Australia

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPULIC OF INDONESIA
AND
THE GOVERNMENT OF AUSTRALIA

FOR
THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION Of FISCAL EVASION WITM RESPECT TO
TAXES ON INCOME

Article 1
PERSONAL SCOPE

This Agreement shall apply to
persons who are residents of one or both of the Contracting States.

Article 2
TAXES COVERED

1. The existing taxes to which this Agreement
   shall apply are :

   (i)	in Indonesia : the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983);
   (ii)	in Australia : the income tax, and the resources rent tax in respect of offshore projects relating to exploration for or exploitation of petroleum resources, imposed under the federal law of Australia.

2. This Agreement shall also
   apply to any identical or substantially similar taxes which are imposed under the federal law
   of Australia or the law of Indonesia after the date of signature of this Agreement in addition
   to, or in place of, the existing taxes. The competent authorities of the Contracting States
   shall notify each other of any substantial changes which have been made in the laws of their
   respective States relating to the taxes to which this Agreement applies within a reasonable
   period of time after those changes.

Article 3
GENERAL DEFINITIONS

1. In this Agreement, unless the context
   otherwise requires :

   (a)	the term “Indonesia” means the territory under the sovereignty of the Republic of Indonesia and such parts of the continental shelf and the adjacent seas over which the Republic of Indonesia has sovereignty, sovereign rights as well as other rights in accordance with the 1982 United Nations Convention on the Law of the Sea;
   (b)	the term “Australia”, when used in a geographical sense, includes all external territories other than:
   	(i)	the Territory of Norfolk Island;
   	(ii)	the Territory of Christmas Island;
   	(iii)	the Territory of Cocos (Keeling) Island;
   	(iv)	the Territory of Ashmore and Cartier Islands;
   	(v)	the Territory of Heard Island and McDonald Islands;and
   	(vi)	the Coral Sea Islands Territory.
   	and includes any area adjacent to the territorial limits of Australia (including the Territories specified in this subparagraph) in respect of which there is for the time being in force, consistently with international law, a law of Australia dealing with the exploration for or exploitation of any of the natural resources of the seabed and subsoil of the continental shelf;
   (c)	the terms “Contracting State”, “one of the Contracting States” and “other Contracting State” mean, as the context requires, Australia or Indonesia, the Governments of which have concluded this Agreement;
   (d)	the term “person” includes an Individual, a company and any other body of persons;
   (e)	the term “company” means any entity which is treated as a company or body corporate for tax purposes;
   (f)	the terms “enterprise of one of the Contracting States” and “enterprise of the other Contracting State” mean an enterprise carried on by a resident of Australia or an enterprise carried on by a resident of Indonesia, as the context requires;
   (g)	the term “tax” means Australian tax or Indonesian tax, as the context requires, but does not include any penalty or interest imposed under the law of either Contracting State relating to its tax;
   (h)	the term “Australian tax” means tax imposed by Australia, being tax to which this Agreement applies by virtue of Article 2;
   (i)	the term “Indonesian tax” means tax imposed by Indonesia, being tax to which this Agreement applies by virtue of Article 2;
   (j)	the term “competent authority” means, in the case of Australia, the Commissioner of Taxation or an authorised representative of the Commissioner and, in the case of Indonesia, the Minister of Finance or an authorised representative of the Minister.

2. The references in
   paragraph 4 of Article 10, paragraph 4 of Article 11, paragraph 4 of Article 12 and paragraph
   3 of Article 22 to a permanent establishment or fixed base situated in one of the Contracting
   States include references to an enterprise’s sales and other business activities referred to
   in subparagraphs 1(b) and (c) of Article 7 and to an individual’s activities referred to in
   subparagraph 1(b) of Article 14.

3. In the application of this
   Agreement by one of the Contracting States, any term not defined in this Agreement shall,
   unless the context otherwise requires, have the meaning which it has under the laws of that
   State relating to the taxes to which this Agreement applies in force at the time of the
   application.

Article 4
RESIDENCE

1. For the purposes of this
   Agreement, a person is a resident of one of the Contracting States if the person is a resident
   of that Contracting State under the law of that State relating to its tax.

2. A person is not a resident
   of one of the Contracting states for the purposes of this Agreement if the person is liable to
   tax in that State in respect only of income from sources in that State.

3. Where by reason of the
   preceding provisions of this Article a person, being an individual, is a resident of both
   Contracting States, then the status of the person shall be determined in accordance with the
   following rules:

   (a)	the person shall be deemed to be a resident solely of the Contracting State in which a permanent home available to the person;
   (b)	if a permanent home is available to the person in both Contracting States, or in neither of them, the person shall be deemed to be a resident solely of the Contracting State in which the person has an habitual abode;
   (c)	if the person has an habitual abode in both Contracting States or in neither of them, the person shall be deemed to be a resident solely of the Contracting State with which the person’s economic and personal relations are closer.

4. Where by reason of the
   provisions of paragraph 1 a person other than an individual is a resident of both Contracting
   States, then it shall be deemed to be a resident solely of the Contracting State in which its
   place of effective management is situated.

Article 5
PERMANENT ESTABLISHMENT

1. For the purposes of this
   Agreement, the term “permanent establishment”, in relation to an enterprise, means a fixed
   place of business through which the business of the enterprise is wholly or partly carried on.

2. The term “permanent establishment” shall
   include especially:

   (a)	place of management;
   (b)	a branch;
   (c)	an office;
   (d)	a factory;
   (e)	a workshop;
   (f)	a mine, an oil or gas well, a quarry or any other place of extraction of natural resources or a place of exploration for natural resources;
   (g)	a farm, plantation or other place where agricultural, pastoral, forestry or plantation activities are carried on;
   (h)	an installation, drilling rig or ship used for exploration for or exploitation of natural resources, where that use continues for more than 120 days;
   (i)	a building site or construction, installation or assembly project or supervisory activities in connection with that site or project, where that site, project or activities exist for more than 120 days;
   (j)	the furnishing of services, including consultancy services, by an enterprise within one of the Contracting States through employees or other personnel engaged by the enterprise for that purpose, if those services are furnished, for the same or a connected project, within that State for a period or periods aggregating more than 120 days within any 12-month period.

3. An enterprise shall not be
   deemed to have a permanent establishment merely by reason of:

   (a)	the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise; or
   (b)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display; or
   (c)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; or
   (d)	the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise; or
   (e)	the maintenance of a fixed place of business solely for the purpose of activities which have a preparatory or auxiliary character for the enterprise, such as advertising or scientific research.

4. A person acting in one of
   the Contracting States on behalf of an enterprise of the other Contracting State — other than
   an agent of an independent status to whom paragraph 5 applies — shall be deemed to be a
   permanent establishment of that enterprise in the first-mentioned State if:

   (a)	in so acting, the person manufactures or processes in that State for the enterprise goods or merchandise belonging to the enterprise; or
   (b)	the person has, and habitually exercises in that State, an authority to conclude contracts on behalf of the enterprise, unless the person’s activities are limited to the purchase of goods or merchandise for the enterprise; or
   (c)	the person has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which the person regularly delivers goods or merchandise on behalf of the enterprise.

5. An enterprise of one of
   the Contracting States 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 person
   who is a broker, general commission agent or any other agent of an independent status and is
   acting in the ordinary course of the person’s business as such a broker or agent. However,
   when the activities of such a broker or agent are carried on wholly or principally on behalf
   of that enterprise itself or on behalf of that enterprise and other enterprises controlling,
   or controlled by or subject to the same common control as, that enterprise, the person will
   not be considered a broker or agent of an independent status within the meaning of this
   paragraph.

6. The fact that a company
   which is a resident of one of the Contracting States 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 make
   either company a permanent establishment of the other.

7. The principles set forth
   in the preceding paragraphs of this Article shall be applied in determining for the purposes
   of paragraph 5 of Article 11 and paragraph 5 of Article 12 of this Agreement whether there is
   a permanent establishment outside both Contracting States, and whether an enterprise, not
   being an enterprise of one of the Contracting States, has a permanent establishment in one of
   the Contracting States.

Article 6
INCOME FROM REAL PROPERTY

1. Income from real property
   may be taxed in the Contracting State in which the real property is situated.

2. In this Article, the term
   “real property”, in relation to one of the Contracting States, has the meaning which it has
   under the laws of that State and includes:

   (a)	a lease of land and any other interest in or over land, whether improved or not, including a right to explore for mineral, oil or gas deposits or other natural resources, and a right to mine those deposits or resources; and
   (b)	a right to receive variable or fixed payments either as consideration for or in respect of the exploitation of, or the right to explore for or exploit, mineral, oil or gas deposits, quarries or other places of extraction or exploitation of natural resources;
   ships, boats and aircraft shall not be regarded as real property.

3. Any interest or right
   referred to in paragraph 2 shall be regarded as situated where the land, mineral, oil or gas
   deposits, quarries or natural resources, as the case may be, are situated or where the
   exploration may take place.

4. The provisions of
   paragraph 1 shall also apply to income from real property of an enterprise and to income from
   real property used for the performance of independent personal services.

5. The provisions of
   paragraphs 1 and 3 also apply to income from real property of an enterprise and to income from
   real 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
   in that other State. If the enterprise carries on business in that manner, 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; or
   (b)	sales in that other State of goods or merchandise of the same or a similar kind as those sold through that permanent establishment; or
   (c)	other business activities carried on in that other State of the same or a similar kind as those carried on through that permanent establishment.

2. Subject to the provisions
   of paragraph 3, where an enterprise of one of the Contracting States carries on business in
   the other Contracting State through a permanent establishment situated in that other State,
   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 or with
   other enterprises with which it deals.

3. In the determination of
   the profits of a permanent establishment, there shall be allowed as deductions expenses of the
   enterprise, being expenses which are incurred for the purposes of the permanent establishment
   (including executive and general administrative expenses so incurred) and which would be
   deductible if the permanent establishment were an independent entity which paid those
   expenses, whether incurred in the Contracting 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 money lent to the permanent establishment.
   Likewise, no account shall be taken, in the determination of the profits of a permanent
   establishment, of 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 money lent to the head
   office of the enterprise or any of its other offices.

4. No profits shall be
   attributed to a permanent establishment by reason of the mere purchase by that permanent
   establishment of goods or merchandise for the enterprise.

5. Nothing in this Article
   shall affect the application of any law of one of the Contracting States relating to the
   determination of the tax liability of a person in cases where the information available to the
   competent authority of that State is inadequate to determine the profits to be attributed to a
   permanent establishment, provided that that law shall be applied, so far as the information
   available to the competent authority permits, consistently with the principles of this
   Article.

6. Where profits include
   items of income or gains 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.

7. Nothing in this article
   shall affect the operation of any law of one of the Contracting States relating to tax imposed
   on profits derived by non-residents on insurance premiums collected, or from insurance
   relating to risks arising or to property, in that State, whether or not that law deems the
   existence of a permanent establishment in relation to the relevant activity. If the relevant
   law in force in either Contracting State at the date of signature of this Agreement is varied
   (otherwise than in minor respects so as not to affect its general character) the Contracting
   States shall consult with each other with a view to agreeing to any amendment of this
   paragraph that may be appropriate.

8. Where:

   (a)

   a resident of one of the Contracting States is beneficially entitled, whether directly or through one or more interposed trust estates, to a share of the business profits of an enterprise carried on in the other Contracting State by the trustee of a trust estate other than a trust estate which is treated as a company for tax purposes; and

   (b)

   in relation to that enterprise, that trustee would, in accordance with the principles of Article 5, have a permanent establishment in that other Contracting State, the enterprise carried on by the trustee shall be deemed to be a business carried on in the other State by that resident through a permanent establishment situated in that other State and that share of business profits shall be attributed to that permanent establishment.

Article 8
SHIPS AND AIRCRAFT

1. Profits from the operation
   of ships or aircraft derived by a resident of one of the Contracting States shall be taxable
   only in that State.

2. Notwithstanding the
   provisions of paragraph 1, such profits may be taxed in the other Contracting State where they
   are profits from operations of ships or aircraft confined solely to places in that other
   State.

3. The provisions of
   paragraphs 1 and 2 shall apply in relation to the share of the profits from the operation of
   ships or aircraft derived by a resident of a Contracting State through participation in a pool
   service, in a joint transport operating organisation or in an international operating agency.

4. For the purposes of this
   Article, profits derived from the carriage by ships or aircraft of passengers, livestock,
   mail, goods or merchandise shipped in one of the Contracting States for discharge at another
   place in that State shall be treated as profits from operations of ships or aircraft confined
   solely to places in that State.

Article 9
ASSOCIATED ENTERPRISES

1. Where

   (a)

   an enterprise of one of the Contracting States 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 one of the Contracting States and an enterprise of the other Contracting State, and in either case conditions operate between the two enterprises in their commercial or financial relations which differ from those which might be expected to operate between independent enterprises dealing wholly independently with one another, then any profits which, but for those conditions, might have been expected to accrue 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. Nothing in this Article
   shall affect the application of any law of one of the Contracting States relating to the
   determination of the tax liability of a person, including determinations in cases where the
   information available to the competent authority of that State is inadequate to determine the
   income to be attributed to an enterprise, provided that that law shall be applied, so far as
   it is practicable to do so, consistently with the principles of this Article.

3. Where profits on which an
   enterprise of one of the Contracting States has been charged to tax in that State are also
   included, by virtue of paragraph 1 or 2, in the profits of an enterprise of the other
   Contracting State and charged to tax in that other State, and the profits so included are
   profits which might have been expected to have accrued to that enterprise of the other State
   if the conditions operative between the enterprises had been those which might have been
   expected to have operated between independent enterprises dealing wholly independently with
   one another, then the first-mentioned State shall make an appropriate adjustment to the amount
   of tax charged on those profits in the first-mentioned State. In determining such an
   adjustment, due regard shall be had to the other provisions of this Agreement and for this
   purpose the competent authorities of the Contracting States shall if necessary consult each
   other.

Article 10
DIVIDENDS

1. Dividends paid by a
   company which is a resident of one of the Contracting States under the law of that State
   relating to its tax, being dividends to which a resident of the other Contracting State is
   beneficially entitled, may be taxed in that other State.

2. Those dividends may be
   taxed in the first-mentioned Contracting State and according to the law of that State, but the
   tax so charged shall not exceed 15% 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.

3. The term “dividends” in
   this Article means income from shares and other income assimilated to income from shares by
   the law, relating to tax, of the Contracting State of which the company making the
   distribution is a resident under that law.

4. The provisions of
   paragraph 2 shall not apply if the person beneficially entitled to the dividends, being a
   resident of one of the Contracting States, carries on business in the other Contracting State
   of which the company paying the dividends is a resident, through a permanent establishment
   situated in that other State, or performs in that other State independent personal services
   from a fixed base situated in that other State, and the holding in respect of which the
   dividends are paid is effectively connected with that permanent establishment or fixed base.
   In that case the provisions of Article 7 or 14, as the case may be, shall apply.

5. Dividends paid by a
   company which is a resident of one of the Contracting States, being dividends to which a
   person who is not a resident of the other Contracting State is beneficially entitled, shall be
   exempt from tax in that other State except in so far as the holding in respect of which the
   dividends are paid is effectively connected with a permanent establishment or fixed base
   situated in that other State. This paragraph shall not apply in relation to dividends paid by
   any company which is a resident of Australia under the law of Australia relating to its tax
   which is also a resident of Indonesia under the law of Indonesia relating to its tax.

6. Notwithstanding any other
   provisions of this Agreement, where a company which is a resident of one of the Contracting
   states 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 15% of the amount
   of such profits after deducting from those profits the tax imposed on them in that other
   state.

7. The provisions of
   paragraph 6 of this Article shall not affect the rate of any such additional tax payable under
   any production sharing contracts and contracts of work (or any other similar contracts)
   relating to oil and gas or other mineral products negotiated by the Government of Indonesia,
   its instrumentality, its relevant State oil company or any other entity thereof with a person
   who is a resident of Australia.

Article 11
INTEREST

1. Interest arising in one of
   the Contracting States, being interest to which a resident of the other Contracting State is
   beneficially entitled, may be taxed in that other State.

2. That interest may be taxed
   in the Contracting State in which it arises, and according to the law of that State, but the
   tax so charged shall not exceed 10% 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. The term “interest” in
   this Article includes interest from Government securities or from bonds or debentures, whether
   or not secured by mortgage and whether or not carrying a right to participate in profits,
   interest from any other form of indebtedness and all other income assimilated to income from
   money lent by the law, relating to tax, of the Contracting State in which the income arises.

4. The provisions of
   paragraph 2 shall not apply if the person beneficially entitled to the interest, being a
   resident of one of the Contracting States, carries on business in the other Contracting State,
   in which the interest arises, through a permanent establishment situated in that other State,
   or performs in that other State independent personal services from a fixed base situated in
   that other State, and the indebtedness in respect of which the interest is paid is effectively
   connected with that permanent establishment or fixed base. In that case, the provisions of
   Article 7 or 14, as the case may be, shall apply.

5. Interest shall be deemed
   to arise in one of the Contracting States when the payer is that State itself or a political
   subdivision or local authority of that State or a person who is a resident of that State under
   the law of that State relating to its tax. Where, however, the person paying the interest,
   whether the person is a resident of a Contracting State or not, has in one of the Contracting
   States or outside both Contracting States a permanent establishment or fixed base in
   connection with which the indebtedness on which the interest is paid was incurred, and that
   interest is borne by that permanent establishment or fixed base, then the interest shall be
   deemed to arise in the State in which the permanent establishment or fixed base is situated.

6. Where, owing to a special
   relationship between the payer and the person beneficially entitled to the interest, or
   between both of them and some other person, the amount of the interest paid, having regard to
   the indebtedness for which it is paid, exceeds the amount which might have been expected to
   have been agreed upon by the payer and the person so entitled in the absence of that
   relationship, the provisions of this Article shall apply only to the last-mentioned amount. In
   that case, the excess part of the amount of the interest paid shall remain taxable according
   to the law, relating to tax, of each Contracting State, but subject to the other provisions of
   this Agreement.

7. Interest derived from the
   investment of official foreign exchange reserve assets by the Government of one of the
   Contracting States, its monetary institutions or a bank performing central banking functions
   in that State shall be exempt from tax in the other Contracting State.

Article 12
ROYALTIES

1. Royalties arising in one
   of the Contracting States, being royalties to which a resident of the other Contracting State
   is beneficially entitled, may be taxed in that other State.

2. Those royalties may be
   taxed in the Contracting State in which they arise, and according to the law of that State,
   but the tax so charged shall not exceed:

   (a)	in the case of royalties described in subparagraphs 3(b) and (c), and to the extent to which they relate to those royalties, in subparagraphs 3(d) and (f) — 10%; and
   (b)	in all other cases — 15%.
   The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations.

3. The term “royalties” in
   this Article means payments, whether periodical or not, and however described or computed, 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, 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, and is furnished as a means of enabling the initial application of, 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 subparagraph (c); or
   (e)	the use of, or the right to use:
   	(i)	motion picture films; or
   	(ii)	films or video tapes 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 of any property or right referred to in this paragraph.

4. The provisions of
   paragraph 2 shall not apply if the person beneficially entitled to the royalties, being a
   resident of one of the Contracting States, carries on business in the other Contracting State,
   in which the royalties arise, through a permanent establishment situated in that other State,
   or performs in that other State independent personal services from a fixed base situated in
   that other State, and the property or right in respect of which the royalties are paid is
   effectively connected with that permanent establishment or fixed base. In that case, the
   provisions of Article 7 or 14, as the case may be, shall apply.

5. Royalties shall be deemed
   to arise in one of the Contracting States when the payer is that State itself or a political
   subdivision or local authority of that State or a person who is a resident of that State under
   the law of that State relating to its tax. Where, however, the person paying the royalties,
   whether the person is a resident of one of the Contracting States or not, has in one of the
   Contracting States or outside both Contracting States a permanent establishment or fixed base
   in connection with which the liability to pay the royalties was incurred, and the royalties
   are borne by the permanent establishment or fixed base, then the royalties shall be deemed to
   arise in the State in which the permanent establishment or fixed base is situated.

6. Where, owing to a special
   relationship between the payer and the person beneficially entitled to the royalties, or
   between both of them and some other person, the amount of the royalties paid having regard to
   what they are paid for, exceeds the amount which might have been expected to have been agreed
   upon by the payer and the person so entitled in the absence of such relationship, the
   provisions of this Agreement shall apply only to the last-mentioned amount. In that case, the
   excess part of the amount of the royalties paid shall remain taxable according to the law,
   relating to tax, of each Contracting State, but subject to the other provisions of this
   Agreement.

7. In this Article, the term
   “payments” includes credits and the terms “paid”, “payer” and “person paying” have the
   corresponding meanings.

Article 13
ALIENATION OF PROPERTY

1. Income, profits or gains
   derived by a resident of one of the Contracting States from the alienation of real property
   situated in the other Contracting State may be taxed in that other State.

2. Income, profits or gains
   from the alienation of property, other than real property, that forms part of the business
   property of a permanent establishment which an enterprise of one of the Contracting States has
   in the other Contracting State or pertains to a fixed base available in that other State to a
   resident of the first-mentioned State for the purpose of performing independent personal
   services, including income, profits or gains from the alienation of that permanent
   establishment (alone or with the whole enterprise) or of that fixed base, may be taxed in that
   other State.

3. Income, profits or gains
   from the alienation of ships or aircraft operated in international traffic, or of property
   (other than real property) pertaining to the operation of those ships or aircraft, shall be
   taxable only in the Contracting State of which the enterprise which operated those ships or
   aircraft is a resident.

4. Income, profits or gains
   derived by a resident of one of the Contracting States from the alienation of shares or
   comparable interests in a company, the assets of which consist wholly or principally of real
   property situated in the other Contracting State, may be taxed in that other State.

5. Nothing in this Agreement
   affects the application of a law of one of the Contracting States relating to the taxation of
   gains of a capital nature derived from the alienation of property other than that to which any
   of the preceding paragraphs of this Article apply.

Article 14
INDEPENDENT PERSONAL SERVICES

1. Income derived by an
   individual who is a resident of one of the Contracting States in respect of professional
   services or other independent activities of a similar character shall be taxable only in that
   State unless:

   (a)	a fixed base is regularly available to the individual in the other Contracting State for the purpose of performing the individual’s activities; in that case, so much of the income as is attributable to activities exercised from that fixed base may also be taxed in the other State; or
   (b)	the individual is present in that other State for a period or periods exceeding 120 days in any period of 12 months; in that case, so much of the income as is derived from the individual’s activities in that other State may also be taxed in that other State.

2. The term “professional
   services” includes services performed in the exercise of independent scientific, literary,
   artistic, educational or teaching activities as well as in the exercise of the independent
   activities of physicians, lawyers, engineers, architects, dentists 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 an
   individual who is a resident of one of the Contracting States 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 from
   that exercise may be taxed in that other State.

2. Notwithstanding the
   provisions of paragraph 1, remuneration derived by an individual who is a resident of one of
   the Contracting States 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 that other State for a period or periods not exceeding in the aggregate 120 days in any period of 12 months; 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 deductible in determining taxable profits of a permanent establishment or a fixed base which the employer has in that other State; and
   (d)	the remuneration is, or upon the application of this Article will be, subject to tax in the first-mentioned State.

3. Notwithstanding the
   preceding provisions of this Article, remuneration in respect of an employment exercised
   aboard a ship or aircraft operated in international traffic by a resident of one of the
   Contracting States may be taxed in that State. 

Article 16
DIRECTORS’ FEES

Article 17
ENTERTAINERS

1. Notwithstanding the
   provisions of Articles 14 and 15, income derived by entertainers (such as theatrical, motion
   picture, radio or television artistes and musicians and athletes) from their personal
   activities as such may be taxed in the Contracting State in which these activities are
   exercised. 

2. Where income in respect of
   the personal activities of an entertainer as such accrues not to that entertainer 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 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 the activities are exercised if the visit to
   that State is wholly or substantially supported by funds of the other Contracting State, a
   local authority or public institution of that other State. 

Article 18
PENSIONS AND ANNUITIES

1. Pensions (including
   government pensions) and annuities paid to a resident of one of the Contracting States shall
   be taxable only in that State. 

2. Notwithstanding the
   provisions of paragraph 1, a pension (including a government pension) or an annuity paid to a
   resident of one of the Contracting States from sources in the other Contracting State may be
   taxed in that other State but the tax so charged may not exceed 15% of the gross amount of the
   pension or annuity.

3. 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. 

4. Any alimony or other
   maintenance payment arising in one of the Contracting States and paid to a resident of the
   other Contracting State shall be taxable only in the first-mentioned State. 

Article 19
GOVERNMENT SERVICE

1. Remuneration, other than a
   pension or annuity, paid by one of the Contracting States or a political subdivision or local
   authority of that State to any individual in respect of services rendered to it shall be
   taxable only in that State. However, such remuneration shall be taxable only in the other
   Contracting State if the services are rendered in that other State and the recipient is a
   resident of that other State who: 

   (a)	is a citizen or national of that State; or
   (b)	did not become a resident of that State solely for the purpose of performing the services.

2. The provisions of
   paragraph 1 shall not apply to remuneration in respect of services rendered in connection with
   any trade or business carried on by one of the Contracting States or a political subdivision
   or local authority of that State. In that case, the provisions of Article 15 or 16, as the
   case may be, shall apply.

Article 20
PROFESSORS AND TEACHERS

1. Where a professor or
   teacher who is a resident of one of the Contracting States visits the other Contracting State
   for a period not exceeding 2 years for the purpose of teaching or carrying out advanced study
   or research at a university, college, school or other educational institution in that other
   State, any remuneration the person receives for such teaching, advanced study or research
   shall be exempt from tax in that other State to the extent to which that remuneration is, or
   upon the application of this Article will be, subject to tax in the first-mentioned State.

2. This Article shall not
   apply to remuneration which a professor or teacher receives for conducting research if the
   research is undertaken primarily for the private benefit of a specific person or persons.

Article 21
STUDENTS

Article 22
INCOME NOT EXPRESSLY MENTIONED

1. Items of income of a
   resident of one of the Contracting States which are not expressly mentioned in the foregoing
   Articles of this Agreement shall be taxable only in that State. 

2. However, any such income
   derived by a resident of one of the Contracting States from sources in the other Contracting
   State may also be taxed in that other State. 

3. The provisions of
   paragraph 1 shall not apply to income derived by a resident of one of the Contracting States
   where that income is effectively connected with a permanent establishment or fixed base
   situated in the other Contracting State. In that case, the provisions of Article 7 or 14, as
   the case may be, shall apply. 

Article 23
SOURCE OF INCOME

Article 24
METHODS OF ELIMINATION OF DOUBLE TAXATION

1. Subject to the provisions
   of the law of Australia from time to time in force which relate to the allowance of a credit
   against Australian tax of tax paid in a country outside Australia (which shall not affect the
   general principle of this Article), Indonesian tax paid under the law of Indonesia and in
   accordance with this Agreement, whether directly or by deduction, in respect of income derived
   by a person who is a resident of Australia from sources in Indonesia shall be allowed as a
   credit against Australian tax payable in respect of that income. 

2. Where a company which is a
   resident of Indonesia and is not a resident of Australia under the law of Australia relating
   to its tax pays a dividend to a company which is a resident of Australia and which controls
   directly or indirectly not less than 10% of the voting power of the first-mentioned company,
   the credit referred to in paragraph 1 shall include the Indonesian tax paid by that
   first-mentioned company in respect of that portion of its profits out of which the dividend is
   paid. 

3. Where a resident of
   Indonesia derives income from Australia which may be taxed in Australia in accordance with the
   provisions of this agreement, the amount of Australian tax payable in respect of that income
   shall be allowed as a credit against the Indonesian tax imposed on that resident in respect of
   the income. The amount of credit, however, shall not exceed that part of the Indonesian tax
   which is appropriate to that income.

4. The amount of Australian
   tax payable on income derived by a resident of Indonesia to whom paragraph 3 applies shall be
   increased, before the application of that paragraph in that case, by an amount equal to any
   amount paid by that resident under the Fringe Benefits Tax Act 1986 of Australia.

Article 25
MUTUAL AGREEMENT PROCEDURE

1. Where a person who is a
   resident of one of the Contracting States considers that the actions of the competent
   authority of one or both of the Contracting States result or will result for the person in
   taxation not in accordance with this agreement, the person may, notwithstanding the remedies
   provided by the national laws of those States, present a case to the competent authority of
   the Contracting State of which the person is a resident. The case must be presented within 3
   years from the first notification of the action giving rise to taxation not in accordance with
   this Agreement.

2. The competent authority
   shall endeavour, if the claim appears to be justified and if it is not itself able to arrive
   at an appropriate solution, to resolve the case with the competent authority of the other
   Contracting State, with a view to the avoidance of taxation not in accordance with this
   Agreement. The solution so reached shall be implemented notwithstanding any time limits in the
   national laws of the Contracting States.

3. The competent authorities
   of the Contracting States shall jointly endeavour to resolve any difficulties or doubts
   arising as to the application of this Agreement.

4. The competent authorities
   of the Contracting States may communicate with each other directly for the purpose of giving
   effect to the provisions of this Agreement.

Article 26
EXCHANGE OF INFORMATION

1. The competent authorities
   of the Contracting States shall exchange such information as is necessary for the carrying out
   of this Agreement or of the national laws of the Contracting States concerning the taxes to
   which this Agreement applies in so far as the taxation under those laws is not contrary to
   this Agreement. The exchange of information is not restricted by Article 1. Any information
   received by the competent authority of a Contracting State shall be treated as secret in the
   same manner as information obtained under the national laws of that State and shall be
   disclosed only to persons or authorities (including courts and administrative bodies)
   concerned with the assessment or collection of, enforcement or prosecution in respect of, or
   the determination of appeals in relation to, the taxes to which this Agreement applies and
   shall be used only for such purposes.

2. In no case shall the
   provisions of paragraph 1 be construed so as to impose on the competent authority of one of
   the Contracting States 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; or
   (b)	to supply particulars which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; or
   (c)	to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or to supply information the disclosure of which would be contrary to public policy.

Article 27
DIPLOMATIC AND CONSULAR OFFICIALS

Article 28
MISCELLANEOUS

Article 29
ENTRY INTO FORCE

Article 30
TERMINATION

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

DONE in duplicate at Jakarta
this twenty-second day of April one thousand nine hundred and ninety two in the English language.