Algeria

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE DEMOCRATIC PEOPLE’S REPUBLIC OF ALGERIA

FOR
THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
AND ON CAPITAL

Article 1
PERSONAL SCOPE

Article 2
TAXES COVERED

1. This Agreement shall apply to
   taxes on income and on capital imposed on behalf of one of the Contracting State, of its political sub
   divisions or local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes
   on income and on capital, all taxes imposed on total income or capital 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 Algeria :
   	(i)	tax on global total income
   	(ii)	tax on profits of companies
   	(iii)	tax on professional activities
   	(iv)	net wealth tax
   	(v)	“royalties” and taxes on the outcome of prospect, research, exploitation, transport of hydrocarbon by way of pipeline.
   	(hereinafter referred to as “Algerian tax”);
   (b)	in the case of Indonesia: the income tax imposed under the Undang-Undang Pajak Penghasilan 1984 (Law No. 7 of 1983), except the income tax paid under production sharing contracts, contracts of work and other similar contracts, in the oil and gas sector, and the other mining sector. (hereinafter referred to as “Indonesian tax”);

    

4. The Agreement shall also apply to
   any identical or substantially similar taxes on income which are imposed after the date of signature
   of the Agreement in addition to, or in place of, those referred to in paragraph 3. The competent
   authorities of the Contracting States shall notify each other of any substantial changes which have
   been made in their respective taxation laws.

Article 3
GENERAL DEFINITIONS

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

   (a)	the term “a Contracting State and the other Contracting State” means Indonesian or Algeria as the context required.
   (b)	(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 “Algeria” means the Democratic People’s Republic Algeria used in its geographical sense it means the territory of Algeria including :
   		(a)	any region located on the territorial waters of Algeria which in conformity with international law and by virtue of the law of Algeria is the region within which Algeria may have rights on the seabed and the subsoil of the sea and their natural resources, and
   		(b)	the seas and airspace over the regions mentioned in paragraph (a) regarding any activity related to exploration or exploitation of natural resources carried out in this region.
   (c)	the term “person” includes an individual, a company, and any other body of persons;
   (d)	the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
   (e)	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;
   (f)	the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
   (g)	the term “competent authority” means:
   	(i)	in Indonesia: the Minister of Finance or his authorized representative;
   	(ii)	in Algeria : the Minister in charge of Finance or his authorized representative;
   (h)	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;

2. As regards the application of the
   Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise
   requires, have the meaning which it has under the law of that State concerning the taxes to which the
   Agreement applies.

Article 4
RESIDENT

1. For the purposes of this
   Agreement, the term “resident of a Contracting State” means any person who, under the laws of that
   State, is liable to tax therein by reason of his domicile, residence, place of management, or any
   other criterion of a similar nature.

2. Where by reason of the provisions
   of paragraph 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 Contracting 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 Contracting State with which his personal and economic relations are closer (centre of vital interests);
   (b)	if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has a habitual abode;
   (c)	if he has a habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State in which he is a national;
   (d)	if he has a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3. Where by reason of the provisions
   of paragraph 1 a person other than an individual is a resident of both Contracting States, the
   competent authorities of the States shall settle the question by mutual agreement on a case by case
   basis.

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 sales store, 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 of natural resources;
   (i)	a building site, a construction, assembly or installation project, or supervisory activities in connection therewith but only where such site, project or activities continue of period more than 3 months;
   (j)	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 3 months within any twelve month period.

3. 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 or 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, or any other activity of a preparatory or auxillary character;
   (f)	the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

4. Notwithstanding the provisions of paragraphs 1 and
   2, where a person – other than an agent of an independent status to whom paragraph 6 applies – is
   acting in a Contracting State on behalf of an enterprise of the other Contracting State, that
   enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State
   in respect of any activities which that person undertakes for the enterprise, if such a person:

   (a)	has and habitually exercises 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 3 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;
   (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)	has no such authority, but manufactures or processes in that State for the enterprise goods or merchandise belonging to the enterprise.

5. An insurance enterprise of a
   Contracting State shall, except with regard to reinsurance, be deemed to have a permanent
   establishment in the other Contracting State if it collects premiums in that other State or insures
   risks situated therein through an employee or through a representative who is not an agent of an
   independent status within the meaning of paragraph 6.

6. 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 or its associated enterprises, he will not be considered an agent of an
   independent status within the meaning of this paragraph.

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 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, boats 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 determining the profits of a
   permanent establishment, there shall be allowed as deductions expenses which are incurred for the
   purpose of the business of the permanent establishment including executive and general administrative
   expense so incurred, whether in the State in which the permanent establishment is situated or
   elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise
   than towards reimbursement of actual expenses) by the permanent establishment to the head office of
   the enterprise or any of its other offices, by way of royalties, fees, or other similar payments in
   return for the use of patents or other rights, or by way of commission, for specific services
   performed or for management, or, except in the case of a banking enterprise, by way of interest on
   moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination
   of the profits of a permanent establishment, for amounts charged, otherwise than towards reimbursement
   of actual expenses, by the permanent establishment to the head office of the enterprise or any of its
   other offices, by way of royalties, fees, or other similar payments in return for the use of patents
   or other rights, or by way of commission for specific services performed or for management, or, except
   in the case of a banking enterprise, by way of interest on moneys lent to the head office of the
   enterprise or any of its other offices.

4. Insofar as it has been customary
   in a Contracting State to the 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. For the purpose 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.

6. 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 sources within a
   Contracting State derived by an enterprise of the other Contracting State from the operation of ships
   in international traffic may be taxable only in that other State.

2. Profits from the operation of
   aircraft in international traffic shall be taxable only in the Contracting State of which the
   enterprise operating the aircraft is a resident.

3. The provision of paragraph 1 and 2
   shall also apply to profits from the participation in a pool, a joint business, or an international
   operating agency.

Article 9
ASSOCIATED ENTERPRISE

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 an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes
   in the profits of an enterprise of that 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 1 after the expiry
   of the time limits provided in its national 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 recipient is the beneficial owner of the dividends,
   the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. The competent
   authorities of the Contracting States shall by mutual agreement settle the mode of application of this
   limitation. The provisions of this paragraph shall not affect the taxation of the company in respect
   of the profits out of which the dividends are paid.

3. The term “dividends” as used in
   this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares,
   founders’ shares or other rights, not being debt-claims, 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 paragraph 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a
   resident of a Contracting State derives profits or income from the other Contracting State, that other
   state may not impose any tax on the dividends paid by the company except insofar as such dividends are
   paid to a resident of that other State or insofar as the holding in respect of which the dividends are
   paid is effectively connected with a permanent establishment or a fixed base situated in that other
   State, nor subject the company’s undistributed profits to a tax on the company’s undistributed
   profits, even if the dividend paid or the undistributed profits consist wholly or partly of profits or
   income arising in that 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 per cent of the amount of such profits after deducting therefrom
   income tax and other taxes on income imposed thereon in that 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 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
   recipient is the beneficial owner of the interest the tax so charged shall not exceed 15 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 controlled by that Government, shall be exempt from tax in the
   first-mentioned State.

4. For the purpose of paragraph 3, the terms “the
   Central Bank” and “financial institution controlled by that Government” includes :

   (i)	Central Bank of each of the Contracting States;
   (ii)	such other financial institution, the capital of which is wholly owned by the Government of each of the Contracting State, as may be agreed from the time to the time between the competent authorities of the Contracting States.

5. The term “interest” as used in
   this Article means income from debt-claims of every kind, whether or not secured by a 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 to income assimilated to income from money lent by
   the taxation law of the State in which the income arises, including interest on deferred payment
   sales.

6. 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 a) such permanent establishment or 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 14, as the case may be, shall apply.

7. Interest shall be deemed to arise
   in a Contracting State when the payer is that State itself, its political sub division or 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 or fixed base is situated.

8. 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 15 percent
   of the gross amount of the royalties. The competent authorities of the Contracting States 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 form 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 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 subparagraph (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, 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 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 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 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 payment 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 alienation of immovable property referred to in Article 6 and situated in
   the other Contracting State may be taxed in that other State.

2. Gains from the alienation of
   movable property forming part of the business property of a permanent establishment which an
   enterprise of a Contracting State has in the other Contracting State or of movable property pertaining
   to a fixed base available to a resident of a Contracting State in the other Contracting State for the
   purpose of performing independent personal services, including such gains from the alienation of such
   a permanent establishment alone or with the whole enterprise or of such a fixed base, may be taxed in
   that other State.

3. Gains derived by a resident of a
   Contracting State from the alienation of ships or aircraft operated in international traffic and
   movable property pertaining to the operation of such aircraft shall be taxable only in that State.

4. Gains from the alienation of any
   property other than that referred to in preceding paragraphs 1, 2 and 3 shall be taxable only in the
   Contracting State of which the alienator is a resident.

Article 14
INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a
   Contracting State in respect of professional services or other activities of an independent character
   shall be taxable only in that State except :

   (a)	he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; or
   (b)	he is present in that other State for a period or periods exceeding in the aggregate 91 days in any twelve months 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, and 20, 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 Contracting
   State, if:

   (a)	the recipient is present in that other State for a period or periods not exceeding in the aggregate 91 days within any twelve months period; 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 that State.

Article 16
DIRECTOR’S FEES

1. Director’s fees and other similar
   payments derived by a resident of a Contracting State in his capacity as a member of the board of
   directors or any other similar organ of a company which is a resident of the other Contracting State
   may be taxed in that other State.

2. The remuneration, which a person
   to whom paragraph 1 applies derives from the company in respect of the discharge of day-to-day
   functions of a managerial or technical nature may be taxed in accordance with the provisions of
   Article 15. (Dependent Personal Services).

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 1 performed under a
   cultural agreement or arrangement between the Contracting States shall be exempt from tax in the
   Contracting State in which activities are exercised if the visit to that State is wholly or
   substantially supported by funds of one or both of the Contracting State, a local authority or public
   institution thereof.

Article 18
PENSIONS

Pensions and annuities arising in a
Contracting State and paid to a resident of the other Contracting State may be taxed in both Contracting
States.

Article 19
GOVERNMENT SERVICE

Article 20
TEACHERS, RESEARCHERS AND STUDENTS

1. An individual who visits a
   Contracting State at the invitation of that State or of a university, college, school, museum or other
   cultural institution of that State or under an official program of cultural exchange for a period not
   exceeding two years solely for the purpose of teaching, giving lectures or carrying out research at
   such institution and who is, or was immediately before that visit, a resident of the other Contracting
   State shall be exempt from tax in the first-mentioned State on his remuneration for such activity,
   provided that such remuneration is derived by him from outside that State.

2. Payments which a student,
   apprentice or business trainee who is or was immediately before visiting a Contracting State, a
   resident of the other Contracting State and who is present in the first-mentioned State solely for the
   purpose of his education or training, receives for the purpose of his maintenance, education or
   training, shall not be taxed in that first-mentioned State, provided that such payments for one year
   do not exceed the total amount of seven hundred US dollars (US$ 700) or such other amount as specified
   from time to time by the competent authorities of both Contracting States.

Article 21
OTHER INCOME

1. Items of income of a resident of a
   Contracting State, wherever arising, not dealt with in the foregoing articles shall be taxable only in
   that State.

2. The provisions of paragraph 1
   shall not apply to income, other than income from immovable property as defined in paragraph 2 of
   Article 6 , if the recipient of such income, being resident of a Contracting State, carries on
   business in the other Contracting State through a permanent establishment situated therein, or
   performs in that other State independent personal service from a fixed base situated therein, and the
   right or property in respect of which the income is paid is effectively connected with such permanent
   establishment or fixed base. In such case, the provisions of article 7 or Article 14, as the case may
   be, shall apply.

3. Notwithstanding the provisions of
   paragraph 1 and 2, items of income of a resident of a Contracting State not dealt with in the
   foregoing articles and arising in the other Contracting State may be taxed in that other State.

Article 22
TAX ON CAPITAL

Article 23
ELIMINATION OF DOUBLE TAXATION

Double taxation shall be avoided in
the following manner :

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. 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 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 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 the first-mentioned State
   are or may be subjected.

4. 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 as if they had been paid to a resident of the first-mentioned State.
   Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting
   State shall, for the purpose of determining the taxable capital of such enterprise, be deductible
   under the same conditions as if they had been contracted 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 the competent authority of the Contracting State of
   which he is a resident or, if his case comes under paragraph 1 Article 24, 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 this
   Agreement.

3. The competent authorities of the
   Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising
   as to the interpretation or application of the Agreement. They may also consult together for the
   elimination of double taxation in cases not provided for in the Agreement.

4. The competent authorities of the
   Contracting States may communicate with each other 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 State shall exchange such information as is necessary for carrying out the provisions of
   this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the
   Agreement, insofar as the taxation thereunder is not contrary to the Agreement, in particular for the
   prevention of 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 laws of that State. However, if the information is 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
   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 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 and administrative practice of that or of the other Contracting State;
   (b)	to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
   (c)	to supply information which would 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 AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect
the fiscal privileges of diplomatic agents or consular officers under the general rules of international
law or under the provisions of special Agreements.

Article 28
ASSISTANCE IN COLLECTION

1. A Contracting State agrees to
   assist the other Contracting State in accordance with the appropriate rules in their respective
   domestic laws and regulations, in the collection of taxes referred to in this Agreement any amount
   payable in respect of any assessed taxes, pursuant to the applicable law of that other State.

2. That other Contracting State shall
   proceed to the collection of the outstanding taxes of the first-mentioned State in accordance with its
   domestic laws and regulations as is applicable to the collection of its outstanding taxes.

3. The assistance in the collection
   of outstanding taxes state accorded by a Contracting State shall have the same priority as those of
   the same nature in that State.

4. The competent authorities of the
   Contracting States may consult together for the purpose of giving effect to this article.

Article 29
ENTRY INTO FORCE

1. This Agreement shall enter into
   force on the later of the dates on which the respective Governments may notify each other in writing
   that the formalities constitutionally required in their respective States have been complied with.

2. This Agreement shall have effect:

   (a)	in respect of tax withheld at source to income derived on or after 1 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 1 January in the year next following that in which the Agreement enters into force.

    
   Article 30
   TERMINATION

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

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

DONE in duplicate at Jakarta this day
of April 28 th 1995 in two originals, each in Indonesian and Arabic languages, the two texts being equally
authentic.

PROTOCOL

At the moment of signing the Agreement for the
Avoidance of Double Taxation, the undersigned have agreed upon the following understandings:

It is agreed that, in the case of
Indonesia, the provisions of this Agreement with respect to taxes on capital shall be applicable only if
such taxes are imposed under the Indonesian tax law.

Ad Article 2 subparagraph (3) (c)
(iii) & (iv) :

It is understood that the terms “Tax
on Professional Activities” and “Tax on Lumpsum Payment”, in the case of Algeria, are taxes imposed on
income.

Ad Article 2 subparagraph (3) (c) (v)
:

It is understood that “Net Wealth
Tax”, in the case of Algeria, is tax imposed on capital.

Ad Article 10 paragraph (6) :

It is understood that the Additional
Tax shall only apply to a resident of Algeria having a permanent establishment in Indonesia.

Ad Article 18 paragraph (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 money or money’s
worth.

Ad Article 2 Subparagraph (3) (a) (vi)
:

Ad Article 2 Sub-paragraph (3) (b) :

Since the Indonesian Government’s
revenue from oil, gas and other mining sectors has been set at a fixed figure including income taxes under
production sharing contracts, contracts of works and other similar contracts, the Agreement shall not
apply to such revenue.

Ad Article 8 paragraph (1), Article
13, Article 15 paragraph (3) and Article 22 paragraph (3) :

In respect of Article 8 paragraph (1),
Article 13, Article 15 paragraph (3) and Article 22 paragraph (3), it is understood that the term
“resident” includes also “the place of effective management” as referred to under Article 4.

Ad Article 30:

It is understood that the texts of the
Agreement are done in Indonesian and Arabic Languages, both being equally authentic, whereas the English
and French drafts are used as reference

IN WITNESS WHEREOF the undersigned,
dully authorized thereto, have signed this protocol.

DONE in duplicate at Jakarta this day
of April 28 th 1995 in two originals, each in Indonesian and Arabic Languages, the two texts being equally
authentic.