Bangladesh

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF BANGLADESH

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

Article 1
PERSONAL SCOPE

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

Article 2
TAXES COVERED

1. This Agreement shall apply to taxes on income imposed by or on behalf of a Contracting State or
   its local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income, all taxes imposed on total income, or on elements of
   income, including taxes on gains from the alienation of movable or immovable property.

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

   (a)	in the case of Indonesia : the income tax imposed under the Undang-Undang Pajak Penghasilan 1984 (Law Number 7 of 1983 as amended) (hereinafter referred to as “Indonesian tax”).
   (b)	in the case of Bangladesh : the income tax (hereinafter referred to as “Bangladesh tax”);

4. This Agreement shall also apply to any identical or substantially similar taxes which are imposed
   after the date of signature of this Agreement in addition to, or in place of, the existing taxes.
   The competent authorities of the Contracting State shall notify each other of any substantial
   changes which have been made in their respective taxation laws.

Article 3
GENERAL DEFINITIONS

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

   (a)	the term “Indonesia” means the territory of the Republic of Indonesia as defined in its laws;
   (b)	the term “Bangladesh” means all the territory of the People’s Republic of Bangladesh including the part of the seabed and its sub-soil thereof, to the extent that the area in accordance with international law has been or may hereafter be designated under Bangladesh law as an area within which Bangladesh may exercise sovereign rights with respect to the exploration and exploitation of the natural resources of the seabed or its sub-soil;
   (c)	the terms “a Contracting State” and “the other Contracting State” mean Indonesia or Bangladesh as the context requires and the term “Contracting State” means Indonesia and Bangladesh;
   (d)	the term “tax” means any tax covered by Article 2 of this Agreement;
   (e)	the term “person” includes an individual, a company and any other body of persons;
   (f)	the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
   (g)	the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” means 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;
   (h)	the term “competent authority” means :
   	(1)	in the case of Indonesia, the Minister of Finance or his authorised representative.
   	(2)	in the case of Bangladesh, the National Board or Revenue or its authorised representative;
   (i)	the term “national” means all individuals possessing the nationality or citizenship of the respective Contracting States and also any legal person, partnership and association deriving their status as such from the laws in force in the respective Contracting States;
   (j)	the term “international traffic” means any transport by a ship or aircraft operated by an enterprise which is a resident of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State.

2. As regard the application of this Agreement by a Contracting State any term not otherwise defined
   shall, unless the context otherwise requires, have the meaning which it has under the laws of that
   Contracting State, relating to the taxes to which this Agreement applies.

Article 4
RESIDENT

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

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting
   States, then his status shall be determined as follows :

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

3. Where by reason of the provision of paragraph 1 a person other than individual is a resident of
   both Contracting States, then it shall be deemed to be a resident 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” means a fixed place of
   business through which the business of an enterprise of a Contracting State is wholly or partly
   carried on in the other Contracting State.

2. The term “permanent establishment” includes especially :

   (a)	a place of management;
   (b)	a branch;
   (c)	an office;
   (d)	a factory;
   (e)	a workshop;
   (f)	a warehouse, in relation to a person providing storage facilities others;
   (g)	a farm or plantation; and
   (h)	a mine, an oil or gas well, a quarry or any other place of extraction or exploitation of natural resources, drilling or working ship.

3. The term “permanent establishment” likewise encompasses:

   (a)	a building site, a construction, assembly or installation project or supervisory activities in connection therewith but only where such site, project or activities continue for a period of more than 183 days;
   (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 91 days within any twelve months period.

4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall
   be deemed not to include:

   (a)	the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;
   (b)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;
   (c)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
   (d)	the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information for the enterprise;
   (e)	the maintenance of a fixed place of business solely for the purpose of advertising, or for the supply of information 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-paragraph (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.

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

   (a)	has, and habitually exercises, in the first-mentioned Contracting State a general authority to conclude contracts for or on behalf of the enterprise, unless his activities are limited to the purchase of goods or merchandise for on or on behalf of the enterprise; or
   (b)	habitually maintains in the first-mentioned Contracting State a stock of goods or merchandise belonging to the enterprise from which he regularly delivers goods or merchandise for or on behalf of the enterprise; or
   (c)	habitually secures orders for the sale of good or merchandise in the first-mentioned Contracting State, wholly for the enterprise itself, or for the enterprise or other enterprises which are controlled by it or have a controlling interest in it; or manufactures or processes in that Contracting State for the enterprise goods or merchandise belonging to the enterprise.

6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely
   because it carries on business in that Contracting State through a broker, general commission
   agent or any other agent of an independent status, provided that such persons are acting in the
   ordinary course of their business.

7. The fact that a company which is a resident of a Contracting State controls or is controlled by a
   company which is a resident of the other Contracting State, or which carries on business in that
   other Contracting State (whether through a permanent establishment or otherwise), shall not of
   itself constitute either company a permanent establishment of the other.

Article 6
INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property (including income from
   agriculture or forestry) situated in the other Contracting State may be taxed in that other
   Contracting State.

2. The term “immovable property” shall have the meaning which it has under the law of the Contracting
   State in which the property in question is situated. The term shall, in any case, include property
   accessory to immovable property, livestock and equipment used in agriculture and forestry, rights
   to which the provisions of general law respecting landed property apply, usufruct of immovable
   property and rights to variable or fixed payments as consideration for the working of, or the
   right to work, mineral deposits, sources, and other natural resources; ships, and aircrafts shall
   not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in
   any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an
   enterprise and to income from immovable property used for the performance of independent personal
   services.

Article 7
BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting
   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 Contracting State but only so much of them as is
   attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on
   business in the other Contracting State through a permanent establishment situated therein, there
   shall in each Contracting State be attributed to that permanent establishment the profits which it
   might be expected to make if it were a distinct and separate enterprise engaged in the same or
   similar activities under the same or similar conditions and dealing wholly independently with the
   enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions
   expenses which are incurred for the purposes of the permanent establishment, including executive
   and general administrative expenses so incurred, whether in the Contracting State in which the
   permanent establishment is situated or elsewhere, but this does not include any expenses which
   under the law of that Contracting State would not be allowed to be deducted by an enterprise of
   that Contracting State.

4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed
   to a permanent establishment on the basis of an apportionment of the total profits of the
   enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from
   determining the profits to be taxed by such an apportionment as may be customary; the method of
   apportionment adopted shall, however, be such that the result shall be in accordance with the
   principles laid down in this Article.

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

6. For the 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.

7. Where profits include items of income which are dealt with separately in other Articles of this
   Agreement, the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8
SHIPPING AND AIR TRANSPORT

1. Income of an enterprise of a Contracting State from the operation of aircraft in international
   traffic shall be taxable only in that Contracting State.

2. Income of an enterprise of a Contracting State derived from the other Contracting State from the
   operation of ships in international traffic may be taxed in that other Contracting State, but the
   tax chargeable in that other Contracting State on such income shall be reduced by an amount equal
   to fifty per cent of such tax.

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

Article 9
ASSOCIATED ENTERPRISES

1. Where

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

2. Where a Contracting State includes in the profits of an enterprise of that Contracting State and
   taxed accordingly profits on which an enterprise of the other Contracting State has been charged
   to tax in that other Contracting State and the profits so included are profits which would have
   accrued to the enterprise of the first-mentioned Contracting State if the conditions made between
   the two enterprises had been those which would made between independent enterprises, then that
   other Contracting State shall make an appropriate adjustment to the amount of the tax charged
   therein on those profits. In determining such adjustment, due regard shall be had to the other
   provisions of this Agreement and the competent authorities of the Contracting States shall, if
   necessary, consult each other.

Article 10
DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other
   Contracting State may be taxed in that other Contracting State.

2. However, such dividends may also be taxed in Contracting State of which the company paying the
   dividends is a resident and according to the laws of that Contracting State, but if the recipient
   is the beneficial owner of the dividends the tax so charged shall not exceed :

   (a)	10 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 10 per cent of the capital of the company paying the dividends;
   (b)	15 per cent of gross amount of the dividends in all other cases.
   This paragraph shall not effect the taxation of the company in respect of the profits out of which the dividends are paid.

3. The term “dividends” as used in this Article means income from shares, mining shares, founder’s
   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 Contracting State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends,
   being a resident of a Contracting State, carries on business in the other Contracting State of
   which the company paying the dividends is a resident, through a permanent establishment situated
   therein, or perform in that other Contracting 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 a permanent establishment or fixed base. In such a case, the provisions of
   Article 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the
   other Contracting State, that other Contracting 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 Contracting
   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 Contracting 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 Contracting State.

Article 11
INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be
   taxed in that other Contracting State.

2. However, such interest may also be taxed in the Contracting State in which it arises and according
   to the laws of the Contracting State, but if the recipient is the beneficial owner of the interest
   the tax so charged shall not exceed 10 per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and derived
   by Government of the other Contracting State including local authorities thereof, a political
   subdivision, the Central Bank or any financial institution controlled by that Government, the
   capital of which is wholly owned by the Government of the other Contracting State as mat agreed
   upon from time to time between the competent authorities of the Contracting State shall be exempt
   from tax in the first-mentioned Contracting State.

4. The term “interest” as used in this Article means income from debt-claims of every kind, whether
   or not secured by mortgage and whether or not carrying a right to participate in the debtor’s
   profits, and in particular, income from government securities and income from bonds or debentures,
   including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges
   for late payment shall not be regarded as interest for the purpose of this Article.T

5. The provisions of paragraph 1, 2 and 3 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 perform in that
   other Contracting State independent personal services from a fixed base situated therein, and the
   debt-claim in respect of which the interest is paid is effectively connected with such permanent
   establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case
   may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is that Contracting State
   itself, a local authority or a resident of that Contracting 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 incurred, and such interest is borne by such permanent establishment or fixed
   base, then such interest shall be deemed to arise in the Contracting State in which the permanent
   establishment or fixed base is situated.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between
   both of them and some other 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
   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 12
ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may
   be taxed in that other Contracting State.

2. However, such royalties may also be taxed in the Contracting State in which they arise and
   according to the laws of that Contracting State, but if the recipient is the beneficial owner of
   the royalties the tax so charged shall not exceed 10 per cent of the gross amount of the
   royalties.

3. The term “royalties” 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, 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.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties,
   being a resident of a Contracting State, carries on business in the other Contracting State in
   which the royalties arise, through a permanent establishment situated therein, or performs in that
   other Contracting State independent personal services from a fixed base situated therein, and the
   right or property in respect of which the royalties are paid is effectively connected with such
   permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as
   the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that Contracting State
   itself, a local authority or a resident of that Contracting 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 Contracting State in which the permanent
   establishment or fixed base is situated.

6. Where, by reason of a special relationship between the payer and the beneficial owner or between
   both of them and some other person, the amount of the royalties, having regard to the use, right
   or information for which they are paid, exceeds the amount which would have been agreed upon by
   the payer and the beneficial owner in the absence of such relationship, the provisions of this
   Article shall apply only to the last-mentioned amount. In such case, the excess part of the
   payments shall remain taxable according to the laws of each Contracting State, due regard being
   had to the other provisions of this Agreement.

Article 13
CAPITAL GAINS

1. Capital gains from the alienation of immovable property, as defined in paragraph 2 of the Article
   6 or from the alienation of shares in a company the assets of which consist principally of
   immovable property may be taxed in the Contracting State in which such property is situated.

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

3. Capital gains from the alienation of ships or aircraft operated in international traffic or
   movable property pertaining to the operation of such ships or aircraft shall be taxable only in
   the Contracting State of which the enterprise is resident.

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

Article 14
INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a Contracting State in respect of professional services or other
   activities of an independent character shall be taxable only in that Contracting State. However,
   in the following circumstances such income may be taxed in the other Contracting State:

   (a)	if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in the other Contracting State; or
   (b)	if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in the fiscal year concerned; in that case only; so much of the income as is derived from his activities performed in that other Contracting State may be taxed in that other Contracting State.

2. The term “professional services” includes, especially, independent scientific, literary, artistic,
   educational or teaching activities as well as the independent activities of physicians, surgeons,
   lawyers, engineers, architects, dentists and accountants.

Article 15
DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20 and 21 salaries, wages and other similar
   remuneration derived by a resident of a Contracting State in respect of an employment shall be
   taxable only in that Contracting State unless the employment is exercised in the other Contracting
   State. If the employment is so exercised, such remuneration as is derived there from may be taxed
   in that other Contracting State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting
   State in respect of an employment exercised in the other Contracting State shall be taxable only
   in the first-mentioned Contracting State if:

   (a)	the recipient is present in the other Contracting State for a period, or periods not exceeding in the aggregate 183 days in the taxable year concerned; and
   (b)	the remuneration is paid by or on behalf of an employer who is not a resident of the other Contracting State; and
   (c)	the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other Contracting 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 an enterprise of a
   Contracting State shall be taxable only in that Contracting State.

Article 16
DIRECTOR’S FEES

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

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

Article 17
ARTISTES AND ATHLETES

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a
   Contracting State as an entertainer, such as a theatre, motion picture, radio or television
   artist, 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 Contracting State.

2. Where income in respect of personal activities exercised by an entertainer or an athlete in his
   capacity as such accrues not to the entertainer or athlete himself but to another person, that
   income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting
   State in which the activities of the entertainer or athlete are exercised.

3. The provisions of paragraphs 1 and 2 of this Article shall not apply to services of entertainers
   and athlete if their visit to a Contracting State is supported wholly or substantially from public
   funds of the other Contracting State.

Article 18
PENSIONS

Article 19
GOVERNMENT SERVICE

Article 20
TEACHERS

Article 21
STUDENTS AND APPRENTICES

1. An individual who is or was immediately before visiting a Contracting State a resident of the
   other Contracting State and who is present in the first-mentioned Contracting State solely as a
   student at a recognized university, college, school or other similar recognized educational
   institution in the first-mentioned Contracting State or as a business or technical apprentice
   therein, for a period not exceeding five years from the date of his first arrival in the
   first-mentioned Contracting State in connection with that visit, shall be exempt from tax in that
   first-mentioned Contracting State on:

   (a)	all remittances form abroad for the purposes of his maintenance, education or training; and
   (b)	any remuneration for personal services rendered in the first-mentioned Contracting State with a view to supplementing the resources available to him for such purposes.

2. An individual who was a resident of a Contracting State immediately before visiting the other
   Contracting State and is temporarily present in that other Contracting State solely for the
   purpose of study, research or training as a recipient of a grant, allowance or award from a
   scientific, educational, religious or charitable organization or under a technical assistance
   programme entered into by the Government of a Contracting State shall, from the date of his first
   arrival in that other Contracting State in connection with that visit, be exempt from tax in that
   other Contracting State:

   (a)	on the amount of such grant, allowance or award; and
   (b)	on all remittances from abroad for the purposes of his maintenance, education of training.

    
   Article 22
   OTHER INCOME

1. Items of income of a residence of a Contracting State, wherever arising, not dealt with in the
   forgoing Articles of this Agreement, other than income in the form of lotteries, prizes shall be
   taxable in that Contracting State.

2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property
   as defined in paragraph 2 of Article 6, if the recipient of such income, being 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 Contracting 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.

Article 23
METHOD FOR ELIMINATION OF DOUBLE TAXATION

Article 24
NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any
   taxation or any requirement connected therewith which is other or more burdensome than the
   taxation and connected requirements to which national of that other Contracting 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 Contracting States.

2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the
   other Contracting State shall not be less favourably levied in that other Contracting State than
   the taxation levied on enterprises of that other Contracting State carrying on the same
   activities. This provision shall not be construed as obliging a Contracting State to grant to
   residents of the other Contracting State any personal allowances, reliefs and reductions for
   taxation purposes on account of civil status or family responsibilities which it grants to its own
   residents.

3. Except where the provisions of Article 9, paragraph 7 of Article 11. or paragraph 6 of Article 12,
   apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to
   a resident of the other Contracting State shall, for the purpose of determining the taxable
   profits of such enterprise, be deductible under the same conditions as if they had been paid to a
   resident of the first-mentioned Contracting State.

4. 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 Contracting 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 Contracting State are or may be subjected.

5. In this Article the term “taxation” which are the subject of this Agreement.

Article 25
MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the Contracting States result or will
   result for him in taxation not in accordance with the provisions of this Agreement, he may
   irrespective of the remedies provided by the domestic law of those Contracting States, present his
   case to the competent authority of the Contracting State of which he is a resident or if his case
   comes under paragraph 1 of Article 24, to that of the Contracting State of which he is a national.
   The case must be presented within three years from the first notification of the action resulting
   in taxation not in accordance with the provisions of this Agreement.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it
   is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement
   with the competent authority of the other Contracting State, with a view to the avoidance of
   taxation which is not in accordance with this Agreement. Any agreement reached shall be
   implemented notwithstanding any time limit in the domestic law of the Contracting States.

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

4. The competent authorities of the Contracting States may communicate with each other directly for
   the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems
   advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take
   place through a Commission consisting of representatives of the competent authorities of the
   Contracting States.

Article 26
EXCHANGE OF INFORMATION

1. Competent authorities of the Contracting States shall exchange such information as is necessary
   for carrying out the provisions of this Agreement or of the domestic laws of the Contracting
   States concerning taxes covered by this Agreement in so far as the taxation there under is not
   contrary to this Agreement. The exchange of information is not restricted by Article 1. Any
   information received by a Contracting State shall be treated as secret in the same manner as
   information obtained under the domestic laws of that Contracting State and shall be disclosed only
   to persons or authorities (including courts and administrative bodies) involved in the assessment
   or collection of, the enforcement or prosecution in respect of or the determination of appeals in
   relation to, the taxes covered by this Agreement, such persons or authorities shall use the
   information only for such purposes. They may disclose the information in public court proceedings
   or in judicial decisions.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State
   the obligation :

   (a)	to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
   (b)	to supply information which is not obtainable under the laws or in the normal course of the administration of that or 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 27
DIPLOMATIC AGENTS AND CONSULAR OFFICERS

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

Article 28
ENTRY INTO FORCE

1. Each of the Contracting States shall notify to the other the completion of the procedures required
   by its law for the bringing into force of this Agreement.

2. This Agreement shall enter into force on the date of the latter of the notifications referred to
   in paragraph 1 and its provisions shall have effect :

   (a)	in Indonesia :
   	(i)	in respect of tax withheld at the source to income derived on or after 1 January in the year next following that in which this Agreement enters into force; and
   	(ii)	in respect of other tax on income, for taxable year beginning on or after 1 January in the year next following that in which this Agreement enters into force.
   (b)	in Bangladesh : in respect of taxes, for any year of assessment beginning on or after 01 July in the calendar year next following that in which this Agreement enters into force.

Article 29
TERMINATION

IN WITNESS WHEREOF, the undersigned, duly authorized thereto by their respective Governments, have
signed this Agreement.

DONE in duplicate at Dhaka this day of June 19^th 2003, in the English language.

PROTOCOL

1. With reference to Article 7 :

   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 Contracting State in
   accordance with its law, but the additional tax so charged shall not exceed 10 per cent of the
   amount of such profits after deducting therefrom income tax and other taxes on income imposed
   thereon in that other Contracting State. 

2. With reference to Article 7 :

   The provision of paragraph 1 shall not affect the provisions contained in any production sharing
   contract and contract of work (or any other similar contracts) relating to oil and gas sector
   concluded by the Government of a Contracting State, its instrumentality, its relevant state oil
   and gas company or any other entity thereof with a person who is a resident of the other
   Contracting State. 

IN WITNESS WHEREOF the undersigned, duly authorized thereof, have signed this Protocol.

DONE in duplicate at Dhaka this day of June 19^th 2003 in the English language.