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
- 
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.
- 
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.
- 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”).
- 
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
- 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. 
- 
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
- 
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.
- 
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.
- 
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.
- 
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
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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
- 
Income from immovable property may 
 be taxed in the State in which such property is situated.
- 
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.
- 
The provisions of paragraph 1 
 shall apply to income derived from the direct use, letting, or use in any other form of immovable
 property.
- 
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
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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
- 
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.
- 
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
- 
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.
- 
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
- 
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.
- 
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.
- 
The competent authorities of the 
 two States shall by mutual agreement settle the mode of application of paragraph 2.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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
- 
Interest arising in one of the two 
 States and paid to a resident of the other State may be taxed in that other State.
- 
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.
- 
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.
- 
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.
- 
The competent authorities of the 
 two States shall by mutual agreement settle the mode of application of paragraphs 2, 3 and 4.
- 
The term “interest” as used in 
 this Article means income from debt-claims of every kind, whether or not secured by mortgage and
 whether or not carrying a right to participate in the debtor’s profits, and, in particular, income
 from government securities and income from bonds or debentures, including premiums and prizes
 attaching to such securities, bonds or debentures. 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.
- 
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.
- 
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.
- 
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
- 
Royalties arising in one of the 
 two States and paid to a resident of the other State may be taxed in that other State.
- 
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.
- 
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.
- 
The competent authorities of the 
 two States shall by mutual agreement settle the mode of application of paragraph 2.
- 
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.
- 
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.
- 
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
thereof and members of a diplomatic or consular mission of a third State, being present in one of the two
States, shall not be entitled, in the other State, to the reductions from tax provided for in Articles 10,
11 and 12 in respect of the items of income dealt with in these Articles and arising in that other State,
if such items of income are not subject to a tax on income in the first-mentioned State.
Article 14
                CAPITAL GAINS
- 
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.
- 
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.
- 
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.
- 
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.
- 
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
- 
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.
- 
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
- 
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.
- 
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.
- 
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
- 
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.
- 
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
income derived by public entertainers, such as theatre, motion picture, radio or television artists, and
musicians, and by athletes, from their personal activities as such, or income derived from the furnishing
by an enterprise of the services of such public entertainers or athletes, may be taxed in the State in
which these activities or services are exercised.
Article 19
                PENSIONS, ANNUITIES AND SOCIAL SECURITY PAYMENTS
- 
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.
- 
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.
- 
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.
- 
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
- 
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.
- 
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.
- 
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
a period not exceeding two years, for the purpose of teaching at a university, college, school or other
educational institution or at a non-commercial and non-industrial research institute in that State and who
immediately prior to such sojourn is a resident of the other State, shall not be taxed in the
first-mentioned State in respect of any payments which he receives for such activity.
Article 22
                STUDENTS
- 
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.
- 
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.
- 
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
- 
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.
- 
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
- 
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.
- 
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.
- 
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.
- 
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
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
In this Article the term 
 “taxation” means taxes which are the subject of this Agreement.
Article 27
                MUTUAL AGREEMENT PROCEDURE
- 
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.
- 
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.
- 
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.
- 
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
- 
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.
- 
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
officials under the general rules of international law or under the provisions of special agreements.
Article 30
                TERRITORIAL EXTENSION
- 
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.
- 
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
respective Governments notify each other in writing through diplomatic channels, that the formalities
constitutionally required in their respective States for the entry into force of this Agreement have been
complied with. This Agreement shall have effect:
| (a) | in respect of tax withheld at | 
| (b) | in respect of other taxes on | 
Article 32
                TERMINATION
terminate the Agreement, through diplomatic channels, by giving written notice of termination on or before
the thirtieth of June of any calendar year following after the period of five years from the year in which
the Agreement enters into force. In such case, the Agreement shall cease to have effect:
| (a) | in respect of tax withheld at | 
| (b) | in respect of other taxes on | 
Agreement.
Netherlands, Indonesian and English languages, the three texts being equally authentic. In case there is
any divergence of interpretation between the Indonesian and Netherlands texts, the English text shall
prevail.
| For the Government of | For the Government of | 
PROTOCOL
prevention of fiscal evasion with respect to taxes on income, this day concluded between the Government of
the Kingdom of the Netherlands and the Government of the Republic of Indonesia the undersigned have agreed
that the following provisions shall form an integral part of the Agreement.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.
- 
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.).
- 
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.
- 
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.
- 
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.
Netherlands, Indonesian and English languages, the three texts being equally authentic. In case there is
any divergence of interpretation between the Indonesian and Netherlands texts, the English text shall
prevail.
| For the Government of | For the Government of | 
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
- 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.
- 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.
- 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).
- 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.
- 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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
| For the Government of | For the Government of | 
