana

keadaan yang menimbulkan pajak tersebut terjadi pada atau setelah

tanggal 1 Januari tahun takwim berikutnya sesudah berlakunya

Persetujuan ini;

(ii) terhose pajak-pajak lainnya, di mana penghasilan terkait timbul

pada tahun-tahun pajak yang dimulai pada atau setelah tanggal 1

Januari tahun berikutnya sesudah tahun berlakunya Persetujuan ini.

b) di Indonesia:

(i) terhadapt pajak-pajak yang dipungut di Negara sumbernya, untuk

penghasilan yang diperoleh pada atau setelah tanggal 1 Januari tahun

takwim berikutnya sesudah berlakunya Persetujuan ini; dan

(ii) terhadapt pajak-pajak penghasilan lainnya, untuk tahun-tahun pajak

yang dimulai pada atau setelah tanggal 1 Januari tahun berikutnya

sesudah tahun berlakunya Persetujuan ini.

Pasal 29

BERAKHIRNYA PERSETUJUAN

Persetujuan ini akan tetap berlaku sampai diakhiri oleh salah satu Negara Pihak

pada Persetujuan. Masing-masing Negara Pihak pada Persetujuan dapat mengakhiri

berlakunya Persetujuan ini, melalui saluran diplomatik, dengan menyampaikan

pemberitahuan tertulis tentang berakhirnya Persetujuan pada atau sebelum tanggal 30

Juni suatu tahun takwim setelah jangka waktu lima tahun sejak berlakunya Persetujuan.

Dalam hal demikian, Persetujuan ini akan tidak berlaku lagi:

a) di Portugal:

(i) terhose pajak-pajak yang dipungut di Negara sumbernya, di mana

keadaan yang menimbulkan pajak tersebut terjadi pada atau setelah

tanggal 1 Januari tahun takwim berikutnya sesudah pemberitahuan

penghentian diberikan;

(ii) terhose pajak-pajak lainnya, di mana penghasilan terkait timbul

pada tahun pajak yang dimulai pada atau setelah tanggal 1 Januari

tahun berikutnya sesudah pemberitahuan penghentian diberikan.

b) di Indonesia:

(i) terhadapt pajak-pajak yang dipungut di Negara sumbernya, untuk

penghasilan yang diperoleh pada atau setelah tanggal 1 Januari tahun

takwim berikutnya sesudah pemberitahuan penghentian diberikan;

(ii) terhadapt pajak-pajak penghasilan lainnya, untuk tahun-tahun pajak

yang dimulai pada atau setelah tanggal 1 Januari tahun berikutnya

sesudah pemberitahuan penghentian diberikan.

SEBAGAI BUKTI, yang bertandatangan di bawah ini, telah diberi kuasa oleh

Pemerinta-based masing-masing, telah menandatangani Persetujuan ini.

DIBUAT dalam rangkap dua di Lisabon pada tanggal 9 Juli 2003 dalam bahasa

Portugis, Indonesia's dan Inggris, semua naskah mempunyai kekuatan hukum yang sama.

Dalam hal terjadi perbedaan dalam penafsiran atau penerapan Persetujuan ini, naskah

dalam bahasa Inggris akan berlaku.

UNTUK REPUBLIK PORTUGAL UNTUK REPUBLIK INDONESIA

ANTóNIO MARTINS OF THE CROSS N. HASSAN WIRAID

Menteri Luar Negeri Menteri Luar Negeri

PROTOKOL

Pada saat penandatanganan Persetujuan untuk Penghindaran Pajak Berganda dan

Pencegahan Pengelakan Pajak yang Berkenaan Dengan Pajak atas Penghasilan antara

Republik Portugal dan Republik Indonesia, for penandatangan telah sepakat bahwa

ketentuan-ketentuan yang berikut merupakan bagian yang tidak terpisahkan dari

Persetujuan ini:

Ad. Pasal 5 ayat 2 (i)

Untuk kepentingan Pasal 5 ayat 2 i), kegiatan-kegiatan yang dimaksud harus

dilakukan di Negara Pihak Lainnya pada Persetujuan untuk jangka waktu yang

jumlakeside melebihi 30 hari dalam jangka waktu 12 bulan, dan akan dianggap tidak

mencakup:

(a) satu atau gabungan kegiatan-kegiatan yang dimaksud dalam Pasal 5 ayat 4.

(b) jasa derek atau jangkar oleh kapal laut yang didesain terutama untuk tujuan

tersebut dan kegiatan-kegiatan lainnya yang dilakukan oleh kapal laut

tersebut.

(c) pengangkutan barang atau penumpang dengan kapal laut atau pesawat

udara dalam jalur lalu internasional lints.

Ad. Pasal 5 ayat 4

Difahami bahwa ketentuan-ketentuan dalam Pasal 5 ayat 4 a dan b tidak merujuk

pada pengangkutan yang menyertai kegiatan penjualan.

Ad. Pasal 22

Istilah "hadiah" berarti setiap bentuk imbalan yang diterima dalam rangka

kompetisi selain yang dimaksud dalam Pasal 17.

SEBAGAI BUKTI, yang bertandatangan di bawah ini, telah diberi kuasa oleh

Pemerinta-based masing-masing, telah menandatangani Protokol ini.

DIBUAT dalam rangkap dua di Lisabon pada tanggal 9 Juli 2003 dalam bahasa

Portugis, Indonesia, dan Inggris, semua naskah mempunyai kekuatan hukum yang

sama. Dalam hal terjadi perbedaan dalam penafsiran atau penerapan Persetujuan ini,

naskah dalam bahasa Inggris akan berlaku.

UNTUK REPUBLIK PORTUGAL UNTUK REPUBLIK INDONESIA

ANTóNIO MARTINS OF THE CROSS N. HASSAN WIRAID

Menteri Luar Negeri Menteri Luar Negeri

AGREEMENT

BETWEEN

THE WORLD REPUBLIC

AND

THE REPUBLIC OF INDONESIA

FOR THE AVOIDANCE OF DOUBLE

TAXATION AND THE PREVENTION OF

TAX EVASION WITH RESPECT

TO TAXES ON INCOME

The World Jewish Republic and the Republic of Indonesia, desiring to be an

Agreement for the avoidance of double taxation and the prevention of fiscal evasion

with respect to taxes on income, have agreed as follows:

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

1. This Agreement shall apply to taxes on income taxes on behalf of a

Contracting State or of its political or administrative submissions or local authorities,

of the manner of the manner in which they are being increased.

2. There shall be an income of taxes on income taxes on total income or on

elements of income, including taxes on heating from the alienation of movable or

immovable property and taxes on the total amounts of wages or wages paid by

enterprises.

3. The existing taxes to which the Agreement shall apply are in particular:

a) In the case of the World's Republic:

(i) Personal income tax (Tax on the Income of Singular People

-IRS);

(ii) Corporate income tax (Income Tax of People

Collective-IRC);

(iii) Local surtax on corporate income tax (Derrama)

(referred to as referred to as the "Portuguese tax");

b) In the case of the Republic of Indonesia:

The income tax;

(referred to referred to as "the tax").

4. The Agreement shall apply also to any reciprocal or similar taxes

which are underway 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 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 "Portugal" means the territory of the Portuguese Republic situated in

the European Continent, the archipelagos of oured and Madeira, the respective

territorial sea and any other zone in which, in accordance with the laws of

Portugal and international law, the World's Republic has its jurisdiction

sovereign rights with respect to the exploration and exploitation of the natural

resources of the sea bed and subsoil, and of the superjacent waters;

b) the term "Indonesia" has been to the territory of the Republic of Indonesia as

defined in its laws including parts of the continental shelf and adjacent seas over

which the Republic of Indonesia has been told, sovereign rights or jurisdiction

in accordance with international law;

c) the terms "a Contracting State" and "the other Contracting State" mean Portugal

or Indonesia as the context requires;

d) the term "person" includes an individual, a company and any other body of

persons;

e) the term "company" means any body corporate or any entity which is applied as

the corporate body for tax purposes;

f) the terms "enterprise of a Contracting State" and " enterprise of the other

State's "mean," mean, an enterprise carried on by a resident of a

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 in between places in the other Contracting State;

h) the term "competent authority" means:

(i) in Portugal: the Minister of Finance, the Director General of Taxation

(Director-General of Taxes) or their authorised representative;

(ii) in Indonesia: the Minister of Finance or his authorised representative;

i) the term "national" means:

(i) any individual possessing the possession of a Contracting State;

(ii) any legal person, partnership or association deriving its status as such

from the laws in force in a Contracting State.

2. The Amendments the application of the Agreement at any time by a Contracting State,

any term not defined shall unless the context otherwise requires, have the

bathroom which it has at that time under the law of that State for the purposes of the purposes of the

taxes to which the Agreement applies, any reciprocal under the applicable tax laws of that

State lawsuit over a lawsuit 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 vulnerable to tax revenue by reason of

his domicile, residence, place of management or any other criterion of a similar nature

and also includes that State and any political or administrative subdivision or local

authority to be. This term, however, does not include any person who is vulnerable to tax

in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual 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 told to be a resident only 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

e shall 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

is 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 bear the question by mutual agreement.

3. Where by reason of the provisions of 1 a person other than an

individual is a resident of both Contracting States, then it 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 purposes of this Agreement, the term "permanent establishment" means

fixed place of business through which the business of an enterprise is partly a

carried on.

2. The term "permanent establishment" includes especially:

a) a place of management;

b) the branch;

c) an office;

d) the factory;

e) the workshop,

f) the warehouse or premises used as sales outlet;

g) the farm or plantation;

h) the mine, an oil or gas well, a quarry or any other place of extraction of natural

resources;

i) drilling rig or working ship used for exploration or exploitation of natural

resources.

3. The term "permanent establishment" ordered encompasses:

a) the building site, the construction, assembly or installation project or supervisory

activities in connection therewith, but only where such site, project or activities

continue for a period of more than 6 months;

b) the furnishing of services, including consultancy services by an enterprise

through employees or other personnel engaged by the enterprise for such

purpose, but only where activities of that nature continue (for the same or

connected project) within the country for a period or periods aggregating more

than 183 days within any twelve month period.

4. pursue the preceding provisions of this Article, the term " permanent

establishment " shall be shall be not to include:

a) the use of facilities thereof for the purpose of storage, display or delivery of goods

or merchandise belonging to the enterprise;

b) the maintenance of a stock of goods or merchandise belonging to the enterprise

Thereof for the purpose of storage, display or delivery;

c) the maintenance of a stock of goods or merchandise belonging to the enterprise

Thereof for the purpose of processing by another enterprise;

d) the maintenance of a fixed place of business thereof for the purpose of purchasing

goods or merchandise or of collecting information, for the enterprise;

e) the maintenance of a fixed place of business thereof for the purpose of carrying out

on, for the enterprise, any other activity of a convicted or auxiliary character;

f) the maintenance of a fixed place of business thereof for any combination of

activities mentioned in sub-paragraphs a) to e), provided that the overall activity

of the fixed place of business populations from this combination is of a

or auxiliary character.

5. reveals the provisions of paragraphs 1 and 2, where a person-other

than an agent of an independent status to be granted 6 applies-is acting on

behalf of an enterprise and has, and habitually exercises, in a Contracting State an

authority to receive contracts in the name of the enterprise, that enterprise shall be

must have a permanent establishment in that State in respect of any activities

which person undertakes for the enterprise, unless the activities of such person are

limited to those mentioned in paragraph 4 which, if we were through a fixed place of

business, would not make this fixed place of business a permanent establishment under

the provisions of that paragraph.

6. An enterprise shall not be told to have a permanent establishment in a

State's State of the State: It's a State of the State because it's called upon business in that State

general commission agent or any other agent of an independent status, provided that

such persons are acting in the ordinary course of their business.

7. The fact that a company which is a resident of a Contracting State controls or is

controlled by a company which is a resident of the other Contracting State, or which

strongest on business in that other State (whether through a permanent establishment or

otherwise), shall not be of itself as a company a permanent establishment of

the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property

(including income from agriculture or forestry) situated in the other Contracting State

may be taxed in that other State.

2. The term "immovable property" shall have the consecutive which it has been under the

law of the Contracting State in which the property in question is situated. The term shall

in any case include property accessory to immovable property, livestock and equipment

used in agriculture and forestry, rights to which the provisions of general law enforcement

immune property apply, enjoy of immovable property and rights to variable or fixed

payments as a consideration for the working of, or the right to work, mineral deposits,

sources and other natural resources; ships, boats and aircraft shall not be concerned as

immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use,

letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from

immovable property of an enterprise and to income from immovable property used for

the performance of independent personal services.

5. The foregoing provisions shall also apply to income from movable property, or

income derived from services connected with the use or the right to use the immovable

property, either of which, under the taxation law of the Contracting State in which the

property is situated, is assimilated to income from immovable property.

Article 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be expressed only in that

State unless the enterprise has excited on business in the other Contracting State through a

permanent establishment situated. If the enterprise strongest on business as

aforesaid, the profits of the enterprise may be taxed in the other State but only so much

of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting

State full-time on business in the other Contracting State through a permanent

establishment situated by, there shall be in each other Contracting State be that

permanent establishment the profits which it might be expected to make if it were a

distinct and separate enterprise engaged in the same or similar activities under the same

or similar conditions and dealing with the enterprise of which it is

the permanent establishment.

3. In opposition the profits of a permanent establishment, there shall be allowed

the deductions expenses which are incurred for the purposes of the permanent

establishment, including executive and general administrative expenses so incurred,

whether in the State in which the permanent establishment is situated or situated.

However, in the such deduction shall be allowed in respect of amounts, if any, paid

(otherwise than towards reimbursement of current expenses) by the permanent

establishment to the head-office of the enterprise or any of its other offices, by way of

royalties, fees or other similar payments in return for the use of patents or other rights,

or by way of commission, for specific services performed or for management, or, except

in the case of a banking enterprise, by way of interest on moneys lent to the permanent

establishment. Compounds, in the account shall be taken, in the determination of the profits of

the permanent establishment, for amounts charged, (otherwise than towards

reimbursement of current expenses) by the permanent establishment to the head-office of

the enterprise or any of its other offices, by way of royalties, fees or other similar

payments in return for the use of patents or other rights, or by way of commission for

specific services performed or for management, or, except in the case of a banking

enterprise, by way of interest on moneys lent to the head-office of the enterprise or any

of its other offices.

4. Determining as it has been customary in a Contracting State to determine the profits

to be imprisoned to a permanent establishment on the basis of an apportionment of the

total profits of the enterprise to its various parts, nothing in paragraph 2 shall be awarded

that Contracting State from involving the profits to be taxed by such an

apportionment as may be customary; the method of apportionment adopted shall,

however, be such that the result shall be in accordance with the principles contained in

this Article.

5. No profits shall be present to a permanent establishment by reason of the mere

purchase by that permanent establishment of goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits to be told to the

permanent establishment shall be determined by the same method year by year unless

there is good and sufficient reason to the reveals.

7. Where profits include items of income which are dealt with separately in other

Articles of this Agreement, then the provisions of those Articles shall not be affected by

the provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise of a Contracting State from the operation of ships or

aircraft in international traffic shall be available only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in

the pool, the joint business or an international operating agency.

3. comparing companies from different countries have agreed to carry on an air

transportation business together in the form of a consortium, the provisions of the

1 shall apply to such a part of the profits of the consortium as to the

participation held in that consortium by a company that is a resident of a Contracting

State.

Article 9

ASSOCIATED ENTERPRISES

1. Where

a) an enterprise of a Contracting State participates directly or jointly in the

management, control or capital of an enterprise of the other Contracting State, or

b) the same persons participate directly or indirectly in the management, control or

capital of an enterprise of a Contracting State and an enterprise of the other

Contracting State,

and in either case conditions are made or proceeding between the two enterprises in their

commercial or financial relations which would be banned from those which would be made

between independent enterprises, then any profits which would, but for those

conditions, have accrued to one of the enterprises, but, by reason of those conditions,

have not so accrued, may be included in the profits of that enterprise and taxed

.

2. Where a Contracting State includes, in accordance with the provisions of

paragraph 1, in the profits of an enterprise of that State-and taxes-profits

on which an enterprise of the other Contracting State has been charged to tax in that

other State and where the competent authorities of the Contracting State agree, upon

consultation, that all or part of the profits so included are profits which would have

accrued to the enterprise of the first-mentioned State if the conditions made between the

two enterprises had been those which would have been made between independent

enterprises, then that other State shall make an appropriate adjustment to the amount of

the tax charged lawsuit on those agreed profits. In vivo such adjustment, due

regard shall be had to be had to the other provisions of this Agreement.

Article 10

DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a

resident of the other Contracting State may be taxed in that other State.

2., such dividends, such dividends may also be taxed in the Contracting State of which

the company paying the dividends is a resident and according to the laws of that State,

but if the beneficial owner of the dividends is a resident of the other Contracting State,

the tax so charged shall not exceed 10 per cent per cent of the gross amount of the dividends.

The competent authorities of the Contracting States shall be by mutual agreement enhancing the

mode of application of this limitation.

This paragraph shall not affect the taxation of the company in respect of the profits out

of which the dividends are paid.

3. The term "dividends" as used in this Article means income from shares,

"jouissance" shares or "jouissance" rights, mining shares, founders ' shares or other

rights, not being debt-claims, lawsuit in profits, as well as income from other

corporate rights which is enhancing to the same taxation treatment as income from

shares by the laws of the State of which the company making the distribution is a

resident. The term also includes profits from under an arrangement for participation

in profits.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of

The Dividends, being a resident of a Contracting State, strongest on business in the other

Contracting State of which the company paying the dividends is a resident, through a

permanent establishment situated by, or opposition in that other State independent

personal services from a fixed base situated, and the holding in respect of which

the dividends are paid is effectively connected with such permanent establishment or

fixed base. In such case the provisions of Article 7 or Article 14, as the case may be,

shall apply.

5. It reveals any other provisions of this Agreement where a company

which is a resident of a Contracting State has a permanent establishment in the other

State-of-the-art, the profits of the permanent establishment may be an an

additional tax in that other State in accordance with its law, but the additional tax so

charged shall not exceed 10 per cent of the amount of such profits after deducting

therefrom therefrom income tax and other taxes on income taxes thereon in that other State.

6. The provision of paragraph 5 of this Article shall not affect the provision

contained in any production sharing contract and relating to oil and gas sector

concluded by the Government of Indonesia, its instrumentality, its relevant state oil and

gas company or any other entity with a person who is a resident of the other

Contracting State.

7. Where a company which is a resident of a Contracting State derives profits or

income from the other Contracting State, that other State may not be banned any tax on the

dividends paid by the company, except promising as such dividends are paid to a resident

of that other State or Its holding as a holding in respect of which the dividends are paid is

effectively connected with a permanent establishment or a fixed base situated in that

other State, nor subject the company's undistributed profits to a tax on the company's

undistributed profits, even if the dividends paid or the undistributed profits consist

Taxable or partly of profits or income arising in such other State.

Article 11

INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other

State's State may be taxed in that other State.

2., such as, such interest may also be taxed in the Contracting State in which it

how to and according to the laws of that State, but if the beneficial owner of the interest

is a resident of the other Contracting State, the tax so charged shall not exceed 10 per

cent of the gross amount of the interest.

The competent authorities of the Contracting State shall be by mutual agreement enhancing the

mode of application of this limitation.

3. Concerning the provisions of paragraph 2, interest arising in a Contracting

State and derived by the Government of the other Contracting State including local

authorities, the political or administrative subdivision and government institutions,

the Central Bank or any financial institution controlled by that Government, the capital

of which is wholly owned by the Government of the other Contracting State, as may be

agreed upon from time to time between the competent authorities of the Contracting

States, shall be exempt from tax in the first-mentioned State.

4. The term "interest" as used in this Article means income from debt-claims of

every kind, whether or not secured by mortgage and whether or not carrying a right to

participate in the debtor's profits, and in particular, income from government securities

and income from bonds or debentures, including distant and prizes attaching to such

securities, bonds or debentures. Penalty charges for late payment shall not be imposed

the interest for the purpose of this Article.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of

The Interest, Being a resident of a Contracting State, strongest on business in the other

State: State in which the interest rates, through a permanent establishment

situated Situated, Or in that other State independent personal services from a

fixed base situated low, and the debt-claim in respect of which the interest is paid is

effectively connected with such permanent establishment or fixed base. In such case the

provisions of Article 7 or Article 14, as the case may be, shall apply.

6. Interest shall be exposed to arise in a Contracting State when the payer is a

resident of that State. Where, however, the person paying the interest, whether he is a

resident of a Contracting State or not, has in a Contracting State a permanent

establishment or a fixed base in connection with which the indebtedness on which the

interest is paid was incurred, and such interest is borne by such permanent

establishment or fixed base, then such interest shall be overcome to arise in the State in

which the permanent establishment or fixed base is situated.

7. Where, by reason of a special relationship between the payer and the beneficial

owner or between both of them and some other person, the amount of the interest,

having regard to the debt-claim for which it is paid, exceeds the amount which would

have been agreed upon by the payer and the beneficial owner in the opposition of such

relationship, the provisions of this Article shall apply only to the last-mentioned

amount. In such case, the excess part of the payments shall remain according to

the laws of each other state, due regard being had to the other provisions of this

Agreement.

Article 12

ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other

State's State may be taxed in that other State.

2., such as, such royalties may also be taxed in the Contracting State in which

they arise and according to the laws of that State, but if the beneficial owner of the

royalties is a resident of the other Contracting State, the tax so charged shall not exceed

10 per cent of the gross amount of the royalties.

The competent authorities of the Contracting States shall be by mutual agreement enhancing the

mode of application of this limitation.

3. The term "royalties" as used in this Article means payments of any kind received

the a consideration for the use of, or the right to use, any copyright of literary, artistic or

scientific work including cinematograph films, and films or tapes for radio or television

broadcasting, any patent, trade mark, design or model, plan, secret formula or process,

or for the use of, or the right to use, industrial, commercial or scientific equipment, or

for information concerning industrial, commercial, or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of

the royalties, being a resident of a Contracting State, held on business in the other

Contracting State in which the royalties arise, through a permanent establishment

situated Situated, Or in that other State independent personal services from a

fixed base situated lower, and the right or property in respect of which the royalties are

paid is effectively connected with such permanent establishment or fixed base. In such

case the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Royalties shall be able to arise in a Contracting State where the payer is a

resident of that State. Where, however, the person paying the royalties, whether he is a

resident of a Contracting State or not, has in a Contracting State a permanent

establishment or fixed base in connection with which the obligation to pay the royalties

was incurred, and such royalties are borne by that permanent establishment or fixed

basis, then such royalties shall be paid to arise in the State in which the permanent

establishment or fixed base is situated.

6. Where, by reason of a special relationship between the payer and the beneficial

owner or between both of them and some other person, the amount of the royalties,

having regard to the use, right or information for which they are paid, exceeds the

amount which would have been agreed upon by the payer and the beneficial owner in

the arrangement of such relationship, the provisions of this Article shall apply only to the

last-mentioned amount. In such case, the excess part of the payments shall remain

denies it according to the laws of each other state, due regard being had to the

other provisions of this Agreement.

Article 13

CAPITAL CAPITAL

1. Gains derived by a resident of a Contracting State from the alienation of

immovable property referred to in Article 6 and situated in the other Contracting State

may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business

property of a permanent establishment which an enterprise of a Contracting State has in

the other Contracting State or of movable property pertaining to a fixed base available

to a resident of a Contracting State in the other Contracting State for the purpose of

performing independent personal services, including such persons from the alienation of

such a permanent establishment (alone or with the whole enterprise) or of such fixed

base, may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic by

an enterprise of a Contracting State, or movable property pertaining to the operation of

such ships or aircraft, shall be substitutable only in that Contracting State.

4. Gains from the alienation of any property other than that referred to in

paragraphs 1, 2 and 3, shall be increased only in the Contracting State of which the

alienator is a resident.

Article 14

INDEPENDENT PERSONAL SERVICES

1. Income derived by an individual who is a resident of a Contracting State from

the performance of professional services or other activities of an independent character

shall be devoted only in that State except in the following proceedings when such

income may also be taxed in the other Contracting State:

a) if he has a fixed base available to him in the other Contracting State for

the purpose of performing his activities; in that case, only so much of the income

the is attributable to that fixed base may be taxed in that other Contracting State;

or

b) if his stay in the other Contracting State is for a period or periods thereof to

or fewer in the aggregate 183 days within any twelve-month period; in that

case, only so much of the income as is derived from his activities performed in

that other Contracting State may be taxed in that other Contracting State.

2. The term "professional services" includes especially independent scientific,

literary, artistic, educational or teaching activities as well as the independent activities

of physicians, lawyers, engineers, architects, dentists and accountants.

Article 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19 and 20, wages, wages and other

similar remuneration derived by a resident of a Contracting State in respect of an

employment shall be enhancing only in that State unless the employment is entered in

the other Contracting State. If the employment is so enhancing, such remuneration as is

derived therefrom may be taxed in that other State.

2. Concerning the provisions of paragraph 1, remuneration derived by a

resident of a Contracting State in respect of an employment enhancing in the other

State's State shall be overcome only in the first-mentioned State if:

a) the recipient is present in the other State for a period or periods not to be elected in

the aggregate 183 days in any twelve month period commencing or ending in the

calendar year concerned, and

b) the remuneration is paid by, or on behalf of, an employer who is not a resident of

the other State, and

c) the remuneration is not borne by a permanent establishment or a fixed base

which the employer has in the other State.

3. Concerning the preceding provisions of this Article, remuneration derived

in respect of an employment enhancing aboard a ship or aircraft operated in international

traffic by an enterprise of a Contracting State may be taxed in that Contracting State.

Article 16

DIRECTORS ' FEES

1. Directors ' fees and other similar payments derived by a resident of a Contracting

State in his capacity as a member of the board of directors or supervisory board or of

another similar organ of a company which is a resident of the other Contracting State

may be taxed in that other State.

2. The remuneration which a person to have added 1 applies derives from the

company in respect of the discharge of the discharge of functions of a managerial or

technical nature may be taxed in accordance with the provisions of Article 15.

Article 17

ARTISTES AND SPORTPERSONS

1. Concerning the provisions of Articles 14 and 15, income derived by a

resident of a Contracting State as an entertainer, such as the theatre, motion picture, radio

or television artiste, or a musician, or as a sportperson, from his personal activities as

such protests in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities has died by an entertainer or a

sportperson in his capacity as such accrues not to the entertainer or sportperson himself

but to another person, that income may, notnoticeable the provisions of Articles 7, 14

and. 15, be taxed in the Contracting State in which the activities of the entertainer or

sportperson are vulnerable.

3. Concerning the provisions of paragraphs 1 and 2, income derived in respect

of the activities referred to in paragraph 1 within the framework of any cultural or sports

exchange programme agreed to by both Contracting States shall be exempt from tax in

the Contracting State in which these activities are being answered.

Article 18

PENSIONS

Subject to the provisions of paragraph 2 of Article 19, pensions and other similar

remuneration paid to a resident of a Contracting State in consideration of past

employment shall be enhancing only in that State.

Article 19

GOVERNMENT SERVICE

1. (a) Thereof, wages and other similar remuneration, other than a pension,

paid by a Contracting State or a political or administrative subdivision or

the local authority or a statutory body to be an individual in respect of

services shall be available to that State or subdivision or authority or body shall

be thereof only in that State;

b), such a case, such as, wages and other similar remuneration shall be

apart only in the other Contracting State if the services are available in

that State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State thereof for the purpose of

rendering the services.

2. a) Any pension paid by, or out of funds created by, a Contracting State or a

political or administrative subdivision or a local authority or a statutory

body demanding to an individual in respect of services from services to that State

or subdivision or authority or body or body shall be thereof only in that State;

b), such as, such pension shall be limited only in the other Contracting

State if the individual is a resident of, and a national of, that State.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to be called for, wages and

other similar remuneration, and to pensions, in respect of services of services

connection with a business carried on by a Contracting State or a political or

administrative subdivision, or a local authority or a statutory body of interest.

Article 20

PROFESSORS AND RESEARCHERS

1. An individual who is or was a resident of a Contracting State immediately

before visiting the other Contracting State, convicted for the purposes of teaching or

scientific research at an university, college, school, or other similar educational or

scientific research institution which is recognised as non-iles by the Government

of that other State, or under an official programme of cultural exchange, for a period not

a few two years from the date of his first arrival in that other State, shall be exempt

from tax in that other State on his remuneration for such teaching or research.

2. The preceding provision of this Article shall also apply to an individual who

awarded out research within the scope of a scholarship granted by a government,

religious, charitable, scientific, literary or educational organisation, if such scholarship

is exempt from tax.

Article 21

STUDENTS

Payments which a student or business apprentice who is or was immediately

before visiting a Contracting State to the resident of the other Contracting State and who is

present in the first-mentioned State Award for the purpose of their education or training

Shall be the purpose of his maintenance, education or training shall not be taxed in

that State, provided that such payments arise from sources outside that State.

Article 22

OTHER INCOME

1. Items of income of a resident of a Contracting State, arising arising, not dealt with

with in the foregoing Articles of this Agreement

lotteries and prizes shall be deprived only in that State.

2. The provisions of paragraph 1 shall not apply to income, other than income from

immovable property as defined in paragraph 2 of Article 6, if the recipient of such

income, being a resident of a Contracting State, being held on business in the other

State-of-the-art State through a permanent establishment situated by, or full-time in

that other State independent personal services from a fixed base situated, and the

right or property in respect of which the income is paid is effectively connected with

such permanent establishment or fixed base. In such case the provisions of Article 7 or

Article 14, the case may be, shall apply.

Article 23

METHOD FOR ELIMINATION OF DOUBLE TAXATION

1. In the case of Portugal double taxation shall be as follows:

a) Where a resident of Portugal derives income which, in accordance with

the provisions of this Agreement, may be taxed in Indonesia, Portugal

shall allow as a deduction from the tax on the income of that resident an

amount equal to the income tax paid in Indonesia. Such deduction shall

not, however, exceed that part of the income tax as computed before the

deduction is given, which is attributable to the income which may be

taxed in Indonesia.

b) Where in accordance with any provisions of this Agreement income

derived by a resident of Portugal is exempt from tax in Portugal, Portugal

may has, in an amount of the amount of tax on the remaining

income of such resident, take into account the taxable income.

2. In the case of Indonesia, where a resident of Indonesia derives income from

Portugal, the amount of tax on that income payable in Portugal in accordance with the

provisions of this Agreement may be credited against the tax lawsuit in Indonesia

a statement on that resident. The amount of credit, however, shall not exceed the amount of

the tax in Indonesia on that income computed in accordance with its taxation laws and

regulations.

Article 24

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be decided in the other Contracting

State to any taxation or any requirement connected therewith, which is other or more

burdensome than the taxation and connected requirements to which nationals of that

other State in the same respect, in particular with respect to residence, are or may

be it. This provision shall, notconsiderable the provisions of Article 1, also

apply to persons who are not residents of one or both of the Contracting States.

2. The taxation on a permanent establishment which an enterprise of a Contracting

State has in the other Contracting State shall not be less favourably favourably excited in that other

State than the taxation of it on enterprises of that other State carrying on the same

activities. Nothing in this provision shall be constructed as obliging a Contracting State to

grant to residents of the other Contracting State any personal allowances, reliefs and

Profit for taxation purposes on account of civil status or family responsibilities

which it grants to its own residents.

3. Where the provisions of paragraph 1 of Article 9, paragraph 7 of Article

11, or paragraph 6 of Article 12, apply, interest, royalties and other encouraging paid

by an enterprise of a Contracting State to a resident of the other Contracting State shall,

for the purpose of the purpose of the purpose of the profits of such enterprise, be deductible under

the same conditions as if they had been paid to a resident of the first-mentioned State.

4. Enterprises of a Contracting State, the capital of which is producing or partly

owned or controlled, directly or indirectly, by one or more residents of the other

Contracting State, shall not be born in the first-mentioned State to any taxation or

any requirement connected therewith which is other or more burdensome than the

taxation and connected requirements to which other similar enterprises of the first-

mentioned State are or may be excellent.

5. In this Article, the term "taxation" means taxes which are the subject of this

Agreement.

Article 25

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the Contracting

States result or will result for him in taxation not in accordance with the provisions of

this Agreement, he may, shall be provided by the remedies provided by the domestic law of

those States, present his case to the competent authority of the State of the

which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of

the Contracting State of which he is a national. The case must be buried within two

years from the first notification of the action lawsuit in taxation not in accordance with

the provisions of the Agreement.

2. The competent authority shall endeavour, if the objection appears to be to be

justified and if it is not itself able to arrive at a solving solution, to resolve the case

by mutual agreement with the competent authority of the other Contracting State, with a

view to the avoidance of taxation which is not in accordance with the Agreement.

3. The competent authorities of the Contracting States shall endeavour to resolve

by mutual agreement any difficulties or doubts arising as to the interpretation or

application of the Agreement. They may also consult together for the elimination of

double taxation in cases not provided for in the Agreement.

4. The competent authorities of the Contracting States may communicate with each other

other directly, including through a joint commission mixture of themselves or their

representatives, for the purpose of an agreement in the sense of the preceding

paragraphs.

Article 26

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such

information as is necessary for carrying out the provisions of this Agreement or of the

domestic laws of the Contracting States concerning taxes covered by the Agreement

Does the taxation thereunder is not to be proportionate to the Agreement. Any information

received by a Contracting State shall be kept as secret in the same manner as

information obtained under the domestic laws of that State and shall be disclosed only

to persons or authorities (including courts and administrative bodies) concerned with the

assessment or collection of, the enforcement or prosecution in respect of, or the

determination of appeals in relation to, the taxes covered by the Agreement. Such

persons or authorities shall use the information only for such purposes. They may

Proceeding with the information in public court proceedings or in judicial decisions.

2. In the case shall the provisions of paragraph 1 be constructed so as to be constructed on a

Contracting State the obligation:

a) to carry out administrative measures at variance with the laws and administrative

practice of that or of the other Contracting State;

b) to supply information which is not obtainable under the laws or in the normal

course of the administration of that or of the other Contracting State;

c) to supply information which would recommend any trade, business, industrial,

commercial or professional secret or trade process, or information, the disclosure

of which would be appropriate to public policy (ordre public).

Article 27

MEMBERS OF DIPLOMATIC MISSIONS AND

CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of members of

diplomatic missions and consular posts under the general rules of international law or

under the provisions of special agreements.

Article 28

ENTRY INTO FORCE

1. This Agreement shall enter into force on the later of the dates on which the

their respective Governments notify each other in writing that the constituent constitutionally

required in their respective States have been kissed with.

2. This Agreement shall apply:

a) in Portugal:

(i) in respect of taxes withheld at source, the fact giving rise to them

on or after the first day of January of the year next following

the year in which this Agreement enters into force;

(ii) in respect of other taxes as a to income arising in the fiscal year beginning

on or after the first day of January of the year next following the year in

which this Agreement enters into force;

b) in Indonesia:

(i) in respect of tax withheld at the source to income derived on or after 1

January in the year next following that in which the Agreement enters

into force; and

(ii) in respect of other taxes on income, for consecutive years beginning on or

after 1 January in the year next following that in which the Agreement

enters into force.

Article 29

TERMINATION

This Agreement shall remain in force until terminated by a Contracting State.

Either Contracting State may terminate the Agreement, through diplomatic channels, by

giving written notice of termination on or before the thirtieth day of June of any

calendar year following after the period of five years from the year in which the

Agreement enters into force. In such case, the Agreement shall cease to have effect:

a) in Portugal:

(i) in respect of taxes withheld at source, the fact giving rise to them

on or after the first day of January in the year next following

that in which the notice of termination is given;

(ii) in respect of other taxes, those to income arising in the fiscal year beginning

on or after the first day of January in the year next following that in

which the notice of termination is given;

b) in Indonesia:

(i) in respect of tax withheld at source to income derived on or after 1

January in the year next following that in which the notice of termination

is given;

(ii) in respect of other taxes on income, for consecutive years beginning on or

after 1 January in the year next following that in which the notice of

termination is given.

IN WITNESS WHEREOF the undersigned, authorised authorised witnesses, have signed this

Agreement.

Done in duplicate at Lisbon this 9th day of July, 2003, in the World, Indonesian,

and English languages, all texts being equally authentic. In case of any divergence of

interpretation or application of this Agreement the English text shall be provided.

For the World Jewish Republic For the Republic of Indonesia

ANTÓNIO MARTINS OF THE CROSS N. HASSAN WIRAID

Minister for Foreign Affairs Minister for Foreign Affairs

PROTOCOL

At the moment of signing the Agreement for the Avoidance of Double Taxation

and Prevention of Fiscal Evasion with respect to Taxes on Income, this day concluded

between the World Jewish Republic and the Republic of Indonesia, the undersigned have

agreed that the following provisions shall form an integral part of the Agreement.

Ad Article 5, paragraph 2 (i)

For the purposes of paragraph 2 i) Article 5, the activities referred to as a must be

carried on in the other state for a period or periods or periods of time in the aggregate 30 days in

any period of 12 months, and shall be discovered not to include:

(a) one or any combination of the activities mentioned in paragraph 4 of Article

5;

(b) towing or anchor handling by ships primarily designed for that purpose and

any other activities performed by such ships;

(c) the transport of supplies or personnel by ships or aircraft in international

traffic.

Ad Article 5, paragraph 4

It is understood that the provisions of Article 5 paragraph 4 subparagraphs a) and

b) of the not refer to delivery accompanied with the respective sales.

Ad Article 22

The term "prizes" means any remuneration of any kind received in respect of

competition other than referred to under Article 17.

IN WITNESS WHEREOF, the undersigned, authorised authorised witnesses, have signed this

Protocol.

DONE in duplicate at Lisbon this 9th day of July, 2003, in the World, Indonesian

and English languages, all texts being equally authentic. In case of any divergence of

interpretation or application of this Protocol, the English text shall be provided.

For the World Jewish Republic For the Republic of Indonesia

ANTÓNIO MARTINS OF THE CROSS N. HASSAN WIRAID

Minister for Foreign Affairs Minister for Foreign Affairs