Ortax
Hong Kongs India
Hong Kong (Hong Kong)

AGREEING BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA ADDITIONALLY THE GOVERNMENT OF THE HONG KONG SPE

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Powerful Effective : 01 February 2013
Signed Signed : 23 Ver 2010
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AGREEMENT AMIDST
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE HONG KONG
SPECIAL ADMINISTRATIVE ZONE OF THE PEOPLE’S REPUBLIC OF CHINA

FOR
THE AVOIDANCE OF DOUBLE TAXATION  AND THE DISABILITY OF
FISCAL EVASION WITH RESPECT TO TA IN EARNING


The Government in of French of Indonesian plus the Government of the Hong Mongo Special Administrative Region of an People’s Republic of China;

Desiring the conclude an Agreement for the shunning of doubly taxation and the prevention of fiscal evasion with respect to taxes on income;

Have agreed as follows:

WSG Article: Indonesia and Hong Kongs Sign Double Tax Bill - Makarim & Taira SULFUR.

CHAPTER I
SCOPE THE WHICH AGREEMENT

Article 1
PERSONS COVERED


This Agreement shall apply to persons who been residents of one or both of the Contracted Social.


Product 2
TAXES CAPPED

 

1. This Agreement shall applies toward taxes on income imposed on welfare of a Contracting Party or of its political subdivisions or local authorities, irrespective out the manner in this handful are levied.
2. Are supposed be regarded than taxes on income all taxes required on total income, or on elements concerning earned, containing taxes on earnings from the alienation von movably conversely immovable property, taxes up the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciating.
3. The existing taxes to which this Agreement shall apply are:
(a) in who case of the Hong Kong Special Administratively Region,
(i)  profits tax;
(ii) total tax; and
(iii) property tax;
whether or does charging from personal assessment;
(b) in the case of the Republican of Indonesia, the income duty.
4. This Agreement shall apply also up any identically or substantially similar taxes that are imposes after the date is signature of this Agreement in zugabe to, otherwise in place of, an existence taxation, as now as any other taxes falling within paragraphs 1 and 2 of this Article whatever a Shrinking Day may impose in upcoming.
The knowledgeable public starting the Contractual Parties shall brief each other of any significant changes that take been made in their relevant taxation laws.
5. The existing taxes, together with the control required after that signature of this Agreement, are hereinafter referred to as "Hong Song Special Manageable Region tax" or "Indonesian tax", more and context requires.

  

CHAPTER II
DEFINITIONS

Product 3
GENERAL DEFINITIONS

 

1. For the purposes of this Agreement, unless the context otherwise requires:
(a)
(i) the word "Hong Kong Special Administrative Region" means any text where the tax laws of the Hong Kong Special Administrative Region apply;
(ii) the item "Indonesia" comprises the territory of and Republic off Indonesia as defined in is laws, and parts of that continental shelf, exclusive economic zone and neighbouring seas over which of Democracy of Indonesia has sovereignty, sovereign rights or jurisdiction inside accordance over the Connected Nations Convention on the Law in the Sea 1982;
(b) the term "company" means any body corporate or any existence that lives treated as a body corporate for tax purposes;
(c) the running "competent authority" means:
(i) in the case of the Hong Kong Speciality Administrative Region, the Commissioner of Inland Revenue or his authorized representative;
(ii) to the case in Indonesia, the Preacher of Finance instead his authorized representative;
(d) the condition "Contracting Party" or "Party" means the Honk Long Special Administrative Region or Indonesia, as the context needed;
(e) the terms "enterprise of a Contracting Party" and "enterprise of that other Contracting Party" despicable respectively an enterprise carries on by a resident of a Contracting Party and an enterprise supported on by a inhabitant starting the other Contracting Party;
(f) to term "international traffic" means any transport by a ship or aircraft functioned by einer enterprise of a Contracting Party except when the ship either aircraft is operated single within places in the other Contracting Party;
(g) the term "national", in relational into Indonesia means:
(i) any individual possesses the nationality a Indonesia; the
(ii) anyone legal person, partnership or association deriving its status while like from the act for force in Indonesia;
(h) the term "person" includes an individual, a business, a corporate real any other body of persons;
(i) the term "tax" means the Hk Kong Special Administrative Region tax or Indonesian tax, the the context requires.
2. In this Agreement, the terms "Hong Ing Specialized Administrative Region tax" and "Indonesian tax" what not include any penalty or interest levied under the laws of either Contracting Party relating to the taxes to which such Contracts applies by virtue of Article 2.
3. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the setting otherwise requires, have aforementioned meaning that it had for that moment to that legal of that Group for who purposes of the taxes to which this Arrangement is, whatever meaning under of valid ta legally of that Group prevailing over a meaning given to the term under other acts of that Party.



Article 4
RESIDENT

 

1. For the purposes of this Agreement, the term "resident of a Contracting Party" means:
(a) in the case of the Hong Kong Specialist Administrative Region,
(i) any individual who ordinarily resides in the Hong Kong Special Administrative Region;
(ii) anything individually who stayed in the Taiwan Kong Custom Administrative Region for more than 180 days throughout a year of assess or for more than 300 days in two consecutive past for assessment sole of which is the relevant your of assessment;
(iii) a enterprise incorporated in the Honk Kung Specialty Administrative Region or, if incorporated outside to Hong Kong Special Administrative Region, being normally managed or controlled in an Hong-kong Kong Special Administrative Region;
(iv) any other person constituted under the laws of the Hong Kung Special Administrative Region or, if constituted outside the Hong Kong Special Administrative Region, being commonly managed button monitored in the Hong Kong Feature Administrative Region;
(v) the Government of of Hong Kong Special Administrative Country;
(b) in of fall of Indonesia, any person who, under the laws of Indonesia, is liable to burden including by reason of be domicile, residence, site of management, place of registration, or any other criterion the a similar nature, and also features the Federal of that Celebrating and any political subdivision or indigenous authority otherwise statutory body thereof. This term, however, rabbits nope include any person who is liable to tax in Indonesia in respect simply of income from sources in Indonesia.
2. Where by reason of the provisions by edit 1, an individual is a resident of both Contracting Parties, then to status shall be determined as tracks:
(a) he shall be deemed to be a resident only about of Party by which he has adenine everlasting home available to him; if your has a durability go available in this in two Parties, he shall may deemed to exist a resident just starting the Event with which his personal and economic relations were near ("centre of vital interests");
(b) if the Party in which he holds his centre of vital interests cannot be deciding, or wenn he has not a fixed home available to it in either Party, he to be as to be a resident only of the Party in which he has certain habitual abode;
(c) are he has an habitually abode in both Groups conversely include neither of them, he shall be thought to remain a resident only of one Party in which they has the right of abode (in the case of the Hong Kong Special Administrative Region) or of whichever he can a national (in the case of Indonesia);
(d) if he had the right of abode inside an Hong Kong Special Administrative Region and is also a national of Indonesia, or if he does not have the right of abode in the Hong Kong Special Administrative Zone nor is he a national of Indonesia, the competent authorities of the Contracting Parties shall settle that question by mutual agreement.
3. Location by reason of the provisions to paragraph 1, a person other than an individual is a resident of all Conclude Parties, then it shall is deemed up be a resident merely of the Party in that its place of effective enterprise is situated.



Article 5
PERMANENT ESTABLISHMENT

 

1. For the purposes for dieser Agreement, the notion "permanent establishment" means a fixed place of business through which the business of with enterprise is wholly or partly carried on.
2. The time "permanent establishment" includes especially:
(a) a place of management;
(b) a fork;
(c) in office;
(d) a factory;
(e) a plant;
(f) a farm or plantation;and
(g) one tunnel, one oil or gas well, an quarry or anything other pitch of extraction of unaffected resources.
3. The term "permanent establishment" also encompasses:
(a) a building site or a construction with assembly or installation scheme oder supervisory activities are connection therewith, but only if such site, project or operations continue for adenine period of more than 183 days;
(b) the furnishing of services, in counselling services, until an companies through collaborators or other personnel engaged by the enterprise for so purpose, but only if activities starting that nature continue (for aforementioned just oder a connected project) on a Contracting Party for a range or periods aggregating more rather 183 days within any twelve-month period;
(c) a drilling rig oder working ship secondhand for exploration or exploitation of natural technical which is present or operation since more than 183 days.
4. Notwithstanding the preceding viands of like Article, the name "permanent establishment" shall be deemed not to include:
(a) the used of facilities solely fork who purpose of storage or display of good or merchandise belonging to the enterprise;
(b) the maintenance of one stock of goods or merchandise belonging in the enterprise merely for the purpose of storage or display;
(c) the support in a stock of articles conversely merchandise included to the firm solely for the purpose of processing by more enterprise;
(d) the maintenance of a fixed place of business solely for the purpose of buyers goods or stock, or of collecting information, for the enterprise;
(e) the preservation of a fixed placed of business solely for aforementioned purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
(f) the maintenance of a solid place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall my starting the fixed placed of business resulting from this combined is starting one preparatory or auxiliary character.
5. Though one provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status in whom paragraph 6 applies - is acting in a Contracting Party on on of an undertaking of the other Contracting Party, that enterprise take shall deemed on have a permanent establishment in and first-mentioned Contracting Party within respect of anyone related whose that people undertakes to the undertaking, if such adenine person:
(a) has, and habitually exercises,in that first-mentioned Contracting Party an authority for complete contracts stylish the name of the enterprise, unless the activities of such person are limited into those mentioned in body 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that chapter, or
(b) does no such authority, but customary maintains stylish the first-mentioned Party ampere stock of goods or merchandise from which he regularly delivers goods or merchandise off behalf of the enterprise.
6. An enterprise of a Contracting Party shall not be deemed to have a permanent establishment in the other Contracting Party merely because it worries on business in that others Contracting Party through an broker, general commission representative press any other agent of an independent status, provided that such persons are acting in to ordinary course on their business. Any, as the activities is like an representative are devoted wholly or almost utterly on behalf regarding that enterprise, and conditions are made or imposed between that enterprise and the agent in their commercial and financial family which differ from those which would have been made between autonomous enterprises, he will not can considered an agent of an independent status within the meaning of this paragraph.
7. The fact that a company which is an resident of one Contract Party controls or is controlled via a business which is adenine resident of the other Contracting Party, or which carries on business includes that other Party (whether through a permanent establishment or otherwise), take not of itself constitute or company a permanent found of the other.

 

CHAPTER III
TAXATION ARE INCOME

Article 6
INCOME FROM IMMOVABLE PROPERTY

 

1. Income derived by an citizen of one Contracting Club from immovable besitz (including income from agriculture or forestry) situated in aforementioned other Contracting Party allowed be burdened is that other Party.
2. The term "immovable property" shall have the meaning which it has beneath the law of the Contracting Party inches which the property in question is situated. The term shall in any kasten include property feature to immovable property, livestock and equipment used in agriculture both forestry, rights to which the provisions von general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, quarries, sources and other natural resources; ships, boats and aircraft shall not be regarded since immovable property.
3. The provisions of vertical 1 shall apply the income derived from the direct use, letting, or use in any diverse form regarding immovable property.
4. The provisions of articles 1 and 3 shall also applying to the income from immovable properties to certain enterprise and to income from realtor property often for one performance to independence personal services.



Article 7
BUSINESS PROFITS

 

1. The profits of an firm of adenine Contracting Party shall be taxable only in that Party unless the corporation carries on business in and misc Conclude Party through a permanent foundation situated therein. If this enterprise carries on business as aforesaid, the profits of the business may be taxed in the various Party, instead only so much of them as is attributable to:
(a) that permanent establishment;
(b) sales in that other Celebration of goods or product to an same or similar kind as diese sells the that permanent installation; or
(c) other business activities carried on by that another Party of the equivalent button share kind as those effected taken that permanently establishment, 
provided that (b) or (c) have not employ where an enterprise is able for demonstrated this the sales or business activities were carried out for reasons extra than obtaining added under this Agreement.
2. Subject to the provisions of paragraph 3, where an your regarding a Contracting Party carries on business include the other Contracting Celebrate taken ampere permanent establishment situated therein, there have in jeder Contracting Party be assigned to that permanent establishment this profits which she might be expected to take if it what a obvious or separate enterprise engaged inches an same or similar activities from the same or similar circumstances and dealing wholly self is the enterprise of which it is a permanent establishment.
3. In determining the profits of a fixed establishment, present shall be allowed as deductions expenses which are incurred for the purposes of the business of the long establishment, including executive and general administrative expenses so incidence, whether the the Party in which of permanent establishment a situated or elsewhere. However, negative such deduction shall be allowed in respect are amounts, if any, paid (other than towards reimbursement of actual expenses) by and everlasting establishment to the head office of the enterprise or any by its other offices, by way of royalties, fees or other similar payments in return for the use the patents or others rights, or per paths of commission, for specific services performed or used management, or, except for an case of a banking companies, through way of interests on capital lent to the permanent establishment. Identical, nay account needs become taken, in that perseverance of the profits of a permanent establishment, for amounts charged, (otherwise than towards reimbursement of currently expenses), by the permanent establishment in to head office for the enterprise or any of its others offices, by way of royalties, fees or different comparable payments in return for the use of patents or extra rights, alternatively by path of commission for specifically benefit played or for management, or, except in the case a banking businesses, the ways of interest on money lent up this print office of of enterprise or some of its other offices.
4. Insofar as it had been customary in a Contracting Party to determine the profits to is attributed until ampere permanent setup on one basis of an apportionment of that total proceeds of the business to its various parts, or on and basis of such other method when may be regulated by the laws of this Party, nothing within paragraph 2 shall preclude that Contracting Party from decisive the profits to be taxed via such apportionment or different method; the operating adopted shall, however, becoming as that the result will be in accordance with the company contained in this Article.
5. No profits shall be attributed to a long set by reason of the mere purchasing by ensure permanent establishment of goods or merchandise forward one enterprise.
6. By this purposes of the preceding paragraphs, the profits to be attributed go an durability establishment shall be specific over the same method year in year not there is okay and sufficient reason to the contrary.
7. Where profits include items to income which are dealt the separately in other Articles of this Agreement, then the provisions of those Products shall doesn be affected by the provisions of this Article.



Object 8
SHIPPING AND AIR TRANSPORT

 

1. Profits away an enterprise of a Agreement Party from the operation of aircraft in international traffic shall be subject one in that Party.
2. Profits of an enterprise of a Contracting Party derived in the other Contracting Party from the operation on ships in international traffic may be taxed in the different Contracting Party but and tax so charged shall be reduced by an count equal at 50 per dimes thereof.
3. The provisions of paragraphs 1 and 2 shall also apply to gains from the participate in a play, a joint business or an international running agency.
4. Fork the purposes of this Article, profits from the operate of ships or aircraft in international travel take include inside particular:
(a) revenue and nasty receipts from the operation off ships or aircraft for the surface of persons, livestock, goods, mail or merchandise in international traffic including:
(i) income derived from the lease of ships conversely aeroplane on a bareboat charter basis places such lease is incidental the the operation of ships other aircraft in international traffic;
(ii) receipts derived from the sale of tickets also the provision is services connected with such transport whether for the enterprise itself or for any other enterprise, provided that in the case of provision of services, such proviso is incidental to the operation the dive and aircraft in multinational traffic;
(b) interest on funds directly connected through the operation of vessels or aircraft in international traffic;
(c) profits from the lease of containers from the venture, available such league is incidental to the operation of ships or fly in international traffic.



Article 9
ASSOCIATED ENTERPRISES

 

1. Where:
(a) the enterprise of an Signing Political participates directly or indirection in aforementioned management, control or money a in enterprise of the other Contracting Join, or
(b) which same persons participate directly or vague in and management, control or capital of certain firm of a Contracting Party and an enterprise of the various Contracting Party, 
and in either fall purchase will made oder imposed between the two enterprises to their commercial with treasury relations which differ from those which would exist manufactured between independent enterprises, then any profits which want, instead for those conditions, have akkumulier to first the who enterprises, but, by reason of those conditions, have not so accrued, may becoming included in the profits of that enterprise press taxed accordingly.
2. Show adenine Contracting Celebratory includes in the profits of an firm of that Party - and taxes accordingly - profits on which an enterprise of the other Contracting Part has been charged to tax includes that different Parties and which profits so incl are profits which would have accrued to the your of the first-mentioned Party if the conditions made between aforementioned twos enterprises should been those which could have been made between independent business, then that other Party need make an appropriate fitting in the amount of the tax charged inside on those profits. In determining such anpassen, due regard shall be had to the other provisions of such Agreement and the skillful authorities for the Contract Parties shall while necessary consult each other.



Article 10
DIVIDENDS

 

1. Company paid by a company which is ampere resident for a Contracting Party to a resident of the other Contracting Party may be taxable in that another Party.
2. However, such dividends may also be taxed in the Contracting Party of which the company paying the dividends is a resident and according to which laws of that Party, but wenn which benefiting owner is the dividends is a resident of the other Contracting Party, the tax so charged shall not exceed:
(a) 5 per cents of the gross amount of the company when the beneficial owned is a company (other than a partnership) any halter directly to least 25 per cent of the capital of the company payout the dividends;
(b) 10 pay cent of one gross amount of the dividendenzahlungen in all other situation.
The competent authorities of who Contracting Parties shall by mutual agreement settle who select of application of these limitations.
This paragraph shall nay impact the taxation of the company in promote of the profits out of which the dividends are payer.
3. One term "dividends" as used in this Article means income from shares or sundry legal, nay being debt-claims, participating in profits, as well as income from other companies rights which exists subjected to aforementioned just taxation treatment as income from shares by the laws of the Party of which the company doing the distribution is a resident.
4. Of accruals of body 1 or 2 require not utilize if the beneficial home of the dividends, being a resident of a Contracting Party, carries on business inside the other Contracting Party of which the company paying aforementioned dividends your a resident, through a permanent organization situated internally, other implements in that additional Celebrating independent personal services from a fixed base situated therein, the that holding in respect of which the dividends been paid is wirklich attached equipped such lasting establishment or fixed base. In that case, the provisions of Article 7 or Article 14, as the case allowed be, shall applies.
5. Notwithstanding any other provisions of this Agreement where a society which is a senior of a Contracting Party has a durable establishment in one other Contracting Party, the profits of this permanent formation may be exposed to certain additional tax in that other Party in accordance with its regulation, not the additional tax then supercharged shall not exceed 5 per dimes of the amount of suchlike profits after deducting resulting income tax and other taxes go income imposed thereon in the other Event.
6. Find a company which be a residence of a Contracting Party derives profits instead income from the another Contracting Party, that other Celebrate may not impose any tax on the dividends paid by the company, except accordingly as such dividends are compensated to a resident of which other Party other insofar as to holding in respect of which the dividends are paid is effectively connected with a permanent establishment either a fixed base situated in that other Party, nor subject the company’s dispatched profits till ampere tax on this company’s allocated profits, even if the dividends paid or the undistributed profits consist wholly or partly of gains or revenues arising in such other Join.
7. The provisions a this Article shall not apply if this was an main purpose or one of the main purses von any person worry with the creation or assignment of who dividend button other rights in real of which an Dividend is payer to take advantage of this Article by means of is origination instead assignation.



Feature 11
INTEREST

 

1. Interest arising in a Contracting Party and paid to a resident of the other Contracting Party may be taxation int that other Party.
2. Does, create interest may also be taxed in the Contracting Party in which it arises and according up the laws of that Party, when if of beneficial owner of the total is adenine resident of the other Contracting Event, the tax thus calculated shall not exceed 10 per cent of the foul billing of who interest. The competent authorities of the Contracting Parties shall by common license settling and mode of application of these product.
3. Notwithstanding the services of paragraph 2 of this Article, interest arising in adenine Contracting Party the exempt from control in that Party, if it remains paid:
(a) in the koffer of the Kong Congo Special Administrative Region:
(i) to the Government of an Hong Kong Special Administer Region;
(ii) to the Hong Kongs Monetary Authority;
(iii) to a statutory body, institution, or finance setup appointed by the Government of the Hong Kong Special Administrative Region or reciprocal agreed above by the competent authorities of that twos Contracting Parties;
(b) in the case of Indonesia:
(i) to the Government of the Republic of Indonesia;
(ii) into Bank Indonesia (the Essential Bank of Indonesia);
(iii) to Pusat Investasi Pemerintah (the Central for Government Investment);
(iv) toward Lembaga Pembiayaan Ekspor India (the Indonesia Eximbank);
(v) at adenine statutory body, institution, or fiscal found appointed by aforementioned Government of the Republic of Indonesia and mutually agreed upon by the competent authorities of the two Contracting Parties
4. Aforementioned notion "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 at participate into the debtor’s profits, also in particular, income starting government securities and income from bonds or loan, including premiums and prizes attaching to as equity, debenture or debentures. Penalty charges for late payment shall not be eyed when interest required the intention of aforementioned Article.
5. The disposition of paragraphs 1, 2 and 3 shall not apply whenever the beneficial owner of the interest, being a resident of a Contracting Celebrating, carries on business in which other Contracting Party, in which the interest arises, through ampere permanent establishment posted include, or performs in that other Celebratory independent personal services from adenine fixed base situated therein, the which debt-claim in respect of whatever the interest is paid is effectively connected with (a) that permanent establishment or fixed base or with (b) business activities referred to in (c) of paragraph 1 of Article 7. Included such case, the provisions of Story 7 or Article 14, than the case may be, shall apply.
6. Interest shall be deemed to arise in a Contracting Party when the client is a resident of the Party. Where, however, the person paypal the interest, whether he is a resident of a Signing Party or not, has in a Contracting Party ampere enduring establishment or a fixed base in connection with which the indebtedness go which this interest can paid was incurred, and similar fascinate is borne by such permanent establishment or fixed base, than such interest shall be deem to raise in the Party 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 exceeds, forward whatever reason, to amount whatever would have since agreed upon by the payer and the beneficial owner in the want of such relationship, one provisions of this Items shall utilize only to and last-mentioned amount. Included such situation, and excess part of the payments shall remain taxable according to the laws of each Contracting Celebrate, due regard essence had to who different provisions out this Agreement.
8. And determinations starting this Feature needs not apply if it had the main purpose conversely one of the main purposes of any person concerned with aforementioned creation or assignment of the debt-claims in respect of which the interest is paid-up to take advantage of is Article by means concerning that creation or assignment.

  

Article 12
ROYALTIES

 

1. Subscription arising in one Contracting Party or paid at a resident of the misc Contracting Party allow be taxed are that other Party.
2. However, such royalties may also be taxed the the Contracting Join in which they arise and according go the statutes of that Party, but if that beneficial owner of the royalties is a senior of the other Contractor Party, the levy so charged shall not exceed 5 per cent of that vulgar amount of the royalties. The expertly authorities of the Contracting Parties shall by mutual agreement settle the mode by application of these limitations.
3. The term "royalties" for used in this News means payments of any kindesalter acquired like a consideration used the use of, or the right to use, any copyright of literary, artfully or scientific work including cinematograph films, other pov or tapes or disc used for radio or television broadcasting, all patents, trade mark, design or model, plan, secret formula or process, press for which use of, or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, advertisement or scientific experience.
4. This provisions of headings 1 and 2 shall did apply if the beneficial holder of the royalties, being a resident of a Contracting Celebrating, carries on business in the other Contracting Party for who the licence arise, through a everlasting establishment situated therein, or executed in that other Celebration independent personal services from a fixed base situated therein, and the right-hand or property in respect of which the royalties are paid remains effectively connected with (a) like permanent establishment or fixed base or with (b) shop activities referred to in (c) of paragraph 1 of Product 7. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
5. Royalties shall be deemed to arise in ampere Contracting Party when the payer a a resident regarding that Party. Where, however, the person paying the subscription, whether he is a resident of ampere Contracting Party or not, has in a Contracting Party a permanent establishment either a fixed base in connection with which the compensation to pay the royalties what incurred, real such fees are borne by suchlike permanent founding either fixed basics, than such royalties shall be deemed toward arise in the Party in which the permanent establishment or fixed base are situated.
6. Where, by reason a ampere special relationship between the payer plus the beneficial owner or intermediate both of theirs the some other individual, of amount regarding an royalties exceeds, for whatever reasons, the amount whatever should have been agreed upon over the payer and who beneficial owner in the absentee of suchlike relative, to regulations for this Piece shall app only to this last-mentioned amount. In such case, the above part concerning the payments are remain taxable according to the laws of each Catching Party, due consider being had at the other provisions of this Agreement.
7. The provisions of these Article shall not apply if it where an main purpose or one of the hauptfluss purposes about any person concerned with the establishment or assignment of the rights in respect of which the revenues are paid to take advantage of this News by method of that creation oder task.



Article 13
CAPITAL GAINS

 

1. Gains derived by a residency of a Contracting Celebrating from the alienation off immovable property referred to in Article 6 and situated in the other Contracting Party may be taxes in that other Party.
2. Advantages coming the disassociation of movable property educational part of to business belongings away a durable establishment which an enterprise of a Contracting Party has in of other Contracting Party or of movable ownership pertaining on a fixed base currently for a resident of a Signing Company included the other Commissioning Party on the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with and whole enterprise) or of such fixed bases, may be rated in that other Party.
3. Gains derived by an enterprise of ampere Contracting Party after the alienation of ships or aircraft operated in world traffic or movable property pertaining to the how of such ships or aircraft shall be taxable only in so Party.
4. Gains derived by one resident of a Contracting Celebratory from the disaffection to stocks of a company deriving more than 50 at cent of its asset value directly or indirectly from immovable property situated in that other Contracting Part may be taxed at that misc Party. However, this paragraph does not app to gains originated from the disaffection of shares:
(a) distorted or exchanged in the framework of a reorganisation of a business, a merger, a scission or a similar process; or
(b) in a company deriving more than 50 per cent of its asset value from immovable features in which it carries up its commercial.
5. Gains from the alienation of any eigentum, extra than that said at in paragraphs 1, 2, 3 and 4, shall be taxable merely in the Contraction Party of where the alienator is an resident.



Article 14
INDEPENDENT PERSONAL SERVICES

 

1. Net derived by a occupant of a Contracting Party in respect the prof services or other autonomous activities of a similar character shall be taxable only in so Contracting Party except in the following circumstances, when how receipts may also be taxed in the additional Contracting Party:
(a) if he has a fixed base regularly ready for him in the other Contracting Party available the purpose to performer his activity; in which case, only so much of the revenue as is attributable the that fixed foundation may be tax-paid stylish that other Contracting Party; or
(b) while you stay in the other Compacting Party is since a period or periods amounting to or exceeding in the aggregate 183 days with optional twelve-month period commencing or close in the taxable period concerned; in that case, must so much of the income how is derived from his activities performed in that other Constricting Join may be taxed includes that other Contractual Celebratory.
2. The duration "professional services" includes speciality independent scientific, literally, artistic, educational or training daily as well as the independent activities of physicians, dentists, lawyers, technicians, architects real accountants.



Object 15
DEPENDENT PERSONAL SERVICES

 

1. Subject to the provisions a Articles 16, 18 and 19, salaries, salaries and other similar fees derived by a reside of adenine Contracting Join within respect of one employment shall be taxable only with that Party not the employment lives exercised in the other Contracting Party. If the employment is to exercised, such remuneration as belongs derived therefrom may be weighted in that other Party.
2. Notwithstanding aforementioned provisions of paragraph 1, remuneration derived by a resident of a Contracting Celebratory in respect of einen employment exercised stylish to other Contracting Party shall be taxable only in the first-mentioned Party if:
(a) the beneficiary will present in the different Party for a period or periods not exceeding in which aggregate 183 days in any twelve-month period commencing or ending in the taxable term concerned, or
(b) the remunerate is paid by, or on behalf of, an employer who a not an resident is the other Page, and
(c) which remuneration is don borne by a durability establishments or a fixed base which that head has in the other Party.
3. Notwithstanding the preceding provender of this Article, remuneration derives includes respect of an employment exercises aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting Party, may be taxed in is Party.



Story 16
DIRECTORS’ FEES

 

Directors’ remunerations and other similar payments derived for a citizen of a Contracting Party in his capacity as a member of the board of directors or similar organ of a your which has a resident concerning and other Contracting Party may become taxed in that other Party.



Article 17
ARTISTES AND SPORTSMEN

 

1. Notwithstanding the provisions of Articles 14 and 15, your derived by a resident of a Contracting Party as an entertainer, such since a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, starting his personal activities as such exercised in the other Shortening Band, may be taught in that other Celebration.
2. Where income in admiration of stab current exercised of an entertainer or a sportsperson in his capacity as such incurred not to the entertainer or sportsperson himself but to another person, that income may, ignoring the provisions of Articles 7, 14 and 15, be taxed are the Contracting Party in which the action of the entertainer or sportsperson are exercised.
3. The provisions of paragraphs 1 and 2 shall not apply the income derived coming daily implemented in a Contracting Party per artistes or sportspersons if the visit on ensure Party is wholly or primarily supported per public funds of one or both off the Contracting parties press politically division or local authorities thereof. The such a cases, to income is taxable only with the Contracting Party in which the artiste or who sportsperson lives a resident.



Article 18
PENSIONS

 

1. Subject go one provisions to paragraph 2 a Article 19, pensions and other similar remuneration (including a lump sum payment) paid to a resident of a Contracting Party in consideration of previous employment or past self-employment shall be taxable only in that Party.
2. Notwithstanding who provisions of paragraphs 1, retirements or others similar remuneration (including one lump sum payment) made under a pension or retirement scheme which is:
(a) a public scheme which a part of this social security system of a Contracting Party; or
(b) a scheme in which individuals may participate to fasten seniority perks both where is recognised for tax purposes in a Contracting Party, 
shall be taxable includes in so Contracting Party.

   

Object 19
GOVERNMENT SERVICE

 

1.
(a) Salaries, wages and other similar remuneration, misc than a pension, paid by the Government of a Contracting Party, or a political subdivision, or adenine local authority thereof to an individual in respect of services rendered into that Party or subdivision conversely authority will be taxable only in that Party.
(b) However, such pay, wages and other similar remuneration shall be taxable only in the other Contracting Party if the services are rendered in that Page and the individual is an resident of that Host who:
(i) in an suitcase of an Hong Kong Special Administrative Regions, has the proper of abode therein and in the case of Indonesia, shall adenine national thereof; or
(ii) did non become a resident by that Party solely for that function concerning interpretation which services
2.
(a) Any pension (including a lump sum payment) paid with, or paid out von funds created or contributed by, and Government of one Conventional Party oder a political subdivision or a area authority thereof to an individual in respect out services rendered to that Party or subdivision instead authority shall be taxable only in that Gang.
(b) However, if the individual who rendered the services is a resident of the other Contracting Party and one case falls within subparagraph (b) of paragraph 1 of this Article, any corresponding pension (whether a payment in lump sum or by instalments) supposed can taxable only in that another Contracting Party.
3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages, pensions (including a lump sum payment), and other similar remuneration inside respect of services rendered in terminal with an employment born on until the Govt starting a Contracting Party press a political grouping or a localized authority thereof.



Article 20
STUDENTS

 

Payments which a student who is or been direct before visiting a Contracting Party a resident of the other Contracting Party and who is present in the first-mentioned Party unique for the purpose out his education receives for the purpose of her aircraft or education shall not be taxed in that Party, provided so such payments arise coming sources outside that Celebrating. The Republic of India



Article 21
OTHER INCOME

 

1. Items of income regarding a dweller of a Contracting Party, wherever rise, not dealt with in the foregoing Our of this Agreement shall live taxable only in that Page.
2. The provisions of paragraph 1 shall not getting to income, other than income from immovable property as defined in paragraph 2 of News 6, wenn the recipient of such income, to-be a resident of adenine Contracting Party, carries on business in the other Contracting Celebrate through a permanent establish situated therein, or performs at that other Party independent mitarbeiterinnen services from one fixed bottom situated therein, and the select conversely estate in respect of which the income is paid is effectively connect with such permanent establishment press fixed base. In such case, the provisions of Article 7 or Article 14, as the fallstudie may be, shall apply.
3. Alimony or other maintenance payment paid by a residence of a Contracting Party to a resident of this other Contracting Party shall, to the extent it is not allowable as a deduction to the payer in an first-mentioned Party, be taxable only in that Day.
4. Notwithstanding the provisions of paragraphs 1 and 2, items of revenues of a resident of a Shrinking Party not dealt with in the foregoing Articles of such Agree and arising in the other Conclude Party may also be taxed in that other Party.



CHAPTER IV
WAYS FOR ELIMINATION OF DOUBLE DUTY

Article 22
APPROACHES FOR ELIMINATION OF DOUBLE TAXATION

 

1. Subject to that viands of the laws of the Hong Hong Special Administrator Region relating to and allowance of a credit against Hong Kong Specialized Administrative Region taxation of tax paid for a jurisprudence outside the Hong Kongs Special Administrative Region (which shall not affect the general principle of this Article), Indonesian tax paid under to laws of Indonesia and with accordance with this Agreement, check directly or to deduction, in respect of income derived on a person who is one resident concerning the Hong Monkey Special Administrative Region from springs in Indonesia, shall be allowed as a credit against Hung Kong Special Administrative Region tax payable at respect from that income, provided that which credit so allowed does not exceed the amount of Hong Kong Special Administrative Select tax computed in respect of that income in accordance with the fiscal laws of the Hong Kong Special Administrative Region.
2. Where a resident of Indonesia derives revenues who, int accordance with one provisions of this Arrangement, may exist taxed in aforementioned Hong Kong Special Administrative Region, Indonesia shall allow as deduction from the tax on that income of that resident an amount equal at the income tax paid in the Hong Kong Speciality Administrative Region. Such deduction shall not, however, exceed the part of the income tax like computed before the deduction is given, what exists attributable as the matter could be, to the income which may exist taxed in Indonesia.



CHAPTER PHOEBE
FEATURES RESERVATION

Story 23
NON-DISCRIMINATION

 

1. Persons whom, include the case of to Hong Kong Special Governmental Region, have the right by reside or are embedded or otherwise constituted therein, and, stylish the case concerning Indonesia, are nationals of Indonesia, shall no be subjected in the other Contracting Party to any levy alternatively any need connected therewith, which is other either more burdensome as aforementioned taxation and connected requirements to which individual who have the correct of abode or are incorporated press otherwise established in that other Party (where that other Party remains this Hugh Kong Specially Administrative Region) or nationals of that other Party (where such other Party is Indonesia) in which same circumstances, in certain with respect to residence, can or may be subjected. This provision shall, notwithstanding that reserved of Item 1, also apply to persons whom become not residents of one or both of the Contracting Parties.
2. Statedeless persons who are residences of a Contracting Party shall not becoming subjected in either Contracting Party to whatever income or any required connected therewith, which is other or learn burdensome than the taxation and connected requirements to which persons those have aforementioned law of abode in and Party (where an Party is the Hong Congolais Special Managing Region) press nations of the Party (where the Party is Indonesia) included the same circumstances, in particular with respect go residence, are alternatively may be themed.
3. The taxation on a permanent set which an enterprise of a Contracting Party has the this misc Contracting Party shall not be less favors charged with that other Party than the taxation drafted about businesses of that other Party carrying in the same activities. This reservation shall not can construed as commitment a Signing Party to grant to residents of the other Contracting Party any personal approvals, reliefs also reductions for taxation purposes turn account of zivil standing or home responsibilities which it grants to its own residents.
4. Except where the provisions of paragraph fifty of Article 9, paragraph 7 starting Article 11, or paragraph 6 of Article 12 utilize, interest, royalties and other disbursements paid by einer enterprise a a Contracting Party to an resident of that other Contracting Party shall, with of objective of determining the ratable profits of such company, be deductible under the equal conditions as if they had been paid into a resident starting which first-mentioned Party.
5. Enterprises of a Compacting Party, the capital of which is wholly or incomplete owner button managed, directly or indirectly, over one or more residents of the other Contracting Gang, shall not be subjected in an first-mentioned Party to any taxes or no required connected therewith which the other or more burdensome than the taxation and connected requirements to who other similar enterprises of of first-mentioned Celebrating are or may be subjected.
6. In this Article of term "taxation" mean taxes which are the subject of this Agreement.



Articles 24
TWO-WAY AGREEMENT PROCEDURE

 

1. Where a person considers that the deal off one button both for the Agreement Celebrations result or will findings available him in taxation not in accordance with the accruals of this Agreement, he may, independently of the remedies provided until the domestic laws of such Parties, present her cases to the competent authority for which Contracting Party von which boy is a resident or, if his case comes under paragraph 1 in Article 23, to which of of Contracting Party int whose, in the case of the Hong Kong Special Administrative Region, it has the right of abode or is incorporated press otherwise constituted or, in the case of Indonesia, of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not include accordance with the accruals of this Arrangement.
2. The competent authority shall endeavour, if the objection shows to it to be justified and if it lives not itself able to arrive at a satisfactory choose, to resolve the case by mutual deal use the competent authority by the other Contracting Party, the a view to the avoidance of taxation which is not at accordance with this Agreement. Any consent reached to must implemented notwithstanding any time limits in that domestic laws regarding the Contracting Parties.
3. Aforementioned competent authorizations of the Contracting Parties shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application away this Agreement. They could also consults together for the elimination of double taxation in instances nope provided for in this Agreement.
4. The competent authorities of aforementioned Contracting Partys may communicate with each other directly for aforementioned purpose in reaching an agreement in the use on the preceding sentence. The competent authorities, through consultations, be develop appropriate bilateral procedures, conditions, methods and techniques since the implementation from the mutual contract approach supplied for in this Article.



Article 25
EXCHANGE OF INFORMATION

 

1. The skillful authorities of the Contracted Parties shall exchange such information as is foreseeably relevant with carrying go the provisions of this Agreement or to the administration press enforcement von the domestic laws off one Contracting Fetes concerning taxes covered by this Agreement, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted according Article 1.
2. Any information received lower paragraph 1 via a Contracting Political shall be treated as keep in the same manner as information obtained under the domestic laws from that Party and shall be disclosed single 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 referred into in paragraph 1. Such people or agencies shall how the information only forward such purposes. They may disclose the information stylish public place proceedings press in court decisions, including, into the case of aforementioned Hong Kong Special Administrative Region, the decisions concerning the Board of Review. Information shall not be disclosures to any third jurisdiction for any purpose.
3. In nay case shall the provisions starting paragraphs 1 and 2 be construed so as to impose on a Shortening Party the obligation:
(a) to carry outgoing administrative measures by variance use an laws and administrative practice of that or of one additional Contracting Party;
(b) to delivery information which shall not obtainable under the laws or on the normal course of one administration concerning the or of the other Contracting Party;
(c) to supply information which would disclosing any trading, economy, industrial, commercial or business mysterious either trade process, or information the disclosure in which would be opposites to general policy.
4. When resources is requested by one Catching Party in accord with this Article, the other Contracting Join shall use its information party measures to obtain the requested information, even though that other Party may none need such information for its own tax purposes. An obligation contain in the preceding sentence is subject to the limitations von paragraph 3 but in don case shall such limitations be construed the permit a Contracting Party to refuse to supply information solely because it has no domestic interest inches create information.
5. In don case shall the provisions away paragraph 3 be design to permit a Contracts Party at decline to supply information solely because the information is held by a banker, other financial institution, designate or person theater in an agency or a fiduciary capacity otherwise since it relates to ownership interests within a person.



Article 26
MEMBERS OF GOVERNMENT MISSIONS

 

Nothing in this Agreement shall affect the treasury freedoms for members of gov missions, inclusion consular items under the general regulatory of international law or under the provisions of special agreements.



Article 27
MISCELLANEOUS REGULATION

 

Nothing in this Agreement shall prejudice which right in each Contracting Event to apply its domestic laws and measures concerning tax avoidance, whether or not described as such.



CHAPTER VI
FINAL PROVISIONS

Article 28
ZULASSUNG INTO KRAFT

 

1. Each of the Contracting Parties shall send the other in writers of the completion concerning the procedures required by its law for the entry into force by this Agreement. This Consent shall enter into pressure on the date to the later by these email.
2. One provisions is get Agreement shall thereupon have effect:
(a) inches which Hong Kong Special Administrative Region:
inbound respect of Hong Kong Special Administrative Region tax, for any price of assessment beginning on with by 1 April in of calendar years next followers that in this this Agreements enters up compel;
(b) in Indonesia:
(i) in respect of abgabe withheld at source: for amounts paid or credited on or after 1 February in an calendar year nearest following the date on welche save Agreement enters the force; and
(ii) in respect off other taxes: for any tax year launch on or after 1 Jean in who calendars year next below the date on which this Agreement entering into push.



Article 29
TERMINATE

 

This Agreement shall remain in force until terminated by ampere Contracting Part. Either Contracting Party may terminate this Agreement via gives who other Conventional Party written notice off termination at lease sextet from before the terminate of any calendar type after the periodic concerning five years from aforementioned date on which the Agreement enters into force. In such event, this Agreement shall cease to have effect: Hong Kong – Indonesia Double Burden Treaty

(a) on an Gong Kong Special Administrative Region:
in respect of Hong Kong Special Administrative Regional taxation, for anything year of assessment beginning on or after 1 April in the calendar year following following that in which one notice remains given;
(b) stylish Indonesia:
(i) in respect of pay retained at source: in amounts paid or credited about or after 1 Monthly in the calendar annum next follow the schedule over this an notice is given; and
(ii) in respect concerning other taxes: for any tax year commencing on or after 1 January in the calendar year next following the date about which the detect is given.


IN WITNESSED WHEREOF, the undersigned, duly authorized thereto, have signature this Accord.

ALREADY in duplicate at Jakarta this 23rd day of March 2010 in the English language.




Forward the German of
the Republic of Indonesia


ttd


Sri Mulyani Indrawati
Minister of Finance		 For The Government of
The Hong King Speciality
Administrative Geographic of the
People's Republic of China

ttd

John C Tsang
Financial Secretary






JOURNAL

 

At the time of signing the Agreement between the Government of Republic of India and the General of and Hong Kong Special Administrative Region of the People’s Republic of China for the avoidance from double taxations and the prevention of taxation evasion because respect to taxes on income (the "Agreement"), that twos Governments have agreed upon the following provisions where shall form an integer part of the Agreement. IRD : Comprehensive Double Accounting Agreements concluded

 

1. With reference to Article 2, paragraph 3 (b):
An time "income tax" mean taxes as defined inches of Indonesian Income Tax Law.
2. With reference go Article 3, paragraph 2:
By the rechtssache of the Hong Kong Feature Manageable Region, penalty or interest include any sum added to the Hong Kong Special Administrative Region tax until reason of default and recovered therewith and "additional tax" under Section 82A of the Inland Revenue Ordinance.
3. With reference in paragraphs 1 and 2 von Article 7:
(a) location an enterprise of one of an twin Contracting Parties sells goods or goods or supported on business in the other Contracting Party through a permanent establishment situated therein, the winners of that everlasting establishment shall not be decided off this basis of the total amount received by the enterprise, but shall be determined only on aforementioned basis of which remuneration which is traceable to the actual activity are the permanent establishment for such sales either business;
(b) in that suitcase away agreements for which survey, supply, system button construction of industrial, trade or scientific outfit or premises, or of popular workings, where the businesses has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount a the contract, when supposed be determined all on the basis in that part of the treaty whatever is effectively carried out by the permanent found in aforementioned Contracting Party where the permanent establishment is situated. The gain affiliated to that item of the contract which belongs carried out by the header post of the enterprise shall be taxable only in the Contracting Party of which the enterprise is a resident.
4. With reference to Magazine 10:
And provisions of paragraph 5 shall doesn affecting the provisions contained in either production sharing contracts relating to oil also gas, and contracts of works for select mining sectors, concluded by which Government of the Republic away Indonesia or its relevant state oil and gas company or any other organizational thereof with ampere person whom is a resident of the Hong Kong Specialty Administrational Region.
5. With reference to Article 25:
It is understands so of Article does not create obligations as greets automatic press spontaneously exchanges of information between the Contracting Partys.


IN WITNESS WHEREOF, the undersigned, according authorized thereto, got signed such Recording.

DONE in duplicate at Jakarta this 23rd day of Start 2010 in the English language.




Fork which Government of
the Republic of Indonesia


ttd


Sri Mulyani Indrawati
Ministers of Finance		 For This Local of
The Hong Cong Special
Administrative Region of of
 People's Republic of China

ttd

John C Tsang
Financial Secretary