Contact Us

Spain

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

AGREEMENT BETWEEN
THE REPUBLIC OF INDONESIA
AND
THE KINGDOM OF SPAIN

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

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 and on capital imposed on behalf of a 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 and on capital all taxes imposed on total income, on total
    capital or on elements of income or of capital, including taxes on gains from the alienation of
    movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as
    well as taxes on capital appreciation.

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

    (a) in Indonesia :
    (i)

    the income tax imposed under the Undang undang Pajak Penghasilan 1984 (Law No. 7 of 1983) and
    to the extent provided in such income tax law, the company tax imposed under the Ordonansi
    Pajak Perseroan 1925 (State Gazette No. 319 of 1925 as lastly amended by Law No. 8 of 1970)
    and the tax on interest, dividends and royalties imposed under the Undang undang Pajak atas
    Bunga, Dividen dan Royalty 1970 (Law No. 10 of 1970);
    (ii)

    the property tax imposed under the Undang undang Pajak Bumi dan Bangunan (Law No. 12 of 1985)

    (hereinafter referred to as “Indonesian tax”).
    (b) in Spain :
    (i) the income tax on individuals (el Impuesto sobre la Renta de las Personas Fisicas);
    (ii) the corporation tax (el Impuesto sobre Sociedades);
    (iii) the capital tax (el Impuesto sobre el Patrimonio);
    (iv) local taxes on income and on capital
    (hereinafter referred to as “Spanish tax”).

  4. The Agreement shall also apply to any identical or substantially similar taxes on income and on
    capital which are imposed after the date of signature of the Agreement in addition to, or in place of,
    those referred to in paragraph 3. The competent authorities of the Contracting States shall notify
    each other of any substantial changes which have been made in their respective taxation laws. 

Article 3
GENERAL DEFINITIONS

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

    (a) (i)

    the term “Indonesia” comprises the territory of the Republic of Indonesia as defined in its
    laws and the adjacent areas over which the Republic of Indonesia has sovereign rights or
    jurisdiction in accordance with the provisions of the United Nations Convention on the Law of
    the Sea, 1982;
    (ii)

    the term “Spain” means the Spanish State and, when used geographically, means the territory of
    the Spanish State including any area outside the territorial sea in which, in accordance with
    international law and domestic legislation, the Spanish State may exercise jurisdiction or
    sovereign rights with respect to the seabed, its subsoil and superjacent waters, and their
    natural resources;
    (b)

    the terms “a Contracting State” and “the other Contracting State” mean Spain or Indonesia as
    the context requires;
    (c)

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

    the term “company” means any body corporate or any entity which is treated as a body corporate
    for tax purposes; 
    (e)

    the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State”
    mean, respectively, an enterprise carried on by a resident of a Contracting State and an
    enterprise carried on by a resident of the other Contracting State; 
    (f)

    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; 
    (g)

    the term “competent authority” means;
      (i)

    in Indonesia:
    the Minister of Finance or his authorized representative;
    (ii)

    in Spain:
    the Minister of Economy and Finance or his authorized representative;
    (h)

    the term “nationals” means:
      (i)

    any individual possessing the nationality of a Contracting State;
    (ii)

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

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

  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, the competent authorities of
    the Contracting States shall settle the question by mutual agreement.

  3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of
    both Contracting States, then it shall be deemed to be a resident of the State in which its place of
    effective management is situated. 

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 mine, an oil or gas well, a quarry or any other place of extraction of natural resources;

  3. The term “permanent establishment” likewise encompasses: 

    (a)

    a building site, a construction, assembly or installation project or supervisory activities in
    connection therewith, but only where such site, project or activities continue for a period of
    more than 183 days; 
    (b)

    the furnishing of services, including consultancy services by an enterprise through employees
    or other personnel engaged by the enterprise for such purpose, but only where activities of
    that nature continue (for the same or a connected project) within the country for a period or
    periods aggregating more than three 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 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, display or delivery; 
    (c)

    the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the
    purpose of processing by another enterprise;
    (d)

    the maintenance of a fixed place of business solely for the purpose of purchasing goods or
    merchandise, or of collecting information, for the enterprise; 
    (e)

    the maintenance of a fixed place of business solely for the purpose of advertising, for the
    supply of information, for scientific research or for similar activities which have a
    preparatory or auxiliary character, for the enterprise;
    (f)

    the maintenance of a fixed place of business solely for any combination of activities
    mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place
    of business resulting from this combination is of a preparatory or auxiliary character. 

  5. Notwithstanding the provisions of 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. 

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

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

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

Article 6
INCOME FROM IMMOVABLE PROPERTY

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

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

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

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

Article 7
BUSINESS PROFITS

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

    (a) that permanent establishment;
    (b) sales in that other State of goods or merchandise of the same or similar kind as those sold
    through that permanent establishment; or
    (c) other business activities carried on in that other State of the same or similar kind as those
    effected through that permanent establishment.

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

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

  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.

Article 8
SHIPPING AND AIR TRANSPORT

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

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

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.

Article 10
DIVIDENDS

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

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

    (a)

    10% of the gross amount of the dividends if the beneficial owner is a company which holds
    directly at least 25% of the capital of the company paying the dividends; 
    (b)

    15% of the gross amount of the dividends in all other cases. 

    The competent authorities of the Contracting States shall by mutual agreement settle the mode
    of application of these limitations. The provisions of this paragraph shall not affect the
    taxation of the company in respect of the profits out of which the dividends are paid.

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

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

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

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

  7. The provisions of paragraph 6 of this Article shall not affect the provisions contained in any
    production sharing contracts and contracts of work (or any other similar contracts) relating to 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 a resident of Spain.

Article 11
INTEREST

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

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

  3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and derived by
    the other Contracting State including political subdivisions and local authorities thereof, the
    Central Bank or any financial institution controlled by that State or its political subdivisions or
    local authorities, 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 a mortgage, and whether or not carrying a right to participate in the debtor’s profits,
    and in particular, income from government securities and income from bonds or debentures, including
    premiums and prices attaching to such securities, bonds or debentures, as well as income assimilated
    to income from money lent by the taxation law of the State in which the income arises, including
    interest on deferred payment sales. 

  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 (a) such permanent establishment or fixed
    base, or with (b) business activities referred to under (c) of paragraph 1 of Article 7. In such case,
    the provisions of Article 7 or Article 14, as the case may be, shall apply. 

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

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

Article 12
ROYALTIES

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

  2. However, such royalties may also be taxed in the Contracting State in which they arise, and
    according to the laws of that State, but if the recipient is the beneficial owner of the royalties
    the tax so charged shall not exceed 10% of the gross amount of the royalties. 

    The competent authorities of the Contracting States shall by mutual agreement settle the mode of
    application of this limitation.

  3. The term “royalties” as used in this Article means payments of any kind received as a consideration
    for the use of, or the right to use, any copyright of literary, artistic or scientific work including
    cinematograph films, 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. 

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

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

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

Article 13
CAPITAL GAINS

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

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

  3. Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated
    in international traffic or of 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 SERVICES

  1. Income derived by a resident of a Contracting State in respect of professional services or other
    activities of an independent character shall be taxable only in that State unless he has a fixed base
    regularly available to him in the other Contracting State for the purpose of performing his activities
    or he is present in that other State for a period or periods exceeding in the aggregate 90 days in 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, lawyers,
    engineers, architects, dentists and accountants. 

Article 15
DEPENDENT PERSONAL SERVICES

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

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

    (a)

    the recipient is present in that other State for a period or periods not exceeding in the
    aggregate 183 days within any period of 12 months; and
    (b)

    the remuneration is paid by, or on behalf of, an employer who is not a resident of the other
    State; and
    (c)

    the remuneration is not borne by a permanent establishment or a fixed base which the employer
    has in the other State. 

  3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an
    employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a
    Contracting State may be taxed in that State. 

Article 16
DIRECTORS’ FEES

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.

Article 17
ARTISTES AND ATHLETES

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

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

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

Article 18
PENSIONS

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

  2. Notwithstanding the provision of paragraph 1, pensions paid by a pension fund approved by the
    Government and other payments made under a public scheme which is part of the social security system
    of a Contracting State or a political subdivision or a local authority thereof shall be taxable only
    in that State. 

Article 19
GOVERNMENT SERVICE

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
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

  1. A professor, teacher or researcher who makes a temporary visit to a Contracting State solely for the
    purpose of teaching or conducting research at a university, college, school or other recognized
    educational institution and who is, or immediately before such visit was, a resident of the other
    Contracting State shall be exempt from tax in the first-mentioned State for a period not exceeding two
    years in respect of remuneration for such teaching or research. 

  2. The provision of paragraph 1 shall not apply to income from research if such research is undertaken
    not in the general interest but primarily for the private benefit of a specific person or
    persons. 

Article 21
STUDENTS

Payments which a student, apprentice or business trainee who is or was immediately before visiting a
Contracting State a resident of the other Contracting State and who is present in the first- mentioned
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
OTHER INCOME

Items of income of a resident of a Contracting State which are not expressly mentioned in the foregoing
Articles of this Agreement shall be taxable only in that State except that, if such income is derived from
sources within the other Contracting State, it may also be taxed in that other State.

Article 23
CAPITAL

  1. Capital represented by immovable property, referred to in Article 6, owned by a resident of a
    Contracting State and situated in the other Contracting State, may be taxed in that other State.

  2. Capital represented by 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 by
    movable property pertaining to a fixed base used for the performance of professional services, may be
    taxed in the Contracting State in which the permanent establishment or fixed base is situated. 

  3. Capital owned by a resident of a Contracting State represented by ships and aircraft operated in
    international traffic and movable property pertaining to the operation of such ships and aircraft,
    shall be taxable only in that State. 

  4. All other elements of capital of a resident of a Contracting State shall be taxable only in that
    State. 

Article 24
ELIMINATION OF DOUBLE TAXATION

1.

Where a resident of Indonesia derives income from Spain and such income may be taxed in Spain in
accordance with the provisions of this Agreement, the amount of Spanish 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 such income.
2. (a)

Where a resident of Spain derives income or owns capital which, in accordance with the provisions
of this Agreement, may be taxed in Indonesia, Spain shall allow: 
(i)

as a deduction from the tax on the income of that resident, an amount equal to the income tax paid
in Indonesia;
(ii)

as a deduction from the tax on the capital of that resident, an amount equal to the capital tax
paid in Indonesia.
Such deduction in either case shall not, however, exceed that part of the income tax or capital
tax, as computed before the deduction is given, which is attributable, as the case may be, to the
income or the capital which may be taxed in Indonesia.
(b)

In the case of a dividend paid by a company which is a resident of Indonesia to a company which is
a resident of Spain and which holds directly at least 25% of the capital of the company paying the
dividend, in the computation of the credit there shall be taken into account, in addition to the
tax creditable under subparagraph (a) of this paragraph, that part of the tax effectively paid by
the first-mentioned company on the profits out of which the dividend is paid which relates to such
dividend, provided that such amount of tax is included, for this purpose, in the taxable base of
the receiving company. 

Such deduction, together with the deduction allowable in respect of the dividend under
subparagraph (a) of this paragraph, shall not exceed that part of the income tax, as computed
before the deduction is given, which is attributable to the income subject to tax in Indonesia.
(c)

Where in accordance with any provision of the Agreement income derived or capital owned by a
resident of Spain is exempt from tax in Spain, Spain may nevertheless, in calculating the amount
of tax on the remaining income or capital of such resident, take into account the exempted income
or capital.

Article 25
NON-DISCRIMINATION

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

  2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other
    Contracting State shall not be less favourably levied in that other State than the taxation levied on
    enterprises of that other State carrying on the same activities. This provision shall not be construed
    as obliging a Contracting State to grant to residents of the other Contracting State any personal
    allowances, reliefs and reductions for taxation purposes on account of civil status or family
    responsibilities which it grants to its own residents. 

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

  4. Except where the provisions 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. Similarly, any debts of an enterprise of a Contracting State shall, for the
    purpose of determining the taxable capital of such enterprise, be deductible under the same conditions
    as if they had been contracted to a resident of the first-mentioned State. 

  5. In this Article the term “taxation” means taxes of every kind and description. 

Article 26
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 25, 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 consultation, shall develop appropriate procedures, conditions, methods and techniques for the
    implementation of the mutual agreement procedure provided for in this Article. 

Article 27
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 the
    Agreement, in particular for the prevention of fraud or evasion of such taxes. The exchange of
    information is not restricted by Article 1. Any information received by a Contracting State shall be
    treated as secret in the same manner as information obtained under the domestic laws of that State and
    shall be disclosed only to persons or authorities (including courts and administrative bodies)
    involved in the assessment or collection of, the enforcement or prosecution in respect of, or the
    determination of appeals in relation to, the taxes 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 28
DIPLOMATIC 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 29
ENTRY INTO FORCE

  1. This Agreement shall be ratified and the instruments of ratification shall be exchanged, as soon as
    possible. 

  2. The Agreement shall enter into force upon the exchange of instruments of ratification and its
    provisions shall have effect in respect of taxes chargeable for any taxable year beginning on or after
    the first day of January in the calendar year next following that in which the Agreement enters into
    force. 

Article 30
TERMINATION

This Agreement shall remain in force until denounced by one of the Contracting States. Either Contracting
State may denounce the Agreement, through diplomatic channels, by giving notice of termination at least
six months before the end of any calendar year following after the period of five years from the date on
which the Agreement enters into force. In such event, the Agreement shall cease to have effect in respect
of taxes chargeable for any taxable year beginning on or after the first day of January in the calendar
year next following that in which the notice is given.
Done at Jakarta on the 30th day of May 1995, in duplicate in the Spanish, Indonesian and English
languages, all these texts being equally authentic. In case of any divergence of interpretations, the
English text shall prevail.
 

For the Government of
the Republic of Indonesia
sgd
ALI ALATAS
MINISTER FOR FOREIGN AFFAIRS

For the Government of
the Kingdom of Spain
sgd
JAVIER GOMEZ NAVARRO
MINISTER TRADE AND TOURISM
PROTOCOL

At the signing of the Agreement for the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income and on capital, this day concluded between the Kingdom of Spain and the
Republic of Indonesia, the undersigned have agreed that the following provisions shall form an integral
part of the Agreement.
1. To Article 5 paragraph 4(a)

It is understood that the use of facilities for mere delivery shall not be deemed a permanent
establishment unless they are used as a sales outlet.
     
2.

To Article 7 paragraph 1, (b) and (c)

The competent authorities of the Contracting States may consult each other on the similarity
of goods sold or business operations referred to therein. It is understood that the mentioned
provisions shall also apply where the sales and operations result in losses for the
enterprise.
     
3.

To Article 7 paragraph 4

The term “mere purchase by a permanent establishment for the enterprise” does not include
“purchase for the third person”.
     
4.

To Article 10 paragraph 2

It is understood that paragraph 2 shall not be applicable, in the case of Spain, to the income
attributable, whether distributed or not, to shareholders of the corporations and entities
referred to in Article 12.2 of Law 44/1978 of 8 September 1978, and Article 19 of Law 61/1978
of 27 December 1978, as long as the said income is not subject to the Spanish Corporation Tax.
Such income may be taxed in Spain according to its internal Law.
     
5.

To Article 11 paragraph 3
The term “the Central Bank” and “financial institutions controlled by the Government” mean
respectively:
(a) the Central Bank:
  (i) in the case of Indonesia: Bank Indonesia;
  (ii) in the case of Spain: Bank of Spain;

(b)

the financial institutions to which paragraph 3 of Article 11 applies shall be specified and
agreed in letters exchanged between the competent authorities of the Contracting States.
     
6.

To Article 11 paragraph 4

The term “interest” as used in this Article does not include interest payments made in
connection with the sale on credit of any industrial, commercial or scientific equipment, such
interest shall be exempted from tax in the Contracting State in which they arise.
     
7.

To Article 15 paragraph 2

It is understood that income from dependent personal services shall not be taxable in the
Contracting State in which the employment is exercised by the mere fact that the remuneration
in respect thereof is borne a permanent establishment constituted by the services referred to
under Article 5 paragraph 3(b).
     
8.

To Article 16

The term “any other similar organ” shall include in the case of Indonesia “anggauta Pengurus
(Committee members)” and “komisaris (Commissioners)”.
     
9.

To Article 18 paragraph 2

The term “pension fund approved by the Government” in the case of Indonesia shall include
“insurance fund for work force (ASTEK)”.
     
10.

To Article 25 paragraph 5
It is understood that Indonesia will continue to apply its local tax on foreigners.
     

 

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

 

Done at Jakarta on the 30th day of May 1995, in duplicate in the Spanish, Indonesian and English
languages, all these texts being equally authentic. In case of any divergence of interpretations, the
English text shall prevail.

InvestInAsia is part of UnionSPACE and vOffice Group. We’re the leading Market Entry Service Provider in SE Asia and Dubai and we offer end-to-end solutions for Thai Businesses to expand overseas.

We are open: Monday – Friday
9:00 — 18:00 (GMT+7)

Google Maps : Click Here
Phone : +6281295665565
Email : hello@investinasia.id

Facebook Instagram Youtube Icon-tiktok Linkedin

Insights by Category

Navigation

Insights by Category

Contact Us

Jakarta Office
Treasury Tower 6th floor Unit F Jl Jend Sudirman Kav 52-53, SCBD, Daerah Khusus Ibukota Jakarta

Batam Office
Menara Aria Office Tower #07-11, Komplek Harbour Bay Downtown, Jalan Duyung, Batu Ampar, Kota Batam.

Bali Office
Promenade Shop, Jl. Kayu Tulang No.82 S12, Canggu, Kec. Kuta Utara, Kabupaten Badung, Bali 80363

Popular Links :

Virtual Office, Virtual Office Jakarta, Virtual Office Jakarta Selatan, Virtual Office Jakarta Utara, Virtual Office Jakarta Pusat, Virtual Office Jakarta Timur, Virtual Office Jakarta Barat, Virtual Office Bekasi, Virtual Office Tangerang, Virtual Office Surabaya, Virtual Office Bali, Virtual Office Medan, Virtual Office Bandung, Company Registration in Dubai, Dubai Visa Application, Virtual Office in Dubai.,
©2025 InvestInAsia | Part of UnionSPACE and vOffice Group · All Rights Reserved