Laos

AGREEMENT BETWEEN 

THE GOVERNMENT OF THE REPUBLIC OF INDONESIA 
AND 
THE GOVERNMENT OF THE LAO PEOPLE’S DEMOCRATIC
REPUBLIC 

FOR 

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

Article 1

PERSONS COVERED

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

Article 2

TAXES COVERED

Article 3

GENERAL DEFINITIONS

Article 4

RESIDENT

1. For the
   purposes of this Agreement, the term “resident of a Contracting State” means any person who,
   under the laws of that Contracting State, is liable to tax therein by reason of his
   domicile, residence, place of management, place of incorporation, or any other criterion of
   a similar nature, and also includes that Contracting State and any political subdivision or
   local authority or statutory body thereof. The 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 or
   capital situated therein.
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:

3. Where by
   reason of the provisions of paragraph 1 a person other than an individual is a resident
   of both Contracting States, then it shall be deemed to be a resident of the Contracting
   State in which its place of effective management is situated. If its place of effective
   management cannot be determined, 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” includes especially:

3. The term
   “permanent establishment” also encompasses:

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

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

6. Notwithstanding the preceding provisions of this Article, an
   insurance enterprise of a Contracting State shall, except in regard to re-insurance, be
   deemed to have a permanent establishment in the other Contracting State if it collects
   premiums in the territory of that other Contracting State or insures risks situated therein
   through a person other than an agent of an independent status to whom paragraph 7
   applies.
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 Contracting
   State through a broker, general commission agent or any other agent of an independent
   status, provided that such persons are acting in the ordinary course of their business.
   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 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 Contracting State (whether through a permanent establishment or otherwise), shall
   not of itself constitute either company a permanent establishment of the
   other.

Article 6

INCOME FROM IMMOVABLE
PROPERTY

1. Income
   derived by a resident of a Contracting State from immovable property (including income from
   agriculture or forestry) situated in the other Contracting State may be taxed in that other
   Contracting State.
2. The term
   “immovable property” shall have the meaning which it has under the law of the Contracting
   State in which the property in question is situated. The term shall in any case include
   property accessory to immovable property, livestock and equipment used in agriculture,
   forestry and fishery, rights to which the provisions of general law respecting landed
   property apply, usufruct of immovable property and rights to variable or fixed payments as
   consideration for the working of, or the right to work, mineral deposits, sources and other
   natural resources; ships, boats and aircraft shall not be regarded as immovable
   property.
3. The
   provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use
   in any other form of immovable property.
4. The
   provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of
   an enterprise and to income from immovable property used for the performance of independent
   personal services.

Article 7

BUSINESS PROFITS

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

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 business of the permanent establishment,
   including executive and general administrative expenses so incurred, whether in the State in
   which the permanent establishment is situated or elsewhere. However, no such deduction shall
   be allowed in respect of amounts, if any, paid (other 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 money 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 banking enterprise, by way
   of interest on money lent to the head office of the enterprise or any of its other offices.
   Such deductions shall be in accordance with the provisions of and subject to the limitations
   of the tax laws of the Contracting State where the permanent establishment is
   situated.
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 contained in this
   Article.
5. No
   profits shall be attributed to a permanent establishment by reason of the mere purchase by
   that permanent establishment of goods or merchandise for the
   enterprise.
6. For the
   purposes of the preceding paragraphs, the profits to be attributed to the permanent
   establishment shall be determined by the same method year by year unless there is good and
   sufficient reason to the contrary.
7. Where
   profits include items of income which are dealt with separately in other Articles of this
   Agreement, then the provisions of those Articles shall not be affected by the provisions of
   this Article.

Article 8

SHIPPING AND AIR TRANSPORT

1. Profits
   of an enterprise of a Contracting State from the operation of ships or aircraft in
   international traffic shall be taxable only in that Contracting State in which the place of
   effective management of the enterprise is
   situated.
2. For the
   purposes of this Article, profits from the operation of ships or aircraft in international
   traffic shall mean profits derived from the transportation by sea or by air of passengers,
   mail, livestock or goods carried on by the owners, lessees or charterers of ships or
   aircraft, including:

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

Article 9

ASSOCIATED ENTERPRISES

1. Where:

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

Article 10

DIVIDENDS

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

3. The
   competent authorities of the Contracting States shall by mutual agreement settle the mode of
   application of this limitation. The provisions of this paragraph 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, including “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 Contracting State of
   which the company making the distribution is a
   resident.
5. 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 Contracting State independent personal services
   from a fixed base situated therein, and the holding in respect of which the dividends are
   paid is effectively connected with such permanent establishment or fixed base. In such case,
   the provisions of Article 7 or Article 14, as the case may be, shall
   apply.
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 Contracting State in accordance with its laws, but the
   additional tax so charged shall not exceed 10 % (ten per cent) of the amount of such profits
   after deducting therefrom income tax and other taxes on income imposed thereon in that other
   Contracting State.
7. In
   accordance with the domestic laws of the other Contracting State, the provision of paragraph
   5 of this Article should not apply if the permanent establishment situated in other
   Contracting State reinvests such branch profit in that other Contracting
   State.
8. Where a
   company which is a resident of a Contracting State derives profits or income from the other
   Contracting State, that other Contracting State may not impose any tax on the dividends
   paid, by the company, except in so far as such dividends are paid to a resident of that
   other Contracting State or in so far as the holding in respect of which the dividends are
   paid is effectively connected with a permanent establishment or a fixed base situated in
   that other Contracting State, nor subject the company’s undistributed profits to a tax on
   the company’s undistributed profits, even if the dividends paid or the undistributed profits
   consist wholly or partly of profits or income arising in that other Contracting
   State.
9. The
   provision of paragraph 5 of this Article shall not affect the provision contained in any
   production sharing contracts relating to oil and gas, and contract of works for other mining
   sectors, concluded by a Contracting State or its relevant state oil and gas company or any
   other entity thereof with a person who is a resident of the other Contracting
   State.
10. The
    provisions of this Article shall not apply if it was the main purpose or one of the main
    purposes of any person concerned with the creation or assignment of the shares or other
    rights in respect of which the dividend is paid to take advantage of this Article by means
    of that creation or assignment.

Article 11

INTEREST

1. Interest
   arising in a Contracting State and paid to a resident of the other Contracting State may be
   taxed in that other Contracting States.
2. However,
   such interest may also be taxed in the Contracting State in which it arises and according to
   the laws of that Contracting State, but if the beneficial owner of the interest is a
   resident of the other Contracting State, the tax so charged shall not exceed 10% (ten per
   cent) of the gross amount of the interest.
   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 paid to the Government of the other Contracting State shall be
   exempt from tax in the first-mentioned Contracting
   State.
4. For the
   purpose of paragraph 3, the term “Government”:

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 interest paid with respect to indebtedness arising as a consequence of the sale
   on credit of any equipment, merchandise or services. Penalty charges for late payment shall
   not be regarded as interest for the purpose of this
   Article.
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 Contracting State independent personal services from a fixed base
   situated therein, and the debt-claim in respect of which the interest is paid is effectively
   connected with (a) such permanent establishment or fixed base or with (b) business
   activities referred to in (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 a resident of that
   Contracting State. Where, however, the person paying the interest, whether he is a resident
   of a Contracting State or not, has in a Contracting State a permanent establishment or 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 Contracting 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. 
9. The
   provisions of this Article shall not apply if it was the main purpose or one of
   the main purposes of any person concerned with the creation or assignment of the debt
   claim in respect of which the interest is paid to take advantage of this Article by means of
   that creation or assignment.

Article 12

ROYALTIES

1. Royalties
   arising in a Contracting State and paid to a resident of the other Contracting State may be
   taxed in that other Contracting State.
2. However,
   such royalties may also be taxed in a Contracting State in which they arise and according to
   the laws of that Contracting State, but if the beneficial owner of the royalties is a
   resident of the other Contracting State, the tax so charged shall not exceed 10% (ten 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 or discs used for radio or television
   broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or
   for the use of, or the right to use, industrial, commercial or scientific equipment, or for
   information concerning industrial, commercial or scientific
   experience.
4. The
   provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties,
   being a resident of a Contracting State, carries on business in the other Contracting State
   in which the royalties arise, through a permanent establishment situated therein, or
   performs in that other Contracting State independent personal services from a fixed base
   situated therein, and the right or property in respect of which the royalties are paid is
   effectively connected with (a) such permanent establishment or fixed base or with (b)
   business activities referred to in (c) of paragraph 1 of Article 7. In such case, the
   provisions of Article 7 or 14, as the case may be, shall
   apply.
5. Royalties
   shall be deemed to arise in a Contracting State when the payer is a resident of that
   Contracting State. Where, however, the person paying the royalties, whether he is a resident
   of a Contracting State or not, has in a Contracting State a permanent establishment or a
   fixed base in connection with which the liability to pay the royalties was incurred, and
   such royalties are borne by such permanent establishment or fixed base, then such royalties
   shall be deemed to arise in the Contracting State in which the permanent establishment or
   fixed base is situated.
6. Where, by
   reason of a special relationship between the payer and the beneficial owner or between both
   of them and some other person, the amount of the royalties, having regard to the use, right
   or information for which they are paid, exceeds the amount which would have been agreed
   upon by the payer and the beneficial owner in the absence of such relationship, the
   provisions of this Article shall apply only to the last-mentioned amount. In such case, the
   excess part of the payments shall remain taxable according to the laws of each Contracting
   State, due regard being had to the other provisions of this
   Agreement. 
7. The
   provisions of this Article shall not apply if it was the main purpose or one of
   the main purposes of any person concerned with the creation or assignment of the rights
   in respect of which the royalties are paid to take advantage of this Article by means of
   that creation or assignment.

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 Contracting 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 Contracting
   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
   from the alienation of shares of the capital stock of a company, or of an interest in a
   partnership or a trust, the property of which consists principally of immovable property
   situated in a Contracting State, may be taxed in that
   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.
6. The
   provisions of this Article shall not apply if it was the main purpose or one of the main
   purposes of any person concerned with the creation or assignment of the alienation of
   immovable property or movable property or shares of a company in respect of which the gains
   are derived to take advantage of this Article by means of that creation or
   assignment.

Article 14

INDEPENDENT PERSONAL SERVICES

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

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, and 19 salaries, wages and other similar remuneration
   derived by a resident of a Contracting State in respect of an employment shall be taxable
   only in that Contracting State unless the employment is exercised in the other Contracting
   State. If the employment is so exercised, such remuneration as is derived there from may be
   taxed in that other Contracting State.
2. Notwithstanding the provisions of paragraph 1, remuneration or
   income derived by a resident of a Contracting State in respect of an employment exercised in
   the other Contracting State shall be taxable only in the first-mentioned Contracting State
   if:

3. Notwithstanding the preceding paragraphs of this Article,
   remuneration derived by any employee of an enterprise of a Contracting State in respect of
   an employment exercised aboard a ship or aircraft operated in international traffic, may be
   taxed in that Contracting State in which the place of effective management of the enterprise
   is situated.

Article 16

DIRECTORS’ FEES

1. Directors’ fees and other similar payments derived by a resident
   of a Contracting State in his capacity as member of the board of directors or any other
   similar organ of a company which is a resident of the other Contracting State may be taxed
   in that other Contracting State.
2. The
   remuneration which a person to whom paragraph 1 applies derived from the company in respect
   of the discharge of day-to-day function of a managerial or technical nature may be taxed in
   accordance with the provisions of Article 15.

Article 17

ARTISTES AND SPORTSPERSONS

1. Notwithstanding the provisions of Article 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 sportsperson, from his personal
   activities as such exercised in the other Contracting State, may be taxed in that other
   Contracting State.
2. Where
   income in respect of personal activities exercised by an entertainer or a sportsperson in
   his capacity as such accrues not to that entertainer or sportsperson himself but to another
   person, that income may, notwithstanding the provisions of Article 7, 14, and 15, be taxed
   in the Contracting State in which the activities of the entertainer or sportsperson 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 visits to that Contracting State are wholly or
   substantially supported by public funds of one or both of the Contracting State, a local
   authority, a statutory body, or public institution
   thereof.

Article 18

PENSIONS, SOCIAL SECURITY PAYMENTS AND
ANNUITY

1. Subject
   to the provisions of paragraph 2 of Article 19, pension and other similar remuneration paid
   in consideration of past employment and annuity paid to a resident of a Contracting State
   shall be taxable only in that Contracting State.
2. Notwithstanding the provisions of paragraph 1, pensions, other
   similar remuneration and annuity payments made under a public scheme which is part of the
   social security system of a Contracting State shall be taxable only in that Contracting
   State.
3. 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 or money’s
   worth.

Article 19

GOVERNMENT SERVICE

Article 20

STUDENTS AND TRAINEES

Article 21

TEACHERS AND RESEARCHERS

1. A teacher
   or researcher who is a resident of a Contracting State immediately before making a visit to
   the other Contracting State and who, at the invitation of any approved university, college,
   school , other similar educational institution or scientific research institution, visits
   that other Contracting State for a period not exceeding two years from the date of his
   arrival in that other Contracting State solely for the purpose of teaching or research or
   both at such educational or research institution, shall be exempt from tax in that other
   Contracting State on any remuneration derived from such teaching or carrying out research,
   provided that payment of such remuneration is derived by him from outside that Contracting
   State.
2. This
   Article shall not apply to income from research if such research is undertaken primarily for
   the private benefit of a specific person or
   persons.

Article 22

OTHER INCOME

1. Items of
   income of a resident of a Contracting State which are not expressly mentioned in the
   foregoing Article of this Agreement shall be taxable only in that Contracting
   State.
2. The
   provisions of paragraph 1 shall not apply to income, other than income from immovable
   property as defined in paragraph 2 of Article 6, if the recipient of such income, being a
   resident of a Contracting State, carries on business in the other Contracting State
   through a permanent establishment situated therein, or performs in that other Contracting
   State independent personal services from a fixed base situated therein, and the right or
   property in respect of which the income is paid, is effectively connected with such
   permanent establishment or fixed base. In such case, the provisions of Article 7 or Article
   14 as the case may be, shall apply.
3. Notwithstanding the provisions of paragraphs 1 and 2, items of
   income of a resident of a Contracting State not dealt with in the foregoing Articles of
   this Agreement and arising in the other Contracting State may also be taxed in that other
   State.

Article 23

METHODS FOR ELIMINATION OF DOUBLE
TAXATION

1. In the
   case of Lao PDR, double taxation shall be eliminated as
   follows:

2. In the
   case of the Republiic of Indonesia, double taxation shall be eliminated as
   follows:

Article 24

NON-DISCRIMINATION

1. Nationals
   of a Contracting State shall not be subjected in the other Contracting State to any taxation
   or any requirement connected therewith, which is other or more burdensome than the taxation
   and connected requirements to which nationals of that other Contracting State in the same
   circumstances, in particular with respect to residence, are or may be
   subjected.
2. The
   taxation on a pennanent establishment which an enterprise of a Contracting State has in the
   other Contracting State shall not be less favorably levied in that other Contracting State
   than the taxation levied on enterprises of that other Contracting State carrying on the same
   activities. This provision shaH 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 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 Contracting State are or may be
   subjected.
4. Except
   where the provisions of paragraph 1 of Article 9, paragraph 8 of Article 11, or paragraph 6
   of Article 12 apply, interest, royalties and other disbursements paid by an enterprise of a
   Contracting State to a resident of the other Contracting State shall, for the purpose of
   determining the taxable profits of such enterprise, be deductible under the same conditions
   as if they had been paid to a resident of the first-mentioned Contracting
   State.
5. The
   provisions of this Article shall apply to the taxes which are the subject of this
   Agreement.

Article 25

MUTUAL AGREEMENT PROCEDURE

1. Where a
   person considers that the actions of one or both of the Contracting States result or
   will result for him in taxation not in accordance with the provisions of this Agreement, he
   may, irrespective of the remedies provided by the domestic laws of those Contracting States,
   present his case to the competent authority of the Contracting State of which he is a
   resident or, if his case comes under paragraph 1 of Article 24, to that of the Contracting
   State of which he is a national. The case must be presented within three years from the
   first notification of the action resulting in taxation not in accordance with the provisions
   of the Agreement. 
2. The
   competent authority shall endeavor, if the objection appears to it to be justified and if it
   is not itself able to arrive at a satisfactory solution, to resolve the case by mutual
   agreement with the competent authority of the other Contracting State, with a view to the
   avoidance of taxation which is not in accordance with this Agreement. Any agreement reached
   shall be implemented notwithstanding any time limits in the domestic laws of the Contracting
   States.
3. The
   competent authorities of the Contracting States shall endeavor to resolve by mutual
   agreement any difficulties or doubts arising as to the interpretation or application of this
   Agreement. They may also consult together for the elimination of double taxation in cases
   not provided for in this Agreement.
4. The
   competent authorities of the Contracting States may communicate with each other directly for
   the purpose of reaching an agreement in the sense of the preceding paragraphs. 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 26

EXCHANGE INFORMATION

1. The
   competent authorities of the Contracting States shall exchange such information as is
   foreseeably relevant for carrying out the provisions of this Agreement or to the
   administration or enforcement of the domestic laws of the Contracting States concerning
   taxes covered by this Agreement insofar as the taxation thereunder is not contrary to the
   Agreement as well as to prevent fiscal evasion. The exchange of information is not
   restricted by Article 1 and 2.
2. Any
   information received under paragraph 1 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)
   concerned with 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.
3. In no
   case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State
   the obligation:

4. If the
   information is requested by a Contracting state in accordance with this Article, the other
   Contracting State shall use its information gathering measures to obtain the requested
   information, even though that other State may not need such information for its own tax
   purposes. The obligation contained in the preceding sentence is subject to the limitations
   of paragraph 3, but in no case shall such limitations be construed to permit a Contracting
   state to decline to supply information solely because it has no domestic interest in such
   information.
5. In no
   case shall the provisions of paragraph 3 be construed to permit a Contracting State to
   decline to supply information solely because the information is held by a bank, other
   financial institution, nominee or person acting in an agency or a fiduciary capacity or
   because it relates to ownership interests in a person.
   The information shall be exchanged by the Contracting State in accordance with this Article
   irrespective of the procedures required by its domestic laws concerning banking or other
   financial institutions systems.

Article 27

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 28

ASSISTANCE IN COLLECTION

1. A
   Contracting State, upon request of the other Contracting State, undertakes to provide its
   assistance in the collection of taxes covered by this Agreement including
   penalties.
2. Requests
   for assistance by a Contracting State in the collection of these taxes shall include a
   certification by the competent authority of that State that, under the laws of that State,
   the said taxes have been finally determined.
3. Requests
   referred to in paragraph 2 shall be supported by an official copy of the instrument
   permitting the execution, accompanied where appropriate, by an official copy of any final
   administrative or judicial decision.
4. The
   request of a Contracting State that has been accepted for collection by the other
   Contracting State shall be fulfilled by this other State as though such request were related
   to its own tax.
5. With
   regard to tax claims which are open to appeal, the competent authority of a Contracting
   State may, in order to safeguard its rights, request the competent authority of the other
   Contracting State to take the protective measures.
6. Amounts
   collected by the competent authority of a Contracting State pursuant to this Article shall
   be forwarded to the competent authority of the other Contracting State. Except where the
   competent authorities of the Contracting States otherwise agree, the ordinary expenses
   incurred in providing assistance in the collection of taxes shall be borne by the requested
   State.
7. Nothing
   in this Article shall be construed so as to impose on a Contracting State the
   obligation:

Article 29

ENTRY INTO FORCE

Each of the Contracting States shall notify the other Contracting
State through diplomatic channels the completion of internal legal procedures for the entry into
force of this Agreement. This Agreement shall enter into force on the date of the later of these
notifications and shall thereupon have effect as follows:

Article 30

TERMINATION

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

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

Done in duplicate at Vientiane this 08^th day of
September two thousand and eleventh in Lao, Indonesian and English languages, all text being
equally authentic. In case of any divergence in the interpretation the English text shall
prevail.