Finland

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

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

Article 1
PERSONAL SCOPE

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

Article 2
TAXES COVERED

1. This Agreement shall apply to
   taxes on income imposed on behalf of a Contracting State or of 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 the Agreement shall
   apply are :

   (a)	in Indonesia: the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983 ) and to the extent provided in such income tax law, the company tax imposed under the Ordonansi Pajak Perseroan (State Gazette No. 319 of 1925 as lastly amended by Law No. 8 of 1970) and the tax imposed under the Undang-undang Pajak atas Bunga, Dividen dan Royalti 1970 (Law No.10 of 1970); (hereinafter referred to as “Indonesian tax”);
   (b)	in Finland :
   	(i)	the state income tax;
   	(ii)	the communal tax;
   	(iii)	the church tax; and
   	(iv)	the tax withheld at source from non-residents income;
   	(hereinaafter referred to as “Finnish tax”);

4. The Agreement shall apply also to
   any identical or substantially similar taxes on income which are imposed after the date of signature
   of the Agreement in addition to, or in place of, those referred to in paragraph 3. The competent
   authorities of the Contracting States shall notify each other of any substantial changes which have
   been made in their respective taxation laws. 

Article 3
GENERAL DEFINITIONS

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 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 “Finland” means the Republic of Finland and, when used in a geographical sense, means the territory of the Republic of Finland, and any area adjacent to the territorial sea of the Republic of Finland within which, under the laws of Finland and in accordance with international law, the rights of Finland with respect to the exploration for and exploitation of the natural resources of the sea bed and its sub-soil may be exercised;
   (c)	the term “person” includes an individual, a company and any other body of persons;
   (d)	the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
   (e)	the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
   (f)	The term “nationals” means:
   	(i)	any individuals possessing the nationality of a Contracting State;
   	(ii)	any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State;
   (g)	the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
   (h)	The term “competent authority” means:
   	(i)	in Indonesia, the Minister of Finance or his authorised representative;
   	(ii)	in Finland, the Ministry of Finance or his authorised representative.

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
RESIDENCE

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, the term does not include any person who is liable to tax in
   that 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, the
   competent authorities of the 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”
   includes especially:

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

3. The term “permanent establisment”
   likewise encompasses:

   (a)	a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than six months;
   (b)	the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than three months within any twelve-month period.

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, for the supply of information, for scientific research or for similar activities which have 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 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: 

   (a)	has and habitually exercises in the first-mentioned 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 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 shall 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 constitute either company a permanent establishment
   of the other. 

Article 6
INCOME FROM IMMOVABLE PROPERTY

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. 

4. In the absence of appropriate
   accounting or other data permitting the determination of the profits to be attributed to a permanent
   establishment, the tax may be assessed in the Contracting State in which the permanent establishment
   is situated in accordance with the income tax laws of that state, in particular regard being had to
   the normal profits of enterprises engaged in the same or similar activities under the same or similar
   conditions, provided that, on the basis of the available information, the determination of the profits
   of the permanent establishment is consistent with the principles 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. 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 derived by 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 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 of a Contracting State and an enterprise of the other Contracting State,
   and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have 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 State — and taxes accordingly — profits on which an
   enterprise of the other Contracting State has been charged to tax in that other State and the profits
   so included are by the first-mentioned State claimed to be profits which would have accrued to the
   enterprise of the first-mentioned State if the conditions made between the two enterprises had been
   those which would have been made between independent enterprises, then that other State shall make an
   appropriate adjustment to the amount of tax charged therein on those profits, where that other State
   considers the adjustment justified. 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 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 the tax so charged shall not exceed: 

   (a)	10 percent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 percent 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, or other rights, not being debt-claims, participating in
   profits, as well as income from other corporate rights which is subjected to the same taxation
   treatment as income from shares by the laws of the State of which the company making the distribution
   is a resident.

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 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 15% of the amount of such profits after deducting therefrom income tax
   and other taxes on income imposed thereon in such other State. 

7. The provisions of paragraph 6
   shall not affect the provisions contained in any production sharing contract or contract of work (or
   any other similar contract) relating to the oil and gas sector or any other mining sector concluded on
   or before 31 December 1983 by the Government of Indonesia, an instrumentality, the relevant state oil
   and gas company or any other entity thereof with a resident of Finland. 

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
   recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10% of the
   gross amount of the interest. 

3. Notwithstanding the provisions of
   paragraph 2, interest arising in a Contracting State and derived by:

   (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 Indonesia, as may be agreed upon from time to time within the Government of the Contracting States;
   (b)	in the case of Finland :
   	(i)	the “Suomen Pankki” (the Centrat Bank of Finland);
   	(ii)	the Finnish Fund for Industrial Development Co-operation Ltd. (FINNFUND); and
   	(iii)	the Finnish Export Credit Ltd.
   	shall be exernpt from tax in that 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, as well as penalty charges for late payment, and income
   assimilated to income from money lent by the taxation laws of the State in which the income arises,
   including interest on deferred payment sales. 

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

6. 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. 

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 according to the laws of each Contracting
   State, due regard being had to the other provisions of this Agreement. 

Article12
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 10% of the
   gross amount of the royalties, in the case of royalties of the kind referred to in sub-paragraph (a)
   of paragraph 3, and 15% of the gross amount of the royalties, in the case of royalties of the kind
   referred to in sub-paragraphs (b) and (c) of paragraph 3. 

3. The term “royalties” as used in
   this Article means payments of any kind received as a consideration: 

   (a)	for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, and films or tapes for television or radio broadcasting;
   (b)	for the use of, or the right to use, any patent, trade mark design or model, plan, secret formula or process, or any industrial, commercial, or scientific equipment;
   (c)	for information concerning industrial, coff tmercial or scientrfic 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 (a) such permanent establishment or fixed base, or with (b) business
   activities referred to in sub-paragraph (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 State itself, 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 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. Gains derived by a resident of a
   Contracting State from the alienation of immovable property referred to in paragraph 2 of Article 6
   and situated in the other Contracting State may be taxed in that other State.

2. Gains derived by a resident of a
   Contracting State from the alienation of shares or other corporate rights referred to in paragraph 4
   of Article 6 may be taxed in the Contracting State in which the immovable property held by the company
   is situated.

3. 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. 

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

5. Gains from the alienation of any
   property other than that referred to in the preceding paragraphs of this Article 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 he is present in that other State
   for a period or periods exceeding in the aggregate 90 days in any twelve-month period. If he has such
   a fixed base or remains in that other State for the aforesaid period or periods, the income may be
   taxed in that other State but only so much of it as is attributable to that fixed base or is derived
   from his activities performed 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, 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 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 ernployer has in the other State.

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

Article 16
DIRECTORS FEES

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 any similar
organ of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 17
ARTISTES AND SPORTSMEN

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 a sportsman, from his
   personal activities as such exercised in the other Contracting State, may be taxed in that other
   State. 

2. Where income derived directly or
   indirectly by reason of entertainment or a sport contest accrues not to the entertainer or sportsman
   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 sportsman are
   exercised. 

3. Notwithstanding the provisions of
   paragraphs 1 and 2, income derived in respect of activities referred to in paragraph 1 and exercised
   within the framework of a cultural or sports exchange programme approved by both Contracting States
   shall be taxable only in the Contracting State of which the entertainer or sportsman is a
   resident. 

Article 18
PENSIONS

Subject to the provisions 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
STUDENTS

1. Payments which a student or
   business, technical, agricultural or forestry apprentice 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 State, provided that such payments arise from sources
   outside that State. 

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

Article 21
OTHER INCOME

1. Items of income of a resident of a
   Contracting State not dealt with in the foregoing Articles of this Agreement shall be taxable only in
   that State. However, any items of income of a resident of a Contracting State arising in the other
   Contracting State may also be taxed in that other 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. 

Article 22
ELIMINATION OF DOUBLE TAXATION

1. The laws of each of the
   Contracting States shall continue to govern in that State the taxation of income, wherever arising,
   except where express provision to the contrary is made in this Agreement. Where income derived from a
   Contracting State is subject to tax in both Contracting States, relief from double taxation on such
   income shall be given in accordance with the following provisions of this Article. 

2. In Finland double taxation shall
   be eliminated as follows;

   (a)	Where a resident of Finland derives income which, in accordance with the provisions of this Agreement, may be taxed in Indonesia, Finland shall, subject to the provisions of sub-paragraph (b), allow as a deduction from the tax on income of that person an amount equal to the tax on income paid in Indonesia.  Such deduction shall not, however, exceed that part of the tax on income, as computed before the deduction is given, which is attributable to the income which may be taxed in Indonesia.
   (b)	Dividends paid by a company which is a resident of Indonesia to a company which is a resident of Finland shall be exempt from Finnish tax to the extent that the dividends would have been exempt from tax under Finnish taxation law if both companies had been residents of Finland.
   (c)	Where in accordance with any provision of the Agreement income derived by a resident of Finland is exempt from tax in Finland, Finland may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

3. In Indonesia, double taxation
   shall be eliminated as follows;

   (a)

   Indonesia, when imposing tax on residents of Indonesia, may include in the basis upon which such tax is imposed the items of income which may be taxed in Finland in accordance with the provisions of this Agreement.

   (b)

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

Article 23
NON-DISCRIMIMATION

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 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
   paragraph 1 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 to prevent either Contracting State from limiting in special sectors of economy
   to its nationals the enjoyment of tax incentives and any tax of a preferential nature designed in
   pursuance of its programme of economic development. 

6. In this Article the term
   “taxation” means the taxes Which are the subted 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 not in accordance with the
   Agreement. In the event the competent authorities reach an agreement, taxes shall be imposed, and
   refund or credit of taxes shall be allowed by the Contracting States in accordance with such
   agreement. It shall be implemented notwithstanding any time limits 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 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 shall by mutual agreement settle the mode of application of the Agreement and,
   especially, the requirements to which residents of a Contracting State shall be subjected in order to
   obtain, in the other Contracting State, tax reliefs or exemptions in respect of income referred to in
   Articles 10, 11 and 12, received from that other State. 

5. 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 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. 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 (ordre pulic).

Article 26
DIPLOMATIC 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 27
ENTRY INTO FORCE

1. The Governments of the Contracting
   States shall notify 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 thirty days after the date of the later of the notifications referred to in paragraph 1 and its
   provisions shall have effect;

   (i)	in respect of taxes withheld at the source, on income derived on or after 1 January in the calendar year next following the year in which the Agreement enters into force;
   (ii)	in respect of other taxes on income, for taxes chargeable for any tax year beginning on or after 1 January in the calendar year next following the year in which Agreement enters into force.

Article 28
TERMINATION

This Agreement shall remain in force until terminated
by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels,
by giving notice of termination at least six months before the end of any calendar year following after
the period of five years from the date on which the Agreement enters into force. In such event, the
Convention shall cease to have effect:

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

DONE in duplicate at Jakarta this
fifteenth day of October 1987, in the English language.

PROTOCOL
 

At the signing of the Agreement for the avoidance of
double taxation and for the prevention of fiscal evasion with respect to taxes on income, this day
concluded between Indonesia and Finland, the undersigned have agreed that the following provision shall
form an integral part of the Agreement.

 With reference to Article 23

In respect of paragraph 3 of Article 23 the
Contracting States have, however, the right to apply their internal provisions concerning regulation of
the debt-equity ration (thin capitalisation) in the case of subsidiaries of enterprises of the other
Contracting State.

In witness whereof the undersigned, duly authorised
thereto, have signed this Protocol.

Done in duplicate at Jakarta this fifteenth day of
October 1987 in the English language.