Iran

Indonesia has established tax treaties with Iran to prevent double taxation and encourage cross-border investments. See detailed information on Indonesia-Iran tax treaties below.

IN THE NAME OF ALLAH

AGREEMENT

BETWEEN

THE GOVERNMENT OF

THE REPUBLIC OF INDONESIA

AND

THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF

IRAN

FOR

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

THE GOVERNMENT OF THE REPUBLIC

OF INDONESIA

AND

THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN

Desiring to conclude an Agreement for the
avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

HAVE AGREED AS FOLLOWS:

Article 1

PERSONAL SCOPE

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

Article 2

TAXES COVERED

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

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, and taxes on the total amounts of wages or salaries paid by enterprises.

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

a)	in the case of the Islamic Republic of Iran: the income tax (hereinafter referred to as the income tax of the Islamic Republic of Iran);
b)	in the case of the Republic of Indonesia: the income tax (hereinafter referred to as the income tax of the Republic of Indonesia)

The Agreement shall apply also to any identical or substantially similar
taxes classified in accordance with definition of paragraph 1 of this Article 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 within a reasonable period
of any changes which have been made in their respective taxation laws.

Article 3

GENERAL DEFINITIONS

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

the terms “a Contracting State” and “the other Contracting State”
mean the Islamic Republic of Iran or the Republic of Indonesia as the context requires;

(i)	the term “the Islamic Republic of Iran” means the territories under the sovereignty and/or jurisdiction of the Islamic Republic of Iran;
(ii)	the term “the Republic of Indonesia” means the territories under the sovereignty of the Republic of Indonesia in accordance with international law;

the term “tax” means any tax covered by Article 2 of this
Agreement;

the term “person” includes an individual, a company and any
other body of persons;

the term “company” means any body corporate or any entity which is
treated as a body corporate for tax purposes;

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;

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;

the term “competent authority” means:

(i)	in the case of the Islamic Republic of Iran, the Minister of Economic Affairs and Finance or his authorized representative;
(ii)	in the case of Indonesia, the Minister of Finance or his authorized representative;

the term “national” means:

(i)	any individual possessing the nationality of a Contracting State;
(ii)	any legal person, deriving its status as such from the laws in force in a Contracting State.

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 laws of that State concerning the taxes to which the Agreement applies.

Article 4

RESIDENT

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, and also
includes that State or any local authority thereof. This term, however, does not include any person
who is liable to tax in that State in respect only of income from sources in that State.

Where by reason of the provisions of paragraph 1 of this Article 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 (center of vital interests);
b)	if the State in which he has his center 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 Contracting State in which he has an habitual abode;
c)	if he has an habitual abode in both Contracting States or in neither of them, he shalI be deemed to be a resident of the State of which he is a national;
d)	if the status of resident can not be determined according to subparagraphs a) to c), the competent authorities of the Contracting States shall settle the question by mutual agreement.

Where, by reason of the provisions of paragraph 1, a person other than an
individual is a resident of both Contracting States, then it shall be deemed to be a resident of the
State in which its place of effective management is situated.

Article 5

PERMANENT ESTABLISHMENT

For the purposes of this Agreement, the term “permanent establishment”
means a fixed place of business through which an enterprise of a Contracting State wholly or partly
carries on the business in the other Contracting State.

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 plantation;
g)	a mine, an oil or gas well, a quarry or any other place of exploration, exploitation and/or extraction of natural resources, drilling rig or working ship.

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 months.
b)	the furnishing of services, including consulting 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 183 days within any twelve month period.

Notwithstanding the preceding provisions of this Article, the following
activities of an enterprise of a Contracting State in the other Contracting State shall be deemed
not to be treated as carrying on through the permanent establishment:

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 purpose of advertising, for the supply of information, for scientific research, 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.

Notwithstanding the provisions of paragraphs 1 and 2 where a person
other than an agent of independent status to whom paragraph 6 applies- is acting in a
Contracting State on behalf of an enterprise and has and habitually exercises in a Contracting State
an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to
have a permanent establishment in that State in respect of any activities which that person
undertakes for the enterprise unless the activities of such a 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.

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,
where such persons are acting in the ordinary course of their business.
However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that
enterprise, he will not be considered an agent of an independent status within the meaning of this
paragraph.

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

Article 6

INCOME FROM IMMOVABLE PROPERTY

1.	Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2.	The term “immovable property” shall have the meaning which it has under the laws of the Contracting State in which the property in question is situated. The term shalI 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, oil or gas wells, quarries and other places of extracting of natural resources including timber or other forest products. Ships or aircraft shall not be regarded as immovable property.
3.	The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4.	Where the ownership of shares or other corporate rights in a company entitles the owner of such shares or corporate rights to the enjoyment of immovable property held by the company, the income from direct use, letting, or use in any other form of such a right to enjoyment may be taxed in the Contracting State in which the immovable property is situated.
5.	The provisions of paragraphs 1 and 3 of this Article shall also apply to the income from immovable property of an enterprise and to the income from immovable property used for the performance of independent personal services.

Article 7

BUSINESS PROFITS

The profits from business activity derived by 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 sa much of them as is attributable to:

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

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

In determining the profits of a permanent establishment, there shall be
allowed as deductions expenses including executive and general administrative expenses, which would
be deductible if the permanent establishment were an independent enterprise insofar as they are
incurred for the purposes of the permanent establishment, whether incurred in the State in which the
permanent establishment is situated or elsewhere.

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 embodied in this Article.

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.

The profits to be attributed to the permanent establishment shall be
determined by the same method year by year unless there is good and sufficient reason to the
contrary.

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

Article 8

INTERNATIONAL TRAFFIC

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.

Article 9

ASSOCIATED ENTERPRISES

Where

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

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 sa accrued,
may be included in the profits of that enterprise and taxed accordingly,

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
the tax charged therein on those profits. In determining such adjustment, due regard shall be had to
the other provisions of this Agreement and the competent authorities of the Contracting States
shall, if necessary, consult each other.

Article 10

DIVIDENDS

1.	Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other 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 7 percent of the gross amount of the dividends.
3.	The term “dividends” as used in this Article means income from shares, “Jouissance” shares or “Jouissance” rights, founders’ 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 7 percent of the amount of such profits after deducting therefrom income tax and other taxes on income imposed thereon in that other State.

Article 11

INTEREST

1.	Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other 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 percent of the gross amount of the interest.
3.	The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.
4.	Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and derived by the Government, Ministries, other Governmental institutions, municipalities, Central Bank and other banks wholly owned by the Government of the other Contracting State, shall be exempted from tax in the first-mentioned State.
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 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 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 a permanent establishment or fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.
7.	Where by reason of a special relationship between the payer and the beneficial owner or between both of them and some other 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 sa charged shall not exceed 12 percent of the gross amount of the royalties.
3.	The term “royalties” as used in this Article means payments, of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and recordings for radio and television, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience or for the use of, or the right to use, industrial, commercial or scientific equipment.
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, 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 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 right or property giving rise to the royalties is effectively connected, 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 paid, 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 a 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, with due regard 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 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 Contracting State.
4.	Gains derived by a resident of a Contracting State from the alienation of shares or other corporate rights in a company, the assets of which directly or indirectly consist mainly of immovable property situated in the other Contracting State may be taxed in that other State.
5.	Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14

INDEPENDENT PERSONAL SERVICES

Income derived by a resident of a Contracting State in respect of
professional services or other similar 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, If he has such a fixed base, the income may be taxed
in the other State but only so much of it as is attributable to that fixed base.

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

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

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

a)	the recipient is present in that other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period; and
b)	the remuneration is paid by, or on behalf of, an employer who is not a resident of that other State; and
c)	the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

Notwithstanding the preceding provisions of this Article, remuneration
paid by an enterprise of a Contracting State in respect of an employment exercised aboard a ship or
aircraft operated in international traffic, shall be taxed 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 as a member of the board of
supervisors 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 theater, 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 in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such 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, the income derived by an entertainer or a sportsman from the activities performed in the other Contracting State within the cultural agreement concluded between the Govemments of the Contracting States, shall be exempted from tax in that other State.

Article 18

PENSIONS AND ANNUITIES

1.	Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment may be taxable in the other State. This provision shall also apply to any annuities paid to a resident of a Contracting State.
2.	Notwithstanding the provisions of paragraph 1, pensions and other payments under the public social security legislation or civil service law of a Contracting State may be taxed in that State.
3.	The term “annuity” means a stated sum payable periodically at stated time 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 or money’s worth.

Article 19

GOVERNMENT SERVICES

Salaries, wages and other similiar remuneration, other than a pension,
paid by, or out of funds created by a Contracting State or a local authority thereof to an
individual in respect of service rendered to that State or local authority shall be taxable only in
that State. However, such remuneration shall be taxable only in the other Contracting State if the
services are rendered in that State and the individual is a resident of th at State who:

(i)	is a national of that State; or
(ii)	did not become a resident of that State solely for the purpose of rendering the services.

The provisions of Articles 15, 16 and 18 shall apply to remuneration and
pensions in respect of services rendered in connection with a business carried on by a Contracting
State or a local authority thereof.

Article 20

TEACHERS AND STUDENTS

Payments which a student or business apprentice who is a national of a
Contracting State and who is present in the other Contracting 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 other State, provided that such payments arise from sources outside that other
State.

Likewise, remuneration received by a teacher or by an instructor who is a
national of a Contracting State and who is present in the other Contracting State for the primary
purpose of teaching or engaging in scientific research for a period or periods not exceeding two
years shall be exempted from tax in that other State on his remuneration from personal services for
teaching or research, provided that such payments arise from sources outside that other State.
This paragraph shall not apply to income from research if such research is undertaken primarily for
the private benefit of a specific person or persons.

Article 21

OTHER INCOME

Items of income of a resident of a Contracting State, which are not
expressly mentioned in the foregoing Articles of this Agreement shall be taxable only in that State,
except that if such items of income are derived from sources in the other Contracting State. If such
items of income are derived from sources in the other Contracting State, they may also be taxed in
that other State.

The provisions of paragraph 1 shall not apply to income, other than income
from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income,
being a resident of a Contracting State, carries on business in the other Contracting State through
a permanent establishment situated therein, or performs in that other State independent personal
services from a fixed base situated therein and the right or property in respect of which the
income is paid is effectively connected with such a permanent establishment or fixed base. In such
case the items of income are taxable in that other Contracting State according to its own law.

Article 22

METHOD FOR THE ELIMINATION OF

DOUBLE T AXATION

Where a resident of a Contracting State derives income which, in
accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the
first-mentioned State shall allow as a deduction from the tax on the income of that resident an
amount equal to the income tax paid in that other State. Such deduction shall not, however, exceed
that part of the income tax, as computed before the deduction is given, which is attributable, as
the case may be, to the income which may be taxed in that other State.

Where in accordance with any provision of the Agreement income derived by
a resident of a Contracting State is exempted from tax in that State, such State may nevertheless,
in calculating the amount of tax on the remaining income of such resident, take into account the
exempted income.

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. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or bath 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 favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. These provisions 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.	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.

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, irrespective of 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 or, if his case comes under paragraph 1 of Article 23, to that of the other Contracting State of which he is a national. The case must be presented within two years from the first notification of the action resulting in taxation not in accordance with the provisions of 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 mutu al 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. 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, The competent authorities, through consultations, shall develop appropriate bilateral procedures, conditions, methods and techniques for the implementation of the mutual agreement procedure provided for in this Article.

Article 25

EXCHANGE OF INFORMATION

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 pers ons or authorities shall use the
information only for such purposes. They may discIose the information in public court proceedings or
in judicial decisions.

In no case shalI 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 the 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 Public).

Article 26

MEMBERS OF DIPLOMATIC MISSIONS

AND CONSULAR POSTS

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

Article 27

ENTRY INTO FORCE

(1)

This Agreement shall be ratified by the Contracting States and the
instruments of ratification shall be exchanged as soon as possible.

(2)

The Agreement shall enter into force upon the exchange of instruments of
ratification and its provisions shall have effect:

a)	in respect of taxes withheld at the source, to amounts of income derived on or after 1^st January (11^th Day Solar Hijra) in the calendar year next folIowing the year in which the Agreement enters into force;
b)	in respect of other taxes on income, to such taxes chargeable for any taxable year beginning on or after 1^st January (11^th Day Solar Hijra) in the calendar year next folIowing the year in which the 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 on 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 Agreement shall cease to have
effect:

a)	in respect of taxes withheld at the source, to amounts of income derived on or after 1^st January (11^th Day Solar Hijra) in the calendar year next following the year in which the notice has been given;
b)	in respect of other taxes on income to such taxes chargeable for any taxable period beginning on or after l^stJanuary (11^th Day Solar Hijra) in the calendar year next following the year in which the notice has been given.

ln witness whereof the undersigned, duly authorized thereto, by their
respectivc Goverments, have signed this Agreement.

Done in duplicate in Jakarta on 30^th April, 1004 (11^th Ordibehesht, 1383 Solar
Hijra) in the Persian, Bahasa Indonesia and English languages, all texts being equally authentic. In case
of any divergence of interpretation. the English text shall prevail.

For the Government
of
the Republic of Indonesia

For the Government
of
the Islamic Republic of Iran

Iran

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