AGREEMENT BETWEEN
                THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
                AND
                THE GOVERNMENT OF THE REPUBLIC OF AUSTRIA
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
This Agreement shall apply to
              persons who are residents of one or both of the Contracting States.
Article 2
                TAXES COVERED
- 
This Agreement shall apply to 
 taxes on income and on capital imposed on behalf of a Contracting State or of its political
 subdivisions or local authorities, irrespective of the manner in which they are levied.
- 
There shall be regarded as 
 taxes on income and on capital all taxes imposed on total income, on total capital, or on elements
 of income or of capital, including taxes on gains from the alienation of movable or immovable
 property.
- The existing taxes to which the Agreement shall
 apply are in particular:(a) in Indonesia : (i) the income tax imposed 
 under the Undang-Undang Pajak Penghasilan 1984 (Law No. 7 of 1983) and to the extent —
 provided in such income tax law, the company tax imposed under the Ordonansi Pajak
 Perseroan 1925 (State Gazette No. 319 of 1925 as lastly amended by Law No. 8 of 1970) —
 and the tax imposed under the Undang-Undang Pajak atas Bunga, Dividen dan Royalty 1970
 (Law No. 10 of 1970);(ii) the property tax imposed under the 
 Undang-Undang Pajak Bumi dan Bangunan (Law No. 12 of 1985)(hereinafter referred to as “Indonesian Tax”);(b) in Austria: (i) the income tax (die Einkommensteuer); (ii) the corporation tax (die 
 Körperschaftsteuer);(iii) the directors’ tax (die 
 Aufsichtsratsabgabe);(iv) the capital tax (die Vermögensteuer); (v) the tax on property eluding death 
 duties (die Abgabe von Vermögen, die der Erbschaftssteuer entzogen sind);(vi) the tax on commercial and industrial 
 enterprises, including the tax levied on the sum of wages (die Gewerbesteuer einschliesslich
 der Lohnsummensteuer);(vii) the land tax (die Grundsteuer); (viii) the tax on agricultural and forestry 
 enterprises (die Abgabe von land- und forstwirtschaftlichen Betrieben);(ix) the tax on the value of vacant plots 
 (die Abgabe vom Bodenwert bei unbebauten Grundstücken)(hereinafter referred to as “Austrian tax”).
- 
The Agreement shall also apply 
 to any identical or substantially similar taxes in 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
- 
For the purposes of this 
 Agreement, unless the context otherwise requires:(a) (i) the term “Indonesia” comprises the 
 territory of the Republic of Indonesia as defined in its laws and the adjacent areas over
 which the Republic of Indonesia has sovereign rights or jurisdictions in accordance with
 the provisions of the United Nations Convention on the Law of the Sea, 1982;(ii) the term “Austria” means the Republic 
 of Austria;(b) the terms “a Contracting 
 State” and “the other Contracting State” mean Indonesia or Austria, as the context requires;(c) the term “tax” means 
 Indonesian tax or Austrian tax, as the context requires;(d) the term “person” includes 
 an individual, a company and any other body of persons;(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;e term “company” means any body corporate or any
 entity which is treated as a body corporate for tax purposes;(f) the terms “enterprise of a 
 Contracting State” and “enterprise of the other Contracting State” mean, respectively, an
 enterprise carried on by a resident of a Contracting State and an enterprise carried on by a
 resident of the other Contracting State;(g) the term “international 
 traffic” means any transport by a ship or aircraft operated by an enterprise of a
 Contracting State, except when the ship or aircraft is operated solely between places in the
 other Contracting State;(h) the term “national” means: (i) any individual possessing the 
 nationality of a Contracting State;(ii) a legal person, partnership and 
 association deriving its status as such from the laws in force in a Contracting State;(i) the term “competent 
 authority” means:(i) in Indonesia: 
 – the Minister of Finance or his authorized representative;(ii) in Austria 
 – the Federal Minister of Finance.
- 
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
- 
For the purpose 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.
- 
Where by reason of the 
 provisions of paragraph 1 an individual is a resident of both Contracting States, then his status
 shall be determined as follows:(a) he shall be deemed to be a resident of 
 the State in which he has a permanent home available to him; if he has a permanent home
 available to him in both States, he shall be deemed to be a resident of the State with which
 his personal and economic relations are closer (centre of vital interests);(b) if the State in which he has his centre 
 of vital interests cannot be determined, or if he has not a permanent home available to him
 in either State, he shall be deemed to be a resident of the State in which he has an
 habitual abode;(c) if he has an habitual abode in both 
 States or in neither of them, the competent authorities of the Contracting States shall
 endeavour to settle the question by mutual agreement.
- 
Where by reason of the 
 provisions of paragraph 1 a person other than an individual is a resident of both Contracting
 States, then it shall be deemed to be a resident of the State in which its place of effective
 management is situated.
Article 5
                PERMANENT ESTABLISHMENT
- 
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.
- 
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 mine, an oil 
 or gas well, a quarry or any other place of extraction of natural resources.
- 
The term “permanent 
 establishment” likewise encompasses:(a) a building site, a construction, 
 assembly or installation project or supervisory activities in connection therewith, but only
 where such site, project or activities continue for a period of more than six months;(b) the furnishing of services, including 
 consultancy services, by an enterprise through employees or other personnel engaged by the
 enterprise for such purpose, but only where activities of that nature continue (for the same
 or a connected project) within the country for a period or periods aggregating more than
 three months within any twelve-month period.
- 
Notwithstanding the preceding 
 provisions of this Article, the term “permanent establishment” shall be deemed not to
 include:(a) the use of facilities solely for the 
 purpose of storage or display of goods or merchandise belonging to the enterprise;(b) the maintenance of a stock 
 of goods or merchandise belonging to the enterprise solely for the purpose of storage or
 display;(c) the maintenance of a stock of goods or 
 merchandise belonging to the enterprise solely for the purpose of processing by another
 enterprise;(d) the maintenance of a fixed place of 
 business solely for the purpose of purchasing goods or merchandise, or of collecting
 information, for the enterprise;(e) the maintenance of a fixed place of 
 business solely for the purpose of advertising, for the supply of information, for
 scientific research or for similar activities which have a preparatory or auxiliary
 character, for the enterprise;(f) the maintenance of a fixed place of 
 business solely for any combination of activities mentioned in sub-paragraphs (a) to (e)
 provided that the overall activity of the fixed place of business resulting from this
 combination is of a preparatory or auxiliary character.
- 
Notwithstanding the provisions 
 of paragraphs 1 and 2 where a person — other than an agent of an independent status to whom
 paragraph 7 applies — is acting 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 4 which, if exercised
 through a fixed place of business, would not make this fixed place of business a permanent
 establishment under the provisions of that paragraph;(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.
- 
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 7.
- 
An enterprise of a Contracting 
 State shall not be deemed to have a permanent establishment in the other Contracting State merely
 because it carries on business in that other State through a broker, general commission agent or
 any other agent of an independent status, provided that such persons are acting in the ordinary
 course of their business. However, when the activities of such an agent are devoted wholly or
 almost wholly on behalf of that enterprise, he will not be considered an agent of an independent
 status within the meaning of this paragraph.
- 
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
- 
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.
- 
The term “immovable property” 
 shall have the meaning which it has under the laws 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.
- 
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.
- 
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
- 
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.
- 
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.
- 
In determining the profits of 
 a permanent establishment, there shall be allowed as deductions expenses which are incurred for
 the purposes of the business of the permanent establishment including executive and general
 administrative expenses so incurred, whether in the State in which the permanent establishment is
 situated or elsewhere. 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 enterprises 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 expect 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.
- 
In the absence of appropriate 
 accounting or other data permitting the determination of the profits to be attributed to a
 permanent establishment, the tax may be assessed in the Contracting State in which the permanent
 establishment is situated in accordance with the laws of that State, in particular regard being
 had to the normal profits of similar enterprise engaged in the same or similar conditions,
 provided that, on the basis of the available information, the determination of the profits of the
 permanent establishment is consistent with the principles stated in this Article.
- 
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.
- 
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.
- 
The term “profits” as used in 
 this Article includes the profits derived by any partner from his participation in a partnership
 and, in the case of Austria, from a participation in a sleeping partnership (Stille Gesellschaft)
 created under Austrian law.
Article 8
                SHIPPING AND AIR TRANSPORT
- 
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 taxed in the first-mentioned State, but the tax imposed
 shall be reduced by an amount equal to 50% thereof.
- 
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.
- 
The provision of paragraph 1 
 shall also apply to profits from the participation in a pool, a joint business or an international
 operating agency.
Article 9
                ASSOCIATED ENTERPRISES
Where :
| (a) | an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or | 
| (b) | the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, | 
and in either case conditions are made or
                imposed between the two enterprises in their commercial or financial relations which differ from
                those which would be made between independent enterprises, then any profits which would, but for
                those conditions, have not so accrued, may be included in the profits of that enterprise and taxed
                accordingly.
Article 10
                DIVIDENDS
- 
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.
- 
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:(a) 10% of the gross amount of the 
 dividends if the recipient is a company (other than a partnership) which holds directly at
 least 25% of the capital of the company paying the dividends;(b) 15% of the gross amount of the 
 dividends in all other cases.This paragraph shall 
 not affect the taxation of the company in respect of the profits out of which the
 dividends are paid.
- 
The terms “dividends” as used 
 in this Article means income from 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.
- 
The provisions of paragraphs 1 
 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting
 State, carries on business in the other Contracting State of which the company paying the
 dividends is a resident, through a permanent establishment situated therein, or performs in that
 other State independent personal services from a fixed base situated therein, and the holding in
 respect of which the dividends are paid is effectively connected with such permanent establishment
 or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall
 apply.
- 
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 dividends paid or the undistributed profits consist
 wholly or partly of profits or income arising in such other State.
- 
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 80% of 15% of the amount of such profits after
 deducting therefrom income tax and other taxes on income imposed thereon in that other
 State.
- 
The provisions of paragraph 6 
 of this Article shall not affect the provisions contained in any production sharing contracts and
 contracts of work (or any other similar contracts) relating to oil and gas sector or other mining
 sector concluded on or before 31 December 1983 by the Government of Indonesia, its
 instrumentality, its relevant State oil and gas company or any other entity thereof with a person
 who is resident of Austria.
Article 11
                INTEREST
- 
Interest arising in a 
 Contracting State and paid to a resident of the other Contracting State may be taxed in that other
 State.
- 
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 10% of the gross amount of the interest.
- 
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, the Central Bank or any financial
 institution controlled by that Government, shall be exempted from tax in the first-mentioned
 State.
- 
For the purpose of paragraph 
 3, the terms “the Central Bank” and “financial institution controlled by that Government”
 means:(a) In the case of Indonesia: (i) the Bank Indonesia (the Central Bank of 
 Indonesia);(ii) such other financial 
 institution, the capital of which is wholly owned by the Government of the Republic of
 Indonesia, as may be agreed upon from time to time between the Government of the
 Contracting State.(b) In the case of Austria: 
 the Österreichische Kontrollbank Aktiengesellschaft.
- 
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 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. money lent by the taxation law of the State in which the income arises,
 including interest on deferred payment sales.
- 
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 Article 14, as the case may be, shall apply.
- 
Interest shall be deemed to arise in a Contracting State when the payer is that State itself,
 a political subdivision, a local authority or a resident of that State.Where, however, the person paying the interest, whether he is a resident of a Contracting
 State or not, has in a Contracting State a permanent establishment or a fixed base in connection
 with which the indebtedness on which the interest is paid was incurred, and such interest is
 borne by such permanent establishment or fixed base, then such interest shall be deemed to arise
 in the State in which the permanent establishment or fixed base is situated.
- 
Where, by reason of a special 
 relationship between the payer and the beneficial owner or between both of them and some other
 persons, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds
 the amount which would have been agreed upon by the payer and the beneficial owner in the absence
 of such relationship, the provisions of this Article shall apply 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
- 
Royalties arising in a 
 Contracting State and paid to a resident of the other Contracting State may be taxed in that other
 State.
- 
However, such royalties may 
 also be taxed in the Contracting State in which they arise, and according to the laws of that
 State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not
 exceed 10% of the gross amount of the royalties.
- 
The term “royalties” as used 
 in this Article means payments of any kind received as a consideration for the use of, or the
 right to use, any copyright of literary, artistic or scientific work including cinematograph films
 or films or tapes for radio or television broadcasting, any patent, trade mark, design or model,
 plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or
 scientific equipment, or for information concerning industrial, commercial or scientific
 experience.
- 
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 the situated therein, and the right or property in respect of which the
 royalties are paid is effectively connected with (a) such permanent establishment or fixed base,
 or with (b) business activities referred to under (c) of paragraph 1 of Article 7. In such case,
 the provisions of Article 7 or Article 14, as the case may be, shall apply.
- 
Royalties shall be deemed to 
 arise in a Contracting State when the payer is that State itself, a political subdivision, a local
 authority or a resident of that State. Where, however, the person paying the 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.
- 
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
- 
Gain derived by a resident of 
 a Contracting State from alienation of immovable property referred to in Article 6 and situated in
 the other Contracting State may be taxed in that other State.
- 
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 the performing independent personal services, including such gains from the
 alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed
 base, may be taxed in that other State.
- 
Gains derived by a resident of 
 a Contracting State from the alienation of aircraft operated in international traffic of movable
 property pertaining to the operation of such aircraft shall be taxable only in that State.
- 
Gains from the alienation of 
 any property other than that referred to in the preceding paragraph shall be taxable only in the
 Contracting State of which the alienator is a resident.
Article 14
                INDEPENDENT PERSONAL SERVICES
- 
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 unless he has a fixed base regularly available to
 him in the other Contracting State for the purpose of performing his activities or he is present
 in that other State for a period or periods exceeding in the aggregate 90 days in any twelve-month
 period. If he has such a fixed base or remains in that other State for the aforesaid period, 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.
- 
The term “professional 
 services” includes especially independent scientific, literary, artistic, educational or teaching
 activities as well as the independent activities of physicians, lawyers, engineers, architects,
 dentists and accountants.
Article 15
                DEPENDENT PERSONAL SERVICES
- 
Subject to the provisions of 
 Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a
 resident of a Contracting State in respect of an employment shall be taxable only in that State
 unless the employment is exercised in the other Contracting State. If the employment is so
 exercised, such remuneration as is derived therefrom may be taxed in that other State.
- 
Notwithstanding the provisions 
 of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an
 employment exercised in the other Contracting State shall be taxable only in the first-mentioned
 State, if:(a) the recipient is present in that other 
 State for a period or periods not exceeding in the aggregate 183 days within any period of
 twelve months; and(b) the remuneration is paid by, or on 
 behalf of, an employer who is not a resident of the other State; and(c) the remuneration is not borne by a 
 permanent establishment or a fixed base which the employer has in the other State.
- 
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
                DIRECTORS FEES
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.
Article 17
                ARTISTES AND ATHLETES
- 
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.
- 
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.
- 
Notwithstanding the provisions 
 of paragraphs 1 and 2 income derived by an entertainer or athlete from his personal activities as
 such shall be exempt from tax in the Contracting State in which these activities are exercised if
 the activities are exercised within the framework of a visit which is substantially supported by
 the other Contracting State, a political subdivision, a local authority or public institution
 thereof.
Article 18
                PENSIONS
- 
Subject to the provisions of 
 paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a
 Contracting State in consideration of past employment shall be taxable only in that State.
- 
Notwithstanding the provisions 
 of paragraphs (1), pensions paid by a Government approved pension fund or social security pensions
 of a Contracting State to a resident of the other Contracting State may be taxed in the
 first-mentioned State.
Article 19
                GOVERNMENT SERVICES
| 1. | (a) | Remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. | |
| (b) | However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: | ||
| (i) | is a national of that State; or | ||
| (ii) | did not become a resident of that State solely for the purpose of rendering the services. | ||
| 2. | (a) | Any pension paid by, or out of funds created by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State. | 
| (b) | However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that other State. | 
| 3. | The provisions of Article 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. | 
A professor, teacher or researcher who makes a
                temporary visit to a Contracting State solely for the purpose of teaching or conducting research at
                a university, college, school or other recognized educational institution, and who is a resident of
                the other Contracting State shall be exempt from tax in the first-mentioned State for a period not
                exceeding two years in respect of remuneration for such teaching or research.
Article 21
                STUDENTS
a Contracting State a resident of the other Contracting State and who is 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
are made to him from sources outside that State.
Article 22
                OTHER INCOME
- 
Items of income of a resident 
 of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this
 Agreement shall be taxable only in that State.
- 
The provisions of paragraph 1 
 shall not apply to income, other than income from immovable property as defined in paragraph 2 of
 Article 6, if the recipient of such income, being a resident of a Contracting State, carries on
 business in the other Contracting State through a permanent establishment situated therein, or
 performs in that other State independent personal services from a fixed base situated therein, and
 the right or property in respect of which the income is paid is effectively connected with such
 permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as
 the case may be, shall apply.
- 
Notwithstanding the provision 
 of paragraphs 1 and 2 items of income of a resident of a Contracting State not dealt with in the
 foregoing Articles of this Agreement and arising in the other Contracting State may also be taxed
 in that other State.
Article 23
                CAPITAL
- 
Capital represented by 
 immovable property referred to in Article 6, owned by a resident of a Contracting State and
 situated in the other Contracting State, may be taxed in that other State.
- 
Capital represented by 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 by 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 may be taxed in that other State.
- 
Capital represented by ships 
 and aircraft operated in international traffic and by movable property pertaining to the operation
 of such ships and aircraft shall be taxable only in the Contracting State of which the enterprise
 operating the aircraft is a resident.
- 
All other elements of capital 
 of a resident of a Contracting State shall be taxable only in that State.
Article 24
                ELIMINATION OF DOUBLE TAXATION
- 
The laws of each of the 
 Contracting States shall continue to govern the taxation of income and capital whether derived
 from or situated in the Contracting State or elsewhere, except where express provisions to the
 contrary are made in this Agreement.
- 
In the case of Indonesia, 
 double taxation shall be avoided as follows:(a) Indonesia, when 
 imposing tax on residents of Indonesia, may include in the basis upon which such tax is
 imposed the items of income which may be taxed in Austria in accordance with the
 provisions of this Agreement.(b) Where a resident of 
 Indonesia derives income from Austria and such income may be taxed in accordance with the
 provisions of this Agreement, the amount of Austrian tax payable in respect of the income
 shall be allowed as a credit against the Indonesian tax imposed on that resident. The
 amount of credit, however, shall not exceed that part of the Indonesian tax which is
 appropriate to the income.
- 
In the case Austria, double 
 taxation shall be avoided as follows:(a) Where a resident of 
 Austria derives income or owns capital which, in accordance with the provisions of this
 Agreement may be taxed in Indonesia, Austria shall, subject to the provisions of
 paragraphs b and c, exempt such income or capital from tax.(b) Where a resident of 
 Austria derives items of income which, in accordance with the provisions of paragraph 1 of
 Article 8, paragraph 2 of Article 10, 11 or 12 may be taxed in Indonesia, Austria shall
 allow as a deduction from the tax on the income of that resident an amount equal to the
 tax paid in Indonesia. Such deduction shall not, however, exceed that part of the tax, as
 computed before the deduction is given which is attributable to such items of income
 derived from Indonesia.(c) Where in accordance 
 with any provision of this Agreement income derived or capital owned by a resident of
 Austria is exempt from tax in Austria, Austria may nevertheless, in calculating the amount
 of tax on the remaining income or capital of such resident, take into account the exempted
 income or capital.(d) For the application of 
 sub-paragraph (b) of paragraph 3 of this Article the tax paid in Indonesia shall be deemed
 to have been 15% of the gross amount of dividends, interest or royalties.
Article 25
                NON-DISCRIMINATION
- 
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.
- 
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 of family responsibilities which it grants to its own residents.
- 
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.
- 
Nothing contained in this 
 Article shall be construed as to prevent either Contracting State for limiting to its nationals
 the enjoyment of tax incentives and any tax of a preferential nature designed in pursuance of its
 programme of economic development provided that such tax incentives have not been granted to
 nationals of a third State.
- 
The provisions of this Article 
 shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description;
 it is, however, understood that the laws in force on the date of signature of this Agreement of
 the Contracting State do correspond to this provision.
Article 26
                MUTUAL AGREEMENT PROCEDURE
- 
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 laws of those States, present his case to the competent authority of the
 Contracting State of which he is a resident. 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
 this Agreement.
- 
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.
- 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.
- The competent authorities of the Contracting
 States shall by mutual agreement settle the mode of application of this Agreement and, especially,
 the requirement to which the residents of a Contracting State shall be subjected in order to obtain,
 in the other Contracting State, tax reliefs or exemption on income referred to in Articles 10, 11
 and 12, received from that other Contracting State.
- The competent authorities of the Contracting
 States shall exchange such information as is necessary for carrying out the provisions of this
 Agreement or for the prevention of fraud or fiscal evasion or for the administration of statutory
 provision against tax avoidance in relation to the taxes which are the subjects of this Agreement.
 Any information so exchanged shall be treated as secret and shall not be disclosed to persons or
 authorities other than those, including a court, concerned with the assessment and collection, the
 enforcement or prosecution in respect of those taxes or the determination of appeals in relation
 thereto and the persons with respect to whom the information relates.
- 
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.
              Article 28
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 29
                ENTRY INTO FORCE
- 
This Agreement shall be 
 ratified and the instruments of ratification shall be exchanged at Jakarta as soon as
 possible.
- 
The Agreement shall enter into 
 force on the first day of the third month next following that in which the exchange of instruments
 of ratification takes place and its provisions shall have effect in respect of taxes for any
 fiscal year beginning after December 31 in the calendar year in which the exchange of instruments
 of ratification takes place.
Article 30
                TERMINATION
State may terminate the Agreement, through diplomatic channels, by giving written notice of
termination on or before the thirtieth day of June in a calendar year after the fifth year from the
date of entry into force of the Agreement. In such event, the Agreement shall cease to have effect
in respect of the taxes for any fiscal year beginning after December 31 in the calendar year in
which the notice of termination has been given.
IN WITNESS WHEREOF the
              undersigned, duly authorized thereto by their respective Governments, have signed this Agreement and
              put seals thereto.
DONE in duplicate at Vienna on the
              24th day of July of the year one thousand nine hundred and eighty six in the English language.
| For the Government of | For the Government of | 
PROTOCOL
Government of the Republic of Austria for the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with respect to Taxes on Income and on Capital, the undersigned have agreed that the
following provisions shall form an integral part of the Agreement.
- 
Ad Article 5, paragraph 7 It is understood that the last sentence of 
 paragraph 7 of Article 5 shall apply only to an agent whose activities were of such a kind as
 mentioned in this provision at the time when such activities started.
- 
Ad Article 7 (a) It is understood that 
 subparagraphs (b) and (c) of paragraph 1 shall apply only in cases of abuse of undisclosed
 channeling of profits away from a permanent establishment.(b) It is further 
 understood that subparagraph (c) of paragraph 1 shall not apply to business activities
 falling under sub-paragraph (b) of paragraph 3 of Article 5 if such activities continue
 for less than three months within any twelve-month period and if they are carried on not
 for the same or connected project.(c) In the determination 
 of the profits of a building site or construction, assembly or installation project there
 shall be attributed to that permanent establishment in the Contracting State in which the
 permanent establishment is situated only the profits resulting from the activities of the
 permanent establishment as such. If machinery or equipment is delivered from the head
 office or another permanent establishment of the enterprise or a third person in
 connection with those activities or independently therefrom there shall not be attributed
 to the profits of the building site or construction, assembly or installation project the
 value of such deliveries.(d) Income derived by a 
 resident of a Contracting State from planning, project, construction or research
 activities as well as income from technical services exercised in that State in connection
 with a permanent establishment situated in the other Contracting State, shall not be
 attributed to that permanent establishment.
- 
Ad Article 22 It is understood that paragraph 3 shall apply 
 only to lottery prizes, awards, annuities and rents of movable properties not dealt with in
 Article 7 and Article 12.
IN WITNESS WHEREOF, the
              undersigned duly authorized thereto have signed this Protocol which shall have the same force and
              validity as if it were inserted word by word in the Agreement and put seals thereto.
DONE in duplicate at Vienna this
              24th day, of July of the year one thousand nine hundred and eighty six in the English language.
| For the Government of | For the Government of | 
