Seychelles

Indonesia has established tax treaties with Seychelles to prevent double taxation and encourage cross-border investments. See detailed information on Indonesia-Seychelles tax treaties below.

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

FOR

THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL
EVASION WITH RESFECT 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 each Contracting State or of its
    political subdivisions or local authorities, irrespective of the manner
    in which they are levied. 

  2. There shall be regarded as taxes
    on
    income all taxes imposed on total income or on elements of income,
    including taxes on gains from the alienation of movable or immovable
    property, as well as 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 Seychelles:
    the business tax,

    (hereinafter referred to as “Seychelles tax”);

    (b)

    in the case of Indonesia:
    the income tax imposed under the Undang-undang Pajak Penghasilan l984
    (Law Number 7 of l983 as amended);
    hereinafter referred to as “Indonesian tax”).

  4. The agreement shall apply also
    to
    any identical
    or substantially similar taxes which are impossed after the that 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 substantial changes which have been made in their
    respective taxation law.

Article 3
GENERAL DEFINITIONS

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

    (a) (i)

    the term “Indonesia” means the territory
    of the
    Republic of Indonesia as defined in its laws;

    (ii)

    the term “Seychelles” means the Republic
    of
    Seychelles; when used in a geographical sense, it means all the
    territories, including all the islands which, in accordance with the
    laws of Seychelles, constitute the State of Seychelles and includes the
    territorial sea of Seychelles and any area outside the territorial of
    Seychelles which, in accordance with international law, has been or may
    hereafter be designated under the laws of Seychelles as an area
    including the territorial shelf, within which the rights of Seychelles
    with respect to the sea, the seabed and subsoil and their natural
    resources may be exercised;

    (b)

    the term “person” includes an
    individual, a company
    and any other body of persons; 

    (c)

    the term “company” means any body
    corporate or any
    entity which is treated as a body corporate 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 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 Seychelles:
    the Minister of Finance or his authorised representative;

    (g)

    the term “national” of a Contracting
    State
    means: 

    (i)

    any individual possessing the
    nationality of that
    Contracting State; 

    (ii)

    any legal person, partnership and
    association
    deriving their status as such from the laws in force in that
    Contracting State. 

  2. 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 law 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. But this term does not include any person who is liable
    to tax 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 of
    the State in
    which he has a permanent home available to him; if he has a permanent
    home available to him in both States, he shall be deemed to be a
    resident of the State with which his personal and economic relations
    are 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
    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 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, the competent authorities of the 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) a
    warehouse, in relation to person providing storage facilities for other
    persons;
    (g) a
    farm or plantation;
    (h)

    a mine, an oil or gas well, a quarry or
    any other
    place of extraction, exploration or exploitation of natural resources,
    a drilling rig or a working ship. 

  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 a connected project) within the
    country for a period or periods aggregating more than 3 months 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 and 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 the purpose of carrying on, for the enterprise, any other activity
    of a preparatory or auxiliary character; 

    (g)

    the maintenance of a fixed place of
    business solely
    for any combination of activities mentioned in subparagraphs (a) to
    (f), 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 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 or 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; 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;
    or 

    (c)

    manufactures or processes in that State
    for the
    enterprise goods or merchandise belonging to 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
    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 almost wholly on behalf of that
    enterprise, the agent will not be considered an agent of an independent
    status within the meaning of this paragraph.

  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
    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
    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 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. 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. 

  5. 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. 

  6. In so far 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 of its various part [sic], 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. 

  7. 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.

Article 8
SHIPPING AND AIR TRANSPORT

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

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

Article 9
ASSOCIATED ENTERPRISES

  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 enterprises 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. A Contracting State shall not
    change the profits of an enterprise in the circumstances referred to in
    paragraph 2 after the expiry of the time limits provided in its tax
    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, if the beneficial owner
    of
    the dividends is a resident of the other Contracting State, the tax
    charged by the first-mentioned State may not exceed 10 per cent of the
    gross amount of the dividends actually distributed. 

  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 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. 

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 Contracting State if such resident is the
    beneficial owner of the interest. 

  2. The rate of tax imposed by one
    of
    [the] Contracting States on interest derived from sources within that
    Contracting State and beneficially owned by resident of the other
    Contracting State shall not exceed 10 per cent of the gross amount of
    the interest.

  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, 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, as well as
    income assimilated to income from money lent under the taxation law of
    the States in which the income arises, including interest on deferred
    payment sales. 

  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 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 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 Contracting State.

  2. The rate of tax imposed by one
    of
    [the] Contracting States on royalties derived from sources within that
    Contracting State and beneficially owned by resident of the other
    Contracting State shall not exceed 10 per cent of the gross amount of
    the royalties described in paragraph 3. 

  3. The term “royalties” as used in
    this Article
    means payments, wheter periodical or not and in whatever form 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 to 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
    television; 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 paragraph 1
    shall
    not apply if the beneficial owner of 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 Contracting State when the payer is that State itself, a political
    subdivision or 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, 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 in the Contracting State in which the royalties arise,
    according the laws of that State. 

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 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. 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 SERVICE

  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 90 days within any twelve-month period. If he has such a
    fixed base or remains in that other State for the aforesaid period or
    periods, the income may be taxed in that other State but only so much
    of it as is attributable to that fixed base or is derived in that other
    State during the aforesaid period or periods. 

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

Article 15
DEPENDENT PERSONAL SERVICE

  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 twelve-month period; 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’ FEEES

  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 derived 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. 

Article 17
ARTISTES AND ATHLETES

  1. Notwithstanding the provisions
    of
    Articles l4 and l5, 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,
    l4 and l5, 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 l 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 one or both of the
    Contracting States, a local authority or public institution
    thereof. 

Article 18
PENSIONS AND ANNUITIES

  1. Subject to the provisions of
    paragraph 2 of Article l9, any pensions 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

1. (a)

Remuneration, other than a
pension, paid by a Contracting State, or a political subdivision, or a
local authority thereof to an individual in respect of services
rendered to that State or subdivision or authority shall be taxable
only in that State.

(b)

However, such remuneration
shall
be taxable only in the other Contracting State if the services are
rendered in that other State and the individual is a resident of that
State who:

(i)

is a national of that State;
or 

(ii)

did not become a resident of
that
State solely for the purpose of rendering the services. 

2. (a)

Any pension paid by, or out of funds created
by, a
Contracting State or a political subdivision or a local authority
thereof to an individual in respect of services rendered to that State
or subdivision or authority shall be taxable only in that State.

(b)

However, such pension shall
be
taxable only in the other Contracting State if the individual is a
resident of, and a national of, that other State.

3.

The provisions of Articles
15, 16
and 18 shall apply to remuneration and pensions in respect of services
rendered in connection with a business carried on by a Contracting
State or a political subdivision or a local authority thereof.

Article 20
TEACHERS AND RESEARCHERS

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

Article 21
STUDENTS AND TRAINEES

  1. Payments which a student 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 received for the purpose of his
    maintenance, education or training shall not be taxed in that
    Contracting State, provided that such payments arise from sources
    outside Contracting State.

  2. In respect of grants,
    scholarships
    and remuneration from employment not covered by paragraph 1, a student
    or business trainee described in paragraph 1 shall, in addition, be
    entitled during such education or training to the same exemption,
    reliefs or reductions in respect of taxes available to residents of the
    Contracting State which he is visiting. 

Article 22
OTHER INCOME

  1. Items of income of a resident of
    a
    Contracting State, wherever arising, not dealt with on the foregoing
    Articles of this Agreement, other than income arising as a result of a
    transfer or requisition of the right on ownership or management of
    property situated in the other Contracting State and also income in the
    form of lotteries, prizes and insurance or reinsurance premium shall be
    taxable in the first-mentioned State. 

  2. The provisions of paragraph 1 of
    this Article shall not apply to income from immovable property as
    defined in paragraph 2 of Article 6 of this Agreement, if the recipient
    of such income, being the 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 service 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, the provisions of Article 7 or Article 14, as the case may be,
    shall apply. 

Article 23
METHOD FOR ELIMINATION OF DOUBLE TAXATION

Where
a resident of a Contracting State derives income from the other
Contracting State, the amount of tax on that income payable in that
other Contracting State in accordance with the provisions of this
Agreement, may be credited against the tax levied in the
first-mentioned Contracting State imposed on that resident. The amount
of credit, however, shall not exceed the amount of the tax on the
first-mentioned Contracting State on that income computed in accordance
with its taxation laws and regulations.

Article 24
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
    subjec900ted. 

  2. 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. 

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

Article 25
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 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 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 26
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,
    insofar as the taxation thereunder is not contrary to this 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 27
DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing
in this Agreement shall affect the fiscal privileges of diplomatic
agents or consular officers under the general rules of international
law or under the provisions of special agreements.

Article 28
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:

    (a)

    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 

    (b)

    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.

Article 29
TERMINATION

  1. 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 10 years from the year
    in which the Agreement enters into force.

  2. In such, the Agreement shall
    cease
    to have effect:

    (a)

    in respect of tax
    withheld at source, to income derived on or after 1 January in the year
    next following that in which the notice of termination is given;

    (b)

    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 notice of termination is given.

In witness whereof the undersigned,
duly authorized thereto, have signed this Agreement.
 

Done in duplicate at New York this 27th day of September 1999, in the
English language, both texts being equally authentic.

For the Government of the
Republic of Indonesia
sgd

For
the Government of the
Republic of Seychelles
sgd