Poland

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF POLAND

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

Article 1
PERSONAL SCOPE

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

Article 2
TAXES COVERED

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

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

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

   (a)	in Indonesia : the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983), (hereinafter referred to as “Indonesian tax”);
   (b)	in Poland :
   	(i)	the income tax;
   	(ii)	the tax on wages and salaries;
   	(iii)	the equalization tax;
   	(iv)	the corporate tax;
   	(v)	the agricultural tax; (hereinafter referred to as “Polish tax”).

4. The Agreement shall also apply to any identical or substantially similar taxes on income which are
   imposed after the date of signature of the Agreement in addition to, or in place of, those referred to
   in paragraph 3. The competent authorities of the Contracting States shall notify each other of any
   substantial 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 “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 sovereignty, sovereign rights or jurisdiction in accordance with international law;
   	(ii)	the term “Poland” means the territory of the Republic of Poland, including any area outside its territorial sea within which under the laws of Poland and in accordance with international law the sovereign rights of Poland with respect to the seabed and its subsoil and their natural resources may be exercised;
   (b)	the term “person” includes an individual, a company or any other body of persons;
   (c)	the term “company” means any corporate body or any entity which is treated as a corporate body for the tax purposes;
   (d)	the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean, respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
   (e)	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;
   (f)	the term “competent authority” means:
   	(i)	in the case of Indonesia : the Minister of Finance or his authorized representative;
   	(ii)	in the case of Poland : The Minister of Finance or his authorized representative;
   (g)	the term “national” means:
   	(i)	any individual possessing the nationality of a Contracting State;
   	(ii)	any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State;
   (h)	the term “a Contracting State and the other Contracting State” means Indonesia and Poland as the context requires.

2. As regards the application of this 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 purpose of this Agreement, the term “resident of a Contracting State” means any person who,
   under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of
   management or any other criterion of a similar nature. 

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

   (a)	he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests);
   (b)	if the Contracting 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 Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;
   (c)	if he has an habitual abode in both Contracting States or in neither of them, the competent authorities of the Contracting States shall 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 States shall settle the question
   by mutual agreement. 

Article 5
PERMANENT ESTABLISHMENT

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

2. The term “permanent establishment” includes especially: 

   (a)	a place of management;
   (b)	a branch;
   (c)	an office;
   (d)	a factory;
   (e)	a workshop;
   (f)	premises used as domestic sales outlet;
   (g)	a warehouse, in relation to a person providing storage facilities for others;
   (h)	a farm or plantation or other place where agricultural, pastoral, forestry or plantation activities are carried on;
   (i)	a mine, an oil or gas well, a quarry or any other place of extraction or exploration of natural resources, drilling rig or ship used for exploration or exploitation of natural resources.

3. The term “permanent establishment” likewise encompasses: 

   (a)	a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue in one of the Contracting States for a period of more than 183 days;
   (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 120 days within any twelve-month period.

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

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

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent of an
   independent status to whom paragraph 7 applies – is acting in a Contracting State on behalf of an
   enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent
   establishment in the first-mentioned Contracting State in respect of any activities which that person
   undertakes for the enterprise, if such a person: 

   (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 provisions of that paragraph;
   (b)	has no such authority, but habitually maintains in the first- mentioned State a stock of goods or merchandise from which he regularly fills domestic orders on behalf of the enterprise; or
   (c)	manufactures or processes in that State for the enterprise goods or merchandise belonging to the enterprise.

6. An insurance enterprise of a Contracting State shall, except with regard to reinsurance, be deemed to
   have a permanent establishment in the other Contracting State if it collects premiums in that other
   State or insures risks situated therein through an employee or through a representative who is not an
   agent of an independent status within the meaning of paragraph 7. 

7. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the
   other Contracting State merely because it carries on business in that other State through a broker,
   general commission agent or any other agent of an independent status, provided that such persons are
   acting in the ordinary course of their business. However, when the activities of such an agent are
   devoted wholly or in no less than 60% of the activities on behalf of that enterprise or its associated
   enterprises, he will not be considered an agent of an independent status within the meaning of this
   paragraph. 

8. The fact that a company which is a resident of 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 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 consideration for the working of, or the right to work,
   mineral deposits, sources and other natural resources, and a right to receive payments as
   consideration for or in respect of the exploitation of or the right to explore for or exploit mineral,
   oil or gas deposits, quarries or other places of extraction or exploitation of 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 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;
   (b)	sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment; or
   (c)	other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment.

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

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses
   which are incurred for the purposes of the business of the permanent establishment including executive
   and general administrative expenses so incurred, whether in the State in which the permanent
   establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of
   amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent
   establishment to the head office of the enterprise or any of its other offices, by way of royalties,
   fees or other similar payments in return for the use of patents or other rights, or by way of
   commission, for specific services performed or for management, or, except in the case of a banking
   enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account
   shall be taken, in the determination of the profits of a permanent establishment, for amounts charged
   (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head
   office of the enterprise or any of its other offices, by way of royalties, fees or other similar
   payments in return for the use of patents or other rights, or by way of commission for specific
   services performed or for management, or, except in the case of a banking enterprise, by way of
   interest on moneys lent to the head office of the enterprise or any of its other offices.

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 an apportionment of the total profits of the enterprise to its
   various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the
   profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted
   shall, however, be such that the result shall be in accordance with the principles contained in this
   Article. 

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

6. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent
   establishment shall be determined by the same method year by year unless there is good and sufficient
   reason to the contrary. 

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

Article 8
SHIPPING AND AIR TRANSPORT

1. Profits from sources within a Contracting State derived by an enterprise of the other Contracting
   State from the operation of ships in international traffic shall be taxable only in that other State.

2. Profits from the operation of aircraft in international traffic shall be taxable only in the
   Contracting State of which the enterprise operating the aircraft is a resident. 

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

Article 9
ASSOCIATED ENTERPRISE

1. Where :

   (a)	an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or
   (b)	the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
   and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

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

3. Where profits on which an enterprise of one of the Contracting States has been charged to tax in that
   State are also included, by virtue of paragraph 1 or 2, in the profits of an enterprise of the other
   Contracting State and charged to tax in that other State, and the profits so included are profits
   which might have been expected to have accrued to that enterprise of the other State if the conditions
   operative between the enterprises had been those which might have been expected to have operated
   between independent enterprises dealing wholly independently with one another, then the
   first-mentioned State shall make an appropriate adjustment to the amount of tax charged on those
   profits in the first-mentioned State. In determining such an adjustment, due regard shall be had to
   the other provisions of this Agreement and for this purpose the competent authorities of the
   Contracting States shall if necessary consult each other. 

4. A Contracting State shall not change the profits of an enterprise in the circumstances referred to in
   paragraph 3 after the expiry of the time limits provided in its national laws. 

Article 10
DIVIDENDS

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

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

   (a)	10% of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 20% of the capital of the paying company;
   (b)	15% of the gross amount of the dividends in all other cases.

3. The term “dividends” as used in this Article means income from shares or other rights, not being
   debt-claims, participating in profits, as well as income from other corporate rights which is
   subjected to the same taxation treatment as income from shares by the laws of the State of which the
   company making the distribution is a resident.

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

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

6. Notwithstanding any other provisions of this Agreement where a company which is a resident of a
   Contracting State has a permanent establishment in the other Contracting State, the profits of the
   permanent establishment may be subjected to an additional tax in that other State in accordance with
   its law, but the additional tax so charged shall not exceed 10% of the amount of such profits after
   deducting therefrom income tax and other taxes on income imposed thereon in that other State.

7. The provisions of paragraph 6 of this Article shall not affect the provisions contained in any
   production sharing contracts or any other similar contracts relating to oil and gas sector or other
   mining sector concluded by the Government of Indonesia, its instrumentality, its relevant state oil
   and gas company or any other entity thereof with a person who is a resident of Poland. 

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% 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 derived by
   the Government of the other Contracting State including local authorities thereof, a political
   subdivision, the Central Bank or any financial institution controlled by that Government, shall be
   exempt from tax in the first-mentioned State. 

4. For the purposes of paragraph 3: 

   (a)	In the case of Indonesia :
   	(i)	the term “the Central Bank” means the “Bank Indonesia”;
   	(ii)	tthe term “financial institution controlled by that Government” means such other financial institution, the capital of which is wholly owned by the Government of the Republic of Poland, as may be agreed upon from time to time between the competent authority of the Contracting States.
   (b)	In the case of Poland :
   	(i)	the term “the Central Bank” means the “Narodowy Bank Polski”;
   	(ii)	the term “financial institution controlled by that Government” means such other financial institution, the capital of which is wholly owned by the Government of the Republic of Poland, as may be agreed upon from time to time between the competent authority of the Contracting States.

5. The term “interest” as used in this Article means income from debt-claims of every kind, whether or
   not secured by a mortgage, and whether or not carrying a right to participate in the debtor’s profits,
   and in particular, income from government securities and income from bonds or debentures, including
   premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated
   to income from money lent by the taxation law of the State in which the income arises, including
   interest on deferred payment sales.

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

   (a)	such permanent establishment or fixed base, or with
   (b)	business activities referred to under (c) of paragraph 1 of Article 7.

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

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

Article 12
ROYALTIES

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

2. However, such royalties may also be taxed in the Contracting State in which they arise, and according
   to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so
   charged shall not exceed 15% 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, whether periodical or not, and in
   whatever form or name or nomenclature to the extent to which they are made as consideration for: 

   (a)	the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trademark or other like property or right; or
   (b)	the use of, or the right to use, any industrial, commercial or scientific equipment; or
   (c)	the supply of scientific, technical, industrial or commercial knowledge or information; or
   (d)	the supply of any assistance that is ancillary and subsidiary or enjoyment of, any such property or right as is mentioned in subparagraph (a), any such equipment as is mentioned in subparagraph (b) or any such knowledge or information as is mentioned in subparagraph (c); or
   (e)	the use of, or the right to use :
   	(i)	motion picture films; or
   	(ii)	films or video for use in connection with televisions; or
   	(iii)	tapes for use in connection with radio broadcasting; or
   (f)	total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph.

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 :

   (a)	such permanent establishment or fixed base, or with
   (b)	business activities referred to under (c) of paragraph 1 of Article 7.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local
   authority, or a resident of that State. Where, however, the person paying the royalties, whether he is
   a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a
   fixed base in connection with which the liability to pay the royalties was incurred, and such
   royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed
   to arise in the State in which the permanent establishment or fixed base is situated. 

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

Article 13
CAPITAL GAINS

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

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

3. Gains derived by a resident of a Contracting State from the alienation of aircraft or ships operated
   in international traffic or movable property pertaining to the operation of such aircraft or ships
   shall be taxable only in that State. 

4. Gains from the alienation of any property other than that referred to in the preceding paragraphs
   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 he has a fixed base
   regularly available to him in the other Contracting 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
   taxable year. If he has such a fixed base or remains in that other State for the aforesaid period or
   periods, the income may be taxed in that other State but only so much of it as is attributable to that
   fixed base or is derived in that other State during the aforesaid period or periods. 

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

Article 15
DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19 and 20, 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 that other State for a period or periods not exceeding in the aggregate 183 days within any taxable year; and
   (b)	the remuneration is paid by, or on behalf of, an employer who is not a resident of that other State; and
   (c)	the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

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 shall be taxable only in that State. 

Article 16
DIRECTORS’ FEES

1. Directors’ fees and other similar payments derived by a resident of a Contracting State in his
   capacity as a member of the board of directors or any other similar organ of a company which is a
   resident of the other Contracting State may be taxed in that other State. 

2. The remuneration which a person to whom paragraph 1 applies derives from the company in respect of the
   discharge of day-to-day functions of a managerial or technical nature may be taxed in accordance with
   the provisions of Article 15 (Dependent personal services). 

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 other Contracting State, a local authority
   or public institution thereof.

Article 18
PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, any pension or other similar remuneration paid
   to a resident of one of the Contracting States from a source in the other Contracting State in
   consideration of past employment or services in that other Contracting State and any annuity paid to
   such a resident from such a source may be taxed in that other State. 

2. The term “annuity” means a stated sum payable periodically at stated times during life or during a
   specified or ascertainable period of time under an obligation to make the payments in return for
   adequate and full consideration in money or money’s worth. 

Article 19
GOVERNMENT SERVICES

Article 20
TEACHERS, RESEARCHERS AND STUDENTS

1. An individual who visits a Contracting State at the invitation of that State or of a university,
   college, school, museum or other cultural institution of that State or under an official programme of
   cultural exchange for a period not exceeding two years solely for the purpose of teaching, giving
   lectures or carrying out research at such institution and who is, or was immediately before that
   visit, a resident of the other Contracting State shall be exempt from tax in the first-mentioned State
   on his remuneration for such activity, provided that such remuneration is derived by him from outside
   that State. 

2. Payments which a student, apprentice or business trainee 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 Contracting State solely for the purpose of his education or training, receives for the
   purpose of his maintenance, education or training, shall not be taxed in that first-mentioned
   Contracting State, provided that such payments are made to him from sources outside that Contracting
   State. 

Article 21
OTHER INCOME

Article 22
ELIMINATION OF DOUBLE TAXATION

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

   (a)

   Where a resident of Poland derives income which, in accordance with the provisions of this Agreement, may be taxed in Indonesia, Poland shall, subject to the provisions of sub-paragraph (b), exempt such income from tax but may, in calculating tax on the remaining income of that resident, apply the rate of tax which would have been applicable if the exempted income had not been so exempted.

   (b)

   Where a resident of Poland derives income, which in accordance with the provisions of Articles 10, 11 and 12 may be taxed in Indonesia, Poland shall allow as a deduction from the tax on the income of that person, an amount equal to the income tax paid in Indonesia. Such deduction shall not, however, exceed that part of the tax as computed before the deduction is given, which is appropriate to the income which may be taxed in Indonesia.

2. In Indonesia, double taxation shall be eliminated as follows :
   Where a resident of Indonesia derives income from Poland in accordance with the provisions of this
   Agreement, the amount of Poland 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
   the part of the Indonesian tax which is appropriate to such income.

Article 23
NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation
   or any requirement connected therewith which is other or more burdensome than the taxation and
   connected requirements to which nationals of that other State in the same circumstances are or may be
   subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons
   who are not residents of one or both of the Contracting States. 

2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other
   Contracting State shall not be less 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 a Contracting State to grant to residents of the other Contracting State any personal
   allowances, reliefs and reductions for taxation purposes on account of civil status or family
   responsibilities which it grants to its own residents. 

3. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled,
   directly or indirectly, by one or more residents of the other Contracting State, shall not be
   subjected in the first-mentioned State to any taxation or any requirement connected therewith which is
   other or more burdensome than the taxation and connected requirements to which other similar
   enterprises of the first-mentioned State are or may be subjected. 

4. In this Article the term “taxation” means taxes referred to in Article 2 of this Agreement. 

Article 24
MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the Contracting States result or will
   result for him in taxation not in accordance with the provisions of this Agreement, he may,
   irrespective of the remedies provided by the domestic law of those States, present his case to the
   competent authority of the Contracting State of which he is a resident or, if his case comes under
   paragraph 1 of Article 23, to that of the Contracting State of which he is a national. The case must
   be presented within two years from the first notification of the action resulting in taxation not in
   accordance with the provisions of the Agreement. 

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

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

4. The competent authorities of the Contracting States may communicate with each other directly for the
   purpose of reaching an agreement in the sense of the preceding paragraphs. The competent authorities,
   through consultations, shall develop appropriate bilateral procedures, conditions, methods and
   techniques for the implementation of the mutual agreement procedure provided for in this Article.

Article 25
EXCHANGE OF INFORMATION

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 States
   concerning taxes covered by the Agreement, in so far as the taxation thereunder is not contrary to the
   Agreement, in particular for the prevention of fraud or evasion of such taxes. 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.
   However, if the information is originally regarded as secret in the transmitting State it 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 which are the subject of the Agreement. Such persons or authorities
   shall use the information only for such purposes but 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 (ordre public).

Article 26
DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Article 27
ENTRY INTO FORCE

1. This Agreement shall enter into force on the later of the dates on which the respective Governments
   may notify each other in writing that the formalities constitutionally required in their respective
   States have been complied with. 

2. This Agreement shall have effect in both Contracting States: 

   (a)	in respect of tax withheld at source, on or after 1 January in the year next following that in which the Agreement enters into force; and
   (b)	in respect of other taxes, for taxable years beginning on or after 1 January in the year next following that in which the Agreement enters into force.

Article 28
TERMINATION

In such case, the Agreement shall cease to have effect in both Contracting States: