Belgium

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE KINGDOM OF BELGIUM

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

CHAPTER I
SCOPE OF THE AGREEMENT

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

2. There shall be regarded as taxes
   on income all taxes imposed on total income or on elements of income, including taxes on gains from
   the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid
   by enterprises, as well as taxes on capital appreciation.l amounts of wages or salaries paid by
   enterprises, as well as taxes on capital appreciation.

3. The existing taxes to which the
   Agreement shall apply are in particular:

   (a)	in the case of Indonesia: the income tax imposed under the “Undang-undang Pajak Penghasilan 1984” (Law No. 7 of 1983 as amended); (hereinafter referred to as “Indonesian tax”)
   (b)	in the case of Belgium:
   	(i)	the individual income tax;
   	(ii)	the corporate income tax;
   	(iii)	the income tax on legal entities;
   	(iv)	the income tax on non-residents;
   	(v)	the special levy assimilated to the individual income tax;
   	(vi)	the supplementary crisis tax, including the prepayments, the surcharges on these taxes and prepayments, and the supplements to the individual income tax;
   	(hereinafter referred to as “Belgian tax”)

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

CHAPTER II
DEFINITIONS

Article 3
GENERAL DEFINITIONS

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

   (a)	the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws and part of the continental shelf and adjacent seas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with international law;
   (b)	the term “Belgium” means the territory of the Kingdom of Belgium, including the territorial sea and any other area in the sea and in the air within which the Kingdom of Belgium, in accordance with international law, exercises sovereign rights or its jurisdiction;
   (c)	the terms “a Contracting State” and “the other Contracting State” mean Belgium or Indonesia as the context requires;
   (d)	the term “tax” means Belgian tax or Indonesian tax, as the context requires;
   (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 in the Contracting State of which it is a resident;
   (g)	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;
   (h)	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;
   (i)	the term “competent authority” means:
   	(i)	in the case of Indonesia, the Minister of Finance or his duly authorized representative, and
   	(ii)	in the case of Belgium, the Minister of Finance or his duly authorized representative;
   (j)	the term “nationals” means:
   	(i)	all individuals possessing the nationality of a Contracting State;
   	(ii)	all legal persons, partnerships and associations deriving their status as such from the laws in force in a Contracting State.

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

Article 4
RESIDENT

1. For the purposes of this
   Agreement, the term “resident of a Contracting State” means any person who, under the laws of that
   State, is liable to tax therein by reason of his domicile, residence, place of management or any other
   criterion of a similar nature. However this term does not include any person who is liable to tax in a
   Contracting State in respect only of income from sources in that State.

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

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

3. Where by reason of the provisions
   of paragraph 1 a person other than an individual is a resident of both Contracting States, 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

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

2. The term “permanent establishment”
   includes especially:

   (a)	a place of management;
   (b)	a branch;
   (c)	an office;
   (d)	a factory;
   (e)	a workshop;
   (f)	a farm or a plantation;
   (g)	a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. The term “permanent establishment”
   likewise encompasses:

   (a)

   a building site, a construction, assembly or installation project or supervisory activities in connection therewith, where such site, project or activities continue for a period of more than six months;a building site, a construction, assembly or installation project or supervisory activities in connection therewith, 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 period of twelve months.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 period of twelve months.

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

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 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; or
   (b)	has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise.

6. An enterprise of a Contracting State shall not be
   deemed to have a permanent establishment in the other Contracting State merely because it carries on
   business in that other State through a broker, general commission agent or any other agent of an
   independent status, provided that such persons are acting in the ordinary course of their business.
   However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that
   enterprise, he will not be considered an agent of an independent status within the meaning of this
   paragraph.

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

CHAPTER III
TAXATION OF INCOME

Article 6
INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a
   Contracting State from immovable property situated in the other Contracting State may be taxed in that
   other State. 

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

3. The provisions of paragraph 1
   shall apply to income derived from the direct use, letting, or use in any other form of immovable
   property. 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 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, or
   (b)	the sale of goods or merchandise of the same or similar kind as those sold, or to other business transactions of the same or similar kinds as those effected, through that permanent 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 the determination of 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 enterprise or any of its other offices, by way of royalties, fees or other similar
   payments in return for the use of patents or other rights, or by way of commission, for specific
   services performed or for management, or, except in the case of a banking enterprise, by way of
   interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the
   determination of the profits of a permanent establishment, for amounts charged (otherwise than towards
   reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise
   or any of its other offices, by way of royalties, fees or other similar payments in return for the use
   of patents or other rights, or by way of commission for specific services performed or for management,
   or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office
   of the enterprise or any of its other offices. 

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

5. 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 purposes of the preceding
   paragraphs, the profits to be attributed to the permanent establishment shall be determined by the
   same method year by year unless there is good and sufficient reason to the contrary.

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

Article 8
SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise of a
   Contracting State from the operation of ships or aircraft in international traffic or from the use or
   rental of containers which is incidental to such operation shall be taxable only in that State.

2. The provisions 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

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.

Article 10
DIVIDENDS

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

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

   (a)	10 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 25 per cent of the capital of the company paying the dividends;
   (b)	15 per cent 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.

3. The term “dividends” as used in
   this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares,
   founders’ shares or other rights, not being debt-claims, participating in profits, as well as income
   — even paid in the form of interest — which is treated as income from shares by the internal tax
   legislation of the State of which the paying company is a resident.

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

5. Where a company which is a
   resident of a Contracting State derives profits or income from the other Contracting State, that other
   State may not impose any tax on the dividends paid by the company, except insofar as such dividends
   are paid to a resident of that other State or insofar as the holding in respect of which the dividends
   are paid is effectively connected with a permanent establishment or a fixed base situated in that
   other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed
   profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits
   or income arising in such other State. 

6. Notwithstanding the provisions of
   paragraph 5, where a company which is a resident of a Contracting State has in the other Contracting
   State a permanent establishment, that other State may subject the profits of the permanent
   establishment, after deduction of the tax which may be levied thereon in accordance with the
   provisions of Article 7, to an additional tax on deemed distribution of income according to its laws,
   but the tax so charged shall not exceed 10 per cent of the profits thus reduced. 

7. The provision of paragraph 6 shall
   not affect the provisions contained in any production sharing contracts and contracts of work (or any
   other similar contracts) relating to [the] 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 a resident of Belgium. 

Article 11
INTEREST

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

2. However, such interest may also be
   taxed in the Contracting State in which it arises and according to the laws of that State, but if the
   beneficial owner of the interest is a resident of the other Contracting State, 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 shall be exempted from tax in the Contracting State in which it arises if it is
   paid to the other Contracting State or a political subdivision or a local authority thereof, or to the
   central bank of that other 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; however, the term “interest” shall not include for the purpose
   of this Article penalty charges for late payment nor interest regarded as dividends under paragraph 3
   of Article 10. 

5. The provisions of paragraphs 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 performs in that other State independent personal
   services from a fixed base situated therein, and the debt-claim in respect of which the interest is
   paid is effectively connected with such permanent establishment or fixed base. 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 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.

7. Where, by reason of a special
   relationship between the payer and the beneficial owner or between both of them and some other person,
   the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount
   which would have been agreed upon by the payer and the beneficial owner in the absence of such
   relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such
   case, the excess part of the payments shall remain taxable in the Contracting State in which the
   interest arises according to the laws of that State. 

Article 12
ROYALTIES

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

2. However, such royalties may also
   be taxed in the Contracting State in which they arise and according to the laws of that State, but if
   the beneficial owner of the royalties is a resident of the other Contracting State, 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 copyrights of literary, artistic or scientific work including cinematograph films, or films
   or tapes used 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. 

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

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

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 royalties shall remain taxable in the Contracting State
   in which the royalties arise, according to the laws of that State. 

Article 13
CAPITAL GAINS

1. Gains derived by a resident of a
   Contracting State from the alienation of immovable property referred to in Article 6 and situated in
   the other Contracting State may be taxed in that other State. 

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

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

4. 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 State except in the following circumstances, when such income may also
   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 that 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 91 days within any period of twelve months; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State.

2. 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

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

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

   (a)	the recipient is present in the 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.

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

Article 16
DIRECTORS’ FEES

1. Directors’ fees and other similar
   payments derived by a resident of a Contracting State in his capacity as a member of the board of
   directors or a similar organ or as a partner of a company which is a resident of the other Contracting
   State may be taxed in that other State.The preceding provision shall also apply to payments derived in
   respect of the discharge of functions which, under the laws of the Contracting State of which the
   company is a resident, are regarded as functions of a similar nature as those exercised by a person
   referred to in the said provision. 

2. Remuneration which a person to
   whom paragraph 1 applies derives from the company in respect of the discharge of day-to-day functions
   of a managerial or technical nature shall be taxable in accordance with the provisions of Article
   15. 

3. The provision of paragraph 2 shall
   also apply to remuneration derived by a resident of a Contracting State in respect of his personal
   activity as a working partner of a company, other than a company with share capital, which is a
   resident of the other Contracting State. 

Article 17
ARTISTES AND ATHLETES

1. Notwithstanding the provisions of
   Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a
   theatre, motion picture, radio or television artiste, or a musician, or as an athlete, from his
   personal activities as such exercised in the other Contracting State, may be taxed in that other
   State. 

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

3. Notwithstanding the provisions of
   paragraphs 1 and 2 income derived 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 substantially supported by public funds or sponsored by the other Contracting State, or
   by a political subdivision, local authority or statutory body thereof. 

Article 18
PENSIONS

Subject to the provisions of paragraph 2 of Article
19, pensions and other similar remuneration arising in a Contracting State and paid to a resident of the
other Contracting State in consideration of past employment may be taxed in the first-mentioned State.

Article 19
GOVERNMENT SERVICE

Article 20
PROFESSORS, RESEARCHERS AND STUDENTS

1. 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 recognised 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.

2. Payments which a student,
   apprentice or business trainee who is or was immediately before visiting a Contracting State, a
   resident of the other Contracting State and who is present in the first-mentioned State solely for the
   purpose of his education or training, receives for the purpose of his maintenance, education or
   training shall not be taxed in that first-mentioned State, provided that such payments are made to him
   from sources outside that State.

Article 21
OTHER INCOME

1. 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.

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 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.

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

CHAPTER IV
METHODS OF ELIMINATION OF DOUBLE TAXATION

Article 22

1. 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 income which may be taxed in Belgium in accordance with the provisions of the Agreement.

   (b)

   Where a resident of Indonesia derives income from Belgium and such income may be taxed in Belgium in accordance with the provisions of the Agreement, the amount of Belgian tax payable in respect of such 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 such income.

2. In the case of Belgium, double
   taxation shall be avoided as follows:

   (a)	Where a resident of Belgium derives income which may be taxed in Indonesia in accordance with the provisions of this Agreement, other than those of paragraph 2 of Article 10, paragraphs 2 and 7 of Article 11, and paragraphs 2 and 6 of Article 12, Belgium shall exempt such income from tax but may, in calculating the amount of tax on the remaining income of that resident, apply the rate of tax which would have been applicable if such income had not been exempted.
   (b)	Subject to the provisions of Belgian law regarding the deduction from Belgian tax of taxes paid abroad, where a resident of Belgium derives items of his aggregate income for Belgian tax purposes which are dividends taxable in accordance with paragraph 2 of Article 10, and not exempted from Belgian tax according to sub-paragraph (c) hereinafter, interest taxable in accordance with paragraph 2 or 7 of Article 11, or royalties taxable in accordance with paragraph 2 or 6 of Article 12, the Indonesian tax levied on that income shall be allowed as a credit against Belgian tax relating to such income.
   (c)	Dividends within the meaning of paragraph 3 of Article 10, derived by a company which is a resident of Belgium from a company which is a resident of Indonesia, shall be exempt from the corporate income tax in Belgium under the conditions and within the limits provided for in Belgian law.
   (d)	Where, in accordance with Belgian law, losses incurred by an enterprise carried on by a resident of Belgium in a permanent establishment situated in Indonesia, have been effectively deducted from the profits of that enterprise for its taxation in Belgium, the exemption provided for in sub-paragraph (a) shall not apply in Belgium to the profits of other taxable periods attributable to that establishment to the extent that those profits have also been exempted from tax in Indonesia by reason of compensation for the said losses.

CHAPTER V
SPECIAL PROVISIONS

Article 23
NON – DISCRIMINATION

1. Nationals of a Contracting State
   shall not be subjected in the other Contracting State to any taxation or any requirement connected
   therewith which is other or more burdensome than the taxation and connected requirements to which
   nationals of that other State in the same circumstances, in particular with respect to residence, are
   or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to
   persons who are not residents of one or both of the Contracting States.

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

3. 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
   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 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.

5. Nothing contained in this Article
   shall be construed as preventing Belgium: 

   (a)	from taxing the profits attributable to a permanent establishment in Belgium of a company which is a resident of Indonesia at the rate of tax provided by the Belgian law;
   (b)	from imposing the movable property prepayment on dividends derived from a holding which is effectively connected with a permanent establishment maintained in Belgium by a company which is a resident of Indonesia.

6. In this Article, the term
   “taxation” means taxes which are the subject of this Agreement.

Article 24
MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the
   actions of one or both of the Contracting States result or will result for him in taxation not in
   accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the
   domestic law of those States, present his case to the competent authority of the Contracting State of
   which he is a resident or, if his case comes under paragraph 1 of Article 23, 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 the
   Agreement.

2. The competent authority shall
   endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a
   satisfactory solution, to resolve the case by mutual agreement with the competent authority of the
   other Contracting State, with a view to the avoidance of taxation which is not in accordance with the
   Agreement.

3. The competent authorities of the
   Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising
   as to the interpretation or application of the Agreement.

4. The competent authorities of the
   Contracting States shall agree on administrative measures necessary to carry out the provisions of the
   Agreement and particularly on the proofs to be furnished by residents of either Contracting State in
   order to benefit in the other State from the exemptions or reductions in tax provided for in the
   Agreement.

5. The competent authorities of the
   Contracting States shall communicate directly with each other for the application of the Agreement.

Article 25
EXCHANGE OF INFORMATION

1. The 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 the
   Agreement insofar as the taxation thereunder is not contrary to the Agreement, in particular for the
   prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article
   1. Any information received by a Contracting State shall be treated as secret in the same manner as
   information obtained under the domestic laws of that State 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 the 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 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 26
ASSISTANCE IN COLLECTION

1. Each Contracting State shall
   endeavour to collect on behalf of the other Contracting State such taxes imposed by that other State
   as will ensure that any exemption or reduced rate of tax granted under this Agreement by that other
   State shall not be enjoyed by persons not entitled to such benefits.

2. In no case shall the provisions of
   this Article be construed so as to impose upon the requested State the obligation to apply any means
   of enforcement which are not authorised by the legal provisions or regulations of either Contracting
   State or to take measures which would be contrary to public policy.

Article 27
LIMITATION OF THE EFFECTS OF THE AGREEMENT

1. Nothing in this Agreement shall
   affect the fiscal privileges of members of a diplomatic mission or consular post under the general
   rules of international law or under the provisions of special agreements.

2. The Agreement shall not apply to
   international organisations, to organs or officials thereof and to persons who are members of a
   diplomatic mission or consular post of a third State, being present in a Contracting State and not
   treated in either Contracting State as residents in respect of taxes on income.

CHAPTER VI
FINAL PROVISIONS

Article 28
ENTRY INTO FORCE

1. This Agreement shall be approved
   by Belgium and Indonesia in accordance with their respective legal procedures, and shall enter into
   force on the fifteenth day after the date of exchange of notes indicating such approval.

2. The Agreement shall have effect:

   (a)	with respect to taxes due at source on income credited or payable on or after January 1 in the year next following the year in which the Agreement enters into force;
   (b)	with respect to other taxes charged on income of taxable periods ending on or after December 31 of the year in which the Agreement enters into force.

3. The Agreement between the Kingdom
   of Belgium and the Republic of Indonesia for the avoidance of double taxation and the prevention of
   fiscal evasion with respect to taxes on income and on capital and the Protocol signed at Brussels on
   November 13th, 1973, shall terminate and cease to be effective in relation to any tax for any period
   for which this Agreement has effect in accordance with paragraph 2 of this Article as respects that
   tax.

Article 29
TERMINATION

This Agreement shall remain in force until terminated
by a Contracting State; but either Contracting State may terminate the Agreement, through diplomatic
channels, by giving to the other Contracting State written notice of termination not later than the 30th
June of any calendar year from the fifth year following that in which the Agreement entered into force. In
the event of termination before July 1 of such year, the Agreement shall cease to have effect:

In witness whereof the undersigned, being duly
authorised thereto by their respective Governments, have signed this Agreement and have affixed thereto
their seals.

Done in duplicate at Jakarta, this September 16, 1997,
in the English language.

PROTOCOL

At the moment of signing the Agreement between the
Kingdom of Belgium and the Republic of Indonesia for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with respect to Taxes on Income, the undersigned have agreed that the following
provisions shall form an integral part of the said agreement:

Ad Article 7, paragraph 1

 It is understood that profits derived by an
enterprise of a Contracting State within the other Contracting State from [the] sale of goods or
merchandise of the same or similar kind as those sold, or from other business transactions of the same or
similar kind as those effected, through the permanent establishment situated therein, may be taxed in such
other Contracting State, if the permanent establishment had contributed in any manner in the making of
such sales or transactions.

In witness whereof the undersigned, being duly
authorised thereto by their respective Governments, have signed this Protocol and have affixed thereto
their seals.

Done in duplicate at Jakarta, this September 16, 1997,
in the English language.