Czech Republic

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE CZECH REPUBLIC

FOR

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

Article 1
PERSONAL SCOPE

Article 2
TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of each 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. 

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

   (a)	in Indonesia : the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983), except the income tax paid under production sharing contracts, contracts of works and other similar contracts in the oil and gas sector, and other mining sectors; (hereinafter referred to as “Indonesian tax”);
   (b)	in the Czech Republic : — the tax on income of individuals; — the tax on income of legal persons; — the tax on immovable property; (hereinafter referred to as “Czech tax”).

4. This Agreement shall also apply to any identical or substantially similar taxes on income 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 States shall notify to each other any significant
   changes which have been made in their respective taxation laws.

Article 3
GENERAL DEFINITIONS

1. In 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 the adjacent areas over which the Republic of Indonesia has sovereign rights or jurisdiction in accordance with the provisions of the United Nations Convention on the Law of the Sea, 1982;
   (b)	the term “Czech” means the Czech Republic;
   (c)	the terms “a Contracting State” and “the other Contracting State” mean the Czech Republic and Indonesia as the context requires;
   (d)	the term “person” comprises an individual, a company and any other body of persons;
   (e)	the 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 “national” means:
   	(i)	any individual possessing the nationality of a Contracting State;
   	(ii)	any legal person, partnership and association deriving its status as such from the law in force in a 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 authorized representative.
   	(ii)	in the case of the Czech Republic, the Minister of Finance of the Czech Republic or his authorized representative.

2. In 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 which are the subject of this Agreement. 

Article 4
RESIDENT

1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who,
   under the law of that State, is liable to taxation 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 in accordance with the following rules: 

   (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, the competent authorities of the Contracting States shall settle the question by mutual agreement.

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

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” shall include 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 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, but only where such site, project or activities continue for a period of more than 6 (six) months;
   (b)	the furnishing of services, including consultancy by an enterprise through employees or the personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than 3 (three) months within any twelve-month 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 for 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.

5. 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 State in respect of any activities which that person undertakes
   for the enterprise, if such a person 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. 

6. 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. 

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.

8. 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 make either
   company a permanent establishment of the other. 

Article 6
INCOME FROM IMMOVABLE PROPERTY

1. Income from immovable property including income from agriculture or forestry may be taxed in the
   Contracting State in which such property is situated. 

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

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

Article 7
BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the
   enterprise carries on business in the other Contracting State through a permanent establishment
   situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise
   may be taxed in the other State but only so much of them as is attributable to: 

   (a)	that permanent establishment;
   (b)	sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment; or
   (c)	other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment.

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

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses
   which are incurred for the purposes 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. In so far 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 head office of 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, 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 shall be taxable only in that State. 

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

Article 9
ASSOCIATED ENTERPRISES

Where:

Article 10
DIVIDENDS

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

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

   (a)	10 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 20 per cent of the capital of the paying company;
   (b)	15 per cent of the gross amount of the dividends in all other cases.

3. The provisions of paragraph 2 shall not affect the taxation of the company in respect of the profits
   out of which the dividends are paid. 

4. The term “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 subject
   to the same taxation treatment as income from shares by the taxation law of the State of which the
   company making the distribution is a resident. 

5. The provisions of paragraph 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. 

6. 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. 

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 State in accordance with
   its law, but the additional tax so charged shall not exceed 12.5 per cent of the amount of such
   profits after deducting therefrom income tax and other taxes on income imposed thereon in that other
   State. 

8. The provisions of paragraph 7 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.

Article 11
INTEREST

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

2. However, such interest may also be taxed in the Contracting State in which it arises, and according
   to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so
   charged shall not exceed 12.5 per cent of the gross amount. 

   The competent authorities of the Contracting States shall by mutual agreement settle the mode of
   application of this limitation.

3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and derived by
   the Government of the other Contracting State including local authorities thereof, the Central Bank or
   any financial institution controlled by that Government, shall be exempt from tax in the
   first-mentioned State. 

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

   (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 States.
   (b)	in the case of the Czech Republic:
   	(i)	the Czech State Bank (the Central Bank of the Czech Republic);
   	(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 States.

5. 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, as well as income assimilated
   to income from money lent by the taxation law of the State in which the income arises. 

6. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a
   resident of a Contracting State, carries on business in the other Contracting State in which the
   interest arises, through a permanent establishment situated therein, or performs in that other State
   independent services from a fixed base situated therein, and the debt-claim in respect of which the
   interest is paid is effectively connected with a) such permanent establishment or fixed base, or with
   b) business activities referred to under (c) of paragraph 1 of Article 7. In such case, the provisions
   of Article 7 or 14, as the case may be, shall apply. 

7. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local
   authority, or a resident of that State. Where, however, the person paying the interest, whether he is
   a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a
   fixed base in connection with which the indebtedness on which the interest is paid was incurred, and
   such interest is borne by such permanent establishment or fixed base, then such interest shall be
   deemed to arise in the State in which the permanent establishment or fixed base is situated. 

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

Article 12
ROYALTIES

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

2. However, such royalties may also be taxed in the Contracting State in which they arise, and according
   to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so
   charged shall not exceed 12.5 per cent of the gross amount of the royalties. The competent authorities
   of the Contracting States shall by mutual agreement settle the mode of application of this limitation.

3. The term “royalties” as used in this Article means payments 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.

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 a 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: 

   (a)	such permanent establishment or fixed base, or with
   (b)	business activities referred to under (c) of paragraph 1 of Article 7.

    

   In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that Contracting State
   itself, a political subdivision, 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 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 payment shall remain
   taxable according to the laws of each Contracting State, due regard being had to the other provisions
   of this Agreement. 

Article 13
CAPITAL GAINS

1. Gains from the alienation of immovable property, as defined in paragraph 2 of Article 6 may be taxed
   in the Contracting State in which such immovable property is situated. 

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 permanent establishment (alone or together with the whole
   enterprise) or of such fixed base, may be taxed in the other State. 

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

4. Gains from the alienation of any property other than that referred to in the preceding paragraphs
   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 unless he has a fixed base
   regularly available to him in the other Contracting State for the purpose of performing his activities
   or if he is present in that other State for a period or periods exceeding in the aggregate 91 days in
   any taxable year. If he has such a fixed base or remains in that other State for the aforesaid period
   or periods, the income may be taxed in the other State but only so much of it as is attributable to
   that fixed base or is derived in that other State during the aforesaid period or periods. 

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

Article 15
DEPENDENT PERSONAL SERVICES

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

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting
   State in respect of an employment exercised in the other Contracting State shall be taxable only in
   the first-mentioned 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 twelve month period, 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 in international traffic by an enterprise of a
   Contracting State, shall be taxable in that State. 

Article 16
DIRECTORS’ FEE

Article 17
ARTISTES AND ATHLETES

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

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

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities referred to in
   paragraph 1 performed under a cultural agreement or arrangement between the Contracting States, shall
   be exempt from tax in the Contracting State in which the activities are exercised if the visit to that
   State is wholly or substantially supported by funds of the other Contracting State, a local authority
   or public institution thereof. 

Article 18
GOVERNMENT SERVICES

Article 19
PENSIONS

1. Subject to the provisions of paragraph 2 of Article 18, any pensions and other similar remuneration
   paid to a resident of a Contracting State from a source in the other Contracting State in
   consideration of past employment or services in that other Contracting State and any annuity paid to
   such a resident from such a source may be taxed in that other State.

2. The term “annuity” means a stated sum payable periodically at stated times during life or during a
   specified or ascertainable period of time under an obligation to make the payments in return for
   adequate and full consideration in money’s worth.

Article 20
STUDENTS, PROFESSORS AND RESEARCHERS

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

2. A student at a university or other institution for higher education in a Contracting State, or a
   business apprentice who is present in the other Contracting State for a period or periods not
   exceeding 183 days within any twelve month period and who is or was immediately before such visit a
   resident of the first-mentioned State, shall not be taxed in the other Contracting State in respect of
   remuneration for services rendered in that other State, provided that the services are in connection
   with his studies or training and the remuneration constitutes earnings necessary for his maintenance.

3. Remuneration which a resident of a Contracting State receives for undertaking research or for
   teaching, during a period of temporary residence not exceeding two years, at a university, research
   institute or other similar establishment for higher education accredited by the Government in the
   other Contracting State shall not be taxable in this Contracting State.

Article 21
OTHER INCOME

Article 22
ELIMINATION OF DOUBLE TAXATION

1. In Indonesia, double taxation will be avoided in the following manner: 

   Where a resident of Indonesia derives income from the Czech Republic and such income may be taxed in
   the Czech Republic in accordance with the provisions of this Agreement, the amount of the Czech 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 such income.

2. In the Czech Republic, double taxation will be avoided in the following manner:

   The Czech Republic when imposing taxes on its residents may include in the tax base upon which
   such taxes are imposed the items of income which according to the provisions of this Agreement may
   also be taxed in Indonesia but shall allow as a deduction from the amount of tax computed on such
   a base an amount equal to the tax paid in Indonesia. Such deduction shall not, however, exceed
   that part of the Czech tax as computed before the deduction is given, which is appropriate to the
   income which, in accordance with the provisions of this Agreement may be taxed in Indonesia.

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 are or may be
   subjected.

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
   enterprise 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 personal
   allowances, reliefs and reductions for tax purposes on account of civil status or family
   responsibilities which it grants to its own residents.

3. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled,
   directly or indirectly, by one or more residents of the other Contracting State, shall not be
   subjected in the first-mentioned 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 that first-mentioned State are or may be subjected.

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

Article 24
MUTUAL AGREEMENT PROCEDURE

1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting
   States result or will result for him in taxation not in accordance with this Agreement, he may,
   notwithstanding the remedies provided by the national laws of those States, present his case to the
   competent authority of the Contracting State of which he is a resident.

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 an appropriate 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 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. They may also
   consult together for the elimination of double taxation in cases not provided for in the Agreement.

4. The competent authorities of the Contracting States may communicate with each other directly for the
   purpose of reaching an agreement in the sense of the preceding paragraphs. 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 25
EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary
   for the carrying out of this Agreement and of the domestic laws of the Contracting State concerning
   taxes covered by this Agreement in so far as the taxation thereunder is in accordance with this
   Agreement. Any information so exchanged shall be treated as secret and shall not be disclosed to any
   persons or authorities, including courts, other than those concerned with the assessment, collection,
   enforcement or prosecution in respect of taxes which are the subject of the Agreement.

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

   (a)	to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State;
   (b)	to supply particulars which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
   (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 (ordre public).

Article 26
DIPLOMATIC AND CONSULAR OFFICIALS

Article 27
MISCELLANEOUS RULES

Article 28
ENTRY INTO FORCE

1. The Governments of the Contracting States shall notify to each other that the constitutional
   requirements for the entry into force of this Agreement have been complied with.

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

   (a)	in respect of taxes withheld at source, to amounts derived on or after 1st January in the calendar year next following that in which the Agreement enters into force;
   (b)	in respect of other taxes on income, to taxes chargeable for any taxable year beginning on or after 1st January in the calendar year next following that in which the Agreement enters into force.

Article 29
TERMINATION

PROTOCOL

Ad Article 7 paragraph 1 (c):