Portugal

The Republic of Indonesia and the Portuguese Republic, desiring to conclude an Agreement for the avoidance
of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as
follows:
 

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

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

   a)	In the case of the Portuguese Republic :
   	(i)	Personal income tax (Imposto sobre o Rendimento das Pessoas Singulares – IRS);
   	(ii)	Corporate income tax (Imposto sobre o Rendimento das Pessoas Colectivas – IRC);
   	(iii)	Local surtax on corporate income tax (Derrama); (hereinafter referred to as “Portuguese tax”);
   b)	In the case of the Republic of Indonesia : the income tax; (hereinafter referred to as “Indonesian tax”).

4. 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 substantial changes which have been
   made in their respective taxation laws.

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

   a)	the term “Portugal” means the territory of the Portuguese Republic situated in the European Continent, the archipelagos of Azores and Madeira, the respective territorial sea and any other zone in which, in accordance with the laws of Portugal and international law, the Portuguese Republic has its jurisdiction or sovereign rights with respect to the exploration and exploitation of the natural resources of the sea bed and subsoil, and of the superjacent waters;
   b)	the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its laws including 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;
   c)	the terms “a Contracting State” and “the other Contracting State” mean Portugal or Indonesia as the context requires;
   d)	the term “person” includes 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 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;
   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 Portugal: the Minister of Finance, the Director General of Taxation (Director-Geral dos Impostos) or their authorized representative;
   	(ii)	in Indonesia: the Minister of Finance or his authorized representative;
   i)	the term “national” means:
   	(i)	any individual possessing the nationality of a Contracting State;
   	(ii)	any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.

2. As regards the application of the Agreement at any time by a Contracting State, 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 purposes 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.

1. For the purposes 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 and also includes that State and any political or
   administrative subdivision or local authority thereof. This term, however, does not include any person
   who is liable to tax in that State in respect only of income from sources in that State.
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 only 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 only of the State with which 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 a resident only 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, he shall be deemed to be a resident only of the State of which he is a national;
   d)	if he is a national of both States or of 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, then it shall be deemed to be a resident only of the State in which its place of
   effective management is situated.

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)	a warehouse or premises used as sales outlet;
   g)	a farm or plantation;
   h)	a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;
   i)	a drilling rig or working 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 for a period of more than 6 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 connected project) within the country for a period or periods aggregating more than 183 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 facilities solely for the purpose of storage, display or delivery 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, display or delivery;
   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 carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
   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 6 applies – is acting on behalf of an enterprise and has, and
   habitually exercises, in a Contracting State an authority to conclude contracts in the name of the
   enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect
   of any activities which that person undertakes for 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.
6. An enterprise shall not be deemed to have a permanent establishment in a 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.
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.

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; ships, boats and aircraft shall not be regarded as immovable
   property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any
   other form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an
   enterprise and to income from immovable property used for the performance of independent personal
   services.
5. The foregoing provisions shall also apply to income from movable property, or income derived from
   services connected with the use or the right to use the immovable property, either of which, under the
   taxation law of the Contracting State in which the property is situated, is assimilated to income from
   immovable property.

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 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 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 purposes of the preceding paragraphs, the profits to be attributed to the permanent
   establishment shall be determined by the same method year by year unless there is good and sufficient
   reason to the contrary.
7. Where profits include items of income which are dealt with separately in other Articles of this
   Agreement, then the provisions of those Articles shall not be affected by the provisions of this
   Article.

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 from the participation in a pool, a joint
   business or an international operating agency.
3. Whenever companies from different countries have agreed to carry on an air transportation business
   together in the form of a consortium, the provisions of paragraph 1 shall apply to such part of the
   profits of the consortium as corresponds to the participation held in that consortium by a company that
   is a resident of a Contracting State.

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 accordance with the provisions of paragraph 1, 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 where the competent authorities of the
   Contracting State agree, upon consultation, that all or part of 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
   agreed profits. In determining such adjustment, due regard shall be had to the other provisions of this
   Agreement.

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 beneficial owner of the
   dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 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, “jouissance” shares or
   “jouissance” rights, mining shares, founders’ shares or other rights, not being debt-claims,
   participating in profits, as well as income from other corporate rights which is subjected to the same
   taxation treatment as income from shares by the laws of the State of which the company making the
   distribution is a resident. The term also includes profits attributed under an arrangement for
   participation in profits.
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. 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 per cent of the amount of such profits after
   deducting therefrom income tax and other taxes on income imposed thereon in that other State.
6. The provision of paragraph 5 of this Article shall not affect the provision contained in any production
   sharing contract and relating to oil and gas 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 the other Contracting State.
7. 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 such other State.

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 beneficial owner of the interest is a resident of the other
   Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.

   The competent authorities of the Contracting State 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 or
   administrative subdivision and government institutions, the Central Bank or any financial institution
   controlled by that Government, the capital of which is wholly owned by the Government of the other
   Contracting State, as may be agreed upon from time to time between the competent authorities of the
   Contracting States, shall be exempt from tax in the first-mentioned 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. 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 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 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 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 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.

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 beneficial owner of the royalties is a resident of the other
   Contracting State, the tax so charged shall not exceed 10 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, and films or tapes for radio or television broadcasting, any patent, trade mark,
   design or model, plan, secret formula or process, or for the use of, or the right to use, industrial,
   commercial or scientific equipment, or for information concerning industrial, commercial, or scientific
   experience.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a
   resident of a Contracting State, carries on business in the other Contracting State in which the
   royalties arise, through a permanent establishment situated therein, or performs in that other 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 where the payer is 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 fixed base in connection with which the
   obligation to pay the royalties was incurred, and such royalties are borne by that 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 payments shall remain taxable according
   to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

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

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

   a)	if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or
   b)	if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days within any twelve-month period; in that case, only so much of the income as is derived from his activities performed in that other Contracting State may be taxed in that other Contracting State.

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

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 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 calendar year concerned, and
   b)	the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
   c)	the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived 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.

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 supervisory board or of another 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.

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 a sportperson, 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 a sportperson in his
   capacity as such accrues not to the entertainer or sportperson 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 sportperson are exercised.
3. Notwithstanding the provisions of paragraphs 1 and 2, income derived in respect of the activities
   referred to in paragraph 1 within the framework of any cultural or sports exchange programme agreed to
   by both Contracting States shall be exempt from tax in the Contracting State in which these activities
   are exercised.

Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a
resident of a Contracting State in consideration of past employment shall be taxable only in that
State.
 

1. An individual who is or was a resident of a Contracting State immediately before visiting the other
   Contracting State, solely for the purposes of teaching or scientific research at an university, college,
   school, or other similar educational or scientific research institution which is recognized as
   non-profitable by the Government of that other State, or under an official programme of cultural
   exchange, for a period not exceeding two years from the date of his first arrival in that other State,
   shall be exempt from tax in that other State on his remuneration for such teaching or research.
2. The preceding provision of this Article shall also apply to an individual who carries out research
   within the scope of a scholarship granted by a Government, religious, charitable, scientific, literary
   or educational organisation, if such scholarship is exempt from tax.

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.
 

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing
   Articles of this Agreement other than income in the form of lotteries and prizes shall be taxable only
   in that State.
2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as
   defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting
   State, carries on business in the other Contracting 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.

1. In the case of Portugal double taxation shall be eliminated as follows:

   a)

   Where a resident of Portugal derives income which, in accordance with the provisions of this Agreement, may be taxed in Indonesia, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Indonesia. Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Indonesia.

   b)

   Where in accordance with any provisions of this Agreement income derived by a resident of Portugal is exempt from tax in Portugal, Portugal may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

2. In the case of Indonesia, where a resident of Indonesia derives income from Portugal, the amount of tax
   on that income payable in Portugal in accordance with the provisions of this Agreement may be credited
   against the tax levied in Indonesia imposed on that resident. The amount of credit, however, shall not
   exceed the amount of the tax in Indonesia on that income computed in accordance with its taxation laws
   and regulations.

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, in particular
   with respect to residence, 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. Nothing in this provision shall 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. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of
   Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting
   State to a resident of the other Contracting State shall, for the purpose of determining the taxable
   profits of such enterprise, be deductible under the same conditions as if they had been paid to a
   resident of the first-mentioned State.
4. 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.
5. In this Article, the term “taxation” means taxes which are the subject of this Agreement.

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 24,
   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 the 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, including
   through a joint commission consisting of themselves or their representatives, for the purpose of
   reaching an agreement in the sense of the preceding paragraphs.

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 insofar as the taxation thereunder is not contrary to the
   Agreement. 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) concerned with the assessment or collection of,
   the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes
   covered by the Agreement. Such persons or authorities shall use the information only for such purposes.
   They may disclose the information in public court proceedings or in judicial decisions.
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).

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions and
consular posts under the general rules of international law or under the provisions of special
agreements.
 

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

   a)	in Portugal :
   	(i)	in respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the year next following the year in which this Agreement enters into force;
   	(ii)	in respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January of the year next following the year in which this Agreement enters into force;
   b)	in Indonesia :
   	(i)	in respect of tax withheld at the source, to income derived on or after 1 January in the year next following that in which the Agreement enters into force; and
   	(ii)	in respect of other taxes on income, for taxable years beginning on or after 1 January in the year next following that in which the Agreement enters into force.

This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may
terminate the Agreement, through diplomatic channels, by giving written notice of termination on or before
the thirtieth day 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:

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

Done in duplicate at Lisbon this 9th day of July 2003, in the Indonesian, Portuguese, and English
languages, all texts being equally authentic. In case of any divergence of interpretation or application
of this Agreement the English text shall prevail.

At the moment of signing the Agreement for the Avoidance of Double Taxation and Prevention of Fiscal
Evasion with respect to Taxes on Income, this day concluded between the Portuguese Republic and the
Republic of Indonesia, the undersigned have agreed that the following provisions shall form an integral
part of the Agreement.

Ad Article 5. paragraph 2 (i)

For the purposes of paragraph 2 i) Article 5, the activities referred to must be carried on in the other
State for a period or periods exceeding in the aggregate 30 days in any period of 12 months, and shall be
deemed not to include:

Ad Article 5, paragraph 4

It is understood that the provisions of Article 5 paragraph 4 sub-paragraphs a) and b) do not refer to
delivery accompanied with the respective sales.

Ad Article 22

The term “prizes” means any remuneration of any kind received in respect of competition other than
referred to under Article 17.

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

DONE in duplicate at Lisbon this 9th day of July 2003, in the Indonesian, Portuguese, and English
languages, all texts being equally authentic. In case of any divergence of interpretation or application
of this Protocol, the English text shall prevail.