PERPRES No. 68 Tahun 2006

Peraturan Presiden ini mulai berlaku pada tanggal ditetapkan.
Agar
setiap
orang
mengetahuinya,
memerintahkan
pengundangan
Peraturan Presiden ini dengan penempatannya dalam Lembaran Negara
Republik Indonesia.
Ditetapkan di Jakarta
pada tanggal 23 Juni 2006
PRESIDEN REPUBLIK INDONESIA,
ttd.
DR. H. SUSILO BAMBANG YUDHOYONO
Diundangkan di Jakarta
pada tanggal 23 Juni 2006
MENTERI HUKUM DAN HAK ASASI MANUSIA
REPUBLIK INDONESIA,
ttd.
DR. HAMID AWALUDIN
LEMBARAN NEGARA REPUBLIK INDONESIA TAHUN 2006 NOMOR 53
AGREEMENT BETWEEN THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF
THE PEOPLE'S REPUBLIC OF BANGLADESH
FOR THE AVOIDANCE OF DOUBLE TAXATION AND
THE PREVENTION OF FISCAL EVASION WITH RESPECT TO
TAXES ON INCOCME.
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH
DESIRING to conclude 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 imposed by or
on behalf of a Contracting State or its local authorities,
irrespective of the manner in which they are levied.
2.
There shall be regarded as taxes on income, all taxes imposed
on total income, or on elements of income, including taxes on
gains from the alienation of movable or immovable property.
3.
The existing taxes to which this Agreement shall apply are:
(a)
in the case of Indonesia:
the income tax imposed under the Undang-undang Pajak
Penghasilan 1984 (Law Number 7 of 1983 as amended)
(hereinafter referred to as "Indonesian tax").
(b)
in the case of Bangladesh:
the income tax
(hereinafter referred to as "Bangladesh tax");
4.
This Agreement shall also apply to any identical or
substantially similar taxes which are imposed after the date
of signature of this Agreement in addition to, or in place
of, the existing taxes. The competent authorities of the
Contracting States shall notify each other of any substantial
changes which have been made in their respective taxation
laws.
Article 3
GENERAL DEFINITIONS
1.
For purposes of this Agreement, unless the context otherwise
requires:
(a)
the term "Indonesia" means the territory of the
Republic of Indonesia as defined in its laws;
(b)
the term "Bangladesh" means all the territory of the
People's Republic of Bangladesh
including the part of
the seabed and its sub-soil thereof, to the extent that
the area in accordance with international law has been
or may hereafter be designated under Bangladesh law as
an area within which Bangladesh may exercise sovereign
rights with respect to the exploration and exploitation
of the natural resources of the seabed or its sub-soil;
(c)
the
terms
"a
Contracting
State"
and
"the
other
Contracting State" mean Indonesia or Bangladesh as the
context requires, and the term "Contracting States"
means Indonesia and Bangladesh;
(d)
the term "tax" means any tax covered by Article 2 of
this Agreement;
(e)
the term "person" includes an individual, a company and
any other body of persons;
(f)
the term "company" means any body corporate or any
entity which is treated as a body corporate for tax
purposes;
(g)
the terms "enterprise of a Contracting State" and
"enterprise of the other Contracting State" mean
respectively an enterprise carried on by a resident of
a Contracting State and an enterprise carried on by a
resident of the other Contracting State;
(h)
the term "competent authority" means:
(1)
in the case of Indonesia, the Minister of Finance
or his authorised representative.
(2)
in the case of Bangladesh, the National Board of
Revenue or its authorised representative;
(i)
the term "national" means all individuals possessing
the nationality or citizenship of the respective
Contracting
States
and
also
any
legal
person,
partnership and association deriving their status as
such from the laws
in force in the respective
Contracting States;
(j)
the term "international traffic" means any transport by
a ship or aircraft operated by an enterprise which is a
resident of a Contracting State, except when the ship
or aircraft is operated solely between
places in the
other Contracting State.
2.
As regards the application of this Agreement by a Contracting
State any term not otherwise defined shall, unless the
context otherwise requires, have the meaning which it has
under the laws of that Contracting State, relating to the
taxes to which this Agreement applies.
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 Contracting State, is liable to tax therein by reason of
his domicile, residence, place of management or any other
criterion of a similar nature.
2.
Where by reason of the provisions of paragraph I 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 of the Contracting
State in which he has a permanent home available to
him; if he has a peffilanent home available to him in
both Contracting States, he shall be deemed to be a
resident of the Contracting State with
which his
personal and economic relations are closer (centre of
vital interests);
(b)
if the Contracting 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 Contracting
State, he shall be deemed to be a resident of the
Contracting State in which he has an habitual abode;
(c)
if he has an habitual abode in both Contracting States
or in neither of them, he shall be deemed to be a
resident of the Contracting State of which he
is a
national;
(d)
if he is a national of both Contracting States or of
neither of them, the competent authorities of the
Contracting States shall settle the question by mutual
agreement.
3.
Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both Contracting
States, then it shall be deemed to be a resident of the
Contracting 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 a fixed place of business through which
the business of an enterprise of a Contracting State is
wholly or partly carried on in the other Contracting State.
2.
The term "permanent establishment" includes especially:
(a)
a place of management;
(b)
a branch;
(c)
an office;
(d)
a factory;
(e)
a workshop;
(f)
a warehouse, in relation to a person providing storage
facilities for others;
(g)
a farm or plantation; and
(h)
a mine, an oil or gas well, a quarry or any other place
of extraction or exploration of natural resources,
drilling or working ship.
3.
The term "permanent establishment" likewise encompasses:
(a)
a
building
site,
a
construction,
assembly
or
installation
project
or
supervisory
activities in
connection therewith but only where such site, project
or activities continue for a period of more than 183
days;
(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 a connected project) within the country for
a period or periods aggregating more than 91 days
within any twelve months period.
4.
Notwithstanding the preceding provisions of this Article, the
term "permanent establishment" shall be deemed not to
include:
(a)
the use of facilities solely for the purpose of storage
or display of goods or merchandise belonging to the
enterprise;
(b)
the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purposes of
storage or display;
(c)
the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
(d)
the maintenance of a fixed place of business solely for
the purpose of purchasing goods or merchandise or of
collecting information for the enterprise;
(e)
the maintenance of a fixed place of business solely for
the purpose of advertising, or for the supply of
information for scientific research or for similar
activities which have a preparatory or auxiliary
character for the enterprise;
(f)
the maintenance of a fixed place of business solely for
any
combination
of
activities
mentioned
in
sub-
paragraphs (a) to (e) provided that the overall
activity of the fixed place of business resulting from
this combination is of a preparatory or auxiliary
character.
5.
Notwithstanding the provisions of paragraphs I and 2, where a
person other than an agent of an independent status to whom
paragraph 6 applies is acting in a Contracting State on
behalf of an enterprise of the other Contracting State, that
enterprise shall be deemed to have a permanent establishment
in the first-mentioned Contracting State in respect of any
activities which that person undertakes for the enterprise if
such person:
(a)
has, and habitually exercises, in the first-mentioned
Contracting State a general authority to conclude
contracts for or on behalf of the enterprise, unless
his activities are limited to the purchase of goods or
merchandise for or on behalf of the enterprise; or
(b)
habitually maintains in the first-mentioned Contracting
State a stock of goods or merchandise belonging to the
enterprise from which he regularly delivers goods or
merchandise for or on behalf of the enterprise; or
(c)
habitually secures orders for the sale of goods or
merchandise in the first-mentioned Contracting State,
wholly for the enterprise itself, or for the enterprise
or other enterprises which are controlled by it or have
a controlling interest in it; or manufactures or
processes in that Contracting State for the enterprise
goods or merchandise belonging to the enterprise.
6.
An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because
it
carries on business in that Contracting State through a
broker, 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 carries on
business in that other Contracting State (whether through a
permanent establishment or otherwise), shall not of itself
constitute either 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 Contracting State.
2.
The term "immovable property" shall have the meaning which it
has 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 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, sources
and other natural resources; ships, and aircrafts shall not
be regarded as immovable property.
3.
The provisions of paragraph I 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.
Article 7
BUSINESS PROFITS
1.
The profits of an enterprise of a Contracting State shall be
taxable only in that Contracting State unless the enterprise
carries on business in the other Contracting State through a
permanent establishment situated therein. If the enterprise
carries on business as aforesaid, the profits of the
enterprise may be taxed in the other Contracting 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 carries on business in the other
Contracting State through a permanent establishment situated
therein, there shall in each Contracting State be attributed
to 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
wholly
independently with the enterprise of which it is a permanent
establishment.
3.
In detemining the profits of a permanent establishment, there
shall be allowed as deductions expenses which are incurred
for the purposes of the permanent establishment, including
executive and general administrative expenses so incurred,
whether in
the Contracting State in which the permanent
establishment is situated or elsewhere, but this does not
include any expenses which under the law of that Contracting
State would not be allowed to be deducted by an enterprise of
that Contracting State.
4.
Insofar as it has been customary in a Contracting State to
determine the profits to be attributed 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 preclude
that Contracting State from
determining 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 laid down in this Article.
5.
No profits shall be attributed 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 attributed to the
permanent establishment shall be
determined by the same method year by year unless there is
good and sufficient reason to the contrary.
7.
Where profits include items of income which are dealt with
separately
in
other
Articles
of
this
Agreement,
the
provisions of those Articles shall not be affected by the
provisions of this Article.
Article 8
SHIPPING AND AIR TRANSPORT
1.
Income of an enterprise of a Contracting State from the
operation of aircraft in international traffic shall be
taxable only in that Contracting State.
2.
Income of an enterprise of a Contracting State derived from
the other Contracting State from the operation of ships in
international traffic may be taxed in that other Contracting
State, but the tax chargeable in that other Contracting State
on such income shall be reduced by an amount equal to fifty
per cent of such tax.
3.
The provisions of paragraphs 1 and 2 shall also apply to
profits derived from the participation in a pool, a joint
business or an international operating agency.
Article 9
ASSOCIATED ENTERPRISES
1.
Where
(a)
an enterprise of a Contracting State participates
directly or indirectly 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 imposed between the two enterprises in their
commercial or financial relations which differ 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 accordingly.
2.
Where a Contracting State includes in the profits of an
enterprise of that Contracting State--and taxes accordingly
profits on which an enterprise of the other Contracting State
has been charged to tax in that other Contracting State and
the profits so included are profits which would have accrued
to the enterprise of the first-mentioned Contracting State if
the conditions made between the two enterprises had been
those which would have been made between independent
enterprises, then that other Contracting State shall make an
appropriate adjustment to the amount of the tax charged
therein on those profits.
In determining such adjustment, due regard shall be had to
the other provisions of this Agreement and the competent
authorities of the Contracting States shall, if necessary,
consult each other.
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 Contracting State.
2.
However, 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 Contracting State, but if
the recipient is the beneficial owner of the dividends the
tax so charged shall not exceed:
(a)
10 per cent of the gross amount of the dividends if the
beneficial owner is a company which holds directly at
least 10 per cent of the capital of the company paying
the dividends;
(b)
15 per cent
of gross amount of the dividends in all
other cases.
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, mining shares, founder's shares, or other
rights, not being debt-claims, participating in profits, as
well as income from other corporate rights which is subjected
to the same taxation treatment as income from shares by the
laws of the Contracting State of which the company making the
distribution is a resident.
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,
carries
on
business
in
the
other
Contracting State of which the company paying the dividends
is a resident, through a permanent establishment situated
therein, or performs in that other Contracting State
independent personal services from a fixed base situated
therein, and the holding in respect of which the dividends
are paid is effectively connected with such a permanent
establishment or fixed base. In such a case, the provisions
of Article 7 or Article 14, as the case may be, shall apply.
5.
Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State,
that other Contracting State may not impose any tax on the
dividends paid by the company, except insofar as such
dividends are paid to a resident of that other Contracting
State or insofar as the holding in respect of which the
dividends are paid is effectively connected with a permanent
establishment or a fixed base situated in that other
Contracting 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
wholly or partly of profits or income arising in such other
Contracting State.
Article 11
INTEREST
1.
Interest arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other Contracting State.
2.
However, such interest may also be taxed in the Contracting
State in which it arises and according to the laws of the
Contracting State, but if the recipient is the beneficial
owner of the interest the tax so charged shall not exceed 10
per cent of the gross amount of the interest.
3.
Notwithstanding the provisions of paragraph 2, interest
arising in a Contracting State and derived by the Government
of the other Contracting State including local authorities
thereof, a political subdivision, 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
Contracting 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
premiums and prizes attaching to such securities, bonds or
debentures. Penalty charges for late payment
shall not be
regarded as interest for the purpose of this Article.
5.
The provisions of paragraphs 1,2 and 3 shall not apply if the
beneficial owner of the interest, being a resident of a
Contracting
State,
carries
on
business
in
the
other
Contracting State in which the interest arises, through a
permanent establishment situated therein, or performs in that
other Contracting State independent personal services from a
fixed base situated therein, 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 deemed to arise in a Contracting State when
the payer is that Contracting State itself, a local authority
or a resident of that Contracting 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
deemed to arise in the Contracting 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 persons, 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 absence 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
taxable according to the laws of each Contracting 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 Contracting State may be taxed in that
other Contracting State.
2.
However, such royalties may also be taxed in the Contracting
State in which they arise and according to the laws of that
Contracting State, but if the recipient is the beneficial
owner of the royalties the tax so charged shall not exceed 10
per cent of the gross amount of the royalties.
3.
The term "royalties" as used in this Article means payments
of any kind received as a consideration for the use of, or
the right to use, any copyright of literary, artistic or
scientific work including cinematograph films, 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,
carries
on
business
in
the
other
Contracting State in which the royalties arise, through a
permanent establishment situated therein, or performs in that
other Contracting State independent personal services from a
fixed base situated therein, 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 deemed to arise in a Contracting State
when the payer is that Contracting State itself, a local
authority
or a resident of that Contracting 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 a fixed base in connection
with which the liability to pay the royalties was incurred,
and such royalties are borne by such permanent establishment
or fixed base then such royalties shall be deemed to arise in
the Contracting 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 absence 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
taxable according to the laws of each Contracting State, due
regard being had to the other provisions of this Agreement.
Article 13
CAPITAL GAINS
1.
Capital gains from the alienation of immovable property, as
defined in paragraph 2 of Article 6 or from the alienation of
shares in a company the assets of which consist principally
of immovable property may be taxed in the Contracting State
in which such property is situated.
2.
Capital 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 gains 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 Contracting State.
3.
Capital gains from the alienation of ships or aircraft
operated in international traffic or movable property
pertaining to the operation of such ships or aircraft shall
be taxable only in the Contracting State of which the
enterprise is a resident.
4.
Capital gains from the alienation of any property other than
that referred to in paragraphs 1, 2 and 3, shall be taxable
only in the Contracting State of which the alienator is a
resident.
Article 14
INDEPENDENT PERSONAL SERVICES
1.
Income derived by a resident of a Contracting State in
respect
of professional services or other activities of an
independent
character
shall
be
taxable
only
in
that
Contracting State. However, in the following circumstances
such income may be taxed in the other Contracting State:
(a)
if he has a fixed base regularly available to him in
the
other
Contracting
State
for
the
purpose
of
performing his activities; in that case, only so much
of the income as is attributable to that fixed base may
be taxed in the other Contracting State; or
(b)
if his stay in the other Contracting State is for a
period or periods amounting to or exceeding in the
aggregate 183 days in the fiscal year concerned; 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,
surgeons,
lawyers,
engineers,
architects,
dentists and accountants.
Article 15
DEPENDENT PERSONAL SERVICES
1.
Subject to the provisions of Articles 16, 18, 19, 20 and 21
salaries, wages and other similar remuneration derived by a
resident of a Contracting State in respect of an employment
shall be taxable only in that Contracting State unless the
employment is exercised in the other Contracting State. If
the employment is so exercised, such remuneration as is
derived therefrom may be taxed in that other Contracting
State.
2.
Notwithstanding the provisions of paragraph 1, remuncration
derived by a resident of a Contracting State in respect of an
employment exercised in the other Contracting State shall be
taxable only in the first-mentioned Contracting State if:
(a)
the recipient is present in the other Contracting State
for a period, or periods not exceeding in the aggregate
183 days in the taxable year concerned; and
(b)
the remuneration is paid by or on behalf of an employer
who is not a resident of the other Contracting State;
and
(c)
the
remuneration
is
not
borne
by
a
permanent
establishment or a fixed base which the employer has in
the other Contracting State.
3.
Notwithstanding the preceding provisions of this Article,
remuneration in respect of an employment exercised aboard a
ship or aircraft operated in international traffic by an
enterprise of a Contracting State shall be taxable only in
that Contracting State.
Article 16
DIRECTOR'S FEES
1.
Director's 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 any other similar organ of a
company which is a resident of the other Contracting State
may be taxed in that other Contracting State.
2.
The remuneration which a person to whom paragraph I applies
derived from the company in respect of the discharge of day-
to-day functions of a managerial or technical nature may be
taxed in accordance with the provisions of Article 15.
Article 17
ARTISTES AND ATHLETES
1.
Notwithstanding the provisions of Articles 14 and 15, income
derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or
television artist, or a musician, or as an athlete, from his
personal
activities
as
such
exercised
in
the
other
Contracting State, may be taxed in that other Contracting
State.
2.
Where income in respect of personal activities exercised by
an entertainer or an athlete in his capacity as such accrues
not to the entertainer or athlete himself but to another
person, that income may,
notwithstanding the provisions of
Articles 7, 14 and 15, be taxed in the Contracting State in
which the activities of the entertainer or athlete are
exercised.
3.
The provisions of paragraphs 1 and 2 of this Article shall
not apply to services of entertainers and athletes if their
visit to a Contracting State is supported wholly or
substantially from public funds of the other Contracting
State.
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 taxable only in
that Contracting State.
Article 19
GOVERNMENT SERVICE
1.
(a)
Remuneration,
other
than
a
pension,
paid
by
a
Contracting State or a local authority thereof to an
individual. in respect of services rendered to that
Contracting State or local authority shall be taxable
only in that Contracting State.
(b)
However, such remuneration shall be taxable only in the
other Contracting State if the services are rendered in
that Contracting State and the individual is a resident
of that Contracting State who:
(i)
is a national of that Contracting State; or
(ii) did not become a resident of that Contracting
State solely for the purpose of rendering the
services.
2.
(a)
Any pension paid by, or out of funds created by, a
Contracting State or a local authority thereof to an
individual in respect of services rendered to that
Contracting State or local authority shall be taxable
only in that Contracting State.
(b)
However, such pension shall be taxable only in the
other Contracting State if the individual is a resident
of, and a national of that Contracting State.
3.
The provisions of Articles 15, 16 and 18 shall apply to
remuneration and pensions in respect of services rendered in
connection with a business carried on by a Contracting State
or a local authority thereof.
Article 20
TEACHERS
An individual who is or was a resident of a Contracting State
immediately before making a visit to the other Contracting State,
and who, at the invitation of any university, college, school or
other similar educational institution, which is recognized by the
concerned authority in that other Contracting State visits that
other Contracting State for a period not exceeding two consecutive
years solely for the purpose of teaching or research or both at
such educational institution shall be exempt from tax in that
other Contracting State on his remuneration for such teaching or
research.
Article 21
STUDENTS AND APPRENTICES
1.
An individual who is or was immediately before visiting a
Contracting State a resident of the other Contracting State
and who is present in the first-mentioned Contracting State
solely as a student at a recognized university, college,
school or other similar recognized educational institution in
the first-mentioned Contracting State or as a business or
technical apprentice therein, for a period not exceeding five
years from the date of his first arrival in the first-
mentioned Contracting State in connection with that visit,
shall be exempt from tax in that first-mentioned Contracting
State on:
(a)
all remittances from abroad for the purposes of his
maintenance, education or training; and
(b)
any remuneration for personal services rendered in the
first-mentioned Contracting State with a view to
supplementing the resources available to him for such
purposes.
2.
An individual who was a resident of a Contracting State
immediately before visiting the other Contracting State and
is temporarily present in that other Contracting State solely
for the purpose of study, research or training as a recipient
of
a
grant,
allowance
or
award
from
a
scientific,
educational, religious or charitable organization or under a
technical assistance programme entered into by the Government
of a Contracting State shall, from the date of his first
arrival in that other Contracting State in connection with
that visit, be exempt from tax in that other Contracting
State:
(a)
on the amount of such grant, allowance or award; and
(b)
on all remittances from abroad for the purposes of his
maintenance, education or training.
Article 22
OTHER INCOME
1.
Items of income of a resident of a Contracting State,
wherever arising, not dealt with in the forgoing Articles of
this Agreement, other than income in the form of lotteries,
prizes shall be taxable in that Contracting 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, carries on business
in
the
other
Contracting
State
through
a
permanent
establishment situated therein, or performs in that other
Contracting State independent personal services from a fixed
base situated therein, 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, as the case may be,
shall apply.
Article 23
METHOD FOR ELIMINATION OF DOUBLE TAXATION
Where a resident of a Contracting State derives income from the
other Contracting State, the amount of tax on that income payable
in that other Contacting State in accordance with the provisions
of this Agreement, may be credited against the tax levied in the
first-mentioned Contracting State imposed on that resident. The
amount of credit, however, shall not exceed the amount of the tax
in the first-mentioned Contracting State 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 subjected 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 Contracting State in the same
circumstances are or may be subjected. This provision shall,
notwithstanding 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 levied in that other Contracting
State than the taxation levied on enterprises of that other
Contracting State carrying on the same activities. This
provision shall not be construed as obliging a Contracting
State, to grant to residents of the other Contracting State
any personal allowances, reliefs and reductions for taxation
purposes
on
account
of
civil
status
or
family
responsibilities which it grants to its own residents.
3.
Except where the provisions of Article 9, paragraph 7 of
article 11, or paragraph 6 of Article 12, apply, interest,
royalties and other disbursements paid by an enterprise of a
Contracting State to a resident of the other Contracting
State shall, for the purpose of determining the taxable
profits of such enterprise, be deductible under the same
conditions as if they had been paid to a resident of the
first-mentioned Contracting State.
4.
Enterprises of a Contracting State, the capital of which is
wholly or partly owned or controlled, directly or indirectly,
by one or more residents of the other Contracting State,
shall not be subjected in the first-mentioned Contracting
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
Contracting
State
are
or
may
be
subjected.
5.
In this Article the term "taxation" means 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 irrespective of the remedies provided by
the domestic law of those Contracting States, present his
case to the competent authority of the Contracting State of
which he is a resident or if his case comes under paragraph I
of Article 24, to that of the Contracting State 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 in accordance with the provisions of this
Agreement.
2.
The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to
arrive at a satisfactory 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 this Agreement. Any agreement
reached shall be implemented notwithstanding any time limit
in the domestic law of the Contracting States.
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
this Agreement. They may also consult together for the
elimination of double taxation in cases not provided for in
this Agreement.
4.
The competent authorities of the Contracting States may
communicate with each other directly for the purpose of
reaching an agreement in the sense of the preceding
paragraphs. When it seems advisable in order to reach
agreement to have an oral exchange of opinions, such exchange
may
take
place
through
a
Commission
consisting
of
representatives
of
the
competent
authorities
of
the
Contracting States.
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 this
Agreement in so far as the taxation thereunder is not
contrary to this Agreement. The exchange of information is
not restricted by Article I. Any information received by a
Contracting State shall be treated as secret in the same
manner as information obtained under the domestic laws of
that Contracting State and shall be disclosed only to persons
or authorities (including courts and administrative bodies)
involved in the assessment or collection of, the enforcement
or prosecution in respect of or the determination of appeals
in relation to, the taxes covered by this Agreement, such
persons or authorities shall use the information only for
such purposes. They may disclose the information in public
court proceedings or in judicial decisions.
2.
In no case shall the provisions of paragraph I be construed
so as to impose 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 the other Contracting State;
(c)
to supply infonnation which would disclose any trade,
business, industrial, commercial or professional secret
or trade process, or information, the disclosure of
which would be contrary to public policy.
Article 27
DIPLOMATIC AGENTS AND CONSULAR OFFICERS
Nothing in this Agreement shall affect the fiscal privileges of
diplomatic agents or consular officers under the general rules of
international law or under the provisions of special agreements.
Article 28
ENTRY INTO FORCE
1.
Each of the Contracting States shall notify to the other the
completion of the procedures required by its law for the
bringing into force of this Agreement.
2.
This Agreement shall enter into force
on the date of the
latter of the notifications referred to in paragraph 1 and
its provisions shall have effect:
(a)
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 this Agreement enters into
force; and
(ii) in respect of other taxes on income, for taxable
year beginning on or after 1 January in the year
next following that in which this Agreement enters
into force.
(b)
in Bangladesh: in respect of taxes, for any year of
assessment beginning on or after 1 July in the calendar
year next following that in which this Agreement enters
into force.
Article 29
TERMINATION
This Agreement shall remain in force until terminated by a
Contracting State. Either Contracting State may terminate this
Agreement, through diplomatic channels, by giving written notice
of termination on or before the thirtieth day of June of any
calendar year after a period of five years from the year in which
this Agreement enters into force. In
such case, this Agreement
ceases to
have effect:
(a)
in Indonesia:
i)
in respect of tax withheld at source to income derived
on or after 01 January in the year next following that
in which the notice of termination is given;
ii)
in respect of other taxes on income, for taxable year
beginning on or after 01 January in the year next
following that in which the notice of termination is
given.
(b)
in Bangladesh, in respect of taxes, for any year of
assessment beginning on or after 01 July in the calendar year
next following that in which the notice is given.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto by
their respective Governments, have signed this Agreement.
DONE in duplicate at Dhaka this day of June 19th 2003, in the
English language.
FOR THE GOVERNMENT OF
FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
THE
PEOPLE'S
REPUBLIC
OF
BANGLADESH
Rini M Sumarno Soewandi
Md. Saifur Rahman
Minister for Industry and Trade
Minister
Ministry
Ministry of Finance and
of Planning
PROTOCOL
At the signing of this Agreement between the Government of
the Republic of Indonesia and the Government of the People's
Republic of Bangladesh for the Avoidance of Double Taxation and
the Prevention of Fiscal Evasion with respect to Taxes on Income
the undersigned have agreed upon the following provisions which
shall form an integral part of this Agreement:
1.
With reference to Article 7:
Notwithstanding any other provisions of this Agreement where
a company which is a resident of a Contracting State has a
permanent establishment in the other Contracting State, the
profits of the permanent establishment may be subjected to an
additional tax in that othter Contracting State in accordance
with its law, but the additional tax so
charged shall not
exceed 10 percent of the amount of such profits after
deducting therefrom income tax and other taxes on income
imposed thereon in that other Contracting State.
2.
With reference to Article 7:
The provision of paragraph 1 shall not affect the provision
contained in any production sharing contract and contracts of
work (or any other similar contracts) relating to oil and gas
sector concluded by the Government of a Contracting State,
its instrumentality, its relevant state oil and gas company
or any other entity thereof with a person who is a resident
of the other Contracting State.
IN WITNESS WHEREOF the undersigned, duly authorized thereto, have
signed this Protocol.
DONE in duplicate at Dhaka this day of June 19th 2003 in the
English language.
FOR THE GOVERNMENT OF
FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
THE
PEOPLE'S
REPUBLIC
OF
BANGLADESH
Rini M Sumarno Soewandi
Md. Saifur Rahman
Minister for Industry and Trade
Ministry Minister of
Ministry
Finance and of Planning

Peraturan Presiden Nomor 68 Tahun 2006 tentang PENGESAHAN AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME BESERTA PROTOCOL

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