Tunisia

AGREEMENT
BETWEEN
THE REPUBLIC OF INDONESIA
AND
THE REPUBLIC OF TUNISIA

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

Article
1
PERSONAL SCOPE

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

Article
2
TAXES COVERED

1. This Agreement shall apply to
   taxes
   on income imposed on behalf of a
   Contracting State, irrespective of the manner in which they are levied.
    

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

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

   (a)	in the case of Indonesia, the income tax imposed under the Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983) (hereinafter referred to as “Indonesian tax”);
   (b)	in the case of Tunisia :
   	(i)	the tax on business income (l’impôt sur les bénéfices industriels et commerciaux);
   	(ii)	the corporation tax (l’impôt sur les bénéfices des sociétés);
   	(iii)	the tax on income from non-commercial occupations (l’impôt sur les bénéfices des professions non- commerciales);
   	(iv)	the tax on wages and salaries (l’impôt sur les traitements et salaires);
   	(v)	the agricultural tax (l’impôt agricole);
   	(vi)	the tax on capital appreciation of immovable properties ( l impt sur les plus-values immobilires);
   	(vii)	the tax on income from debts, deposits, guarantees and current accounts (l’impôt sur le revenu des créances, dépôts, cautionnements et comptes courants) (IRC);
   	(viii)	the exceptional tax for solidarity (la contribution exceptionnelle de solidarité);
   	(ix)	the tax on income from transferable securities (l’impôt sur le revenu des valeurs mobilières);
   	(x)	the State personal levy (la contribution personelle d’Etat)
   	(hereinafter referred to as “Tunisian tax”).

4. The Agreement shall apply to any
   identical or substantially similar taxes, which are imposed after the
   date of signature of this 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
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 international law;
   	(ii)	the term “Tunisia” used in a geographical sense, means the territory of the Tunisian Republic, including any area lying beyond the territorial waters of Tunisia which, under the law of Tunisia and in accordance with international law, is an area within which Tunisia may exercise rights in respect of the sea bed and its sub-soil and their natural resources;
   (b)	the terms “a Contracting State” and “the other Contracting State” mean Tunisia or Indonesia, as the context requires;
   (c)	the term “tax” means Indonesian tax or Tunisian tax, as the context requires;
   (d)	the term “person” includes an individual, a company and any other body of persons;
   (e)	the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
   (f)	the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean, respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
   (g)	the term “nationals” means:
   	(i)	all individuals possessing the nationality of a Contracting State;
   	(ii)	all legal persons, partnership and associations deriving their status as such from the laws in force in a Contracting State;
   (h)	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;
   (i)	the term “competent authority” means:
   	(i)	in the case of Indonesia, the Minister of Finance or his authorized representative;
   	(ii)	in the case of Tunisia, the Minister of Finance or his authorized representative

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

Article
4
RESIDENT

1. For the purpose of this
   Agreement,
   the term “resident of a Contracting State” means any person who, under
   the laws of that State, is liable to tax therein by reason of his
   domicile, residence, place of head office, place of management or any
   other criterion of a similar nature. But this term does not include any
   person who is liable to tax in that State in respect only of income
   from sources in that State.

2. Where by reason of the
   provisions
   of paragraph 1 an individual is a resident of both Contracting States,
   then his status shall be determined as follows;

   (a)	he shall be deemed to be a resident 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 Contracting 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)	iif he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
   (d)	if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

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

Article
5
PERMANENT ESTABLISHMENT

1. For the purposes of this
   Agreement,
   the term “permanent establishment” means a fixed place of business
   through which the business of an enterprise is wholly or partly carried
   on.

2. The term “permanent
   establishment”
   includes especially:

   (a)	a place of management;
   (b)	a branch;
   (c)	an office
   (d)	a factory
   (e)	a workshop; and
   (f)	a mine, 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 three months;
   (b)	the furnishing of services, including consultancy services, by an 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 12-month period.

4. Notwithstanding the provisions
   of
   this Article, the term “permanent establishment” shall be deemed not to
   include:

   (a)	the use of facilities solely for the purpose of storage, display 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;
   (c)	the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
   (d)	the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise;
   (e)	the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
   (f)	the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e) provided that the overall activity or the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions
   of
   paragraphs 1 and 2, where a person — other than an agent of an
   independent status to whom paragraph 6 applies — is acting in a
   Contracting State on behalf of an enterprise of the other Contracting
   State, that enterprise shall be deemed to have a permanent
   establishment in the first-mentioned 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 enterprise shall not be
   deemed
   to have a permanent establishment in a 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.

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

8. An insurance enterprise of a
   Contracting State shall, except in regard to re-insurance, be deemed to
   have a permanent establishment in the other State, if it collects
   premiums in the territory of that 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 6.

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 a 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 sue 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; or
   (b)	sales of goods or merchandise of the same or similar kind as those sold, or other business activities 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 similar payments in return for the use of
   patents or other rights, or by way of commission for specific services
   performed or for management, or, except in the case of a banking
   enterprise by way of interest on moneys lent to the head office of the
   enterprise or any of its other offices.

4. Insofar as it has been customary
   in
   a Contracting State to determine the profits to be attributed to a
   permanent establishment on the basis of an apportionment of the total
   profits of the enterprise to its various parts, nothing in paragraph 2
   shall preclude a Contracting State from determining the profits to be
   taxed by such an apportionment as may be customary; the method of
   apportionment adopted shall, however, be such that the result shall be
   in accordance with the principles contained in this Article.

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

6. 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 by an enterprise of the
   Contracting State shall be taxable only in that State.

2. The profits derived from the
   operation of ships or aircraft within places in a Contracting State
   shall be taxable only in that State.

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

Article
9
ASSOCIATED ENTERPRISES

Where :

and in either case conditions are
made
or imposed between the two enterprises in their commercial or financial
relations which differ form 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 12% of the gross amount of the dividends. 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 dividend 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 12% 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 by each of the Contracting States.

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 12% of the gross amount of
   the interest.

3. Notwithstanding paragraphs 1 and
   2,
   interest shall be exempt from tax in the Contracting State in which it
   arises if the interest is:

   (a)	beneficially derived by the Government of the other Contracting State including a political subdivision or a local authority thereof or the central bank of that other Contracting State;
   (b)	paid by the Government of that Contracting State or a political subdivision or by the local authority thereof to a resident of the other Contracting State, when the maturity of this interest-generating loan is at least 7 years.

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 prizes attaching to such securities, bonds or debentures.

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

6. Interest shall be deemed to
   arise
   in a Contracting State when the payer is 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 be
   also
   taxed in the Contracting State in which they arise and according to the
   laws of that State, but if the recipient is the beneficial owner of the
   royalties, the tax so charged shall not exceed 15% of the gross amount
   of the royalties.

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 film, and films or tapes for
   radio or television broadcasting), any patent, trade mark, design or
   model, plan, secret formula or process or for the use of, or the right
   to use, agricultural, industrial, commercial or scientific equipment,
   or for information concerning industrial, commercial or experience, or
   for technical or economic studies, or for technical assistance.

4. The provisions of paragraphs 1
   and
   2 shall not apply if the beneficial owner of the royalties, being a
   resident of a Contracting State, carries on business in the other
   Contracting State in which the royalties arise, through a permanent
   establishment situated therein, or performs in that other State
   independent personal services from a fixed base situated therein, and
   the right or property in respect of which the royalties are paid is
   effectively connected with such permanent establishment or fixed base.
   In such case, the provisions of Article 7 or 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
   sub-division, 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 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 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 paragraphs 1, 2 and 3,
   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 120 days in any taxable year.

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

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

   (a)	the recipient is present in that other State for a period or periods not exceeding in the aggregate 183 days in the calendar year; 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 shall be
   taxable only 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 form 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 in that State are wholly or substantially
   supported by funds of the other Contracting State, one of the local
   authorities or of the public institutions..

Article
18
PENSIONS

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, except that, if they are derived
from sources within the other Contracting State they may also be taxed
in that other State

Article
19
GOVERNMENT SERVICE

Article
20
PAYMENTS RECEIVED BY STUDENTS AND APPRENTICES

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

2. Notwithstanding the provisions
   of
   paragraph 1, remuneration which a student or business apprentice who is
   or was formerly a resident of a Contracting State and who is present in
   the other Contracting State solely for the purpose of his education or
   training derives from services rendered in that other State shall not
   be taxed in that other State in the limit of 3,000 US dollars or its
   equivalent in Tunisian Dinars or in Indonesian Rupiahs in any calendar
   year, provided that the remuneration of such services is necessary to
   supplement the resources available to him for the purpose of his
   maintenance.

Article
21
OTHER INCOME

1. Items of income of a resident of
   a
   Contracting State, wherever arising, not dealt with in the foregoing
   Articles of this Agreement shall be taxable only in that State.

2. Notwithstanding the provisions
   of
   paragraph 1, items of income of a resident of a Contracting State not
   dealt with in the foregoing articles of this Agreement and arising in
   the other Contracting State may also be taxed in that other State.e.

Article
22
RELIEF FROM DOUBLE TAXATION

Double taxation shall be avoided in
the
following manner

1. In the case of Tunisia :

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

2. In the case of Indonesia :

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

Article
23
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. 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.

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

Article
24
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 23, to that of the Contracting
   State of which he is a national. The case must be presented within
   three years form the first notification of the action resulting in
   taxation not in accordance with the provisions of the Agreement.

2. The competent authority shall
   endeavour, if the objection appears to it to be justified and if it is
   not itself able to arrive at a satisfactory solution, to resolve the
   case by mutual agreement with the competent authority of the other
   Contracting State, with a view to the avoidance of taxation which is
   not in accordance with the Convention.

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 Convention. 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. When it seems advisable in order to reach agreement to have
   an oral exchange of opinions, such exchange may take place through a
   Commission consisting of representatives of the competent authorities
   of the Contracting States.

Article
25
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.
   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 covered by the
   Agreement. Such persons or authorities shall use the information only
   for such purposes. They may disclose the information in public court
   proceedings or in judicial decisions

2. In no case shall be 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)	the 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
26
DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Article
27
ENTRY INTO FORCE

1. Each Contracting State shall
   notify
   to the other the completion of the procedure required by its law for
   the bringing into force of this Agreement. This Agreement shall enter
   into force one month after the date of the later of these notifications.

2. Its provisions shall apply for
   the
   first time :

   (i)	in respect of taxes withheld at source on income paid or credited, on or after 1 January in the calendar year next following that in which the Agreement enters into force; and
   (ii)	in respect of other taxes on income, for taxable years beginning on or after 1 January in the calendar year next following that in which the Agreement enters into force.

Article
28
TERMINATION

This Agreement shall remain in force
until terminated by a Contracting State. Either of the Contracting
States may, on or before the thirtieth day of June in any calendar year
from the fifth year following that in which the Agreement enters into
force, give to the other Contracting State, through diplomatic
channels, written notice of termination and, in such event, this
Agreement shall cease to have effect: