KEPPRES No. 148 Tahun 1998

Keputusan Presiden ini mulai berlaku pada tanggal ditetapkan.
Agar …
PRESIDEN
REPUBLIK INDONESIA
Agar
setiap
orang
mengetahuinya,
memerintahkan
pengundangan
Keputusan Presiden ini dengan penempatannya dalam Lembaran Negara
Republik Indonesia.
Dikeluarkan di Jakarta
pada tanggal 18 September 1998
PRESIDEN REPUBLIK INDONESIA
ttd.
BACHARUDDIN JUSUF HABIBIE
Diundangkan di Jakarta
pada tanggal 18 September 1998
MENTERI NEGARA SEKRETARIS NEGARA
REPUBLIK INDONESIA
ttd.
AKBAR TANDJUNG
LEMBARAN NEGARA REPUBLIK INDONESIA TAHUN 1998 NOMOR 141
AGREEMENT
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIK OF SOUTH AFRICA
FOR THE AVOIDANCE OF DOUBLE TAXATION AND
THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
PREAMBLE
The Government of the Republic of Indonesia and the Government of the Republic of
South Africa desiring to conclude an Agreement for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income and to promote and
strengthen the economic relations between the two countries,
HAVE AGREED AS FOLLOWS:
Article 1
PERSONS COVERED
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 on behalf of a Contracting
State or of its political subdivisions, 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 Indonesia;
(i) the income tax imposed under the Undang-undang Pajak Penghasilan 1984
(Law Number 7 of 1983, as amended)
(hereinafter referred to as "Indonesian tax"); and
(b) in South Africa:
(i) the normal tax; and
(ii) the secondary tax on companies;
(hereinafter referred to as "South African tax").
4. The Agreement shall apply also to any identical or substantially similar taxes which
are imposed by either Contracting State after of signature of the Agreement in
addition to, or in place of, the existing taxes. The competent authorities of the
Contracting States shall notify each other of any significant changes which have been
made in their respective taxation laws.
Article 3
GENERAL DEFINITIONS
1. For the purposes of this Agreement, unless the context otherwise requires:
(a) the term Indonesia means the territory of the Republic of Indonesia as defined in
its laws, and parts of the continental shelf and adjacent seas over which the
Republic of Indonesia has sovereign rights or jurisdiction in accordance with
international law;
(b) the term South Africa means the Republic of South Africa and, ehen iused in a
geographical sense, includes the territorial sea thereof as well as any area outside
the territorial sea, including the contonental shelf, which has been or may hereafter
be designated, under the laws of South Africa and in accordance with international
law, as an area within which South Africa may exercise sovereign rights or
jurisdiction;
(c) the terms a Contracting State and the other Contracting State mean Indonesia or
South Africa, as the context requires;
(d) the term company means any body corporate or any entity which is treated as a
company or body corporate for tax purposes;
(e) the term competent authority means:
(i) in Indonesia, the Minister of Finance or his authorised representative; and
(ii) in South Africa, the Commissioner for Inland Revenue or his authorised
representative;
(f) 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 eterprise carried on by a resident of the other Contracting
State;
(g) the term international traffic means any transport by a ship or aircraft operated by
an enterprise of a Contracting State, except when the ship or aircraft is operated
solely between places in the other Contracting State;
(h) the term "national" means :
(i) any individual possessing the nationality of a Contracting State;
(ii) any legal person or association deriving its status as such from the laws in force
in a Contractig State; and
(i) the term person includes an individual, a company and any other body of persons
which is treated as an entity for tax purposes.
2. As regards the application of the provisions of the Agreement at any time by a
Contracting State, any term not defined therein shall, unless the context otherwise
requires, have the meaning which it has at that time under the law of that State for the
purposes of the taxes to which the Agreement applices, any meaning under the
applicable tax laws of that State prevailing over a meaning given to the term under
other laws of that State.
Article 4
RESIDENT
1. For the purposes of this Agreement, the term resident of a Contracting State means :
(a) in Indonesia any person who, under the laws of Indonesia, is liable to tax therein
by reason of his domicile, residence, place of management or any other criterion of
a similar nature, but this term does not include any person who is liable to tax in
Indonesia in respect only of income from sources in Indonesia;
(b) in South Africa, any individual who is ordinarily resident in South Africa and any
person other than an individual which has its place of effective management in
South Africa;
(c) that State and any political subdivision or local authority thereof.
2. Where by reason of the provisions of paragraph 1 an individual is a resident of both
Contracting States, then his status shall be determined as follows :
(a) he shall he deemed to be a resident only of the State in which he has a permanent
home available to him if he has a permanent home aviable to him in both States, he
shall be deemed to be a resident of the State with which his personal and economic
relations are closer (centre of vital Interests);
(b) if the State in which he has his centre of vital interests cannot be determined, or if
he has not a permanent home avaible to him in either State, he shall be deemed to
be a resident only of the State in which he has an habitual abode;
(c) if he has an habitual abode in both States or in neither of them, he shall be deemed
to be a resident only of the State of which he is a national;
(d) if he is a national of both States or of neither of them, the competent authorities of
the Contracting States shall 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, the compentent authorities of the Contracting
States shall settle the question by mutual agreement.
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 is wholly or partly
carried on.
2. The term "permanent establishment" includes especialy :
(a) a place of management;
(b) a branch;
(c) on office;
(d) a factory;
(e) a workshop;
(f) a warehouse or premise used a sales aoutlet;
(g) a mine, an oil or gas well, a quarry or other place of extraction of natural
resources; and
(h) a ship, drilling rig, installation or other structure used for the exploration or
exploitation of natural resources.
3. The term permanent establishment likewise encompasses :
(a) a building site, a construction, assembly or installation project or supervisory
activity in connection with such site or activity, but only where such site, project or
activity continues for a period of more than six months;
(b) the furnishing of services, including consultancy services, by an enterprise through
employees or other personnel engaged by an enterprise for such purpose, but only
where activities of that nature continue (for the same or a connected project)
within the Contracting State for a period or periods aggregating more than 120
days in any twelve-month period commencing or ending in the fiscal year
concerned.
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 purpose 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 for collecting information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the purpose of carrying on,
for the enterprise, any other activity of a preparatory or auxiliary character; and
(f) the maintenance of a fixed place of business solely for any comnination of
activities mentioned in subparagraphs (a) to (e), provided that the overall activity
of the fixed place of business resuting from this combination is of a preparatory or
auxiliary character.
5. Notwithstanding the provision of paragraphs 1 and 2, where a person - other than an
agent of an independent status to whom paragraphs 6 applies - is acting on behalf of
an enterprise and has, and habitually exercises, in a Contracting State an authority to
conclude contracts in the name of the enterprise, that enterprise shall be deemed to
have a permanent establishmen in that State in respect of any activities with that
person undertakes for interprise, unless the activities of such person are limited to
those mentioned in paragraph 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 paragraph.
6. An enterprise shall not be deemed to have a permanent establishment in a Contracting
State merely because it carries on business in that 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 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 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 right to
work, mineral deposits, sources and other natural resources. Ships, boats and aircraft
shall not be regarded as immovable property.
3. The provisions of paragraphs 1 shall apply to income derived from the direct use,
letting or use in any other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable
property 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 State
unless the enterprise carries on business in the other Contracting State through a
permanent establishment situated therein. If the enterprise carries on busines as
aforesaid, the profits of the enterprise may be taxed in the other State but only so
much of them as is attributable to :
(a) that permanent establishment :
(b) sales in that other State of goods or merchandise of the same kind as those sold
through that permanent establishment; or
(c) other business activities carried on in that other State of the same kind as those
effected through that permanent establishment.
2. Subject to the provisions of paragraph 3., where an enterprise of a Contracting State
curries 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 determining the profits of a permanent establishment, there shall be allowed as
deductions expenses which are incurred for the purposes of the permanent
establisment, including executive and general administrative expenses so incurred,
whether in the Contracting State in which the permanent establishment is situated or
elsewhere.
4. In so far 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 contained 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, then the provisions of those Article shall not be affected
by the provisions of this Article.
Article 8
SHIPPING AND AIR TRANSPORT
1. Profits of an enterprise of Contracting State from the operation of ships or aircraft in
international traffic shall be taxable only in that State.
2. For the purposes of this Article, profits from the operation of ships or aircraft in
international traffic shall include profits derived from the rental on a bare boat basis of
ships or aircraft used in international traffic, if such profits are incidental to the profits
to which the provisions of paragraph 1 apply.
3. Profits of an enterprise of a Contracting State form the use, maintenance or rental of
containers (including trailers, barges and related equipment for the transport of
containers) used for the transport in international traffic of goods or merchandise shall
be taxable only in that State.
4. The provisions of paragraph 1 shall also apply to profits 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 rnterprise 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 enterprise in their commercial or financial relations which differ from those
which would be made between independent enterprises, then any prifits which
would, but for those conditions, have accurued, 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 State - and
taxes accordingly - profits
on which an enterprise of the other Contracting State
has been charged to tax in that other State and the profits so included are profits which
would have accurued to the enterprise of the first mentioned State if the conditions
made between the two enterprises, then that other State may make an appropriate
adjustment to the amount of the tax charged therein on those profits. In determining
such adjusment, 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 resedent of a Contracting State to a resident
of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the
cpmpany paying the dividends is a resident and according to the laws of that State, but
if the beneficial owner of the dividends is resident of the other Contracting State, 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 at least 10 percent of the capital of the company paying the
dividends; or
(b) 15 per cent of the gross amount of the dividends in all other cases.
The competent authorities of the Contracting States shall settle the mode of
application of these limitations by mutual agreement.
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 or other rights
participating in profits (not being debt-claims), 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 establisment situated therein, or performs in that other State independent
personal servies from a fixed base situated therein, and the holding in respect of which
the dividends are paid is effectively connected with such permanent establishment or
fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be,
shall apply.
5. Where a company which is a resident of a Contracting State derives profits or income
from the other Contracting State, that other State may not impose any tax on the
dividends paid by the company, except in so far as such dividends are paid to resident
of that other State or in so far 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 State, nor subject the company's undistributed profits to tax on undistributed
profits even if the dividends paid or the undistributed profitd consist wholly or partly
of profits or income arising in such other State.
Article 11
INTEREST
1. Interest arising in a Contracting State and paid to a resident of the other Contracting
State may be taxed in that other Contracting State if such resident is the beneficial
owner of the interest.
2. The rate of tax imposed by one of the Contracting States on interest derived from
sources within that Contracting State and beneficially owned by a resident of the other
Contracting State 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
shall be exempt from tax in that State if :
(a) the payer of the interest is the Government of that Contracting State or a political
subdivision or a local authority thereof : or
(b) the interest is paid to the Government of the other Contracting State or a political
subdivision or a local autority thereof; or
(c) the interest is paid to the Bank of Indonesia or the South African Reserve Bank.
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, as well as income assimilated to income from
money lent under the taxation law of the State in which the income arises, including
interest on deferred payment sales. Penatly charges for late payment shall not be
regarded as interest for the purposes of this Article.
5. The provision of paragraph 1 and 2 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 arises, through a permanent establishment situated
therein, or perroms in that other 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 (a) such permanent establishment fixed base, or with (b)
business activities referred to under (c) of paragraph 1 of Article
7. 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 a resident of
that State. Where, however, the person paying the interest, whether he is a resident of
a Contracting State or not, has in a Contracting State a permanent establishment or a
fixed base in connection with which the indebtedness on which the interest is paid was
incurred, and such interest is borne by such permanent establishment or fixed base,
then such interest shall be deemed to arise in the State in which the permanent
establishment or fixed base is situated.
7. Where, by reason of a special relationship between the payer and the beneficial owner
or between both of them and some other person, the amount of the interest, having
regard to the debt-claim for which it is paid, exceeds the amount which would have
been agreed upon by the payer and the beneficial owner in the 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 State.
2. However, such royalties may also be taxed in the Contracting State in which they
arise, and according to the laws of that State, but if the 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" in this Article means payments or credits, whether periodical or
not, and however described or computed, to the extent to which they are made as
considereation for :
(a) the use of or the right to use, any copyright, patent, design or model, plan, secret
formula or process, trademark or other like property or right; or
(b) the use of, or the right to use, any industrial, commercial or scientific equipment,
excluding containers used in international traffic; or
(c) the supply of scientific, technical, industrial or commercial knowledge or
information; or
(d) the supply of any assistence that is ancillary and subsidiary to, and is furnished as a
means of enabling the application or enjoyment of, any such property or right as is
mentioned in subparagraph (a), any such equipment as is mentioned in
sub-paragraph (b) or any such knowledge or information as is mentioned in
sub-paragraph (c); or
(e) the use of, or the right or use :
(i)
motion picture films; or
(ii)
films or video for use in connection eith television; or
(iii)
tapes for use in connection with radio broadcasting; or
(f) total or partial forbearance in respect of the use or supply or any property or right
referred to in this paragraph.
4. The provisions of paragraphs 1 and 2 shal 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 State independent personal services form a
fixed base situated therein, and the right or property in respect of which the royalties
are paid is effectively connected with (a) such permanent establishment or fixed base,
or with (b) business activities referred to under (c) of paragrah 1 of Article 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 a Contracting State when the payer is a resident
of that State. Where, however, the person paying the royalties, wheter he is a resident
of a Contracting State or not, has in a Contracting State a permenent establishment or
a fixed base with which the right or property in respect of which the royalties are paid
is effectively connected, and such royalties are borne by such permanent establishment
or fixed base, then such royalties shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer and the beneficial owner
or between both of them and some other person, the ampunt 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. Gains derived by a resident of a Contracting State from the alineation of immovable
property referred to in Article 6 and situated in the other Contracting State may be
taxed in that other State.
2. Gains from the alineation of movable property forming part of the business property
of a permanent establishment which an enterprise of a Contracting State has in 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 indenpendent personal service, including such gains from the alienation of
such a permanent establishment (alone or with the whose enterprise) or of such fixed
base, may be taxed in that other State.
3. Gains derived by an enterprise of a Contracting State from the alienation of ship or
aircraft operated in international traffic or movable property pertaining to the
operation of such ships or aircraft, shall be taxable only in that State.
4. Gains from the alienation of any property other than that referred to in the preceding
paragraphs, shall be taxable only in the Contracting State of which the alienator is a
resident.
Article 14
INDEPENDENT PERSONAL SERVICES
1. Income derived by an individual who is a resident of a Contracting State in respect of
professional sevices or other activities of an indenpendent character shall be taxable
only in that State unless he has a fixed base regularly available to him in the other
Contracting State for the purpose of performing his activities. If he has such a fixed
base, the income may be taxed in the other State but only so much of it as is
attributable to that fixed base. For the purposes of this Agreement, where an
individual who is a resident of a Contracting State is present in the other Contracting
State for a period or periods exceeding in the aggregate 120 days in any twelve-month
period Commencing or ending in the fiscal year concerned, he shall be deemed to
have a fixed base regularly available to him in that other State and the income that is
derived from his activities that are performed. in that other State shall be attributable
to that fixed base.
2. The term "profesional services" includes especially indenpendent scientific, literary,
artistic, educational or teaching activities as well as the independent activities of
physicians, lawyers, engineers, architects, dentisis and accountants.
Article 15
DEPENDENT PERSONAL SERVICES
1. Subject to the provisions of Articles 16, 18, and 19, 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 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 State.
2. Notwithstanding the provisions of paragraph 1, remuneration 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 State if :
(a) the recipient is present in the other State for a period or periods not exceeding in
the aggregate 183 days in any twelve-month period commencing or ending in the
fiscal year concerned; and
(b) the remuneration is paid by or on behalf of an employer who is not a resident of
the other State; and
(c) the remuneration is not borne by a permanent establishment or a fixed base which
the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article, remuneration derived in
respect of an employment exercised aboard a ship or aircraft operated in international
traffic by an enterprise of a Contracting State may be taxed in that State.
Article 16
DIRECTORS'FEES
Directors fees and similar payments derived by a resident of a Contracting State in his
capasity as a member of the board of directors or any other silmilar organ of a company
which is a resident of the other Contracting State may be taxed in that other State.
Article 17
ENTERTAINERS AND SPORTSPENSONS
1. Notwithstanding the provisions of Articles 7, 14 and 15, income derived by a resident
of a Contracting State as an entertainer such as a theatre, motion picture, radio or
television artiste, or a musician, or as a sportsperson, from his personal activities as
such exercised in the other Contracting State, may be taxed in that other State.
2. Where income in respect of personal activities exercised by an entertainer or a
sportsperson in his capacity as such acrues not to the entertainer or sportsperson
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 sportsperson are exercised.
3. Income derived by a resident of a Contracting State from activities exercised in the
other Contracting State as envisaged in paragraphs 1 and 2 of this Article, shall be
exempt from tax in that other State if the visit to that other State is supported wholly
or mainly by public funds of the first-mentioned Contracting State, a political
subdivision or a local authority thereof, or takes place under a ciltural agreement or
arrangement between the Governments of the Contracting State.
Article 18
PENSIONS AND ANNUITIES
1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar
remuneration and annuities arising in a Contracting State and paid to a resident of the
other Contracting State, may be taxed in the first-mentioned State.
2. The term "annuity" means a stated sum payable periodically at stated times during life
or during a specified or ascertainable period of time under an obligation to make the
payments in return for adequate and full consideration in maney's worth.
Article 19
GOVERNMENT SERVICE
1. (a) Salaries, wage and similar remuneration, other than a pension, paid by a
Contracting State or a political subdivision or local thereof to an individual in
respect of services rendered to that State or subdivision or authority shall be
taxable only that State.
(b) However, such salaries, wages and similar remuneration shall be taxable only in
the other Contracting State if the services are rendered in that State and the
individual is a resident of that State who:
(i) is a nation of that State; or
(ii) did not become a resident of that 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 political
subdivision or a local authority thereof to an individual in respect of services
rendered to that State or subdivision or authority shall be taxable only in that State.
(b) However, such pension shall be taxable only in the other Contracting State if the or
a individual is a resident of, and a national of, that State.
3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and similar
remuneration, and to pensions in respect of services rendered in connection with a
business carried on by a Contracting State or a political subdivision or a local
authority thereof.
Article 20
STUDENTS, APPRENTICES AND BUSINESS TRAINEES
A student, apprentice or business trainee who is present in a Contracting State solely for
the purpose of his education or training and who is, or immediately before being so
present was, a resident of the other Contracting State, shall be exempt from tax in the
first-mentioned State on payments received from outside that first-mentioned State for the
purposes of his maintenance, education or tra
ining.
Article 21
OTHER INCOME
Items of income arising in a Contracting State which are not dealt with in the foregoing
Articles of this Agreement may be taxed in that State.
Article 22
ELIMINATION OF DOUBLE TAXATION
Double taxation shall be eliminated as follows :
(a) In Indonesia, South African tax paid by residents of Indonesia in respect of income
taxable in South African, in accordance with the provisions of this Agreement, shall
be deducted from the taxes due according to Indonesian tax law. Such deduction shall
not, however, exceed the amount of the Indonesian tax payable on that income
computed in accordance with its taxation laws and regulations.
(b) In south Africa, Indonesian tax paid by residents of South Africa in respect of income
taxable in Indonesia, in accordance with the provisions if this Agreement, shall be
deducted from the taxes due according to South African fiscal law, Such deduction
shall not, however, exceed an amount which bears to the total South African tax
payable the same ratio as income concerned bears to the total income.
Article 23
NON-DISCRIMINATION
1. Nationals of a Contracting State shall not be subjected in the other Contracting Statw
to any taxation or any equirement connected therewith which is other or more
burdensome than the taxation and connected requirements to wich nationals of that
other 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 State
than the taxation levied on entreprises of that other State carrying on the same
activities. This provision shall not be constued 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 familiy responsibilities
which it grants to its own residents.
3. 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 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 that
first-mentioned State are or may be subjected.
4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or
paragraph 6 of Article 12 apply, interest, royalties and other 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 State.
5. Nothing in this Convention shall be construed as preventing :
(a) Indonesia from imposing on the profits of a company attributable to a permanent
establishment in Indonesia, a tax in addition to the tax which would be chargeable
on the profits of a company which is a resident of that State, provided that any
additional tax so imposed shall not exceed 10 per cent of the amount of such
profits after deducting therefrom income tax and other taxes on income imposed
thereon in Indonesia.
(b) South Africa from imposing a tax on the profits attributable to a permanent
establishment in South Africa of a company which is a resident of Indonesia at a
rate which does not exceed the rate of normal tax on companies by more than ten
percentage points.
6. The provisions of paragraph 5 of this Article shall not affect the provisions contained
in any production sharing contract and contracts of work (or any other similar
contracts) relating to the oil and gas sector or other mining sector concluded by the
Governmenr of Indonesia, 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.
7. In this Article the term "taxation" means taxes which are the subject of this
Agreement.
Article 24
MUTUAL AGREEMENT PROCEDURE
1. Where a person considers that the action of one or both of the Contracting States
result or will result for him in taxation not in accordance with this Agreement, he may,
irrespective of the remedies provided by the domestic law of those 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 1 of Article 23, to that of the Contracting State of
which he is a national. The case must be presented within two years from the first
notification of the action resulting in taxation not in accordance with the provisions of
the 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 the Agreement.Any
agreement reached shall be implemented notwithstanding any time limits in the
domestic law of the Contracting States, but in any case, not more than ten years from
the
end of the taxable year in respect of which the action envisaged in paragraph 1 has
arisen.
3. The competent authorities of the Contracting States shall endeavour to resolve by
mutual agreement any difficulties or doubts arising as to the enterpretation or
application of the Agreement. They may also consult together for the elimination of
double taxation in cases provided for in the Agreement.
4. The competent authorities of the Contracting State may communicat 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 joint commission
consisting of representatives of the competent authorities of the Contracting States.
Article 25
EXCHANGE OF INFORMATION
1. The competent authorities of the Contracting States shall exchange such information
as is necessary for carring out the provisions of this Agreement or of the domestic
laws of the Contracting States concerning taxes convered by the Agreement, in so far
as the taxation thereunder is not contrary to this Agreement, in particular for the
prevention of taxation fraud or evasion of such taxes. The exchange of information is
not restricted by Article 1. Any information received by a Contracting State shall be
treated as secret in the same manner as information obtained under the domestic law
of that State. However, if the information is originally regarded as secret in the
transmitting State it shall be disclosed only 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
which are the subject of the Agreement. Such persons or authorities shall use the
information only for such purposes but may disclose the information in public court
proceedings or in juaficial decisions.
2. In no case shall the provisions of paragraph 1 be construed so as to impose on a
Contracting State the obligation :
(a) to carry out administrative measures at variance with the laws or the administrative
practive of that or of the other Contracting State;
(b) to supply information which is not obtainable under the laws or in the normal
course of the administration of that or of the other Contracting State;
(c) to supply information which would disclose any trade, business, industrial,
commercial or professional secret or trade process, or information, the disclosure
of which would be contrary to public policy (ordre public).
Article 26
MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS
Nithing in this Agreement shall affect the fiscal privileges of members of diplomatic
missions or consular posts under the general rules of international law or under the
provisions of special agreements.
Article 27
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. The
Agreement shall enter into force on the date of receipt of the later of these
notifications.
2. The provisions of the Agreement shall apply :
(a) with regard to taxes withheld at source, in respect of amounts paid or credited on
or, after the first day of January next following the date upon which the Agreement
enters into force; and
(b) with regard to other taxes, in respect of taxable years beginning on or after the first
day of January next following the date upon which the Agreement enters into
force.
Article 28
TERMINATION
1. This Agreement shall remain in force indefinitely but either of the Contracting States
may terminate the Agreement through the diplomatic channel, by giving to the other
Contracting State written notice of termination not later than 30 June of any calendar
year starting five years the year in which the Agreement entered into force.
2. In Such event the Agreement shall cease to apply :
(a) with regard to taxes withheld at source, in respect of amounts paid or credited after
the end of the calendar year in which such notice is given; and
(b) with regard to other taxes, in respect of taxable years beginning after the end of the
calendar year in which such notice is given.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed
this Agreement.
DONE at Jakarta in duplicate, this Fifteenth day of July 1997
FOR THE GOVERNMENT OF THE
FOR THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA
REPUBLIC OF SOUTH AFRICA
ttd.
ttd.
ALI ALATAS
A.B. NZO
MINISTER FOR FOREIGN AFFAIRS
MINISTER FOR FOREIGN AFFAIRS
PROTOCOL
At the time of signing the Agreement between the Government of the Republic of
Indonesia and the Government of the Republic of South Africa for the Avoidance of
Doublle Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income,
the undersigned have agreed that the following shall form an integral part of the
Agreement ;
With regard to paragraph 3 of Article 5, paragraph 1 of Article 14 and paragraph 2 to
Article 15, it is understood that the phrase any twelve-month period commencing or
ending in the fiscal year conderred has the effect of enabling the period of twelve months
to be calculated from any date within a fiscal year either forward or backward from that
date.
IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed
this Protocol.
DONE at Jakarta in duplicate, this Fifteenth day of July 1997
FOR THE GOVERNMENT OF THE
FOR THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA
REPUBLIC OF SOUTH AFRICA
ttd.
ttd.
ALI ALATAS
A.B. NZO
MINISTER FOR FOREIGN AFFAIRS
MINISTER FOR FOREIGN AFFAIRS

Keputusan Presiden Nomor 148 Tahun 1998 tentang PENGESAHAN AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

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