Kamis, 21 Juni 2018  

Tax Treaty : Indonesia - Qatar ( Qatar )

  
Tax Treaty : Indonesia - Qatar ( Qatar )
Signed Date : 2006-04-30
Effective Date : 2008-01-01
Languange Version : En - Id

AGREEMENT

 

BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA

AND

THE GOVERNMENT OF THE STATE OF QATAR,

 

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES ON INCOME

 

The Government of the Republic of Indonesia and the Government of the State of Qatar,

 

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

PERSONS 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 on behalf of each Contracting State or of its

political subdivinions or 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 the Agreement shall apply are :

(a) in the case of the Republic of Indonesia:

the income tax

(hereinafter referred to as "Indonesian tax") and

 

(b) in the case of the State of Qatar :

the income tax

(hereinafter referred to as "Qatar tax")

 

4. The Agreement shall apply also to any identical or substantially similar taxes which are imposed after

the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent

authorities of the Contracting States shall notify each other of any 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) i) The term "Indonesia" comprises the territory of the Republic of Indonesia as defined in

its laws and the adjacent areas over which the Republic of Indonesia has sovereignty,

sovereign rights or jurisdiction in accordance with the provisions of the United Nations

Convention on the law of the Sea, 1982;

ii) The term "Qatar" means the State of Qatar's lands, internal waters, territorial sea

including its bed and subsoil, the air space over them, the exclusive economic zone

and continental shelf, over which the State of Qatar exercises sovereign rights and

jurisdiction in accordance which the provisions of International law and Qatar's

national laws and regulations.

(b) the term "person" includes an individual, a company and any other body of persons which is

treated as an entity for tax purposes. In the case of Qatar, it includes the Government of the

State of Qatar and its local authority;

(c) the term "company" means any body corporate or any entity which is treated as a body

corporate for tax purposes;

(d) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State"

mean respectively an enterprise carried on by a resident of a Contracting State and an

enterprise carried on by a resident of the other Contracting State;

(e) 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;

(f) the term "competent authority" means :

i) in the case of Indonesia :

the Minister of Finance or his authorized representative, and

ii) in the case of Qatar :

the Minister of Finance or his authorized representative;

(g) the term "national" means:

i) any individual possessing the nationality of a Contracting State;

ii) any legal person, partnership and association deriving its status as such from the laws

in force in a Contracting State.

(h) the term "tax" means Indonesian tax or Qatar tax, as the context requires.

 

2. As regards the application 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 applies, any meaning under

the applicable tax laws of that State prevailing over a meaning given the term under other laws of that

State.

 

 

Article 4

RESIDENT

 

1. For the purposes of this Agreement, the term "resident of a Contracting State" means any person

who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of

management or any other criterion of a similar nature, and also includes that State and any political

subdivision or local authority thereof. This term, however, does not include any person who is liable to

tax in that State in respect only of income from sources in that State.

 

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States,

then his status shall be determined as follows :

(a) he shall be deemed to be a resident of the State in which he has a permanent home available

to him; if he has a permanent home available to him in both States, he shall be deemed to be

a resident of the State with which his personal and economic relations are closer (centre of

vital interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not

a permanent home available to him in either State, he shall be deemed to be a resident of the

State in which he has an habitual abode;

(c) if he has an habitual abode in both Contracting States or in either of them, he shall be deemed

to be a resident of the Contracting State of which he is a national;

(d) If the residence status of an individual cannot be determined in accordance with the provisions

of sub-paragraphs (a), (b) and (c) above, then the competent authorities of the two

Contracting State shall settle this 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 State, the competent authorities of the 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 especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse or premises used as sales outlet;

(g) a farm or plantation;

(h) a mine, an oil or gas well, a quarry or any other place of extraction or exploration or

exploitation of natural resources, drilling rig or working ship used for 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 activities in

connection therewith, but only where such site, project or activities continue for a period of

more than 6 (six) months,

(b) the furnishing of services, including consultancy services by an enterprise through employees

or other personnel engaged by the enterprise for such purpose, but only where activities of

that nature continue (for the same or a connected project) within the country for a period or

periods aggregating more than 6 (six) months within any twelve-month 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

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 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;

(f) 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;

(g) the maintenance of a fixed place of business solely for any combination of activities mentioned

in sub-paragraphs (a) to (f), 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 1 and 2, where a person - other than an agent of an

independent status to whom paragraph 7 applies - is acting habitualy 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 State in respect of any activities which that person undertakes for

the enterprise, if such a person :

(a) has or habitually exercise in that State an authority to conclude contracts in the name of the

enterprise, 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; or

(b) has no such authority, but habitually maintains in the first-mentioned State a stock of goods or

merchandise from which he regularly delivers goods or merchandise on behalf of the

enterprise; or

(c) manufactures or processes in that State for the enterprise goods or marchandise belonging to

the enterprise.

 

6. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State

shall, expect in regard to re-insurance, be deemed to have a permanent establishment in the other

Contracting State if it collects premiums in the territory of that other State or insures risks situated

therein through a person other than an agent of an independent status to whom paragraph 7 applies.

 

7. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the

other Contracting State merely because it carries on business in that other 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. However, when the activities of such an agent are

devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of an

independent status within the meaning of this paragraph.

 

8. 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 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 aircraft shall not be regarded as

immovable property.

 

3. The provisions of paragraph 1 shall also 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 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 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 or similar kind as

those sold through that permanent establishment; or (c) other business activities carried on in that

other State of the same or similar kind as those effected through 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 determination of 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 State in which the permanent

establishment is situated or elsewhere, which are allowed under the provisions of the domestic law of

the Contracting State in which the permanent establishment is situated.

 

4. 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.

 

5. Where profits include items of income which are dealt with separately in other Articles of this

Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

 

 

Article 8

SHIPPING AND AIR TRANSPORT

 

1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the

Contracting State in, which the place of effective management of the enterprise is situated.

 

2. Profits from operation within a Contracting State derived by an enterprise of the other Contracting

State from the operation of ships or aircraft in international traffic may be taxed in the first-mentioned

State.

 

3. The provisions of paragraphs 1 and 2 shall also apply to profits from 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 enterprises 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 accrued to the enterprise of the first-

mentioned State if the conditions made between the two enterprises had been those which would

have been made between independent enterprises, then that other State shall make an appropriate

adjustment to the amount of the tax charged therein on those profits. In determining such adjustment,

due regard shall be had to the other provisions of the Agreement and the competent authorities of the

Contracting States shall, if necessary consult each other.

 

3. A Contracting State shall not change the profits of an enterprise in the circumstances referred to in

paragraph 2 after the expiry of the time limits provided in its tax laws.

 

 

Article 10

DIVIDENDS

 

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other

Contracting State may be taxed in that other State.

 

2. 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 State, but if the beneficial owner of the

dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 (ten)

per cent of the gross amount of the dividends. 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 any 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 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 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 permanent

establishment or fixed base. In such case, the provisions of Article 7 or 14, as the case may be, shall

apply.

 

5. Where a company 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 a 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 a tax on

undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of

profits or income arising in such other State.

 

6. 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 other State in accordance with

its law, but the additional tax so charged shall not exceed 10 (ten) per cent of the amount of such

 

profits after deducting therefrom income tax and other taxes on income imposed thereon in that other

State.

 

7. The provision of paragraph 6 of this Article shall not affect the provision contained in any production

sharing contracts relating to oil and gas, and contract of works for other mining sectors, concluded by

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.

 

 

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 State.

 

2. However, such interest may also be taxed in the Contracting State in which it arises and according to

the laws of that State, but if the beneficial owner of the interest a resident of the other Contracting

State, the tax so charged shall not exceed 10 (ten) per cent of the gross amount of the interest. The

competent authorities of the Contracting States shall by mutual agreement settle the mode of

application of this limitation.

 

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 controled 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 State, shall be exempt from tax in

the first-mentioned State.

 

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or

not secured by mortgage, and whether or not carrying a right to participate in the debtor's profits, and

in particular, income from government securities and income from bonds or debentures, including

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 States in which the income arises, including

interest on deferred payment sales.

 

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

resident of a Contracting State, carries on business in the other Contracting State in which the interest

arises, through a permanent establishment situated therein, or performs 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 such permanent establishment or fixed base, or

whit business activities referred to under (c) of paragraph 1 of Article 7. In such case, the provision of

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

 

6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political

subdivision, a local authority or 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 of 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-claims 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 beneficial owner of the royalties is a resident of other Contracting

State, the tax so charged shall not exceed 5 (five) per cent of the gross amount of the royalties. The

competent authorities of the Contracting State shall by mutual agreement settle the mode of application

of this limitation.

 

3. The term "royalties" as used in this Article means payments, whether periodical or not, and in

whatever from or name or nomenclature to the extent to which they are made as consideration 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; or

(c) the supply of scientific, technical, industrial or commercial knowledge or information; or

(d) the supply of any assistance that is ancillary and subsidiary to any such property or right as is

mentioned in subparagraph (a), any such equipment as is mentioned in subparagraph (b) or

any such knowledge or information as is mentioned in sub-paragraph (c); or

(e) the use of, or the right to use :

i) motion picture films, or

ii) films or video for use in connection with television, or

iii) tapes for use in connection with radio broadcasting.

 

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 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, or with 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.

 

5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local

authority or a resident of that State. Where, however, the person paying the royalties, whether he is a

resident of a Contracting State or not, has in a Contracting State a permanent establishment or 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 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 given had to the other

provisions of this Agreement.

 

 

Article 13

CAPITAL GAINS

 

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred

to in Article 6 and situated in the other Contracting State may be taxed in that Contracting State may be

taxed in that orther State.

 

2. Gains from the alienation of movable property forming part of the business property of a permanent

establishment which an enterprise of a Contracting State has in the other Contracting State or of

movable property pertaining to a fixed base available to a resident of a Contracting State in the other

Contracting State for the purpose of performing independent personal services, including such gains

from the alienation of such a permanent establishment (alone or together with the whole enterprise)

or of such a fixed base, may be taxed in that other State.

 

3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in

international traffic and movable property pertaining to the operation of such ships or aircraft shall be

taxable only in the Contracting State in which the place of effective management is situated.

 

4. Gains from the alienation of any property other than that referred to in 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 a resident of a Contracting State in respect of professional services or other

activities of an independent character shall be taxed 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 or

he is present in that other State for a period or periods exceeding in the aggregate 183 (one hundred

and eighty-three) days within any twelve month period. If he has such a fixed base or remains in

that other State for the aforesaid period or periods, the income may be taxed in that other State but

only so much of it as is attributable to that fixed base or is derived in that other State during the

aforesaid period or periods.

 

2. The term "professional services" includes especially independent scientific, literary, artistic, educational

or teaching activities as well as the independent activities of physicians, engineers, lawyers, dentists,

architects 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 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 (one hundred and eighty-three) 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 that 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 shall be taxable only in the Contracting State in which the place of effective

management of the enterprise is situated.

 

4. Salaries, wages, allowances and perquisites received by an employee of an airline or shipping

enterprise of a Contracting State and stationed in the other Contracting State shall be taxable in the

Contracting State in which the place of effective managemen of the enterprise is situated, but where

an agreement for avoidance of double taxation exists between the other Contracting State and any

other states of which such employee is a resident, he shall be taxed in accordance with the provisions

of the applicable agreement.

 

 

Article 16

DIRECTORS' FEES

 

1. Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity

as a member of the board of directors or any other similiar organ of a company which is a resident of

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

 

2. Salaries, wages and other similiar remuneration derived by a resident of a Contracting State in his

capacity as an official in a top-level managerial position of a company which is a resident of the other

Contracting State may be taxed in that other state.

 

 

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 artiste, 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 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. Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities referred to in

paragraph I performed under a cultural agreement or arrangement between the Contracting States

shall be exempt from tax in the Contracting State in which the activities are exercised if the visit to

that State in wholly or substantially supported by funds of one or both of the Contracting States, a

local authority or public institution thereof.

 

 

Article 18

PENSIONS AND ANNUITIES

 

1. Subject to the provision of paragraph 2 of Article 19, any pensions or other similar remuneration paid

to a resident of one of the Contracting States from a source in the other Contracting State in

consideration of past employment or services in that other Contracting State and any annuity paid to

such a resident from such a source shall be taxable only in that other State.

 

2. The term "annuities" 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 money or money's worth.

 

 

Article 19

GOVERNMENT SERVICES

 

1. (a) Salaries, wages and other similar remuneration, other than a pension, paid 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 salaries, wages and other similar remuneration shall be taxable only in the

other Contracting State if the services are rendered in that other State and the individual is a

resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State 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 local authority shall be taxable only in that 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 other State.

 

3. The provisions of Articles 15, 16 and 18 shall apply to salaries, wage 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

TEACHERS AND RESEARCHERS

 

An individual who is immediately before visiting a Contracting State a resident of the other Contracting State

and who, at the invitation of the Government of the first-mentioned Contracting State or of a University, college,

school, museum or other cultural institution in that first mentioned Contracting State or under an official

programme of cultural exchange, is present in that Contracting State for period not exceeding three

consecutive years solely for the purpose of teaching, giving lectures or carrying out research at such institution

shall be exempt from tax in that Contracting State on his remuneration for such activity, provided that payment

of such remuneration is derived by him from outside that Contracting State.

 

 

Article 21

STUDENTS AND TRAINEES

 

1. Payments which a student or business trainee who is or was immediately before visiting a Contracting

State a resident ot the other Contracting State and who is present in the first mentioned Contracting

State solely for the purpose of his education or training received for the purpose of his maintenance,

education or training shall not be taxed in that Contracting State, provided that such payments arise

form sources outside that Contracting State.

 

2. In respect of grants, scholarship and remuneration from employment not covered by paragraph 1,

a student, business trainee described in paragraph 1 shall, in addition, be entitled during such

education or training to the same exemption, reliefs or reductions in respect of taxes avilable to

residents of the State which he is visiting.

 

 

Article 22

OTHER INCOME

 

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with on the foregoing

Articles of this Agreement shall be taxable only in that State.

 

2. The provisions of paragraph 1 shall not apply to income derived by a resident of a Contracting State,

if the recipient of such income carries on business in the other Contracting State through a permanent

establishment situated therein, or performs in that other State independent personal services from a

fixed base situated therein, and the right 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.

 

3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting

State not dealt with in the foregoing Article of the Agreement and arising in the other Contracting

State may also be taxed in that other State.

 

 

Article 23

METHOD OF ELIMINATION OF DOUBLE TAXATION

 

1. 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 Contracting 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 on the first-

mentioned Contracting State on that income computed in accordance with its taxation laws and

regulations.

 

2. For the purposes of paragraph 1 of this Article, the terms "Qatar tax paid" and "Indonesian tax paid"

shall be deemed to include the amount of tax wich would have been paid in Qatar or Indonesia as

the case may be, but for an exemption or reduction granted in accordance with the laws and

regulation of the that Contracting State.

 

 

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 State in the same circumstances are or may be

subjected.

 

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

enterprises of that other 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. Enterprises of a Contracting State, the capital of wich 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 the connected requirements to which other similar enterprises of the

first-mentioned State are or may be subjected.

 

4. Except where provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article

12 apply, interest, royalty 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 if they had been paid to a resident of the first-

mentioned State.

 

5. In this Article the term "taxation" means taxes which are the subject of this Agreement.

 

 

Article 25

MUTUAL AGREEMENT PROCEDURE

 

1. Where a person considers that the actions of one or both of the Contracting States result or will result

for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the

remedies provided by the domestic law of those States, present his case to competent authority of the

Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 24, to

that of the Contracting State of which he is 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 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.

 

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement

any difficulties or doubts arising as to the interpretation or application of the Agreement. They may

also consult together for elimination of double taxation in cases not provided for in the Agreement.

 

4. The competent authorities of the Contracting States may communicate with each other directly for the

purpose of reaching an agreement in the sense of the preceding paragraphs. The competent

authorities, through consultations, shall develop appropriate bilateral procedures, conditions, methods

and techniques for the implementation of the mutual agreement procedure provided for in this Article.

 

 

Article 26

EXCHANGE OF INFORMATION

 

1. The competent authorities of the Contracting States shall exchange such information as is necessary

for the carrying out the provisions of this Agreement or of domestic laws of the Contracting States

concerning taxes convered by the Agreement, insofar as the taxation there under is not contrary to

this Agreement, in particular for the prevention of fraud or evation 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 laws of that State.

However, if the information originally regarded as secret in the transmitting State it 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 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

judicial 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 practice

of that or of the other Contracting State;

(b) to supply information which are 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 (order public).

 

 

Article 27

DIPLOMATIC AND CONSULAR PRIVILEGES

 

Nothing in this Agreement shall affect the fiscal privileges of members diplomatic missions or consular posts

under the general rules of international law or under the provisions of special agreements.

 

 

Article 28

ENTRY INTO FORCE

 

This Agreement shall enter into force on the later of the dates on which the respective Goverments notify each

other in writing through diplomatic channels, that the formalities constitutionally required in their respective

Contracting State for the entry into force of this Agreement have been complied with. This Agreement shall

have effect :

(a) in respect of tax withheld at the source to income derived on or after 1st of January in the year next

following that in which the Agreement enters into force; and

(b) in respect of other taxes on income, for taxable years beginning on or after 1st January in the year

next following that in which the Agreement enters into force.

 

 

Article 29

TERMINATION

 

This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may

terminate the Agreement, through diplomatic channels, by giving written notice of termination on or before the

thirtieth of June of any calendar year following after the period of five years from the year in which the

Agreement enters into force.

 

In such case, the Agreement shall cease to have effect:

(a) in respect of tax withheld at source to income derived on or after 1st of January in the year next

following that in which the notice of termination is given.

(b) in respect of other taxes on income, for taxable years beginning on or after 1st of January in the year

next following that in which the notice of termination is given.

 

IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Agreement.

 

DONE in duplicate at Doha the 30th day of April 2006, in Indonesia, Arabic and English languages, all texts

being equally authentic. In case of any divergence, the English text shall prevail

 

 

 

 

 

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF

THE STATE OF QATAR THE REPUBLIC OF INDONESIA