New Zealand

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF NEW ZEALAND

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

Article 1
PERSONAL SCOPE

Article 2
TAXES COVERED

1. The existing taxes to which the
   Agreement shall apply are :

   (a)	in New Zealand :
   	(i)	the income tax; and
   	(ii)	the excess retention tax,
   	(hereinafter referred to as “New Zealand tax”);
   (b)	in Indonesia : the income tax (pajak-penghasilan), (hereinafter referred to as “Indonesian tax”).

2. The Agreement shall apply also
   to
   any identical or substantially similar taxes, which are imposed after
   the date of signature of the Agreement in addition to, or in place of,
   the existing taxes. The competent authorities of the Contracting States
   shall notify each other of any significant changes, which have been
   made in their respective taxation laws. 

Article 3
GENERAL DEFINITIONS

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

   (a)	(i)	the term “New Zealand” means the territory of New Zealand but does not include Tokelau or the Associated Self Governing State of the Cook Island and Niue; it also includes any area beyond the territorial sea which by New Zealand legislation and in accordance with international law has been or may hereafter be, designated as an area in which the rights of New Zealand with respect to natural resources may be exercised;
   	(ii)	the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws and the adjacent areas over which the Republic of Indonesia has sovereign rights or jurisdiction in accordance with the provisions of the United Nations Convention on the Law of the Sea, 1982;
   (b)	the term “a Contracting State” and “the other Contracting State” mean New Zealand or Indonesia as the context requires;
   (c)	the term “person” includes an individual, a company and any other body of persons;
   (d)	tthe term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
   (e)	the terms ” enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively and enterprise carried on by a resident of a Contracting State and an enterprise carried on by resident of the other Contracting State;
   (f)	the term “national” means:
   	(i)	in respect of New Zealand, any individual possessing citizenship of New Zealand and any legal person, partnership or association deriving its status as such from the law in force in New Zealand;
   	(ii)	in respect of Indonesia, any individual possessing the nationality of Indonesia and any legal person, partnership or association deriving its status as such from the law in force in Indonesia;
   (g)	the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
   (h)	the term “competent authority” means :
   	(i)	in the case of New Zealand, the Commissioner of Inland Revenue or his authorized representative;
   	(ii)	in the case of Indonesia, the Minister of Finance or his authorized representative.

2. In the Agreement, the term “New
   Zealand tax” and “Indonesian tax” do not include any charge imposed as
   a penalty or interest under the law of either Contracting State
   relating to the taxes to which the Agreement applies.

3. As regards the application of
   the
   Agreement by a Contracting State, any term not defined therein shall,
   unless the context otherwise requires, have the meaning which it has
   under the laws of that State concerning the taxes to which the
   Agreement applies. 

Article 4
RESIDENT

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

2. Whereby reason of the provisions
   of
   paragraph 1 an individual is a resident of both Contracting States,
   then this status shall be determined as follows:

   (a)	he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with his personal and economic relations are closer (centre of vital interests);
   (b)	if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be resident of the State in which he has an habitual abode;
   (c)	if he has a habitual abode in both States or in neither of them, the competent authorities of the Contracting State shall endeavour to settle the question by mutual agreement.

3. Where, by reason of the
   provisions
   of paragraph 1, a person other than an individual is a resident of both
   Contracting States, the competent authorities of the Contracting State
   shall endeavour to settle the question by mutual agreement having
   regard to its day management, the place where it is incorporated or
   otherwise constituted and any other relevant factors. 

Article 5
PERMANENT ESTABLISHMENT

1. For the purpose of this
   Agreement,
   the term “permanent establishment” means a fixed place of business
   through which the business of an enterprise is wholly or partly carried
   on. 

2. The term “permanent
   establishment”
   includes especially:

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

3. The term “permanent
   establishment”
   includes especially: 

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

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

   (a)	the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;
   (b)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;
   (c)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
   (d)	the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or 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;
   (f)	the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions
   of
   paragraph 1 and 2, where a person – other than an agent of an
   independent status to whom paragraph 6 applies – is acting in a
   Contracting State on behalf of an enterprise of the other Contracting
   State, that enterprise shall be deemed to have a permanent
   establishment in the first-mentioned State in respect of any activities
   which that person undertakes for the enterprise, if such a
   person: 

   (a)	has and habitually exercises in that State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph; or
   (b)	has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise.

6. An enterprise of a Contracting
   State shall not be deemed to have a permanent establishment in the
   other Contracting State merely because it carries on business in that
   State through a broker, general commission agent or any other agent of
   an independent status, provided that such persons are acting in the
   ordinary course of their business. However, where the activities of
   such an agent are devoted wholly or almost wholly on behalf of that
   enterprise, he shall be considered an agent of dependent status and
   that enterprise shall be deemed to have a permanent establishment in
   that State.

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

Article 6
INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of
   a
   country of a Contracting State from immovable property (including
   income from agriculture or forestry) situated in the other Contracting
   State may be taxed in that other State. 

2. The term “immovable property”
   shall
   have the meaning which it has under the law of the Contracting State in
   which the property in question is situated. The term shall in any case
   include property accessory to immovable property, livestock and
   equipment used in agriculture 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
   considerations for the working of, or the rights to work, mineral
   deposits, sources and other natural resources; ships, boats and
   aircraft shall not be regarded as immovable property. 

3. The provisions of paragraph 1
   shall
   also apply to income derived from the direct use, letting, or use in
   any other form of immovable property. 

4. The provisions of paragraphs 1
   and
   3 shall also apply to the income from immovable property of an
   enterprise and to income from immovable property used for the
   performance of independent personal services. 

Article 7
BUSINESS PROFITS

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

   (a)	that permanent establishment; or
   (b)	sales within that other Contracting State of goods or merchandise of the same or similar kind as those being sold, or other business activities of the same or similar kind as those being carried on through that permanent establishment if the sale or the business activities had been made or carried on in that way with a view to avoiding taxes in that other State.

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

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

4. Insofar as it has been customary
   in
   a Contracting State to determine the profits to be attributed to a
   permanent establishment on the basis of a certain percentage of the
   gross receipts of the enterprise or on the basis of an apportionment of
   the total profits of the enterprise to its various parts, nothing in
   paragraph 2 shall preclude that Contracting State from determining the
   profits to be taxed by such an apportionment as may be customary; the
   method of apportionment adopted shall, however, be such that the result
   shall be in accordance with the principles contained in this
   Article. 

5. No income or 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. Nothing in this Article shall
   affect any provisions of the law of either Contracting State at any
   time in force regarding the taxation of any income or profits from the
   business of any form of insurance.

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

Article 8
SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise of a
   Contracting State from the operation of ships or aircraft in
   international traffic shall be taxable only in that State.

2. The provisions of paragraph 1
   shall
   also apply to profits derived from the participation in a pool, a joint
   business or an international operating agency but only to so much of
   the profits so derived as is attributable to the participant in
   proportion to its share in that joint operation.

Article 9
ASSOCIATED ENTERPRISE

Where :

Article 10
DIVIDENDS

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

2. However, such dividends may also
   be
   taxed in the Contracting State of which the company paying the
   dividends is a resident and according to the laws of that State, but if
   the recipient is the beneficial owner of the dividends the tax so
   charged shall not exceed 15 per cent of the gross amount of the
   dividends. The competent authorities of the Contracting States shall by
   mutual agreement settle the mode of application of this limitation.
   This paragraph shall not affect the taxation of the company in respect
   of the profits out of which the dividends are paid.

3. The term “dividends” as used in
   this Article means income from shares and other income assimilated to
   income from shares by the taxation law of the Contracting State of
   which the company making the distribution is a resident. 

4. The provisions of paragraphs 1
   and
   2 shall not apply if the beneficial owner of the dividends, being a
   resident of a Contracting State, carries on business in the other
   Contracting State of which the company paying the dividends is a
   resident, through a permanent establishment situated therein, or
   performs in that other State independent personal services from a fixed
   base situated therein, and the holding in respect of which the
   dividends are paid is effectively connected with such permanent
   establishment or fixed base. In such case the provisions of Article 7
   or Article 14, as the case may be shall apply. 

5. Where a company which is a
   resident
   of a Contracting State derives profits or income from the other
   Contracting State, that other State may not impose any tax on the
   dividends paid by the company, except insofar as such dividends are
   paid to a resident of that other State or insofar as the holding in
   respect of which the dividends are paid is effectively connected with a
   permanent establishment or a fixed base situated in that other State,
   nor subject the company’s undistributed profits to a tax on
   undistributed profits, even if the dividends paid or the undistributed
   profits consist wholly or partly of profits or income arising in such
   other State. 

Article 11
INTEREST

1. Interest arising in a
   Contracting
   State and paid to a resident of the other Contracting State may be
   taxed in that other State. 

2. However, such interest may also
   be
   taxed in the Contracting State in which it arises and according to the
   laws of that State, but if the recipient is the beneficial owner of the
   interest the tax so charged shall not exceed 10 per cent of the gross
   amount of the interest. The competent authorities of the Contracting
   States shall by mutual agreement settle the mode of application of this
   limitation. 

3. Notwithstanding the provisions
   of
   paragraph 2, interest arising in a Contracting State and received by
   the Government of the other Contracting State including a political
   subdivision or a local authority thereof or the central bank of that
   other Contracting State shall be taxable only in that other Contracting
   State. 

4. The term “interest” as used in
   this
   Article means income from debt-claims of every kind, whether or not
   secured by mortgage and whether or not carrying a right to participate
   in the debtor’s profits, and in particular, income from Government
   securities and income from bonds or debentures, including premiums and
   prizes attaching to such securities, bonds or debentures. However, this
   term does not include income dealt with in Article 10. Penalty charges
   for late payment shall not be regarded as interest for the purpose of
   this Article. 

5. The provisions of paragraphs 1
   and
   2 shall not apply if the beneficial owner of the interest, being a
   resident of a Contracting State, carries on business in other
   Contracting State in which the interest arises, through a permanent
   establishment situated therein, or performs in that other State
   independent personal services from a fixed base situated therein, and
   the debt-claim in respect of which the interest is paid is effectively
   connected with such permanent establishment or fixed base. In such
   case, the provisions of Article 7 or Article 14, as the case may be,
   shall apply. 

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

7. Where, by reason of a special
   relationship between the payer and the beneficial owner or between both
   of them and some other persons, the amount of the interest, having
   regard to the debt-claim for which it is paid, exceeds the amount which
   would have been agreed upon by the payer and the beneficial owner in
   the absence of such relationship, the provisions of this Article shall
   apply only to the last-mentioned amount. In such case, the excess part
   of the payments shall remain taxable according to the laws of each
   Contracting State, due regard being had to the other provisions of this
   Agreement.

Article 12
ROYALTIES

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

2. However, such royalties may also
   be
   taxed in the Contracting State in which they arise, and according to
   the laws of that Contracting State, but if the recipient is the
   beneficial owner of the royalties the tax so charged shall not exceed
   15 per cent of the gross amount of the royalties. The competent
   authorities of the Contracting States shall by mutual agreement settle
   the mode of application of this limitation. 

3. The term “royalties” as used in
   this Article means payments of any kind received as a consideration for
   the use of, or the right to use, any copyright of literary, artistic or
   scientific work including cinematograph films, films or videotapes for
   use in connection with television or tapes for use in connection with
   radio broadcasting, any patent, trade mark, design or model, plan,
   secret formula or process, or for the use of, or the right to use,
   industrial, commercial or scientific equipment, or for information
   concerning industrial, commercial or scientific experience. 

4. The provisions of paragraphs 1
   and
   2 shall not apply if the beneficial owner of the royalties, being a
   resident of a Contracting State, carries on business in the other
   Contracting State in which the royalties arise, through a permanent
   establishment situated therein, or performs in that other State
   independent personal services from a fixed base situated therein, and
   the right or property in respect of which the royalties are paid is
   effectively connected with such permanent establishment or fixed base.
   In such case, the provisions of Article 7 or Article 14, as the case
   may be, shall apply. 

5. Royalties shall be deemed to
   arise
   in a Contracting State when the payer is that Contracting 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 a Contracting State or not, has in a Contracting State a
   permanent establishment or a fixed base in connection with which the
   liability to pay royalties was incurred, and such royalties are borne
   by such permanent establishment or fixed base, then such royalties
   shall be deemed to arise in the State in which the permanent
   establishment or fixed base is situated.

6. Where, by reason of a special
   relationship between the payer and the beneficial owner or between both
   of them and some other persons, the amount of the royalties, having
   regard to the use, right or information for which they are paid,
   exceeds the amount which would have been agreed upon by the payer and
   the beneficial owner in the absence of such relationship, the
   provisions of this Article shall apply only to the last-mentioned
   amount. In such case, the excess part of the payments shall remain
   taxable according to the laws of each Contracting State, due regard
   being had to the other provisions of this Agreement. 

Article 13
ALIENATION OF PROPERTY

1. Income or gains derived by a
   resident of a Contracting State from the alienation of immovable
   property referred to in Article 6 and situated in the other Contracting
   State may be taxed in that other State.

2. Income or gains from the
   alienation
   of movable property forming part of the business property of a
   permanent establishment which an enterprise of a Contracting State has
   in the other Contracting State or of movable property pertaining to a
   fixed base available to a resident of a Contracting State in the other
   Contracting State for the purpose of performing independent personal
   services, including such income or gains from the alienation of such a
   permanent establishment (alone or with the whole enterprise) or of such
   fixed base, may be taxed in that other State.

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

4. Income or gains from the
   alienation
   of any property other than that referred to in paragraphs 1, 2 and 3,
   shall be taxable only in the Contracting State of which the alienator
   is a resident.

Article 14
INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of
   a
   Contracting State in respect of professional services or other
   activities of an independent character shall be taxable only in that
   State unless such services are performed in the other Contracting State
   and :

   (a)	the individual is present in the other State for a period or periods exceeding in the aggregate 90 days in any consecutive twelve month period, or
   (b)	the individual has a fixed base regularly available to him in the other State for the purpose of performing his activities.
   In such case, the income may be taxed in that other State but only so much of it as is attributable to activities connected with that fixed base or performed during such period or periods.

2. The term “professional services”
   includes, especially, independent scientific, literary, artistic,
   educational or teaching activities as well as the independent
   activities of physicians, lawyers, engineers, architects, dentists and
   accountants. 

Article 15
DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of
   Articles 16, 18, 19, 20 and 21, salaries, wages and other similar
   remuneration derived by a resident of a Contracting State in respect of
   an employment shall be taxable only in that State unless the employment
   is exercised in the other Contracting State. If the employment is so
   exercised, such remuneration as is derived therefrom may be taxed in
   that other State. 

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

   (a)	the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any consecutive twelve month period, and
   (b)	the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting 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 in respect of an
   employment exercised aboard a ship or aircraft operated in
   international traffic by an enterprise of a Contracting State may be
   taxed in that Contracting State. 

Article 16
DIRECTORS’ FEES

Article 17
ARTISTES AND ATHLETES

1. Notwithstanding the provisions
   of
   Articles 14 and 15, income derived by a resident of a Contracting State
   as an entertainer, such as a theatre, motion picture, radio or
   television artiste, or a musician, or as an athlete, from his personal
   activities as such exercised in the other Contracting State, may be
   taxed in that other State. 

2. Where income in respect of
   personal
   activities exercised by an entertainer or an athlete in his capacity as
   such accrues not to the entertainer or athlete himself but to another
   person, that income may, notwithstanding the provisions of Articles 7,
   14 and 15, be taxed in the Contracting State in which the activities of
   the entertainer or athlete are exercised. 

3. Notwithstanding the provisions
   of
   paragraphs 1 and 2, income derived from activities referred to in
   paragraph 1 performed under a cultural agreement or arrangement between
   the Contracting States shall be exempt from tax in the Contracting
   State in which the activities are exercised if the visit to that State
   is wholly or substantially supported by funds of the government of the
   other Contracting State, a local authority or public institution
   thereof. 

Article 18
PENSION AND ANNUITIES

Article 19
GOVERNMENT SERVICE

Article 20
PROFESSORS AND TEACHERS

1. A professor or teacher who is or
   was a resident of a Contracting State immediately before making a visit
   to the other Contracting State, and who, at the invitation of any
   university, college, school, or other similar educational institution,
   which is recognized by the competent authority in that other
   Contracting State, visits that other Contracting State for a period not
   exceeding two years solely for the purpose of teaching or research or
   both at such educational institution shall be exempt from tax in that
   other Contracting State on any remuneration for such teaching or
   research. However, to the extent the above-mentioned remuneration is
   not taxed in the State where the recipient is a resident, the
   remuneration may be taxed in the other state. 

2. This Article shall not apply to
   remuneration which a professor or teacher receives for conducting
   research if such research is undertaken primarily for the private
   benefit of a specific person or persons. 

Article 21
STUDENTS

Payments which a student or business
apprentice who is or was immediately before visiting a Contracting
State a resident of the other Contracting State and who is present in
the first-mentioned State solely for the purpose of his education or
training receives for the purpose of his maintenance, education or
training shall not be taxed in that State, provided that such payments
arise from sources outside that State.

Article 22
OTHER INCOME

Article 23
METHODS OF ELIMINATION OF DOUBLE TAXATION

1. In the case of Indonesia, double
   taxation shall be avoided as follows: 

   (a)

   Indonesia, when imposing tax on resident of Indonesia, may include in the basis upon which such tax is imposed the items of income which may be taxed in New Zealand in accordance with the provisions of this Agreement;

   (b)

   Where a resident of Indonesia derives income from New Zealand and that income may be taxed in New Zealand in accordance with the provisions of this Agreement, the amount of New Zealand tax payable in respect of that 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 that income.

2. In the case of New Zealand,
   double
   taxation shall be avoided as follows: 
   Subject to any provisions of the law of New Zealand which may from time
   to time be in force and which relate to the allowance of a credit
   against New Zealand tax of tax paid in a country outside New Zealand
   (which shall not affect the general principle hereof), Indonesian tax
   paid under the law of Indonesia and consistently with this Agreement,
   whether directly or by deduction, in respect of income derived by a New
   Zealand resident from sources in Indonesia (excluding, in the case of a
   dividend, tax paid in respect of the profits out of which the dividend
   is paid) shall be allowed as a credit against New Zealand tax payable
   in respect of that income.

3. For the purposes of this
   Article,
   profits, income or gains of a resident of a Contracting State which are
   taxed in the other Contracting State in accordance with this Agreement
   shall be deemed to arise from sources in that other State. 

Article 24
MUTUAL AGREEMENT PROCEDURE

1. Where a resident of a
   Contracting
   State considers that the actions of one or both of the Contracting
   States result or will result for him in taxation not in accordance with
   the provisions of this Agreement, he may, irrespective of the remedies
   provided by the domestic law of those States, present his case to the
   competent authority of the Contracting State of which he is a resident.
   This case must be presented within two years from the first
   notification of the action giving rise to taxation not in accordance
   with the provisions of the Agreement. 

2. The competent authority shall
   endeavor, if the objection appears to it to be justified and if it is
   not itself able to arrive at a satisfactory solution, to resolve the
   case by mutual agreement with the competent authority of the other
   Contracting State, with a view to the avoidance of taxation which is
   not in accordance with the Agreement. 

3. The competent authorities of
   the
   Contracting States shall endeavor to resolve by mutual agreement any
   difficulties or doubts arising as to the interpretation or application
   of the Agreement. They may also consult together for the elimination of
   double taxation in cases not provided for in the Agreement.

4. The competent authorities of the
   Contracting States may communicate with each other directly for the
   purpose of giving effect to the provisions of the Agreement.

Article 25
EXCHANGE OF INFORMATION

1. The competent authorities of the
   Contracting States shall exchange such information as is necessary for
   carrying out the provisions of this Agreement or of the domestic laws
   of the Contracting State concerning taxes covered by the Agreement
   insofar as the taxation thereunder is not contrary to the Agreement.
   The exchange of information is not restricted by Article 1. Any
   information received by a Contracting State shall be treated as secret
   in the same manner as information obtained under the domestic laws of
   that State and shall be disclosed only to persons or authorities
   (including courts and administrative bodies) involved in the assessment
   or collection of, the enforcement or prosecution in respect of, or the
   determination of appeals in relation to, the taxes covered by the
   Agreement. Such persons or authorities shall use the information only
   for such purposes. They may disclose the information in public court
   proceedings or in judicial decisions. 

2. In no case shall the provisions
   of
   paragraph 1 be construed so as to impose on a Contracting State the
   obligation: 

   (a)	to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
   (b)	to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
   (c)	to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

Article 26
DIPLOMATIC AND CONSULAR OFFICERS

Article 27
ENTRY INTO FORCE

1. This Agreement shall be ratified
   and the instrument of ratification shall be exchange at Wellington as
   soon as possible. 

2. This Agreement shall enter into
   force after the expiration of thirty days from the date of the exchange
   of instruments of ratification and shall have effect: 

   (a)	in Indonesia : in respect of income derived during any taxable year beginning on or after the first day of January in the calendar year next following that in which this Agreement enters into force;
   (b)	in New Zealand : in respect of income derived during any income year beginning on or after 1 April in the calendar year next following that in which the notice of termination is given.

Article 28
TERMINATION

PROTOCOL

With
reference to Article 5,