AGREEMENT BETWEEN
                THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
                AND
                THE GOVERNMENT OF THE REPUBLIC OF KOREA
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 he Contracting States.
Article 2
                TAXES COVERED
- 
This Agreement shall apply to 
 taxes on income imposed on behalf of each Contracting State, irrespective of the manner in which they
 are levied.
- 
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 enterprises.
- The taxes which are the subject of this Agreement
 are:(a) in Indonesia : 
 the income tax (Pajak Penghasilan), and to the extent provided in such income tax,
 the company tax (Pajak Perseroan), and
 the tax on interest, dividends, and royalties (Pajak atas Bunga, Dividen dan Royalti);
 (hereinafter referred to as “Indonesian Tax”);(b) in Korea: (i) the income tax; (ii) the cooperation tax; (iii) the inhabitant tax where charged by 
 reference to the income tax or the corporation;(hereinafter referred to as “Korean Tax”). 
- 
This Agreement shall also apply to 
 any identical or substantially similar taxes on income which are imposed after the date of signature
 of this 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
- 
In 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 parts of the continental
 shelf and adjacent seas, over which the Republic of Indonesia has sovereignty, sovereign
 rights or other rights in accordance with international law;(ii) the term “Korea” comprises the territory 
 of the Republic of Korea as defined in its laws and parts of the continental shelf and
 adjacent seas, over which the Republic of Korea has sovereignty, sovereign rights or other
 rights in accordance with international law;(b) the terms “a Contracting State” and “the 
 other Contracting State” mean Indonesia or Korea as the context requires;(c) the term “tax” means Indonesian tax or 
 Korean tax, as the context requires;(d) the term “person” includes an individual, 
 a company and any other body of persons which is treated as an entity for tax purposes;(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 Indonesia: the Minister of Finance or 
 his authorized representative;(ii) in Korea: the Minister of Finance or his 
 authorized representative;(i) the term “national” means : (a) all individuals possessing the nationality 
 of a Contracting State;(b) all legal persons, partnerships and 
 associations deriving their status as such from the laws in force in a Contracting State.
- 
As regards the application of this 
 Agreement by a Contracting State, any term not defined in this Agreement shall, unless the context
 otherwise requires, have the meaning which it has under the laws of that Contracting State concerning
 the taxes to which this Agreement applies.
Article 4
                RESIDENT
- 
For the purposes of this 
 Agreement, the term “resident of a Contracting State” means any person who, under the laws of that
 Contracting State, is treated as a resident for tax purposes in that Contracting State. But this term
 does not include any person who is liable to tax in that State in respect only of income from sources
 in that State.
- 
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, the competent authorities of the two Contracting States shall settle
 the question by mutual agreement.
- 
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 of the State in which its place of effective management is situated.
Article 5
                PERMANENT ESTABLISHMENT
- 
For the purpose of this Agreement 
 the term “permanent establishment” means a fixed place of business through which the business of an
 enterprise is wholly or partly carried on.
- 
The term “permanent establishment” 
 includes especially:(a) a place 
 of management;(b) a branch; (c) an 
 office;(d) a factory (e) a 
 workshop; and(f) a mine, an oil or gas well, a quarry or 
 any other place of extraction of natural resources.
- 
The term “permanent establishment” 
 likewise encompasses:(a) A building site or construction project or 
 supervisory activities in connection therewith, where such site, project or activities
 continue for a period of more than six months;(b) An assembly or installation project which 
 exists for more than six months;(c) The furnishing of services, including 
 consultancy services, by an enterprise through employees or other persons engaged by the
 enterprise for such purpose, but only where activities of that nature continue (for the same
 or a connected project) within the country for a period or periods aggregating more than three
 months within any period of twelve months.
- 
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 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 carrying on, for the enterprise, any other
 activity of a preparatory or auxiliary character.
- 
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; 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.
- 
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 Contracting State
 or insures risks situated therein through an employee or through a representative who is not an agent
 of an independent status within the meaning of paragraph 7.
- 
An enterprise of 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 Contracting 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, he will not be considered an agent of an independent status within the meaning of this
 paragraph.
- 
The fact that a company which is a 
 resident of 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 Contracting 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
- 
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.
- 
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.
- 
The provisions of paragraph 1 
 shall apply to income derived from the direct use, letting, or use in any other form of immovable
 property.
- 
The provisions of paragraphs 1 and 
 3 shall 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
- 
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 are attributable to that permanent establishment, or to the sale of goods or
 merchandise of the same kind as those sold, or to other business transactions of the same kind as
 those effected, through the permanent establishment.
- 
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.
- 
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 incurred 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 toward 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.
- 
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.
- 
Where profits include items of 
 income which are dealt with separately in other Articles, then the provisions of those Articles shall
 not be affected by the provisions of this Article.
- 
No profits shall be attributed to 
 a permanent establishment by reason of the mere purchase by that permanent establishment of goods or
 merchandise for the enterprise.
Article 8
                SHIPPING AND AIR TRANSPORT
- 
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.
- 
The provision of paragraph 1 shall 
 also apply to profits derived from the participation in a pool, a joint business or an international
 operation agency.
- 
In respect of the operation of 
 ships or aircraft in international traffic carried on by an enterprise of a Contracting State, that
 enterprise, if an enterprise of Indonesia, shall also be exempt from the value added tax in Korea and,
 if an enterprise of Korea, shall also be exempt from any tax similar to the value added tax in Korea
 which may hereafter be imposed in Indonesia.
Article 9
                ASSOCIATED ENTERPRISES
- 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.
- 
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 this Agreement and the competent authorities of the Contracting States shall
 if necessary consult each other.
Article 10
                DIVIDENDS
- 
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 Contracting State.
- 
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 (other than a partnership) which holds
 directly at least 25% of the capital of the company paying the dividends;(b) 15% of the gross amount of 
 the dividends in all other cases.This paragraph shall not 
 affect the taxation of the company in respect of the profits out of which the dividends are
 paid.
- 
The term “dividends” as used in 
 this Article means income from shares 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 taxation laws of the Contracting State of which the company
 making the distribution is a resident.
- 
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 Contracting
 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.
- 
Where a company which is a 
 resident of a Contracting State derives profits or income from the other Contracting State, that other
 Contracting 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 Contracting 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 Contracting 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 Contracting State.
- 
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.
- 
The provisions of paragraph 6 of 
 this Article shall not affect the provisions contained in any production sharing contracts and
 contracts of work (or any other similar contracts) relating to the oil and gas sector or other mining
 sector concluded on or before 31 December 1983, by the Government of Indonesia, its instrumentality,
 its relevant State oil and gas company or any other entity thereof with a person who is resident of
 Korea.
Article 11
                INTEREST
- 
Interest arising in a Contracting 
 State and paid to a resident of the other Contracting State may be taxed in that other State.
- 
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.
- 
Notwithstanding the provisions of 
 paragraph 2, interest arising in a Contracting State and derived by the Government of the other
 Contracting State including political subdivisions and local authorities thereof, the Central Bank of
 that other Contracting State or any financial institution wholly owned by that Government, or by any
 resident of the other Contracting State with respect to debt-claims guaranteed or indirectly financed
 by the Government of that other Contracting State including political subdivisions and local
 authorities thereof, the Central Bank of that other Contracting State or any financial institution
 wholly owned by that Government shall be exempt from tax in the first-mentioned Contracting State.
- 
For the purposes of paragraph 3, 
 the term “the Central Bank” and “financial institution wholly owned by the “Government” mean:(a) in the case of Korea : (i) the Bank of Korea; (ii) the Korea Export – Import Bank; (iii) the Korea Exchange Bank; (iv) such other financial 
 institution, the capital of which is wholly owned by the Government of the Republic of Korea
 as may be agreed upon from time to time between the Governments of the two Contracting States.(b) In the case of Indonesia: (i) the “Bank Indonesia” ,and (ii) such other financial 
 institution the capital of which is wholly owned by the Government of the Republic of
 Indonesia as may be agreed upon from time to time between Government of the two Contracting
 States.
- 
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 by the
 taxation laws of the State in which the income arises.
- 
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 Contracting 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.
- 
Interest shall be deemed to arise 
 in a Contracting State when the payer is that Contracting State itself, a political subdivision or a
 local authority thereof, or a resident of that Contracting 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 Contracting State in which the permanent
 establishment or fixed base is situated.
- 
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
- 
Royalties arising in a Contracting 
 State and paid to a resident of the other Contracting State may be taxed in that other State.
- 
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 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 film, or 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.
- 
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.
- 
Royalties 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 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 obligation 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.
- 
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.
Article 13
                CAPITAL GAINS
- 
Capital gains from the alienation 
 of immovable property as defined in paragraph 2 of Article 6 may be taxed in the state in which such
 property is situated.
- 
Gains from the alienation of 
 movable property forming part of the business property of a permanent establishment which an
 enterprise of 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.
- 
Gains 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 the Contracting State of which the enterprise is a
 resident.
- 
Gains from the alienation of any 
 property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the
 Contracting State of which the alienator is a resident.
Article 14
                INDEPENDENT PERSONAL SERVICE
- 
Income derived by an individual 
 who is a resident of a Contracting State in respect of professional services or other activities of an
 independent character shall be taxable only in that Contracting 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 Contracting State for a period or periods exceeding in the aggregate 90
 days in the calendar year concerned. If he has such a fixed base or remains in that other Contracting
 State for the aforesaid period or periods, the income may be taxed in that other Contracting State but
 only so much of it as is attributable to that fixed base or is derived in that other Contracting State
 during the aforesaid period or periods.
- 
The term “professional services” 
 includes, especially, independent scientific, literary, artistic, educational or teaching activities
 as well as the independent activities of physicians, lawyers, engineers, architects, dentists and
 accountants.
Article 15
                DEPENDENT PERSONAL SERVICE
- 
Subject to the provisions of 
 Articles 16, 18, 19, 20 and 21 salaries, wages and other similar remuneration derived by a resident of
 a Contracting State in respect of an employment shall be taxable only in that State unless the
 employment is exercised in the other Contracting State. If the employment is so exercised, such
 remuneration as is derived therefrom may be taxed in that other State.
- 
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 the
 fiscal year concerned; and(b) the remuneration is paid 
 by, or on behalf of, an employer who is not a resident of the other State; and(c) the remuneration is not 
 borne by a permanent establishment or a fixed base which the employer has in the other State.
- 
Notwithstanding the preceding 
 provisions of this Article, remuneration 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
resident of a Contracting State in his capacity as a member of the board of directors of a company which
is a resident of the other Contracting State may be taxed in that other Contracting State.
Article 17
                ARTISTES AND ATHLETES
- 
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, may be taxed in the other Contracting State in which these activities of
 the entertainer or athlete are exercised.
 Such income shall, however, be exempt from tax in that other Contracting State if such activities are
 exercised by an individual, being a resident of that Contracting State, pursuant to a special
 programme for cultural exchange agreed upon between he Governments of the two Contracting States.
- 
Where income in respect of 
 personal activities as such of an entertainer or athlete accrues not to that 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.
 Such income shall, however, be exempt from tax in that Contracting State if such income is derived
 from the activities exercised by an individual, being a resident of the other Contracting State,
 pursuant to a special programme for cultural exchange agreed upon between the Government of the two
 Contracting States and accrues to another person who is a resident of that other Contracting State.
Article 18
                PENSIONS
pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past
employment may be taxed in that Contracting State.
However, such pensions may also be
              taxed in the other Contracting State if the payment is made by a resident of that State or a permanent
              establishment situated therein.
Article 19
                GOVERNMENT SERVICE
| 1. | (a) | Remuneration, other than a pension, paid by a | |
| (b) | However, such remuneration shall be taxable | ||
| (i) | is a national of that other Contracting State; | ||
| (ii) | did not become a resident of that other | ||
| 2. | (a) | Any pension paid by, or out of funds created | |
| (b) | However, such pension shall be taxable only in | ||
| 3. | The provisions of Articles 15, 16, 17 and 18 | ||
| 4. | The provisions of paragraphs 1 and 2 of this | ||
Article 20
                TEACHERS
Contracting State for a period not exceeding two years solely for the purpose of teaching or conducting
research at a university, college, school or other accredited educational institution, and who is, or
immediately before such visit was, a resident of the other Contracting State shall be taxable only in that
other Contracting State in respect of remuneration for such teaching or research.
Article 21
                STUDENTS
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 State, provided that such payments are made to him from sources outside that State.
Article 22
                INCOME NOT EXPRESSLY MENTIONED
- 
Items of income of a resident of a 
 Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall
 be taxable only in that Contracting State.
- 
The provisions of paragraph 1 
 shall not apply to income, other than income from immovable property as defined in paragraph 2 of
 Article 6, if the recipient of such income, being a resident of a Contracting State, carries on
 business in the other Contracting State through a permanent establishment situated therein, or
 performs in that other Contracting 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.
Article 23
                RELIEF FROM DOUBLE TAXATION
- 
In the case of a resident of 
 Korea, double taxation shall be avoided as follows:
 Subject to the provisions of Korean tax law regarding the allowance as a credit against Korean tax of
 tax payable in any country other than Korea (which shall not affect the general principle hereof), the
 Indonesian tax payable (excluding, in the case of a dividend, tax payable in respect of the profits
 out of which the dividend is paid) under the laws of Indonesia and in accordance with this Agreement,
 whether directly or by deduction, in respect of income from sources within Indonesia shall be allowed
 as a credit against Korean tax payable in respect of that income. The credit shall not, however,
 exceed that proportion of Korean tax which the income from sources within Indonesia bears to the
 entire income subject to Korean tax.
- 
For the purpose of paragraph 1, 
 the term “Indonesian tax payable” shall be deemed to include the amount of Indonesian tax which would
 have been payable in accordance with Indonesian tax laws but for the exemption or reduction on
 dividends of Indonesian tax in accordance with Indonesian laws relating to incentives for the
 promotion of economic development in Indonesia which were in force on the date of signature of this
 Agreement or any other provisions which may subsequently be introduced in Indonesia in modification
 of, or in addition to, those laws so far as they are agreed by the competent authorities of the
 Contracting State to be of a substantially similar character, provided that the amount of the tax
 referred to in this paragraph shall, however, be an amount of 10% of the gross amount of such
 dividends.
- 
In the case of Indonesia, double 
 taxation shall be avoided as follows:(a) Indonesia, when imposing 
 tax on residents of Indonesia, may include in the basis upon which such tax is imposed the
 items of income which may be taxed in Korea in accordance with the provisions of this
 Agreement;(b) Where a resident of 
 Indonesia derives income from Korea and that income may be taxed in Korea in accordance with
 the provisions of this Agreement, the amount of Korean tax payable in respect of the income
 shall be allowed as a credit against the Indonesian tax imposed on that resident.The amount of credit, 
 however, shall not exceed that part of the Indonesian tax, which is appropriate to the income.
- 
For the purpose of paragraph 3, 
 the term “Korean tax payable” shall be deemed to include the amount of Korean tax which would have
 been payable in accordance with Korean tax laws but for the exemption or reduction on dividends of
 Korean tax in accordance with the Korean laws relating to incentives for the promotion of economic
 development in Korea which were in force on the date of signature of this Agreement or any other
 provisions which may subsequently be introduced in Korea in modification of, or in addition to, those
 laws so far as they are agreed by the competent authorities of the Contracting State to be of a
 substantially similar character, provided that the amount of the tax referred to in this paragraph
 shall, however, be an amount of 10% of the gross amount of such dividends.
Article 24
                NON-DISCRIMINATION
- 
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 Contracting State in the same circumstances are or may be subjected.
- 
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 Contracting State than the taxation levied on enterprises of
 that other Contracting State carrying on the same activities.
- 
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
 Contracting 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 Contracting State are or may be subjected.
- 
In this Article the term 
 “taxation” means taxes which are the subject of this Agreement.
Article 25
                MUTUAL AGREEMENT PROCEDURE
- 
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 3 years from the first
 notification of the action resulting in taxation not in accordance with the provisions of the
 Agreement.
- 
The competent authority shall 
 endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at 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. Any agreement reached shall be implemented notwithstanding any time limits in the domestic
 law of the Contracting States.
- 
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 this Agreement. They may also consult together for the
 elimination of double taxation in cases not provided for in this Agreement.
- 
The competent authorities of the 
 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 of the 
 Contracting States may by mutual agreement settle the mode of application of this Agreement and,
 especially, the requirements to which the residents of a Contracting State shall be subjected in order
 to obtain, in the other Contracting State, tax reliefs or exemptions on income referred to in Articles
 10, 11 and 12, received from that other Contracting State.
Article 26
                EXCHANGE OF INFORMATION
- 
The competent authorities of the 
 Contracting States shall exchange such information as is necessary for carrying out the provisions of
 this Agreement or for the prevention of fraud or fiscal evasion or for the administration of statutory
 provisions against tax avoidance in relation to the taxes which are the subject of this
 Agreement. Any information so exchanged shall be treated as secret and shall not be disclosed to
 any persons or authorities other than those, including a court, concerned with the assessment and
 collection, the enforcement or prosecution in respect of those taxes or the determination of appeals
 in relation thereto and the persons with respect to whom the information relates.
- 
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; or(c) to supply information which would disclose 
 any trade, business, industrial, commercial or professional secret or trade process, or
 information, the disclosure of which would be contrary to public policy.
Article 27
                MISCELLANEOUS RULES
to restrict in any manner any exclusion, exemption, deduction, credit, or other allowance now or hereafter
accorded:
| (a) | by the laws of one of the | 
| (b) | by any other special | 
Article 28
                DIPLOMATIC AGENTS AND CONSULAR OFFICERS
privileges of diplomatic agents or consular officers under the general rules of international law or under
the provisions of special agreements.
Article 29
                ENTRY INTO FORCE
- 
This Agreement shall be ratified 
 and the instruments of ratification shall be exchanged at Seoul as soon as possible. The Agreement
 shall enter into force upon the exchange of instruments of ratification.
- This Agreement shall have effect:
 (i) in respect of tax withheld 
 at the source on amounts paid or credited on or after the first day of January of the calendar
 year next following that of the entry into force of the Agreement; and(ii) in respect of other taxes 
 for taxation years beginning on or after the first day of January of the calendar year next
 following that of the entry into force of the Agreement.
Article 30
                TERMINATION
either of the Contracting States may, on or before the thirtieth day of June in any calendar year from the
fifth year following that in which the instruments of ratification have been exchanged, give to the other
Contracting State, through diplomatic channels, written notice of termination and, in such event, this
Agreement shall cease to have effect:
| (a) | in respect of tax withheld at | 
| (b) | in respect of other taxes for | 
              In witness whereof the undersigned, being duly authorized thereto by their respective Governments, have
              signed this Agreement.
              Done in duplicate at Jakarta, this tenth day of November of the year one thousand nine hundred and eighty
              eight in the English language.
               
            
| FOR THE GOVERNMENT OF THE REPUBLIC OF INDONESIA sgd ALI ALATAS Minister for Foreign Affairs Republic of Indonesia | FOR THE GOVERNMENT OF THE REPUBLIC OF KOREA sgd Mr. Kwang Soo Choi Minister for Foreign Affairs Republic of Korea | 
PROTOCOL
Government of the Republic of Indonesia and the Government of the Republic of Korea for the Avoidance of
Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned have
agreed that the following provisions shall form an integral part of the Agreement.
- 
In respect of subparagraph (b) of 
 paragraph 3 of Article 2 of the Agreement, it is understood that the Agreement shall apply to the
 Korean defense tax where charged by reference to the income tax or the corporation tax.
- 
In respect of paragraph 5 of 
 Article 11, it is understood that interest on deferred payment sales is included in the term interest
 if it is in accordance with the provisions in the domestic laws of a Contracting State.
same force and validity as if it were inserted word by word in the Agreement.
              Done in duplicate at Jakarta, this tenth day of November of the year one thousand nine hundred and eighty
              eight in the English language.
            
| FOR THE GOVERNMENT OF THE REPUBLIC OF INDONESIA sgd ALI ALATAS Minister for Foreign Affairs Republic of Indonesia | FOR THE GOVERNMENT OF THE REPUBLIC OF KOREA sgd Mr. Kwang Soo Choi Minister for Foreign Affairs Republic of Korea | 
