Tajikistan

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

AGREEMENT BETWEEN

THE REPUBUC OF INDONESIA
AND

THE
REPUBLIC OF TAJIKISTAN

FOR

THE
AVOIDANCE OF DOUBLE TAXATION
AND

THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES
ON INCOME

The
Republic of Indonesia and The Republic of Tajikistan,
hereinafter referred to as “the Contracting States“

Confirming their desire to develop
and strengthen the economic, scientific, technical and cultural
cooperation between both states, and

Desiring to conclude an Agreement for the
avoidance of double taxation and prevention of fiscal evasion with respect
to taxes on income,

Have
agreed as follows:

ARTICLE
I

PERSONAL SCOPE

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

ARTICLE II

TAXES
COVERED

This
Agreement shall apply to taxes on income imposed on behalf of each
Contracting State or local authorities, 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.

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

(a)

in
Indonesia :

the
income tax.

(hereinafter referred to as “Indonesian tax”).

(b)

in the
case of Republic of Tajikistan :

the
profit tax from the juridical person; the income tax from the
citizens;

(hereinafter referred to as “Tajik
taxes”).

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

ARTICLE Ill

GENERAL DEFINITIONS

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

(a)

the term
” a Contracting State” and “the other Contracting State”
means Republic of Indonesia or
Republic of Tajikistan as context
requires;

(b)

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

ii)

the
term    “Tajikistan”
means the Republic   of Tajikistan and under the use in the geographic
essence includes its territory, internal water, air space
which   are under the sovereignty and jurisdiction of the
Republic of Tajikistan, including   the   rights
on   use   of   bowels    and
natural
resources     in    connection
with    the    norms
of    the International law and where the legislation of the Republic
of
Tajikistan is;

(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
term “enterprise of a
Contracting State” and “enterprise of the other
Contracting State” mean respectively an enterprise carried on
by
a resident of Contracting State and an enterprise carried on
by
a resident of the other Contracting State;

(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
States;

(g)

the term
“competent authority” means :

In
Indonesia:

The Minister of Finance or his authorized
representative;

ii)

In Tajikistan :

the Minister of Finance or his authorized representative:

(h)

the term “national” means :

any   individual
possessing
the   nationality    Contracting State;

ii)

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

As regards the application of the Agreement by a Contracting
State any term not defined therein shall, unless the
context otherwise requires, has the meaning which it has under
the laws of that State concerning the taxes to which the Agreement
applies.

ARTICLE IV

RESIDENT

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

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.

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

ARTICLE
V

PERMANENT ESTABLISHMENT

For   the   purposes
of
this   Agreement,   the   term
II        permanent establishment” means a fixed
place of business through which the business of an enterprise of a
Contracting State is wholly or partly carried on in the other Contracting
state.

The term
II 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 or
exploration or exploitation of natural resources, drilling,
rig
or working ship used for exploration or exploitation of natural
resources.

(g)

a
farm or plantation and forestry;

(h)

a
warehouse or premises used as sales
outlet;

The
term.” permanent establishment” likewise
encompasses:

(a)

a
building site, a construction, assembly or
installation project or supervisory activities in connection
therewith, but only where such site, project or activities
continue for a period of more than 6(six)
months;

(b)

the
furnishing of services, including consultancy
services by an enterprise through employees or other
personnel engaged by the enterprise for such purpose, but only
where activities of that nature continue (for the same or a
connected project) within the country for a period or periods aggregating
more that 91 days within any twelve month period.

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 advertising,
or for the supply of information;

(f)

the
maintenance of a fixed place of
business solely for the purpose of carrying on, for the
enterprise, any other activities of a preparatory or auxiliary
character.

(g)

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

Notwithstanding the provisions of paragraphs 1
and
2, where a person• other than an agent of an independent status to whom
paragraph 6 applies- is acting in a Contracting
State on behalf of an enterprise of the other Contracting State. that enterprise
shall be deemed to have a permanent establishment in the first-mentioned State in
respect of any activities which that person undertakes for
the enterprise, if such a person:

(a)

has or
habitually exercises in that State an authority to conclude
contracts in the name of 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 maintain in the first• mentioned State a stock of goods
or
merchandise from which he regularly delivers goods or merchandise on behalf of the
enterprise;
or

(c)

manufactures or processes in that State for the enterprise
goods or merchandise belonging to the enterprise.

Notwithstanding the preceding provisions of this Article,
an insurance enterprise of a Contracting State
shall, except in regard to re• insurance, be
deemed to have a permanent establishment in the other Contracting State if it
collects premiums in the territory of that other State or insures
risks situated therein through a person other than an agent of an independent status to whom
paragraph 7 applies.

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.

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 VI

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 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, right to which the provisions of
general
law respecting landed property apply, usufruct of immovabte 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 and aircraft shall not be regarded as immovable
property.

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.

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

ARTICLE VII

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 then an 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.

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

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

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
VIII

INTERNATIONAL TRAFFIC

Profits derived by an enterprise
of a Contracting State from the operation of ships and
aircraft, in international traffic shall be taxable only in that
State.

For
the purposes of Paragraph
1 of this Article profits from
the
operation of ship or aircraft in international traffic includes
:

the lease
of container which is incidental to the operation of ship
or aircraft.

the lease
of ship or aircraft in international
traffic.

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

ARTICLE IX

ASSOCIATED ENTERPRISES

Where

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

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 of 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 a accrued, may be included in the profits
of that enterprises 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 the Agreement and
the competent authorities of the Contracting States shall, if necessary consult each
other.

A
Contracting State shall not change the profits of an enterprise in
the circumstances referred to in paragraph 2 after the expiry of the
time limits provided in its tax laws.

ARTICLE
X

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 State.

However, such dividends may also be taxed in the
Contracting State of which the company paying the dividends in a resident and
according
to the laws of that state, but if the receipt
is beneficial owner of the dividends the tax so charges shall not
exceed 10 per cent of the gross amount of dividends.

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.

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 in a resident, through a permanent
establishment situated therein, or performs in that order 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
provision of Article 7 or Article XIV, as the case may be, shall
apply.

Whether a
company which is a resident of a Contracting State
derives profits or income from the other Contracting States,
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 to which the dividends are
paid is effectively connected with 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.

Notwithstanding any other provrsions
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   percents of the amount of
such profits after deducting there form income tax and other taxes on
income
imposed thereon in that other State.

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

ARTICLE
XI

INTEREST

Interest arising in a Contracting
State and paid to a resident of the other Contracting
State may be taxed in that other Contracting State if such resident
is
the beneficial owner of the interest.

The
rate of tax imposed by
one of Contracting States on interest derived from
sources within that Contracting States and beneficially owned
by
resident of the other Contracting State shall not exceed 10 percent 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   local   authorities   thereof,
a    political subdivision, the Central Bank or any
financial
institution controlled by that   Government,   the
capital of which   is   wholly   owned
by the Government of the other Contracting State, as may be
agreed upon from time to time between the competent authorities of the Contracting
States, shall be exempt from tax in the first-mentioned State.

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

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 VII. In such case, the provisions
of Article VII or XIV, as the case may be, shall apply.

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.

Where by reason of a special relationship
between
the payer and the beneficial owner or between both of them and some
other persons, 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
XII

ROYALTIES

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

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

The
term “royalties” as used in this Article means
payments, whether periodical or not, and in whatever form or name or
nomenclature to the extent to which they are made as consideration for
:

(a)

the
use of, or the right to use, any
copyright, patent, design or model, plan, secret formula or process,
trademark or other like property or right;
or

(b)

the
use of, or the right to
use, any _industrial, commercial or scientific equipment;
or

(c)

the supply of
scientific, technical, industrial or
commercial knowledge or information; or

(d)

the
supply of any assistance that is
ancillary and subsidiary to any such property or right
as
is mentioned in subparagraph (a), any such
equipment as is mentioned in sub-paragraph
(b) or any such knowledge or information as
is mentioned in sub• paragraph (c); or

(e)

the use
of, or the right to use:

motion picture films; or

ii)

films or
video for use in connection with television;
or

iii)

tapes for
use in connection with radio
broadcasting

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 VII. In such case, the provisions
of Article VII or Article XIV, 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 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.

Where, by
reason of a special relationship between the payer
and the beneficial owner or between both of them and some other persons, 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.

ARTICLEXllf

CAPITAL GAINS

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

Gains from the alienation of movable
property forming part of the business property of permanent
establishment which an enterprise of a Contracting State has in the
other Contracting State or of movable property
pertaining   to   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 derived by an
enterprise of a Contracting State from the alienation of
ships or aircraft operated in international traffic or movable property pertaining to
the operation of such ships or aircraft shall be taxable only in that
State.

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
XIV

INDEPENDENT PERSONAL SERVICES

Income derived by a resident
of
a Contracting State in respect of professional
services or other activities of an independent character shall
be taxable only in that State unless he has a fixed base regularly available to
him in the other Contracting State for the
purpose of performing his activities or he is present in that other State
for a period or periods exceeding in the aggregate 91 days within any twelve month
period. If he has such a fixed base or remains in· that other
State for the aforesaid period or periods, the income may be
taxed in that other State but only so much of it as is
attributable to that fixed base or is derived in that other State during
the
aforesaid period or periods.

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

ARTICLE
XV

DEPENDENT PERSONAL SERVICES

Subject to the provisions of Articles XVI,
XVIII, XIX and XX, 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 there from 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:

the
recipient is present in that other State
for a period or periods not exceeding in the aggregate 183 days within any
twelve month period commencing or ending in the fiscal year concerned; and

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

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 derived in respect of an employment exercised aboard
a
ship or aircraft operated in international traffic by an enterprise of a Contracting
State shall be taxable only in that State.

ARTICLE
XVI

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.

The
remuneration   which   a
person to whom   paragraph   1
applies
derived from the company in respect of the
discharge’ of day-to-day functions   of a managerial
or technical   nature   may   be taxed in
accordance with the provisions of Article XV.

ARTICLE XVII

ARTISTES AND ATHLETES

Notwithstanding the provisions of Articles XIV and XV,
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.

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 VII, XIV and
XV, be taxed in the Contracting State in which the activities of the entertainer
or athlete are exercised.

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
exempted from tax in the Contracting State in
which
the activities are exercised if the visit to that State is wholly or
substantially
supported by funds of one or both of the
Contracting States, a local authority or public institution
thereof.

ARTICLE
XVIII

PENSIONS AND ANNUITIES

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

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

ARTICLE XIX

GOVERNMENT SERVICE

(a)

Remuneration,   other
than
a pension,   paid   by   a Contracting
State, or a local authority thereof to an individual
in respect of services rendered to that State or local 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:

is a national of that State; or

ii)

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

(a)

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

(b)

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

The    provisions    of
Articles   XV,   XVI,   and
XVIII
shall    apply   to remunerations   and
pensions    in   respect   of
services   rendered   in connection with a
business   carried on by a Contracting State
or
local authority thereof.

ARTICLE
XX

TEACHERS AND RESEARCHERS

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

ARTICLE
XXI

STUDENT
AND TRAINEES

Payments   which   a student
or business   trainee   who   is   or
was
immediately before visiting a Contracting State a resident of the other Contracting State
and
who is present in the first mentioned Contracting State solely for
the
purpose of his education or training received for the purpose of
his maintenance, education or training   shall
not be taxed in that Contracting State, provided that such payments arise from sources
outside that Contracting State.

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

ARTICLE
XXII

OTHER
INCOME

Items of income of a resident not dealt with in
the foregoing Articles of this Agreement, shall be taxable in the State
where they arise .

The
provisions of paragraph
1     shall not apply to income, other than
income
from immovable property as defined in paragraph 2 of Article 6, . if the
recipient
of such income, being a resident of a Contracting State, carries on
business
in the other Contracting State through a permanent establishment
situated   therein   or   performs
in    that   other   State independent
personal
service from a fixed base situated therein and the right or
property in respect to which the income is paid is effectively connected with
such
a permanent establishment or fixed base. In such a case the provisions of Article VI
I   and Article XIV as the case may be, shall apply.

ARTICLE
XXIII

METHOD FOR ELIMINATION OF DOUBLE
TAXATION

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

ARTICLE
XXIV

NON-DISCRIMJNATION

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.

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 Sate 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.

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 requirement to which other
similar enterprises of the first• mentioned State are or may be
subjected.

Except
where the provisions of paragraph 1
of Article IX. paragraph VII of Article XI, or paragraph
6
of Article XII apply, interest, royalty and other disbursement 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.

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

ARTICLE
XXV

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 competent authority of the Contracting State of which he is
a
resident or, if his case comes under paragraph 1 of Article
XXIV, 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.

The
competent authority shall endeavor, 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.

The
competent authorities of the Contracting State shall
endeavor 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.

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

ARTICLE XXVI

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   of   the
domestic   laws   of the   Cont(acting
States
concerning taxes covered by the Agreement, insofar as
the
taxation there under is not contrary to this
Agreement, in particular for the prevention of fraud
or evasion of such taxes.   The exchange of
information is not restricted by Article I. Any information received by a Contracting
State shall be treated as secret in the same manner as information
obtained under the domestic laws of that State. However, if the
information is originally regarded as secret in the
transmitting
state it shall be disclosed only to persons of 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.

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 (public
order).

ARTICLE
XXVII

DIPLOMATIC AGENTS AND CONSULAR
OFFICERS

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

ARTICLE
XXVIII

ENTRY
INTO FORCE

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

This Agreement shall have
effect:

(a)

in respect ot tax withheld at the source to
income
derived on or after 1 January in the year next following that in which the Agreement
enters into force; and

(b)

in respect of other taxes on income, for taxable
years beginning on or after 1 January in the year next
following
that in which the Agreement enters into force.

ARTICLE
XXIX

TERMINATfON

This
Agreement shall remain in force until
terminated by Contracting State. Either Contracting State may
terminate the Agreement, through diplomatic channels, by giving
written notice of termination on or before the thirtieth day of June of
any
calendar year following after the period of 5 (five) years from the year
in
which the Agreement enters into force.

In such case, the Agreement shall cease to have
effect:

(a)

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

(b)

in
respect of other taxes on income for
taxable years beginning on or after 1 January in
the year next following that in which the notice of termination is
given.

IN WITNESS WHEREOF.
the undersignerl duly authorizec thereto. Have signed
this
Agreement.

Done in
duplicate at Jakarta on 28^th of October m
the year Two thousand and three in the Indonesian, Tajik and English languages. All
texts being equally authentic. If there is any divergence conceninq the
interpretation,
the Enqllsh text shall prevail.

FOR

THE
REPUBLIC OF INDONESIA

DR. N.
HASSAN WIRAJUDA

Minister
for Foreign Affairs

FOR

THE
REPUBLIC OF TAJIKISTAN

KHAKIM
SOLIEV

Minister
ot Economy and Trade

Tajikistan

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