AGREEMENT
                BETWEEN
                THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
                AND
                THE GOVERNMENT OF THE REPUBLIC OF TURKEY
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 State.
Article
                2
                TAXES COVERED
- 
This Agreement shall apply to 
 taxes
 on income imposed on behalf of a Contracting State or of its political
 subdivisions 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 [and] taxes on the total amounts of wages or salaries paid by
 enterprises.
- 
The existing taxes to which the 
 Agreement shall apply are in particular:(a) in 
 Turkey:(i) the 
 income
 tax;(ii) the 
 corporation tax;(iii) the 
 levy
 imposed on the income tax and the corporation tax;(hereinafter 
 referred to as Turkish tax”).(b) in Indonesia: 
 the income tax imposed under the Undang-undang Pajak Ponghasilan 1984
 (Law no. 7 of 1983 as amended)(hereinafter referred to
 as “Indonesian tax”).
- 
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 significant changes which have been made in
 their respective taxation laws.
Article
                3
                GENERAL DEFINITIONS
- 
For the purposes of this 
 Agreement, unless the context otherwise requires:(a) (i) the term “Turkey” means the 
 Turkish territory, territorial sea, as well as the maritime areas over
 which it has jurisdiction or sovereign rights for the purpose of
 exploring, exploiting, conserving and managing natural resources,
 pursuant to international law;(ii) the term “Indonesia” 
 comprises the territory of the Republic of Indonesia and the adjacent
 areas over which the Republic of Indonesia has sovereignty, sovereign
 rights or jurisdiction in accordance with international law;(b) the terms “a Contracting 
 State” and “the other Contracting State” mean Turkey or Indonesia as
 the context requires;(c) the term “tax” means any tax 
 covered by Article 2 of this Agreement;(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 term registered office 
 means the place of incorporation under the laws of Indonesia or the
 legal head office registered under the Turkish Code of Commerce;(g) the term “national” 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;(h) 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;(i) the term “competent 
 authority” means:(i) in Turkey, the Minister of 
 Finance or his authorized representative, and(ii) in Indonesia, the Minister 
 of Finance or his authorized representative;(j) 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.
- 
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
- 
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, registered office, legal head office, 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:- 
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);
- 
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;
- 
if he has an habitual abode 
 in
 both States or in neither of them, he shall be deemed to be a resident
 of the States of which he is a national;
- 
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.
 
- 
- 
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 it has been incorporated (registered).
Article
                5
                PERMANENT ESTABLISHMENT
- 
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.
- 
The term “permanent 
 establishment”
 includes especially:- 
a place of management; 
- 
a branch; 
- 
an office; 
- 
a factory; 
- 
a workshop; and 
- 
a mine, an oil or gas well, 
 a
 quarry or any other place of extraction of natural resources.
 
- 
- 
The term “permanent 
 establishment”
 likewise encompasses:- 
a building site, a 
 construction, assembly or installation project or supervisory
 activities in connection therewith but only where such site, project or
 activities continue in one of the Contracting States for a period of
 more than six months;
- 
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 183 days within any twelve-month period.
 
- 
- Notwithstanding the preceding provisions of this
 Article,
 the term “permanent establishment” shall be deemed not to include:- 
the use of facilities solely 
 for the purpose of storage or display of goods or merchandise belonging
 to the enterprise;
- 
the maintenance of a stock 
 of
 goods or merchandise belonging to the enterprise solely for the purpose
 of storage or display;
- 
the maintenance of a stock 
 of
 goods or merchandise belonging to the enterprise solely for the purpose
 of processing by another enterprise;
- 
the maintenance of a fixed 
 place of business solely for the purpose of purchasing goods or
 merchandise or of collecting information, for the enterprise;
- 
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;
- 
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.
 
- 
- 
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:- 
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
- 
has no such authority, but 
 habitually maintains in the first-mentioned State a stock of goods or
 merchandise from which he regularly delivers goods on behalf of the
 enterprise.
 
- 
- 
An enterprise shall not be 
 deemed
 to have a permanent establishment in a Contracting State merely because
 it carries on business in that 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.
- 
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
 of otherwise), shall not of itself constitute either company a
 permanent establishment of the other.
Article
                6
                INCOME FROM IMMOVABLE PROPERTY
- 
Income derived by a resident of 
 a
 Contracting State from immovable property (including income from
 agriculture or forestry) situated in the other Contracting State may be
 taxed in that other State.
- 
The term “immovable property” 
 shall
 have the meaning which it has under the law of the Contracting State in
 which the property in question is situated. The term shall in any case
 include property accessory to immovable property, livestock and
 equipment used in agriculture (including the breeding and cultivation
 of fish) and forestry, rights to which the provisions of general law
 respecting landed property apply, usufruct of immovable property and
 rights to variable or fixed payments as consideration for the working
 of, or the right to work, mineral deposits, sources and other natural
 resources; ships, boats and aircraft shall not be regarded as immovable
 property.
- 
The provisions of paragraph 1 
 shall
 apply to income derived from the direct use, letting, or use in any
 other form of immovable property.
- 
The provisions of paragraphs 1 
 and
 3 shall 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
- 
The profits of an enterprise of 
 a
 Contracting State shall be taxable only in that State unless the
 enterprise carries on business in the other Contracting State through a
 permanent establishment situated therein. If the enterprise carries on
 business as aforesaid, the profits of the enterprise may be taxed in
 the other State but only so much of them as is attributable to that
 permanent establishment.
- 
Subject to the provisions of 
 paragraph 3, where an enterprise of a Contracting State carries on
 business in the other Contracting State through a permanent
 establishment situated therein, there shall in each Contracting State
 be attributed to that permanent establishment the profits which it
 might be expected to make if it were a distinct and separate enterprise
 engaged in the same or similar activities under the same or similar
 conditions and dealing wholly independently with the enterprise of
 which it is a permanent establishment.
- 
In determining the profits of a 
 permanent establishment, there shall be allowed as deductions expenses
 which are incurred for the purposes of the 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 will be allowed in respect of
 participations to the expenses and losses of the head office or other
 permanent establishments situated abroad and, likewise, the amounts
 paid by the permanent establishment to the head office of the
 enterprise [or] any of its other permanent establishments, by way of
 royalties, interests, commissions or other similar payments.
- 
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.
- 
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
- 
Profits derived by an enterprise 
 of
 a Contracting State from the operation of ships or aircraft in
 international traffic shall be taxable only in that State.
- 
For the purposes of this 
 Article,
 profits derived by an enterprise of a Contracting State from the
 operation of ships or aircraft in international traffic shall include
 inter alia profits derived from the use or rental of containers, if
 such profits are incidental to the profits to which the provisions of
 paragraph 1 apply.
- 
The provisions of paragraph 1 of 
 this Article shall also apply to profits from the participation in a
 pool, a joint business or an international operating agency.
Article
                9
                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 or
 financial relations which differ from those which would be made between
 independent enterprises, then any profits which would, but for those
 conditions, have accrued to one of the enterprises, but, by reason of
 those conditions, have not so accrued, may be included in the profits
 of that enterprise and taxed accordingly.
- 
- 
Where a Contracting State 
 includes
 in the profits of an enterprise of that State — and taxes accordingly
 — profits on which an enterprise of the other Contracting State has
 been charged to tax in that other State and the profits so included are
 by the first-mentioned State claimed to be 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, where that other State considers the
 adjustment justified. In determining such adjustment, due regard shall
 be had to the other provisions of this Agreement and the competent
 authorities of the Contracting States shall if necessary consult each
 other.
Article
                10
                DIVIDENDS
- 
Dividends paid by a company 
 which
 is a resident of a Contracting State to a resident of the other
 Contracting State may be taxed in that other State.
- 
However, such dividends may also 
 be
 taxed in the Contracting State of which the company paying the
 dividends is a resident and according to the laws of that State, but if
 the recipient is the beneficial owner of the dividends the tax so
 charged shall not exceed:- 
10 per cent of the gross 
 amount
 of the dividends if the beneficial owner is a company (excluding
 partnership) which holds directly at least 25 per cent of the capital
 of the company paying the dividends;
- 
15 per cent of the gross 
 amount
 of the dividends in all other cases.
 
- 
- 
The term “dividends” as used in 
 this Article means income from shares, “jouissance” shares or
 “jouissance” rights, founders’ 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, and income derived from an investment
 fund and investment trust.
- 
Profits of a company of a 
 Contracting State carrying on business in the other Contracting State
 through a permanent establishment situated therein may, after having
 been taxed under Article 7, be taxed on the remaining amount in the
 Contracting State in which the permanent establishment is situated and
 in accordance with paragraph 2 of this Article.
- 
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 in the
 case of a resident of Turkey, performs in Indonesia independent
 personal services from a fixed base situated in Indonesia, 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.
Article
                11
                INTEREST
- 
Interest arising in a 
 Contracting
 State and paid to a resident of the other Contracting State may be
 taxed in that other State.
- 
However, such interest may also 
 be
 taxed in the Contracting State in which it arises and according to the
 laws of that State, but if the recipient is the beneficial owner of the
 interest the tax so charged shall not exceed 10 per cent 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.
- 
Notwithstanding the provisions 
 of
 paragraph (2), interest arising in:(a) Indonesia and paid to the 
 Government of Turkey or to the Central Bank of Turkey (Turkiye
 Cumhuriyet Merkez Bankasy) or to the Turkish Eximbank (Turkiye Yhracat
 Kredi Bankasy A.S.) shall be exempt from Indonesian tax;(b) Turkey and paid to the 
 Government of Indonesia or to the Bank of Indonesia (Central Bank)
 shall be exempt from Turkish tax.
- 
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 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 in the case of a resident of Turkey,
 performs in Indonesia independent personal services from a fixed base
 situated in Indonesia, and the debt-claim in respect of which the
 interest is paid is effectively connected with such permanent
 establishment or fixed base. In such case the provisions of Article 7
 or Article 14, as the case may be, shall apply.
- 
Interest shall be deemed to 
 arise
 in a Contracting State when the payer is that 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 person, the amount of the interest, having
 regard to the debt-claim for which it is paid, exceeds the amount which
 would have been agreed upon by the payer and the beneficial owner in
 the absence of such relationship, the provisions of this Article shall
 apply only to the last-mentioned amount. In such case, the excess part
 of the payments shall remain taxable according to the laws of each
 Contracting State, due regard being had to the other provisions of this
 Agreement.
Article
                12
                ROYALTIES
- 
Royalties arising in a 
 Contracting
 State and paid to a resident of the other Contracting State may be
 taxed in that other State.
- 
However, such royalties may also 
 be
 taxed in the Contracting State in which they arise and according to the
 laws of that State, but if the recipient is the beneficial owner of the
 royalties the tax so charged shall not exceed 10 per cent 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.
- 
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 and recordings for radio
 and television, any patent, trade mark, design or model, plan, secret
 formula or process, or for information concerning industrial,
 commercial or scientific experience, or for the use of, or the right to
 use, industrial, commercial or scientific equipment.
- 
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 in the case of a resident of Turkey
 performs in Indonesia independent personal services from a fixed base
 situated in Indonesia, and the right or property in respect of which
 the royalties are paid is effectively connected with such permanent
 establishment or fixed base. In such case the provisions of Article 7
 or Article 14, as the case may be, shall apply.
- 
Royalties shall be deemed to 
 arise
 in a Contracting State when the payer is that State itself, a political
 subdivision, a local authority or a resident of that State. Where,
 however, the person paying the royalties, whether he is a resident of a
 Contracting State or not, has in a Contracting State a permanent
 establishment or a fixed base in connection with which the right or
 property giving rise to the royalties is effectively connected, and
 such royalties are borne by such permanent establishment or fixed base,
 then such royalties shall be deemed to arise in the State in which the
 permanent establishment or fixed base is situated.
- 
Where, by reason of a special 
 relationship between the payer and the beneficial owner or between both
 of them and some other person, the amount of the royalties, having
 regard to the use, right or information for which they are paid,
 exceeds the amount which would have been agreed upon by the payer and
 the beneficial owner in the absence of such relationship, the
 provisions of this Article shall apply only to the last-mentioned
 amount. In such case, the excess part of the payments shall remain
 taxable according to the laws of each Contracting State, due regard
 being had to the other provisions of this Agreement
Article
                13
                CAPITAL GAINS
- 
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.
- 
Gains from the alienation of 
 movable property forming part of the business property of a permanent
 establishment which an enterprise of a Contracting State has in the
 other Contracting State or of movable property pertaining to a fixed
 base available to a resident of a Contracting State in the other
 Contracting State for the purpose of performing independent personal
 services, including such gains from the alienation of such a permanent
 establishment (alone or with the whole enterprise) or of such fixed
 base, may be taxed in that other State.
- 
Gains 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.
- 
Gains from the alienation of any 
 property other than that referred to in paragraphs 1, 2 and 3, shall be
 taxable only in the Contracting State of which the alienator is a
 resident. However, the capital gains mentioned in the foregoing
 sentence and derived from the other Contracting State shall be taxable
 in the other Contracting State if the time period does not exceed one
 year between acquisition and alienation.
Article
                14
                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 183 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, lawyers, engineers, architects, dentists and
 accountants.
Article
                15
                DEPENDENT PERSONAL SERVICES
- 
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.
- 
Notwithstanding the provisions 
 of
 paragraph 1, remuneration derived by a resident of a Contracting State
 in respect of an employment exercised in the other Contracting State
 shall be taxable only in the first-mentioned State if:(a) the recipient is present in 
 the other State for a period or periods not exceeding in the aggregate
 183 days within any twelve month period; and(b) the remuneration is paid by, 
 or on behalf of, an employer who is not a resident of the other State;
 and(c) the remuneration is not borne 
 by a permanent establishment or a fixed base which the employer has in
 the other State.
- 
Notwithstanding the preceding 
 provisions of this Article, remuneration 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
fees and other similar
payments derived by a resident of a Contracting State in his capacity
as a member of the board of directors of a company which is a resident
of the other Contracting State may be taxed in that other State.
Article
                17
                ARTISTS AND SPORTSMEN
- 
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 a sportsman, 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 a sportsman in his capacity
 as such accrues not to the entertainer or sportsman himself but to
 another person, that income may, notwithstanding the provisions of
 Article 7, 14 and 15, be taxed in the Contracting State in which the
 activities of the entertainer or sportsman are exercised.
- 
Income derived by an entertainer 
 or
 a sportsman from activities exercised in a Contracting State shall be
 exempt from tax in that State if the visit to that State is supported
 wholly or mainly by public funds of the other Contracting State, a
 political subdivision or a local authority thereof.
Article
                18
                PENSIONS
- 
Subject to the provisions of 
 paragraph 2 of Article 19, any pension 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
- 
Pensions and life annuities 
 paid,
 and other periodical or occasional payments made by a Contracting
 State, or one of its political subdivisions in respect of insuring
 personal accidents, may be taxed in that 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
                19
                GOVERNMENT SERVICE
| 1. | (a) | Remuneration, other than a | |
| (b) | However, such remuneration shall | ||
| (i) | is a national of that State; or | ||
| (ii) | did not become a resident of that | ||
| 2. | (a) | Any pension paid by, or out of | |
| (b) | However, such pension shall be | ||
| 3. | The provisions of Articles 15, 16 | ||
Article
                20
                TEACHERS AND STUDENTS
- 
Payments which a student or 
 business apprentice who is a national of a Contracting State and who is
 present in the other Contracting State solely for the purpose of his
 education or training receives for the purpose of his maintenance,
 education or training shall not be taxed in that other State, provided
 that such payments arise from sources outside that other State.
- 
Likewise, remuneration received 
 by
 a teacher or by an instructor who is a national of a Contracting State
 and who is present in the other Contracting State [for] the primary
 purpose of teaching or engaging in scientific research for a period or
 periods not exceeding two consecutive years shall be exempt from tax in
 that other State on his remuneration from personal services for
 teaching or research, provided that such payments arise from sources
 outside that other State.
- 
Remuneration which a student or 
 a
 trainee who is a national of a Contracting State derives from an
 employment which he exercises in the other Contracting State for a
 period or periods not exceeding 183 days in a calendar year in order to
 obtain practical experience related to his education or formation shall
 not be taxed in that other State.
Article
                21
                OTHER INCOME
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
                22
                ELIMINATION OF DOUBLE TAXATION
- 
Double taxation for the 
 residents
 of Indonesia shall be eliminated as follows :(a) Where 
 a resident of Turkey derives income which, exclusive of income covered
 by paragraph (b) hereafter, in accordance with the provisions of this
 Agreement, may be taxed in Indonesia, Turkey shall exempt such income
 from tax but may, in calculating tax on the remaining income of that
 person, apply the rate of tax which would have been applicable if the
 exempted income had not been so exempted.(b) Where 
 a resident of Turkey derives income which, in accordance with the
 provisions of Articles 10, 11, 12 and paragraph 4 of Article 13 of this
 Agreement, may be taxed in Indonesia, Turkey shall allow as a deduction
 from the tax on the income of that person, an amount equal to the tax
 paid in Indonesia.Such deductions shall not, 
 however,
 exceed that part of the tax, as computed before the deduction is given,
 which is appropriate to the income [which] may be taxed in Indonesia.
- 
Double taxation for the 
 residents
 of Indonesia shall be eliminated as follows: Where a resident of
 Indonesia derives income from Turkey, the amount of tax on that income
 payable in Turkey, in accordance with the provisions of this Agreement,
 may be credited against the tax levied in Indonesia imposed on that
 resident. The amount of credit, however, shall not exceed the amount of
 the tax in Indonesia on that income computed in accordance with its
 taxation laws and regulations
Article
                23
                NON-DISCRIMINATION
- 
Nationals of a Contracting State 
 shall not be subjected in the other Contracting State to any taxation
 or any requirement connected therewith, which is other or more
 burdensome than the taxation and connected requirements to which
 nationals of that other State in the same circumstances, in particular
 with respect to residence, are or may be subjected
- 
Subject to the provisions of 
 paragraph 4 of Article 10, 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.
- 
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.
- 
These provisions 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.
Article
                24
                MUTUAL AGREEMENT PROCEDURE
- 
Where a resident of a 
 Contracting
 State 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 competent authority shall 
 endeavour, if the objection appears to it to be justified and if it is
 not itself able to arrive at a satisfactory solution, to resolve the
 case by mutual agreement with the competent authority of the other
 Contracting State, with a view to the avoidance of taxation which is
 not in accordance with the Agreement.
- 
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.
- 
The competent authorities of the 
 Contracting States may communicate with each other directly for the
 purpose of reaching an agreement in the sense of the preceding
 paragraphs. The competent authorities, through consultations, shall
 develop appropriate bilateral procedures, conditions, methods and
 techniques for the implementation of the mutual agreement procedure
 provided for in this Article.
Article
                25
                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 Contracting States concerning taxes covered by the Agreement
 insofar as the taxation thereunder is not contrary to the Agreement.
 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.
- 
In no case shall the provisions 
 of
 paragraph (1) be construed so as to impose on a Contracting State State
 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
                26
                MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS
affect the fiscal privileges of members of diplomatic missions or
consular posts under the general rules of international law or under
the provisions of special agreements.
Article
                27
                ENTRY INTO FORCE
- 
Each Contracting State shall 
 notify
 to the other Contracting State the completion of the procedures
 required by its law for the bringing into force of this Agreement. This
 Agreement shall enter into force on the date of the later of these
 notifications.
- 
The provisions of this 
 Agreement
 shall have effect :(a) with regard to taxes withheld 
 at source, in respect of amounts paid or credited on or after the first
 day of January next following the date upon which this Agreement enters
 into force; and(b) with regard to other taxes, 
 in respect of taxable years beginning on or after the first day of
 January next following the date upon which this Agreement enters into
 force.
Article
                28
                TERMINATION
This Agreement shall remain in force
                until terminated by a Contracting State. Either Contracting State may
                terminate the Agreement, through diplomatic channels, by giving notice
                of termination at least six months before the end of any calendar year
                beginning after the expiration of five years from the date of entry
                into force of the Agreement. In such event, the Agreement shall cease
                to have effect:
| (a) | with regard to taxes withheld at | 
| (b) | with regard to other taxes, in | 
undersigned, duly authorized thereto, have signed the present Agreement
and have affixed their seals thereto.
Jakarta this 25th day of February 1997 in the
Turkish, Indonesian and English languages, all three texts being
equally authentic. In case of divergence between the texts, the English
text shall be the operative one.
the time of signing the
Agreement for the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with respect to taxes on income, concluded this day
between the Republic of Indonesia and the Republic of Turkey, the
undersigned have agreed that the following provisions shall form an
integral part of the Agreement.
 With respect to Article
With respect to Article5:
the use of facilities solely for the purpose of
mere delivery of goods or merchandise and the maintenance of a stock of
goods or merchandise solely for the purpose of mere delivery shall not
be treated as permanent establishment for the purposes of this
Agreement. On the contrary, the regular delivery in such cases and in
the cases of activities of a person other than acting as an agent of an
independent status on behalf of an enterprise and who habitually
maintains a stock of goods or merchandise in the other Contracting
State, shall be deemed to be a permanent establishment for the purposes
of this Agreement.
 With respect to Article
With respect to Article10:
paragraph 4 of this Article shall not affect the
provisions contained in any production sharing contracts or any other
similar contracts relating to [the] oil and gas sector or other mining
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 Turkey.
 With respect to Article
With respect to Article16:
the board of directors of company” shall include
managing directors (anggota pengurus) and supervisory directors
(anggota dewan komisaris) of an Indonesia company.
 With respect to Article
With respect to Article24:
paragraph 3 of Article XXII (Consultation) of the
General Agreement on Trade in Services, the Contracting States agree
that, notwithstanding that paragraph, any dispute between them as to
whether a measure falls within the scope of this Agreement may be
brought before the Council for Trade in Services, as provided by that
paragraph, only with the consent of both Contracting States. Any doubt
as to the interpretation of this paragraph shall be resolved under
paragraph 3 of Article 24 or, failing agreement under that procedure,
pursuant to any other procedure agreed by both Contracting States.
witness whereof, the undersigned duly authorized thereto have signed
the present Protocol and have affixed their seals thereto.
Jakarta this 25th day of February 1997 in the
Turkish, Indonesian and English languages, all three texts being
equally authentic. In case of divergence between the texts, the English
text shall be the operative one.
| FOR THE GOVERNMENT OF | FOR THE GOVERNMENT OF | 
