Netherlands

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

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

CHAPTER I
SCOPE OF THE AGREEMENT

Article 1
PERSONAL SCOPE

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

Article 2
TAXES COVERED

1. This Agreement shall apply to
   taxes on income imposed on behalf of each of the two States or of its political subdivisions or local
   authorities, irrespective of the manner in which they are levied. 

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

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

   (a)	in the case of the Netherlands:
   	–	de inkomstenbelasting (income tax);
   	–	de loonbelasting (wages tax);
   	–	de vennootschapsbelasting (company tax) including the Government share in the net profits of the exploitation of natural resources levied pursuant to the Mining Act of 1810 (Mijnwet 1810) with respect to concessions issued from 1967, or pursuant to the Netherlands Continental Shelf Mining Act of 1965 (Mijnwet Continentaal Plat 1965);
   	–	de dividendbelasting (dividend tax);
   	(hereinafter referred to as “Netherlands tax”);
   (b)	in the case of Indonesia:
   	–	the income tax.
   	(hereinafter referred to as “Indonesian tax”).

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

CHAPTER II
DEFINITIONS

Article 3
GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise
   requires:

   (a)	the terms “one of the two States” and “the other State” mean Indonesia or the Netherlands, as the context requires; the term “the two States” means Indonesia and the Netherlands;
   (b)	the term “the Netherlands” comprises the part of the Kingdom of the Netherlands that is situated in Europe and the part of the seabed and its sub-soil under the North Sea, over which the Kingdom of the Netherlands has sovereign rights in accordance with international law;
   (c)	the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws, and parts of the continental shelf and adjacent seas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with international law;
   (d)	the term “person” comprises an individual, a company and any other body of persons;
   (e)	the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
   (f)	the terms “enterprise of one of the two States” and “enterprise of the other State” mean respectively an enterprise carried on by a resident of one of the two States and an enterprise carried on by a resident of the other State;
   (g)	the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of one of the two States, except when the ship or aircraft is operated solely between places in the other State;
   (h)	the term “nationals” means
   	(1)	all individuals possessing the nationality of one of the two States;
   	(2)	all legal persons, partnerships and associations deriving their status as such from the laws in force in one of the two States;
   (i)	the term “competent authority” means:
   	(1)	in the Netherlands, the Minister of Finance or his duly authorized representative;
   	(2)	in Indonesia, the Minister of Finance or his duly authorized representative.

2. As regards the application of the
   Agreement at any time by one of the two States, any term not defined therein shall, unless the context
   otherwise requires, have the meaning which it has at that time under the law of that State for the
   purpose of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that
   State prevailing over a meaning given to the term under other laws of that State.

Article 4
FISCAL DOMICILE

1. For the purposes of this
   Agreement, the term “resident of one of the two States” means any person who, under the law of that
   State, is liable to taxation therein by reason of his domicile, residence, place of management or any
   other criterion of a similar nature. 

2. For the purposes of this Agreement
   an individual, who is a member of a diplomatic or consular mission of one of the two States in the
   other State or in a third State and who is a national of the sending State, shall be deemed to be a
   resident of the sending State if he is submitted therein to the same obligations in respect of taxes
   on income as are residents of that State.

3. Where by reason of the provisions
   of paragraph 1 an individual is a resident of both States, then this case shall be determined in
   accordance with the following rules: 

   (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 closest (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 two States shall settle the question by mutual agreement.

4. Where by reason of the provisions
   of paragraph 1 a person other than an individual and other than an enterprise to which the provisions
   of Article 8 apply, is a resident of both States, then it shall be deemed to be a resident of the
   State in which its place of effective management is situated. If the competent authorities of the two
   States consider that a place of effective management is present in both States, they 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 in which the business of
   the enterprise is wholly or partly carried on. 

2. The term “permanent establishment”
   shall include especially:

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

3. The term “permanent establishment”
   likewise encompasses:

   (a)	a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than six months;
   (b)	the furnishing of services, including consultancy services, by an enterprise through an employee 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 12-month period.

4. The term “permanent establishment”
   shall not be deemed to include:

   (a)	the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;
   (b)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;
   (c)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
   (d)	the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise;
   (e)	the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise.

5. A person acting in one of the two
   States on behalf of an enterprise of the other State — other than an agent of an independent status
   to whom paragraph 7 applies — shall be deemed to be a permanent establishment in the first-mentioned
   State if: 

   (a)	he has, and habitually exercises in the first-mentioned State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise; or
   (b)	he maintains in the first-mentioned State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders on behalf of the enterprise.

6. An insurance enterprise of one of
   the two States shall, except with regard to reinsurance, be deemed to have a permanent establishment
   in the other State if it collects premiums in the territory of 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 one of the two
   States shall not be deemed to have a permanent establishment in the other 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 such a broker or agent carries on activities wholly or almost wholly for that enterprise
   itself or for that enterprise and other enterprises which are controlled by or have a controlling
   interest in it, 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 one of the two States controls or is controlled by a company which is a resident of the
   other State, or which carries on business in that other State (whether through a permanent
   establishment or otherwise), shall not of itself constitute either company a permanent establishment
   of the other. 

CHAPTER III
TAXATION OF INCOME

Article 6
INCOME FROM IMMOVABLE PROPERTY

1. Income from immovable property may
   be taxed in the State in which such property is situated.

2. The term “immovable property”
   shall be defined in accordance with the law of the State in which the property in question is
   situated. The term shall in any case include property accessory to immovable property, livestock and
   equipment used in agriculture and forestry, rights to which the provisions of general law respecting
   landed property apply, usufruct of immovable property and rights to variable or fixed payments as
   consideration for the working of, or the right to work, mineral deposits, sources and other natural
   resources; ships 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 professional services. 

Article 7
BUSINESS PROFITS

1. The profits of an enterprise of
   one of the two States shall be taxable only in that State unless the enterprise carries on business in
   the other 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 that permanent establishment or are derived within such other State from
   sales of goods or merchandise of the same kind as those sold, or from other business transactions of
   the same kind as those effected, through the permanent establishment. 

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

3. In the determination of the
   profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred
   for the purposes of the permanent establishment including executive and general administrative
   expenses so incurred, whether in the State in which the permanent establishment is situated or
   elsewhere. 

4. Insofar as it has been customary
   in one of the two States 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 State from determining the profits to be taxed by such an
   apportionment as may be customary; the method of apportionment adopted shall, however, be such that
   the result shall be in accordance with the principles laid down in this Article. 

5. No profits shall be attributed to
   a permanent establishment by reason of the mere purchase by that permanent establishment of goods or
   merchandise for the 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 AIRCRAFT

1. Profits from the operation of
   ships or aircraft in international traffic carried on by an enterprise of a State 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 but only to so much of them as is attributable to the participating enterprise in
   proportion to its share in such joint operation. 

Article 9
ASSOCIATED ENTERPRISES

1. Where:

   (a)	an enterprise of one of the two States participates directly or indirectly in the management, control or capital of an enterprise of the other State, or
   (b)	the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the two States and an enterprise of the other 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 one of the two States
   includes in the profits of an enterprise of that State — and taxes accordingly — profits on which an
   enterprise of the other State has been charged to tax in that other State and the profits so included
   are 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 in that State 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 two States shall, if
   necessary, consult each other. 

Article 10
DIVIDENDS

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

2. However, such dividends may also
   be taxed in the State of which the company paying the dividends is a resident and according to the
   laws of that State, but if the beneficial owner of the dividends is a resident of the other State, the
   tax so charged shall not exceed 10 per cent of the gross amount of the dividends. 

3. The competent authorities of the
   two States shall by mutual agreement settle the mode of application of paragraph 2.

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

5. The term “dividends” as used in
   this Article means income from shares, “jouissance” shares or “jouissance” rights, founders’ shares or
   other rights participating in profits, as well as income from debt-claims participating in profits and
   income from other corporate rights assimilated to income from shares by the taxation law of the State
   of which the company making the distribution is a resident. 

6. The provisions of paragraphs 1 and
   2 shall not apply if the recipient of the dividends, being a resident of one of the two States, has in
   the other State, of which the company paying the dividends is a resident, a permanent establishment
   with which the holding by virtue of which the dividends are paid is effectively connected. In such a
   case, the provisions of Article 7 shall apply. 

7. Where a company which is a
   resident of one of the two States derives profits or income from the other State, the other State may
   not impose any tax on the dividends paid by the company to persons who are not residents of that other
   State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the
   dividends paid or the undistributed profits consist wholly or partly of profits or income arising in
   such other State. 

8. Notwithstanding any other
   provisions of this Agreement, where a company which is a resident of one of the two States has a
   permanent establishment in the other 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 10 per cent 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 one of the two
   States and paid to a resident of the other State may be taxed in that other State.

2. However, such interest may also be
   taxed in the State in which it arises and according to the laws of that State, but if the beneficial
   owner of the interest is a resident of the other State, the tax so charged shall not exceed 10 per
   cent of the gross amount of the interest. 

3. Notwithstanding the provisions of
   paragraph 2, interest arising in one of the two States shall be taxable only in the other State to the
   extent that such interest is derived by: 

   (i)	the Government of the other State, including political subdivisions and local authorities thereof; or
   (ii)	the Central Bank of the other State; or
   (iii)	a financial institution owned or controlled by the Government of the other State, including political subdivisions and local authorities thereof; or
   (iv)	any resident of the other State with respect to debt-claims guaranteed or insured by the Government of the other State including political subdivisions and local authorities thereof, the Central Bank of the other State or any financial institution owned or controlled by that Government.

4. Notwithstanding the provision of
   paragraph 2, interest arising in one of the two States shall be taxable only in the other State if the
   beneficial owner of the interest is a resident of the other State and if the interest is paid on a
   loan made for a period of more than 2 years or is paid in connection with the sale on credit of any
   industrial, commercial or scientific equipment.

5. The competent authorities of the
   two States shall by mutual agreement settle the mode of application of paragraphs 2, 3 and 4. 

6. 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. However, the term “interest” does not include
   income dealt with in Article 10. 

7. The provisions of paragraphs 1 and
   2 shall not apply if the recipient of the interest, being a resident of one of the two States, has in
   the other State in which the interest arises a permanent establishment with which the debt-claim from
   which the interest arises is effectively connected. In such a case, the provisions of Article 7 shall
   apply. 

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

9. Where, owing to a special
   relationship between the payer and the recipient or between both of them and some other person, the
   amount of the interest paid, 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 recipient in the absence of such relationship,
   the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess
   part of the payments shall remain taxable according to the law of each State, due regard being had to
   the other provisions of this Agreement. 

Article 12
ROYALTIES

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

2. However, such royalties may also
   be taxed in the 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 per cent of
   the gross amount of the royalties. 

3. The term “royalties” as used in
   this Article means payments of any kind received as a consideration for the use of, or the right to
   use, any copyright of literary, artistic or scientific work — including cinematograph films and films
   or tapes used for radio or television broadcasting — any patent, trade mark, design or model, plan,
   secret formula or process, or for the use of, or the right to use, industrial, commercial or
   scientific equipment, or for information concerning industrial, commercial or scientific experience.
   However, the term does not include payments for the furnishing of technical services. 

4. The competent authorities of the
   two States shall by mutual agreement settle the mode of application of paragraph 2. 

5. The provisions of paragraphs 1 and
   2 shall not apply if the recipient of the royalties, being a resident of one of the two States, has in
   the other State in which the royalties arise a permanent establishment with which the right or
   property giving rise to the royalties is effectively connected. In such case, the provisions of
   Article 7 shall apply. 

6. Royalties shall be deemed to arise
   in one of the two States when the payer is that State itself, a political subdivision, a local
   authority or a resident of that State. Where, however, the person paying the royalties, whether he is
   a resident of one of the two States or not, has in one of the two States a permanent establishment in
   connection with which the contract under which the royalties are paid was concluded, and such
   royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in
   the State in which the permanent establishment is situated.

7. Where, owing to a special
   relationship between the payer and the recipient 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 recipient in the absence of
   such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In
   that case, the excess part of the payments shall remain taxable according to the law of each State,
   due regard being had to the other provisions of this Agreement. 

Article 13
LIMITATION OF ARTICLES 10, 11 AND 12

Article 14
CAPITAL GAINS

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

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

3. Gains from the alienation of ships
   or aircraft operated in international traffic or movable property pertaining to the operation of such
   ships and aircraft shall be taxable only in the State of which the enterprise is a resident.

4. Gains from the alienation of any
   property other than those mentioned in paragraphs 1, 2 and 3, shall be taxable only in the State of
   which the alienator is a resident. 

5. Notwithstanding the provisions of
   paragraph 4, one of the two States may, in accordance with its own laws, including the interpretation
   of the term alienation, levy tax on gains derived by an individual who is a resident of the other
   State from the alienation of shares in, jouissance rights or debt-claims on, a company whose capital
   is divided into shares and which, under the laws of the first-mentioned State, is a resident of that
   State, and from the alienation of part of the rights attached to the said shares, jouissance shares or
   debt-claims, if that individual either alone or with his or her spouse — or one of their relations by
   blood or marriage in the direct line — directly or indirectly holds at least 5 per cent of the issued
   capital of a particular class of shares in that company. This provision shall apply only if the
   individual who derives the gains has been a resident of the first-mentioned State in the course of the
   last ten years preceding the year in which the gains are derived and provided that, at the time he
   became a resident of the other State, the above-mentioned conditions regarding share ownership in the
   said company were satisfied. 
   In cases where, under the domestic laws of the first-mentioned State, an assessment has been issued to
   the individual in respect of the alienation of the aforesaid shares deemed to have taken place at the
   time of his emigration from the first-mentioned State, the above shall apply only in so far as part of
   the assessment is still outstanding.

Article 15
INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of
   one of the two States 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 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 91 days in any 12-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 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, dentists and accountants. 

Article 16
DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of
   Articles 17, 19, 20, 21 and 22 salaries, wages and other similar remuneration derived by a resident of
   one of the two States in respect of an employment shall be taxable only in that State unless the
   employment is exercised in the other 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 one of the two States in respect of an employment
   exercised in the other 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 in any twelve-month period commencing or ending in the fiscal year concerned, and
   (b)	the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
   (c)	the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding
   provisions of this Article, remuneration derived by a resident of one of the two States in respect of
   an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in
   the State of which the enterprise is a resident.

Article 17
DIRECTORS’ FEE

1. Remuneration and other payments
   derived by a resident of Indonesia in his capacity as a “bestuurder” or a “commissaris” of a company
   which is a resident of the Netherlands may be taxed in the Netherlands. 

2. Remuneration and other payments
   derived by a resident of the Netherlands in his capacity as a “pengurus” or a “komisaris” of a company
   which is a resident of Indonesia may be taxed in Indonesia. 

Article 18
ARTISTES AND ATHLETES

Article 19
PENSIONS, ANNUITIES AND SOCIAL SECURITY PAYMENTS

1. Subject to the provisions of
   paragraph 1 of Article 20, pensions and other similar remuneration and annuities and lump-sum payments
   in lieu of the right to an annuity, arising in one of the two States and paid to a resident of the
   other State, may be taxed in the first-mentioned State. 

2. Any pension and other payment paid
   out under the provisions of a social security system of one of the two States to a resident of the
   other State may be taxed in the first-mentioned 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 payments in return for adequate and full consideration in money or
   money’s worth. 

4. A pension or other similar
   remuneration or annuity is deemed to be derived from one of the two States if and insofar as the
   contributions or payments associated with the pension or similar remuneration or annuity, or the
   entitlements received from it qualified for tax relief in that State. The transfer of a pension from a
   pension fund or an insurance company in one of the two States to a pension fund or an insurance
   company in another State will not restrict in any way the taxing rights of the first-mentioned State
   under this Article. 

Article 20
GOVERNMENTAL FUNCTIONS

1. Remuneration, including pensions,
   paid by, or out of funds created by, one of the two States or a political subdivision or a local
   authority thereof to any individual in respect of services rendered to that State or subdivision or
   local authority thereof in the discharge of functions of a governmental nature may be taxed in that
   State. 

2. Notwithstanding paragraph 1, the
   provisions of Article 16, 17 or 19 shall apply to remuneration or pensions in respect of services
   rendered in connection with any trade or business carried on by one of the two States or a political
   subdivision or a local authority thereof. 

3. Paragraph 1 shall not apply in so
   far as services are rendered to a State in the other State by an individual who is a resident and a
   national of that other State.

Article 21
PROFESSORS AND TEACHERS

Article 22
STUDENTS

1. An individual who immediately
   before visiting one of the two States is a resident of the other State and is temporarily present in
   the first-mentioned State for the primary purpose of: 

   (a)	studying at a recognised university, college or school in that first-mentioned State; or
   (b)	securing training as a business apprentice,
   shall be exempt from tax in the first-mentioned State in respect of:
   (i)	all remittances from abroad for the purpose of his maintenance, education or training; and
   (ii)	any remuneration for personal services performed in the first-mentioned State in an amount that does not exceed an amount to be determined by the competent authorities by mutual agreement, for any taxable year.
   The benefits under this paragraph shall only extend for such period of time as may be reasonable or customarily required to effectuate the purpose of the visit.

2. An individual who immediately
   before visiting one of the two States is a resident of the other State and is temporarily present in
   the first-mentioned State for a period not exceeding three years for the purpose of study, research or
   training solely as a recipient of a grant, allowance or award from a scientific, educational,
   religious or charitable organization or under a technical assistance programme entered into by one of
   the two States, a political subdivision or a local authority thereof shall be exempted from tax in the
   first-mentioned State on: 

   (a)	the amount of such grant, allowance or award; and
   (b)	any remuneration for personal services performed in the first-mentioned State provided such services are in connection with his study, research or training or are incidental thereto, to an amount that does not exceed an amount to be determined by the competent authorities by mutual agreement, for any taxable year.

3. An individual who immediately
   before visiting one of the two States is a resident of the other State and is temporarily present in
   the first-mentioned State for a period not exceeding twelve months as an employee of, or under
   contract with the last-mentioned State, a political subdivision or a local authority thereof, or an
   enterprise of the last-mentioned State, for the purpose of acquiring technical, professional or
   business experience, shall be exempted from tax in the first-mentioned State on:

   (a)	all remittances from the last-mentioned State for the purpose of his maintenance, education or training; and
   (b)	any remuneration for personal services performed in the first-mentioned State, provided such services are in connection with his study or training or are incidental thereto, in an amount that does not exceed an amount to be determined by the competent authorities by mutual agreement.

However, the benefits under this
paragraph shall not be granted if the technical, professional or business experience is acquired from a
company 50 per cent or more of the voting stock of which is owned by the State, the political subdivision
or the local authority thereof or the enterprise, having sent the employee or the person working under
contract.

Article 23
OTHER INCOME

1. Items of income of a resident of
   one of the two States, wherever arising, not dealt with in the foregoing Articles of this Agreement,
   and other than income in the form of lotteries and prizes, shall be taxable only in that State. 

2. The provisions of paragraph 1
   shall not apply to income, other than income from immovable property as defined in paragraph 2 of
   Article 6, if the recipient of such income, being a resident of one of the two States, carries on
   business in the other 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.

CHAPTER IV

Article 24
ELIMINATION OF DOUBLE TAXATION

1. Each of the two States, when
   imposing tax on its residents, may include in the basis upon which such taxes are imposed, the items
   of income, which according to the provisions of this Agreement may be taxed in the other State. 

2. Where a resident of Indonesia
   derives items of income which may be taxed in the Netherlands in accordance with the provisions of
   this Agreement and are included in the basis referred to in paragraph 1, the amount of the Netherlands
   tax payable in respect of the income shall be allowed as a credit against the Indonesian tax imposed
   on that resident. The amount of credit, however, shall not exceed that part of the Indonesian tax
   which is appropriate to such income. 

3. Where a resident of the
   Netherlands derives items of income which according to Article 6, Article 7, paragraph 6 of Article
   10, paragraph 7 of Article 11, paragraph 5 of Article 12, paragraphs 1 and 2 of Article 14, Article
   15, paragraph 1 of Article 16, Article 19, Article 20, and paragraph 2 of Article 23, of this
   Agreement may be taxed in Indonesia and are included in the basis referred to in paragraph 1, the
   Netherlands shall exempt such items of income by allowing a reduction of its tax. This reduction shall
   be computed in conformity with the provisions of the Netherlands law for the avoidance of double
   taxation. For that purpose the said items of income shall be deemed to be included in the total amount
   of the items of income which are exempt from the Netherlands tax under those provisions. 

4. Further, the Netherlands shall
   allow a deduction from the Netherlands tax so computed for the items of income which according to
   paragraph 2 of Article 10, paragraph 2 of Article 11, paragraph 2 of Article 12, paragraph 5 of
   Article 14, paragraph 1 of Article 17, and Article 18, of this Agreement may be taxed in Indonesia to
   the extent that these items are included in the basis referred to in paragraph 1. The amount of this
   deduction shall be equal to the tax paid in Indonesia on these items of income, but shall not exceed
   the amount of the reduction which would be allowed if the items of income so included were the sole
   items of income which are exempt from the Netherlands tax under the provisions of the Netherlands law
   for the avoidance of double taxation. 

CHAPTER V
SPECIAL PROVISIONS

Article 25
OFFSHORE ACTIVITIES

1. The provisions of this Article
   shall apply notwithstanding any other provisions of this Agreement. However, this Article shall not
   apply where offshore activities of a person constitute for that person a permanent establishment under
   the provisions of Article 5 or a fixed base under the provisions of Article 15. 

2. In this Article the term “offshore
   activities” means activities which are carried on offshore in connection with the exploration or
   exploitation of the seabed and its sub-soil and their natural resources, situated in one of the two
   States. 

3. An enterprise of one of the two States which carries on offshore activities in
   the other State shall, subject to paragraph 4 of this Article, be deemed to be carrying on, in
   respect of those activities, business in that other State through a permanent establishment situated
   therein, unless the offshore activities in question are carried on in the other State for a period
   or periods not exceeding in the aggregate 30 days in any period of 12 months.

    

   For the purposes of this paragraph:

    

   (a)

   where an enterprise of one of the two States carrying on offshore activities in the other State is associated with another enterprise and that other enterprise continues, as part of the same project, the same offshore activities that are or were being carried on by the first-mentioned enterprise, and the afore-mentioned activities carried on by both enterprises — when added together — exceed a period of 30 days, then each enterprise shall be deemed to be carrying on its activities for a period exceeding 30 days in a 12-month period;

   (b)

   an enterprise of one of the two States shall be regarded as associated with another enterprise if one holds directly or indirectly at least one third of the capital of the other enterprise or if a person holds directly or indirectly at least one third of the capital of both enterprises.

4. However, for the purposes of
   paragraph 3 of this Article the term “offshore activities” shall be deemed not to include:

   (a)	one or any combination of the activities mentioned in paragraph 4 of Article 5;
   (b)	towing or anchor handling by ships primarily designed for that purpose and any other activities performed by such ships;
   (c)	the transport of supplies or personnel by ships or aircraft in international traffic.

5. A resident of a State who carries
   on offshore activities in the other State, which consist of professional services or other activities
   of an independent character, shall be deemed to be performing those activities from a fixed base in
   the other State if the offshore activities in question last for a continuous period of 30 days or
   more. 

6. Salaries, wages and other similar
   remuneration derived by a resident of a State in respect of an employment connected with offshore
   activities carried on through a permanent establishment in the other State may, to the extent that the
   employment is exercised offshore in that other State, be taxed in that other State.

7. Where documentary evidence is
   produced that tax has been paid in one of the States on the items of income which may be taxed in that
   State according to Article 7 and Article 15 in connection with respectively paragraph 3 and paragraph
   5 of this Article, and to paragraph 6 of this Article, the other State shall allow a reduction of its
   tax which shall be computed in conformity with the rules laid down in paragraph 2 of Article 24
   respectively paragraph 3 of Article 24. 

Article 26
NON-DISCRIMINATION

1. Nationals of one of the two States
   shall not be subjected in the other 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
   both of the two States. 

2. The taxation on a permanent
   establishment which an enterprise of one of the two States has in the other 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 one of the two
   States to grant to residents of the other 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 9 of Article 11, or paragraph 7 of Article 12, apply, interest,
   royalties and other disbursements paid by an enterprise of one of the two States to a resident of the
   other 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 one of the two
   States, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one
   or more residents of the other 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. Contributions paid by, or on
   behalf of, an individual who is a resident of one of the two States to a pension plan that is
   recognized for tax purposes in the other State will be treated in the same way for tax purposes in the
   first-mentioned State as a contribution paid to a pension plan that is recognized for tax purposes in
   that first-mentioned State, provided that: 

   (a)	such individual was contributing to such pension plan before he became a resident of the first-mentioned State; and
   (b)	the competent authority of the first-mentioned State agrees that the pension plan corresponds to a pension plan recognized for tax purposes by that State.

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

Article 27
MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the
   actions of one or both of the two 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 State of which he is a
   resident or, if his case comes under paragraph 1 of Article 26, to that of the 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 an
   appropriate solution, to resolve the case by mutual agreement with the competent authority of the
   other State, with a view to the avoidance of taxation not in accordance with this Agreement. 

3. The competent authorities of the
   two States shall endeavour 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
   two States may communicate with each other directly for the purpose of reaching an agreement in the
   sense of the preceding paragraphs.

Article 28
EXCHANGE OF INFORMATION

1. The competent authorities of the
   two States shall exchange such information as is necessary for carrying out the provisions of this
   Agreement or of the domestic laws of the two States concerning taxes covered by the Agreement in so
   far as the taxation thereunder is not contrary to the Agreement. The exchange of information is not
   restricted by Article 1. Any information received by one of the two States 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 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 one of the two States the obligation:

   (a)	to carry out administrative measures at variance with the laws or administrative practice of that or of the other 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 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 29
DIPLOMATIC AND CONSULAR OFFICIALS

Article 30
TERRITORIAL EXTENSION

1. This Agreement may be extended,
   either in its entirety or with any necessary modifications, to either or both of the countries Aruba
   or the Netherlands Antilles, if the country concerned imposes taxes substantially similar in character
   to those to which this Agreement applies. Any such extension shall take effect from such date and
   subject to such modifications and conditions, including conditions as to termination, as may be
   specified and agreed in notes to be exchanged through diplomatic channels.

2. Unless otherwise agreed the
   termination of the Agreement shall not also terminate the application of the Agreement to any country
   to which it has been extended under this Article.

CHAPTER VI
FINAL PROVISIONS

Article 31
ENTRY INTO FORCE

Article 32
TERMINATION

PROTOCOL

1. With reference to subparagraph (e)
   of paragraph 1 of Article 3
   In case an entity that is treated as a body corporate for tax purposes is liable as such to tax in a
   State, but the income of that entity is taxed in the other State respectively as income of the
   participants in that entity, the competent authorities shall take such measures that on the one hand
   no double taxation remains, but on the other hand it is prevented that merely as a result of
   application of the Agreement income is (partly) not subject to tax.

2. With reference to Article 4
   An individual living aboard a ship without any real domicile in either of the States shall be deemed
   to be a resident of the State in which the ship has its home harbour.

3. With reference to paragraph 3 of
   Article 5
   It is understood that representative offices which operate in Indonesia on a permit given by the
   Indonesian Ministry of Finance or the Indonesian Ministry of Trade, shall not constitute a permanent
   establishment, unless they carry on business activities other than activities which have a preparatory
   or auxiliary character.

4. With reference to Article 7
   In respect of paragraphs 1 and 2 of Article 7, where an enterprise of one of the two States sells
   goods or merchandise or carries on business in the other State through a permanent establishment
   situated therein, the profits of that permanent establishment shall not be determined on the basis of
   the total amount received by the enterprise, but shall be determined only on the basis of the
   remuneration which is attributable to the actual activity of the permanent establishment for such
   sales or business. Especially, in the case of contracts for the survey, supply, installation or
   construction of industrial, commercial or scientific equipment or premises, or of public works, when
   the enterprise has a permanent establishment, the profits of such permanent establishment shall not be
   determined on the basis of the total amount of the contract, but shall be determined only on the basis
   of that part of the contract which is effectively carried out by the permanent establishment in the
   State where the permanent establishment is situated. The profits related to that part of the contract
   which is carried out by the head office of the enterprise shall be taxable only in the State of which
   the enterprise is a resident.

5. With reference to Article 7
   In the application of paragraph 3 of Article 7, no deduction shall be allowed in respect of amounts
   charged — otherwise than with respect to expenses actually incurred — by the head office of the
   enterprise or any of its other offices to the permanent establishment, by way of royalties, fees or
   other similar payments in return for the use of patents or other rights, or by way of commission, for
   specific services performed or for management, or, except in the case of a banking enterprise, by way
   of interest on moneys made available to the permanent establishment. Likewise, no account shall be
   taken, in the determination of the profits of a permanent establishment, for such amounts charged —
   otherwise than with respect to expenses actually incurred — by the permanent establishment to the
   head office of the enterprise or any of its other offices.

6. With reference to Article 9
   It is understood, however, that the fact that associated enterprises have concluded arrangements, such
   as cost sharing arrangements or general services agreements, for or based on the allocation of
   executive, general administrative, technical and commercial expenses, research and development
   expenses and other similar expenses, is not in itself a condition as meant in paragraph 1 of Article
   9.

7. With reference to paragraph 3
   subparagraph (iii) of Article 11
   A financial institution as mentioned in paragraph 3 subparagraph (iii) of Article 11, includes
   especially: the Netherlands Development Finance Company (Nederlandse Financierings-Maatschappij voor
   Ontwikkelingslanden N.V.), and the Netherlands Investment Bank for Developing Countries (Nederlandse
   Investeringsbank voor Ontwikkelingslanden N.V.).

8. With reference to Articles 10, 11
   and 12
   Where tax has been levied at source in excess of the amount of tax chargeable under the provisions of
   Articles 10, 11 and 12, applications for the refund of the excess amount of tax have to be lodged with
   the competent authority of the State having levied the tax, within a period of three years after the
   expiration of the calendar year in which the tax has been levied.

9. With reference to Article 12
   In respect of paragraph 3 of Article 12, the term studies or surveys of a scientific, geological or
   technical services includes or technical nature, engineering contracts including blue prints related
   thereto, and consultancy or supervisory services.

10. With reference to Article 28
    It is understood that, notwithstanding the fourth sentence in paragraph 1 of Article 28, such persons
    or authorities may use the information received for the levying of any national taxes and in case of
    the Netherlands also social security.

PROTOCOL AMENDING THE
AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS
FOR
THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, AND ITS
PROTOCOL, SIGNED AT JAKARTA ON JANUARY 29, 2002

THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS,

DESIRING to conclude a Protocol to amend the Agreement between the Government of the Republic of Indonesia
and the Government of the Kingdom of the Netherlands for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income, and its Protocol, signed at Jakarta on
January 29, 2002 (hereinafter referred to as “the Agreement”),

HAVE AGREED as follows:

Article 1

Paragraph 2 of Article 10 shall be replaced by the following paragraph:
“2. However, such dividends may also be taxed in the State of which the company paying the dividends is a
resident and according to the laws of that State, but if the beneficial owner of the dividends is a
resident of the other State, the tax so charged shall not exceed:

a) 5 per cent
of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which
holds directly at least 25 per cent of the capital of the company paying the dividends;
b) 10 per cent of the gross amount of the dividends if the beneficial owner is a pension fund that is
recognized and controlled according to the statutory provisions of one of the two States and the income of
which is generally exempt from tax in the State according to whose statutory provisions it is recognized
and controlled;
c) 15 per cent of the gross amount of the dividends in all other cases.”.

Article 2

Paragraph 4 of Article 11 shall be replaced by the following paragraph:
“4. Notwithstanding the provisions of paragraph 2, interest arising in one of the two States may also be
taxed in the State in which it arises and according to the laws of that State, but if the beneficial owner
of the interest is a resident of the other State and if the interest is paid on a loan made for a period
of more than 2 years or is paid in connection with the sale on credit of any industrial, commercial or
scientific equipment, the tax so charged shall not exceed 5 per cent of the gross amount of the
interest.”.

Article 3

a) In paragraph 3 of Article 24 of the Agreement, the words “paragraph 1 of Article 16” shall be replaced
by the words: “paragraphs 1 and 3 of Article 16”;
b) In paragraph 4 of Article 24 of the Agreement, the words “paragraph 2 of Article 11” shall be replaced
by the words: “paragraphs 2 and 4 of Article 11 “.

Article 4

Article 28 shall be replaced in its entirety by the following Article:

“Article 28
Exchange of information

1. The competent authorities of
   the two 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 concerning
   taxes of every kind and description imposed on behalf of the two States, or of their political
   subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement.
   The exchange of information is not restricted by Articles 1 and 2.
2. Any information received under
   paragraph 1 by one of the two States 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, the determination of appeals in relation to the taxes referred
   to in paragraph 1, or the oversight of the above. 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 the previous paragraphs be construed so as to impose on either State the obligation:

a) to carry
out administrative measures at variance with the laws and administrative practice of that or of the other
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 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).

4. If information is requested by
   one of the two States in accordance with this Article, the other 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 either 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 either 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.”.

Article 5

The following Article shall be inserted after Article 28 of the Agreement:

“Article 28A
Assistance in the Collection of Taxes

1. The two States shall lend
   assistance to each other in the collection of revenue claims. This assistance is not restricted by
   Articles 1 and 2. The competent authorities of the two States may by mutual agreement settle the mode of
   application of this Article. No request for assistance may be made if the total amount of the relevant
   claim is less than EUR 1,500.
2. The term “revenue claim” as
   used in this Article means an amount owed in respect of taxes of every kind and description imposed on
   behalf of the States, insofar as the taxation thereunder is not contrary to this Agreement or any other
   instrument to which the States are parties, as well as interest. administrative penalties and costs of
   collection or conservancy related to such amount.
3. The provisions of this Article
   shall apply only to a revenue claim that forms the subject of an instrument permitting enforcement in
   the applicant State and, unless otherwise agreed between the competent authorities, that is not
   contested. However, where the claim relates to a liability to tax of a person as a non-resident of the
   applicant State, this Article shall only apply, unless otherwise agreed between the competent
   authorities, where the claim may no longer be contested. The revenue claim shall be collected by that
   other State in accordance with the provisions of its laws applicable to the enforcement and collection
   of its own taxes as if the revenue claim were a revenue claim of that other State.
4. When a revenue claim of a
   State is a claim in respect of which that State may, under its law, take measures of conservancy with a
   view to ensure its collection. that revenue claim shall, at the request of the competent authority of
   that State, be accepted for purposes of taking measures of conservancy by the competent authority of the
   other State. That other State shall take measures of conservancy in respect of that revenue claim in
   accordance with the provisions of its laws as if the revenue claim were a revenue claim of that other
   State even if, at the time when such measures are applied, the revenue claim is not enforceable in the
   first-mentioned State or is owed by a person who has a right to prevent its collection.
5. Notwithstanding the provisions
   of paragraphs 3 and 4, a revenue claim accepted by a State for purposes of paragraph 3 or 4 shall not,
   in that State, be subject to the time limits or accorded any priority applicable to a revenue claim
   under the laws of that State by reason of its nature as such and, unless otherwise agreed between the
   competent authorities, cannot be collected by imprisonment for debt of the debtor. In addition, a
   revenue claim accepted by a State for the purposes of paragraph 3 or 4 shall not, in that State, have
   any priority applicable to that revenue claim under the laws of the other State.
6. Proceedings with respect to
   the existence, validity or the amount of a revenue claim of a State shall not be brought before the
   courts or administrative bodies of the other State.
7. Where, at any time after a
   request has been made by a State under paragraph 3 or 4 and before the other State has collected and
   remitted the relevant revenue claim to the first-mentioned State, the relevant revenue claim ceases to
   be:

a) in the case
of a request under paragraph 3, a revenue claim of the firstmentioned State that is enforceable under the
laws o,f that State and is owed by a person who, at that time, cannot, under the laws of that State,
prevent its collection, or
b) in the case of a request under paragraph 4, a revenue claim of the firstmentioned State in respect of
which that State may, under its laws. take measures of conservancy with a view to ensure its collection,
the competent authority of the first-mentioned State shall promptly notify the competent authority of the
other State of that fact and, at the option of the other State, the first-mentioned State shall either
suspend or withdraw its request.

8. In no case shall the
   provisions of this Article be construed so as to impose on a State the obligation:

a) to carry
out administrative measures at variance with the laws and administrative practice of that or of the other
State;
b) to carry out measures which would be contrary to public policy (ordre public);
c) to provide assistance if the other State has not pursued all reasonable measures of collection or
conservancy, as the case may be, available under its laws or administrative practice;
d) to provide assistance in those cases where the administrative burden for that State is clearly
disproportionate to the benefit to be derived by the other State.”

Article 6

The following Article shall be inserted before Article I of the Protocol to the Agreement:

“General

Subject to any reservations,
observations or positions as the case may be to the OECD Model Tax Convention or its Commentary made by
either State, the two States shall interpret the provisions of the Agreement which are identical or in
substance similar to the provisions of the OECD Model Tax Convention on Income and on Capital, in
accordance with the OECD Commentary thereon at the moment of signing the Agreement and any subsequent
clarifying modifications of such Commentary. Especially, the two States shall interpret the term
‘beneficial owner’ used in the Agreement in accordance with the interpretation thereof as published by the
OECD at the moment of signing the Agreement and any subsequent clarifying modifications of such OECD
interpretation.”.

Article 7

The following Article shall be inserted after Article X of the Protocol to the Agreement:

“XI With reference to Article 28

The provisions of Article 28
shall also apply accordingly to information that is foreseeable relevant for carrying out income-related
regulations if the Netherlands tax administration is in charge of implementing and enforcing such
income-related regulations. Information received under this Protocol shall be used only for the purpose of
levying the contributions, granting the benefits or
determining the extent of these contributions and benefits derived from incomerelated regulations.”.

Article 8

Article VIII of the Protocol to the Agreement shall be replaced by;

“1 . Where tax has been levied at
source in excess of the amount of tax chargeable under the provisions of Articles 10, 11 and 12,
applications for the refund of the excess amount of tax have to be lodged with the competent authority of
the State having levied the tax, within a period of three years after the expiration of the calendar year
in which the tax has been levied.
2. It is understood that no mutual agreement on the mode of application of Articles 10, 11 and 12, is
required for the application of these Articles.”.

Article 9

This Protocol shall form an
integral part of the Agreement, and its Protocol.

Article 10

Each State shall notify to the
other the completion of the procedures required by its law for the bringing into force of this Protocol.
It shall enter into force on the first day of the second month following the later of the dates on which
the respective Governments have notified each other in writing through diplomatic channels. The provisions
of this Protocol shall for the first time have effect for amounts paid or credited on or after the first
day of the second month next following the date on which the Protocol enters into force.

IN WITNESS whereof the
undersigned, being duly authorised thereto by their respective Governments, have signed this Protocol.
DONE at Jakarta this thirtieth day of July 2015 in duplicate, in the Indonesians, Netherlands and English
languages, the three texts being equally authentic. In the event of there being a divergence in the
interpretation and the application of this Protocol, the English text shall prevail.