RAVB AGRBEp AS FOLLOWS:

KEPUBLIK INDONESIA A G R E E M E N T B E T W E E N T H E G O V E R N M E N T O F T H E R E P U B L I C O F I N D O N E S I A A N D T H E G O V K R N M $ N T O F T H E I N D E P E N D E N T S T A T E O F P A P U A N E W G U I N E A F O R T H E A V O I D A N C E O F D O U B i & ^ A X A T l O N A N D T H E P R E V E N T I O N O F F I S C A L E V A S I O N W I T H R E S P E C T T O T A X E S ' 0 & McMtk T H E TOYBRNMEtfT O F T H E . -RE". U B H C O F I N D O N E S I A . A N D TH£ G O V E R N M E N T O F T H E I N D E P E N D E N T S T A T E O F P A P U A N E W G U I N E A

Dcskmg to conclude an Agreement for the avoi/iancc o f double taxation'and the pteveatioa of fiscal m s i o a with 'ttspect ta uses on income,

RAVB AGRBEp AS FOLLOWS:

Article 2

T A X E S C O V i - . R E D

1- This Agreement shaj] apply t 0 taxes <* income l o o s e d on behalf o f * Contracting State, irrespective of the manner in which they are levied

2. There shall be regarded as m e . on income all taxes i m po s ed on total

uicome, or on elements of income, including t a «5 on gain* from the alienation of movable or immovable property,

3- The taxes which are tha subject of thU Agreement ar fi:

(a) i n the case of Indonesia:

the income tax.

(hefeinaftet referred to as "Indonesian tax"), (h) i n the case of Papua New Guinea

the incotoe tax imposed under the law of Papua New Guinea, including:

(i) the salary oi wages tax;

(u) the additional profits tax upon additional profits from njiniag operations;

(w) the - additional - profits ia.? upon additional ptotlts from petroleum operations;

(xv) the additional.profits tax upon a^icooal profits fixau gas operations;

(v) the dividend withholding tax upon taxable d r v i ^ d k c b m e ; (vi) the foreign c o n i ^ a o t ; ^ M b l d i n g tax;

(vii) the management fee Ntfithholding tax;

(viii) the business payments tax; an i

.(be) me'interW^tWibldihgtax.

(hereinafter teferred to as "Papua New Guinea tax").

4, The Agreement shall apply also to any i d * deal or substantially simiiai taxes

which ate imposed after the date of signature o f me Agre'ement in addition

to, or in place of, the exiting taxes. The c o m p e l authorities of the extracting States shall notify each .other of nay'sigmfic'ant changes which'

hare been made in their- respective taxation :.aws.

C H A P T E R IX D E F I N I 1 IONS

Article 3

G E N E R A L D E F I N I T I O N S

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

(a) i) the term "Indonesia" comprises the territory o f the Republic of Indonesia as defined in its laws, and p^ta o f the continental-shelf and adjacent seas over which the Repubh<- of ind^e^-hajs weteign'ty.

sovereign tights or jurisdiction in accordance -with International Law,

ii) the term "Patju* New Guinea" means. the d e p e n d e n t State of Papua. New Guinea and, whett used in a fe«,K,.-aphical sehsft Jbc^udes; any area adjacent to territorial limits of Papua New.' Guinea.- .in. respect :of which there is, consistent "with international law, a law of'feap^i'New Guinea dealing with the exploitation of o f the natural Resources of the Continental Shelf, its sea bed and sub-soil;

(b) the teems 'V Contracting State" and "the other Gc^tiacting State" mean Indonesia or Papua New Guinea as thr context requires;

(c) the term "per-son" *ucludefc an itidi -juual, a company and any other body o f persons;

(d) the terai "cewnpany" means any body ,,%-itporate or any entity which is

treated as a body corporate for tat purposes;

(e) the terns "enterprise o f a Contacting State" and H enterprise o f the other Contracting State" mean respectively an enterprise carried on by a

© any individual p r e s s i n g the n a t i o n * ^ 0f a Conttacring State; ® any legal person, partnership, a s s o r i 9 r:o a o r 0 & e c ^ d

status as such torn the laws in f o r , , in a Contacting

State-W the tetm "intem.rional traffic" n,Can, any transport by a snip or aircraft operated by ah enterpriee o f a Contracting State, except when the snjp or ajtcrrft is operated solely between places in the other Contracting State;

(i) the term "competent authority" means*

® * c a s e o f M ^ e s ^ . . the M i s t e r of Finance qr his authorized representative,

(ii) in the case ofPapua.Nisw Guinea, ri,c C o i r ^ a o n e r : Gcnewl of Internal . Revenue or an authorised repreientative of the Commispiorier General o f Internal Revenue; and1

In this Agteement the terms "Indcncsku W and "Paj-ma. N e w Guinea tax" do not include any amount which iepeeseuts a penalty or interest imposed under the W o f either C c ^ c t i n g 3me relating to the taxes to which this Agteement applies.

As regafds the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless':.the'- ,conte*t'.otherwise

requires, have the meaning which it has, at that -time under the laws o f that State for (he purposes of''the taxes'to which the ^ c e m e n t applies, any

meaning under the applicable tax laws of that State prevailing, over a

meaning given to the j ^ - u n r j e t other laws of tfc# State. 1

Article 4 R E S I D E N T

1.

For the purpose* of this A^eement, the term ' W e n t o f a Contracting Mate means any person who, under the laws of that State, is Jiable to tax tbemn by reason of his domidJe, r e s i d e , place of management or any other cntetton.of 9 similar nature and also i n c f e l e s ^ a t - State and any pohUcal subdivision or local authority tWeo£ This term, however, does not mclude any person who is liable to tax k that State in r e j e c t only of income ttom sources i n that State.

2- Where by reason of the provisions of p a r a p h 1 a person, being an indivi4aal

ts a resident o f both Contracting Ssateb, then the status o f that person shall be determined i n accordance with; the following rules:

(a) the person shall be deemed to be a resident o f the Omttacting State i n which the person has. a permanent borne;

(b) i f a permanent home is available to the person its .lkjth;$ttt^:or-in.ndrlwc of them, the person, shah* be deemed to be a resi&sit o f the State with which' the person's personal and economic tendons ate & e closer! (centre of vital interests);

(c) i f the Contracting State in which the person's centre o f vital interests cannot be determined, and the person has no permanent home i n either Statvthe person shall he deemed to he a .resident o f the State i n which the person has an habitual abode;

(d) i f the person has an habitual abode, in both Confessing; States or in neither of them, the person shall be deemed to be a resident o f i i e ^tate of which the person is. a national;

Ard.de h

1. Fur the jjwipuscs this. A^sxix-ciu^ i t c »,cuu "jjcii'^sUiCUt cs&UIalwiacut1' means a fixed place of buaiaess through which the business o f an entexptise is wholly or partly earned on.

2, The term "permanent establishmisnt" shall include especially*. (a) a place of maiiageaotftnt;

(b) a branch; (c) an office; (d) a factory; (e) a workshop;,

(f) a warehouse ot premises uSef* as a s^ks outlet;

a mine, as o i l or gas well, 2 quarry or any other p k e * o f escbactiotf or exploration or exploitation ot' natural j w o i u f a ^ : drifting r i g or

working ship used £02 exploration or ^ i o i t a t i d h o£&atsrairesources;

plantation activities arc carried on, s_\<i

^ T h r term "tirftniTifnt rsrshiishmfnf'1 tilrrwmr rnmrnfluifTi

(a) a building site, a construction, a^etwbly o r ; ' ^ s t a M c i n . project or

prnjert or arrivifiM rrtfifirrof far p pprind of mntr.than ISflMayt:

(h) thn fiimkhkio nf nmarinnn. nrhia than -fiphiiidnlnninrttinn ah htipnltnind uUdcl AiUvW 13, by *iU euU.-^tUi thiOufeJi ^ilOy**=a y t ulUc*. ppf*onnel ptigs^rrl by tVip pnt,-:pii^p « V »nrh purpose,.btit only where srrlvlrtr* ih-ir niiTiirr rnnrtmif \t\ir ilir- aamr nr a i;nnnrrTrri\pTn]rn) •within the anintry tor a period pe&wia Ag^regatiag r a w i than 120 days •within any twelve month period.

4. NuLwitbsUuUiiig ilic pi-ccoduig j.iwiai?.*u- wl Uiia Article, the lexm cttUUULuucul'1 shall L-c deemed n u l lu hu-ludc;

(ill M m n f ftsfimnft firitalt for t\m mmm nf mnm nt ftlnnhY n f a,.»..!.. ,„,,!:lll„i;,..,l»1l..MK.;..a m-. ; • ' " " l •» •

(b) the maintenance of a stock of goods ot merchandise belonging to the enterprise solely tor 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 advet+foing, or fnt the supply c f i^ornaatiorii for the enterprise^

(£) the maintenance of a fixed place of business solely for the purpoge of •carrying on, for the enterprise, any other activity of a preparatory or

auxiliary character;

(g) the maintenance of a £bced place of business solely for any combination of ncthdri** mrnHnnftri. in sub-pa rafiraDhs (a) to (& provided that the overall activity of the fixed-'place of business resulting from this cosnbiflfctioa is of a. prepatatoiy or auxiliary character.

Nnhirirh standing thr, nmvisinns of paxagiapiis I and 2, where a person other than an agent of an independent iULua to whom paragraph 6 applies -is acting in a Contcflcricg State on bekalf of an Mitrrpriap" nf-rhn nthftr 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 foe the enterprise, if such a person:

(a) has or habitually exetHses in mat State an authority to conclude contracts i n the name of the er-cerpriae, unless the activittea of such person are limited to. those mentioned in paragraph 4 which, if ex erased through a feed pke.c of business, would not make this fixad placa of businets i permanent fsrahlishmRnt nnriftr fhr: provisions of that paragraph; or

6. A n 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 hi that other Staie tiuough a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary courss c£ 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 o f an independent status within the meaning of this

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 01 othelxuse), shall not of itself constitute

either company a permanent estabhshment ot the other:

T A X A T I O N Of J I N C U M H

Article 6

I N . C O M b bROM I M M O V A r J L k M D P B R T V

Income derived by a resident of a Contracting State] from immovable property (including income from agriculture or forestr}) situated in the other Contracting State maybe taxed in that other State.

For the purposes of this Agreement, the cean 'Mro^tovablc property" shall be defined in accordance -tfith tne laws of. the Contacting State in which the property in question is situated. The term shall inj.any case include property accessory to irnmovahle property,, livestock and equipment used in agriculture and forestry, rights to.which the provisions of. gejjt&al hrtsr respecting landed property apply, usufruct of immovable property ana rights to variable or fixed payments as consideration for the woddag of, oij .the right to wotk'oj: the right to explore fox, mineral deposits, oil or gas deposits, quarries : and other places of extraction, of natural resources; indud4r>g indigenous and exotic timber or other forest produce. Ships* boats and . aircraft shall not be regarded aa immovable property.

The provisions of paragraph 1 shall also;apply tojincosne derived from the direct use, letting, or use in any other form, of ircm^aole'property.

Any interest or right ..starred to in paragraph 2 shall be regarded as situated where die land, mineral deposits, sources and other natural resources, as the case may be, are situated or whecn the- esploratipn may take place.

The provisions of paragraphs 1 and 3 shall also atjply to the income from hmnovable pioperty of aw enterprise snd to income!from immovable property used for the performance of indejpendent p h o n a l services.

Article 7 B U S I N E S S P R O F I T S

The ptofits of an enterprise of a Contracting State sjaall be taxable only in that State unless the enterprise carries on business, in the other Contracting State through a permanent establishment situatea therein. If the enterprise carries on business as aforesaid,'the profits of the enterprise maybe taxed i n the other State but only so much o f them as ;$ attributable to:

(a) That permanent establishment; ox

(b) Sales -within that other Contracting State of goods or merchandise o f the same or a similar kind as ihc-se sold through that permanent establishment; or

(c) Other business activities canied on in that other State o f the same or similar kind as those effected through that permanent establishment.

Subject to the provisions, of paragraph 3, wrwee an enterprise o f a Contracting State catties on business in the other Owtracjring..$tate 'thttnjgjh. a, permanent establishment situated therein, there sball'm'jeacil extracting State be attributed to that permanent establishment the profits whidj-ft-tei^t be- .ex^ecJted to make if it -were a distinct and Independent enterprise engaged in' the. same or similar activities undet the s$me -ox' similar c o c d i ^ n s and dealing .-wholly independently with the enterprise of which it is a permanent establishment.

In dr-trnninirig the profits of a permanent cs&jsJ&hment, there shall be allowed as deductions expenses which -are incurred for the purpose of the business o f the permanent estabkshrnent indudfeg executive and general ad^ninistrative expenses so incurred, whether inj the State i n which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, i f any> paid, (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any. o f its! .other offices, by way o f royalties, fees or other similar payments in return; for the use of patents or other rightSj or byway of commission, •for specific iseivices performed or for management, or except in the case of a Unking enterprise, by way of interest on moneys lent to the permanent establishment: likewise, no- account shall "be taken, in the determination of tine 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

TP*** M m ! 0 f ta °t h M o f e c s* bT ™ T o f royalties, fees or other p ™ I t t r e t t^ f<* * e of ^ e u t s « ' ^ right,, or by way of comrmssion for s p e ^ c s e ^ e s p e r ^ ^ d or for management, or, except m the case o f a banking enterprise, by way o f i n v e s t on moneys lent to the head office of enterprise ot -my of its other office*.

4- N o profits shall be attributed to.a permanent establishment oy x«won ot the mm purchase by that p e n d e n t establishment o f goods or merchandise for the enterprise.

5- Where profits include items of income which are dealt with- separately in Other Articles of this Agreement, men the provisions of those Articles shall not be affected by the provisions of this Arricit.

6. F o r the purposes of the preceding p a r a p h s , the profits to be attributed to the permanent estabhshmeat shall be dctcrrnined by the same me&od year

by year unless there is good, and sufficient *ea?on to $ e contrary,

7. Nothing in this article shall affect 'the operation of any Jaw of one of-the Contracting States rektmg to tax imposed on profit derived by non-residents on insurance premiums coUccscd, or from msuranetj ;relitmg; to risks arising or to property, in that State, whe&et or nojt that W .deems the fedttace of a permanent estabHshment m relation to iheireWant ajcnVityv

A/tic'* &

S H I P P I N G A N D A I R I & a N S P O R T

Pfc-ats derived fey enterprise of a extracting, 3&t* from the opaaaon ot ships ot aircraft in ktemation&l traffic shall oe taxa^e only i n that State. t h e provision of paragraph \ shall also apply to prprits from' the participation in a pool, a joint business or international operating agency.

The term " o t m t b n of ships or a&xpfr* shall mean , the business of transportation by Sea or -air of passengers, mail, Uyestoek or goods carried on by the owners or lessees or charterers of'ships or aircraft and the incidental lease of srips or aircraft.

mam

Articles

A S S O C I A T E D E N T E R P R I S E S

1. Where;

(a) an enterprise of a Contracting State pnxticipa^es directly or indirectly in the management, conttof or capital o f an enterprise o f the other Contracting State; or

(b) . the same, persons participate di«eay or indirectly i n the management, control or capital,of an e n t e r s o f a Contracting State and as enterprist. o f the other Contracting State;

and in either case conditions ate marie or imposed between the two enterprises in thei* corametdel or financial rektiocs -s?hieh d^terffisam #305$' -which would

be made between independent enterpds^ -then 'mf. profits \dbieh.would, but for those conditions, have accrued to ont-of the entetpriseSi h i t ; by reason of those conditions, have not so atoued, may: b « included i n the -tbrofits o f that enterprise and taxed accordingly,

2. Where a Conttacdng State incudes in the pront? of an,enterprise o f that State, and taxes accotdlngly, profits on/wki^aft enterprise of tht bthet: Contracting

State has been charged to tax in chat otfeet State anct the profits so included are profits -which would haveaeqrued to the enterprise'of ^ mei&st-mentioned State i f the condtttoss made between the two mtetprises had .been, those which would have been made between kdefte^cfenr entsr^saes, then that other State shall make an appropriate adjustment to the amount of the tax charged therein

on those profits. In detemMng such adjustment* d W regard sh&ll be had t o . the other provisions o f this Agreement end the competent authorities of the Contracting States shall i f necessary consult each other.

3. A- Contracting State shall not change the profits-of an enterprise & .the circornstances referred 10 i n paragraph 2 after the expiry o f the' rime limits provided in its tax lavs.

Article 10 D I V I D E N D S 1. 2. 3. 4. 5.

D i v i d e d , derived t i o a , company w k c u „ a tesident of * Contracting S t * * 'by a restdem of the other Contracting State may be toed i n that oth J

However, such dividends m y ako be i u e d i „ the C o v e t i n g Slate o f which he c o m p l y paying.the dwideocta is a resident anc}. accoidffig to the hws o f ^ State, but i f the b e n e f i t owner o f the d i v i d e n d s * , resident o f the other Contacting Mats, the tax c h ^ a & a I 1 ^ ^ „ • ^ gtoss .mount o f the dividends. This paragraph ,nau no t i f f e c t t i e N a t i o n o f the company in respect of the profits out of which the dividends ate paid.

T^e term " d i v i d e d " as u s e d m t h i s ^r i c i e m e 4 M & o f f i a W ot other tights not being 64*4**, Z a p a t a * w „r s,e t s > a s weU M

foffl,0the* " " J * " * * %h« i9 s u b b e d to/the same taxation treataent as income trom by the laws o f State o f w H c h the company making the chstdbmion is a resident.

The p r i o n s ofP M% B j * , 1 and 2 * « not apply i f the beneficial * a

o f the dividends, being , r e s i d c M o f, Coattactiag State, b u s i e s in the other Contracting State of which the c o m p l y paying & dividends 5,

a r e s i d e ^ ( W g h a permanent ewaUMfeunt situated thttew, « p«rf0rms a that other State impendent p ^ n i s e r i e s fiforo a feed t j f a i n t e d t h « e » , and the h o i e % in respect of which t t e a W d w d s are paid i , effectively connected with such permanent estatAhrnent or feed base. l a

case,. the provision, of Article 7 or Article 15, as the casemay be, shall

Where a company which is a resident of a .Contiactmg.State derive* i ^ m e o r profits from the other Contacting State, that othet State may not impose any t u on the dividends paid by the ^ p a n y , e*cept in so far as s u A dmdefcda are paid to a resident of that othe, State o r i n » far as the holding m respect o f which the dividends « e paid i , effectively connected with a permanent estabEshment or . flxed-ba.e.rftusajain that other State not subject the company's undistributed profits to a t w on the company's * * * * * * profit,, « a - if the dividends paid or -the ^distributed profits consist wholly or partly of profits o r i n c c e e adsihgSn that other State.

Notvwthstandittg any other provisions of *'iis Agreement where a company •which is a tesident of a Contacting 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 U s so charged-chali not exceed, 15 pet cent of the amount of such profits after deducting therefrom income tax and other taxes on income imposed thereon in that pthcr State.

The provisions of paragraph 6 of this Article shall not affect the provision contained in any production ajjadng • contract and relating to oil and gas sector or other mining sectors concluded; by the (government of Indonesia, its instrumentality, its relevant state oii'aad gas coibpany or any other entity

Article 11 I N f E K E S T

L Interest arising i n a Contracting S^t* a^c paid to a resident o f the other Contracting State may ha taxed i n that other State.

2. However, such Interest may alsa be tersd in the Cdntraeung:State in which it arises and according to the laws of that State, but i f ihe beneficial owner o f the interest ts a tesident o f the other Contracting State, the tax so charged shall'not exceed 10 per cent o f the grogs amo;unt o f the -interest. The competent authorities of me Contracting State s h ^ l by muhial-agreement

settle the mode o f application o f this limitauoa.

3. H o t m t h s ^ n d k g tfe» provisions ot paragraph 2 , . interest .-^aing. i n a Contracting State and derived by the Government of the oihet 'Costiactit^ State including local authorities thereof a p o l i t i c a l subdivision* the Central B a n k or any financial i n s & v t k n contfcied ^ ' ^ s t ^ G o f e m m e a ^ the capital o f which; h wholly owned by the Oo^efetnent io£ the other Contacting Stata, as may be Agreed up$n fitom ijune to- time b e t w a i . the

competent, authorities o f the Contracting^tates^ s&M be exempt to i n the first-mentioned S i t e ,

4. The tetto "interest*' as used in tHs Article means income trqm de>trcMas o f every Had, whether or'aot secured by mortgagg andiwhetiicr or notiCfltEytag.a

a&t to participate i n the debtors proses, arid- iri p ^ a f l ^ .intome tan

gprernmcat weuades and income from bonds or debentures deluding pamforas and p r i m amdmg'.to.such sseanties,'bonds ot debentures. Benalty charges for kte payment shall not bercgisfied as interest fox me purpose of this Article.

5. The provisions ot paragraphs 1 *ad"2 shsdlsspt'apply i f t&e beneficial owner o f the interest* being a .resident of a ConitsctiR| $tate, c i t i e s o n business i n the other Contracting St&te in wH;eh ;&* Merest' at&ea, ,&tough a permanent establishment situated therein, ox performs- i n that other State independent personal services £tom a fixed base,.situated therein, and the debt-claim in respect o f which the interest is paid.is fe&Scdwdy. connected with a) such permanent establishment W fibced Ijase, or with b) business activities referred to under e). o f par^gr^h I o f Article 7. In such esse, the provisions o f Article 7 or 15, as the esse may be* shall apply,

Interest shall be deemed*to arise i s a Ccatractiag Statc/wk^the payer is that Contracting State itself, a jpolinVal -subdivision,, a local authority or a

resident o f that State, 'Where, however, the p* won paying the interest, A e t h e r the person is a resident of a Contracting or not, has in a Contracting State

a permanent establishment or a fixed bsse i n connection with which the

indebtedness on -which the interest is paid was incurred, and such interest is borne by that permanent establishment or 6jced base, then such interest shall

be deemed to arise in the Contracting State i n which the permanent

establishment or fixed base is

situated-Where, by reason of % special relationship between the payer and the beneficial owner or between Both of them ana some other person, the amount of

the interest, having regard to the debi-ckim fof«rhich it is paid^ exceeds the

amount which would have been agreed upon by the payer and the beneficial

owner in the absence of such «latiotKhij>,,the provisions of this Article shaU

apply only to the last^entioned amount. In such cage, fee excess part o f the payments shall rena*k taxable according to the laws of each Contracting

State, due regard being had to the other provisions ofthis Agreement,

The provisions of this Article shall not apply i f the . d e t e k u n in respect of

which tiae interest is paid "was created ot assigned- mainly for the purpose of

Atiiclc U

R O Y A L T I E S

fcoyaitie* arising in a Contracting; Staie « « l paid to a tesident of the other Contracting State may be taxed i n thai other State.

However, such royalties may also be ta*ed in the Contracting State i n which they arise and according to the k w s of t h u State, but i f the beaeadal owner of the royalties is a resident o f the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount o f the royalties. The competent authorides of the Contracting, State shall by mutual agreement settle the mods o f application o f this limit*tiofl.

The term ^royalties* as used i n mis Article means amounts paid or accrued, whether periodical or not, and in -whatever- tbrm oricame or nomenclature to extent to which they ate made as trauL&ftation

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 &git to use, ,snf ^ d u s ^ ccortmercial otsdendtlc ecjuipmenti or

c> the supply of scientific, technical, industrial or commercial Itnowledge or ^formation; or

d) » the supply of my assistance that is ancillary-£nd subsidiary to any such property or right as is meationM in subparagraph {a), any such equipment as Is mentioned in. subparagraph (b) QX my 5 U ch acknowledge ot information as ismentiQneM iti sub-paragraph (c)j or

e) . the use of, or the right to use;

(i) cinematograph or motion picture films;-or

(if) films otTideo tapes in cofraecnon-with television; ot

(iii) tapes o c compact disks in eom*ection with radio and television broadcasting; or

4,

5.

6.

W ptogtam, developed in c o n n e d with tiieuse of computer* or f). total or partial forbearance i n respect of the use or supply o f mT

property or right referred to in this paragraph.

owner on The provisions of paragraphs i R nd ZslxzB not apply i f the beheHckl m of the royalties, b ^ a g * resident o f a Contracting State, carries uxx bmmeas in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs m that other State independent personal services from a Iked base dmated therein, and the tight or property in reapect of ^hich fce royalties are paid is effectively connected with a) such permanent establishment or feted base, or with b) b u s i n m activities referred to under c) of paragraph -1 of Article In such casft, the p r o t o n s of Article 7 or Artfcfc-1-5, a s the eaae may be, shall apply,

fcoyaMea shall U deemed to arise i n a Contractxng State when the payer is that State itself, a pditical subdivision, a local authority or a.8taratory body thereof or a resident of that S&te. Where, h o w l e r , the person paying such

whether the person is a resident o f a Contracting State or not, ass i n a Contracting State a permanent cstaHfchtaeat o r a tod base in connection wxth which the .obligatidn to pay the r o y a t e W H M W N 4 then such toyaluea snail be deemed to misc i n the C o n t r a c t State in which ths permanent establishment or treed base is situated,

"Where, by reason: of a $pecial relationship between the payer and the beneficial owner ot between both of them and some other persotis, the amount of royalties, having tegard to.the w> sight or-kformation for which

ihey are paid,, exceeds the amount which tvouM have been agreed upon by the payer and the beneficial owner in the absence o f sueh relationship, the provisions of this Article shall apply ordf to the last-mentioned amount. In such case, the excess pa I t 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,

A2ti.de 13

1. Technical fees arising in a C o n t r a c t ^ St*t* and paid to a resident of the other Contracting State may be taxed in thai- other State.

2. However, such technical fees may also He taxed i n the Contracting State i n which, they arise and according to the few? of tat State, but i f the recipient is the beneficial owner of the technical fw s the tax shall not exceed 10 per cent o f the gross amount of the rechnica* rets.

3. The torn "technical fees'1 as used in this Article means payment* o f any kind to any person, other than to an employee of the person rnaking, the payments, in considerate for any sendees of a wchaicaJ, trmnagerial or c o n s t a n c y nature.

4, H i e provisions of patagraphs 1 and % shall not apply; i f ft? beneficial owner of

& e technical fees, being a resident of a extracting S t a ^ caaies on business in the o&er Contacting State in which the technical tees arise, through a permanent estabKshment situated thcteiri., or performs. to • that other State independent personal servkes from a fixed bake ktuated' : therein, .and the technical fees are effectively coonectcd 4 t h s u A ; ^ ^ * * establishment or . f a d . base. In such case, the provisions of Article ? o r Article 15 as the case may be, shall apply."

the . , . - . . . ilc£a) authontyKofca statutory body thereof, or a resident o f that State, ^ h ^ ^ ^ the person paying the technical te, whether the person is a" resident; of a Cc^ttaetbg State or not, has in a extracting State a permanent, or a ilsad base in connection with ^ h i c h the obligation to pay-'the. technical fees was incurred, and such technical fee* laic hotfie by that permanent establishment or W base,'then ench;.technicaffeefi :s M ; b e deemed to adse in the Contracting State in which t&e permanent estabHshxneSt or fixed base is situated,

"Where, by reason of a special reUtioiis^prbetween.the p^et .and the beneficial owner or between both .of them and sorns other . ^crson, the;.amount of the technical fees paid exceeds,.for whatever reason, me| amount which v W d have been agreed upon by the payer and the beneficial curiae in the absence of such relationship, the provisions of this Article 'shall apply only to the last-mentioned amount. Is such case, the excess past -of tae-payments jth«U-tropin taxable according to the W s of each e x t r a c t i n g State, due regard being had to the other provisions of this Agreement.

A r t i c l e 14 C A P I T A L G A i >u*

Gains derived by a resident of a ConU-aukig State from, the alienation ©f immovable property referred to i n A r t i e s 6 ancl situated i n the other Contracting State may be taxed in that other State.

Gains from the alienation o f movable property.fortrnng part o f the business property of a permanent establishment i h i c b an enterprise of a Contracting

State has in the other Contracting Stat? or a of moVlihle property pertaining

to a fixed base available to a reeideat of ? Contracting'State,in the other Contracting State for the purpose o f g e r f o x n u ^ ^

services, bcluding such gains from. the Talienatic* :-of :audi. a; permanent' establishment (alone or with the whole misprise) or of such: fixed base,,

may be taxed in that other Slate,

Gains derived by an enterprise o f a C o n t r a c t ^ State from the alienation of'

ships or aircraft operated i n iaternatioiai ttftffiiTor movable property

pertaining to the operation of such sfcipspr a t a f t s h a l l ' be taxable only l a " that State.

G&ins from the dienatkm of any proper^-o&e* t h ^ to in. the

preceding paragraphs shall be taxable onlyi'ift the Contracting State of which

Article 15

I N D E P E N D E N T P E R S O N A L S E R V I C E S

Income derived by a resident of a Contracting State i n lespect o f professional services ot other activities ©fan independent character shall be taxable only in that State unless he has a fiked basele^ul^rly; available to him. in the other e x t r a c t i n g State fo*r the purpose o f 'ge^?»»il^;niaiac^tiea or he is present i n that other State for a: period: or ^|^^/exceedihg iri the aggregate 185 days -within any twelve month period-;^ he Has such a fixed base or remains in that, other State for &jv aforesaid;period| or periods, the income may be taxed in that other State but only so much o f it as is attributable to that fixed base or is defivRCi i n that other State during the • aforesaid period or periods.

The term ''professional services" tacfode? ^esgeoafly independent.scientific, literary, artistic, educational or teaching; actixities as; itrdl'.:<W!":;jfhp independent activities of physicians, lawyers, engineers, a^drrtecttj. dentists and accountants.

Article 16

D E P E N D E N T P E R S O N A L S E R V I C E S

1.

2.

Subject to the provisions ot" Article 1/, 19, 20 and. 21, salaries, -wages

and other similar remuneration derived by a resident of a Contracting Statfe 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 k so exercised, such remuneration as is derived' there&om may be 'taxed in that other State.

' other Contacting State shall be taxable only in the fitst-m^tioned State if;

(a) the recipient is present in that other State for* a period ot;peribds not exceeding m the aggregate 183 days \vitbin any twcjve rrtontb. 'period cotomendng or ending in the fiscal fear concerned; and

(b) the remuneration is paid.by, or on behalf o'£ !an employer, who is not a resident of the other State; and

(c) the remuneration is not homo by a permanent establishment or a Fixed base which the employer has in die other State;

Notwithstanding the. preceding provisions of this Article, remuneration derived in respect of an employment (Stercised aboard a ship or aircraft operated i n internauoaai traffic by an enterprise of:a Cc^ttacting'Statc shall be taxable only in that State.

Article 17 D I R E C X O I 5 ' F E E S

1. Directors fees and other similar payments derived by a resident of a Gontracting 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.

2. The remuneration which a person to whom paragraph 1 appliea derived from the company in respect of the discharge of day-to-day functions of a managerial ot technical nature may be taxed in accordance with the provisions of Article 16,

A r t i c l e 18

A R T I S T E S A N D S P O R T S P E R S O N S

Notwithstanding the provisions ot Article* 15 and 16, 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 sportsperson, from personal activities as such exercised i « the other Contracting State, may be taxed in the other State.

Where income in respect of personal activities exercised-by an entertainer or a sportsperson in that capacity accrues not to the entertainer ox Bportaperson but to another person, that income may* notwithstanding meptoyMons of Armeies 7,15 and 16, be,taxed in the Contracting State in ^whicH the activities of the entertaifocr or sportsperson are exercised

Notwithstanding the provisions of pars-graphs 1 and ^.income derived from activitica referred to i n paragraph I performed under a cultural agreement or arrangement .between the Contracting States shall be c^mpt;;froni tax, in the Conttacnhg State in which the activities -are exercised i l the visit to that State is wholly, ox substantially supported by tads of; one or both of the Contacting States, a local authority or ^ut^iiiB^iion-^hei!eo£

Article 1,9

P E N S I O N S A N D A N N U I T I E S

1. Subject to trie provisions or' paragraph 2 ot Article 20, any pensions and other similar remuneration for past employment or ^any annuity arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

2. The term "annuity" includes a stated sum payable p^odicsdiy at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adecruate and full consideration i n money or money's v/ortn.

Article 20

G O V E R N M E N T S E R V I C E S

(a) Salaries, wages and other similar remuneration, other than a pension, 'paid by a Cc^tfractrog State or a political subdivision of a local authority or a statutory body thereof to any individual in respect of services rendered to that State or political subdivision or a local authority or statutory body thereof shall'be tas&hle only i n that.&tate,

(b) However, auch salaries, wages and oihet similar remuneration shall be taxable only in the other Contracting State if the sefVice's are rendered i n that other State and the individual is a resident of that other State who:

(j) is anauonal o£ that other State; or

(u) did not become a resident of that other State solely for the purpose of rendering the services,

The provisions of Articles 16, 17 and 13 ?haH a ^ y to salaries, wages and other similar remuneration and to pensions i n respect of setviees- rendered in connection with a business carried on j=y a Contracting State ot a political , subdivision or a local authority or a statutory body thereof.

Article 21

T E A C H E R S A N D R E a i & A R C H E R S

A n individual who is immediately before v o t i n g a Contracting State a resident o f 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 i n that firsi mentioned Contracting State or under an official programme of cultural exchange, is present i n that Contracting State for a period not exceeding two consecutive years solely for the purpose o f teaching, giving lectures or carrying out research at-pueh institution shall be exempt from tax in that Contracting State on his remuneration for such activity, provided that payment o f such remuneration is derived byjhlm from outside that Contracting State.

Article 21

T E A C H E R S A N D R E o r i A R C H E R S

Aft individual who is imrnediately before visiting a Contracting State a resident o f 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 firsi niendofied Contracting State or under an official programme of cultural exchange, is present i n that Conttacting State for .a period not exceeding two consecutive years solely for. the purpose o f teaching, giving lectures or carrying out research at such institution shall be exempt from tax in that Conttacting State on his remuneration for such activity, provided that payment o f such remuneration is derived by him from outside that Conttacting State.

Article

S T U D E N T S A N D T R A I N E E S

Payments which a student ot fauti:.*. trainee who is or was lrnmediately before visiting a Contracting State a resident of the other Contracting State and who is present m the first mentioned Contracting State solely for the purpose or" his education or training received for the purpose of his maintenance, education or training shaft tipt o e taxed in that Contracting State, crowded that such payments arise from sources Outside that Contracting State.

In respect of grants, scholarship and remuneration from employment not covered by paragraph \, a student or business trainee describect 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 2 * OTHER. I N C O M E

Items of income of a resident of one ot the Conttacting .States which are not expressly mentioned in the foregobg Articles' of this Agreement shall be taxable only in that State.

However, any auch income derived by a resident of one of the Contracting States from sources in the other Conttacting State may also be taxed in that other State.

The provisions of paragraph 1 shall not apply to income derived by a resident of one of the Contracting States where that income is effectively connected with a permanent establishment or nxed base situated in the other Contracting

State, In such, case, the provisions of Article 7 or Article 15,. as the case may be, shall apply.

C H A P T E R IV S P E C I A L P R O V I S I O N S

Article ?4

M E T H O D S F O R T H E E L I M I N A T I O N O F D O U B L E T A X A T I O N

Whete a resident o f - a Conttacting State derives income from the other

Contracting State, the amount of tax on that income payable in that other Contracting State i n accordance -with the provisions of this Aipreeinetat, may be

ctedited against the • tax levied in the fiest-menitioned Contracting State imposed. 90

that resident. The amount of credit, however; ;shall not exceed the-amourit of the tax on the nrstrncntioned Contacting Staw on that income computed i n accordance with its taxation laws and regulations.

Article 25

N O N D I S C R I M I N A T I O N

1. Nationals of a Contracting State shall not be subjected in the other Conttacting State to any taxation or any requirement connected therewith which is other or more burdensome than taxation and connected requirements to which nationals of tnat other State i n the same circumstances are x>t may he subjected.

2. The taxation on a permanent ea^bi^hment which an enterprise of a Contracting State baa in the other Contracting State- shall not be less favorably levied i n that other State than the taxation levied on enterprises of that other State carrying on-the same.-acfivitie^'. .raSwfa^tMj shaft-nbt be construed as obliging a Contracting State to grant tb residents o f t i e other Contracting State any personal allowances,, relief and reductions for taxation purposes on account o f civil status- or ^rnt1y;-»ft>p^-««Vrt1.f^^ which it grants, to its own

residents-3. Enterprise of a Contracting State, the.:capital of which is-wholly or partly owned or controlled, ditecuy or mdirec'tl^ by fcn& or more residents o f the other Contracting State,,;, shall not be subject? ^^the; J|cst^mentibned~Statc to any taxation/or any reennrement connected therewith whiek is other or more burdensome, than the taxation- and connected rs^tn^eaients to which other flimila^'e^i^t^jisa- o f SWtesufcanay be subjected.

4. Except where the provisions of pazagapb i o f Article & paragraph 7 o f Article 11, or paragraph d of Article 12 &pp*y, interests royalty and,other disbursements paid by an enterprise o f a Contracting State to a resident o f the other Contracting State shall, for purpose q£ detetfrrining the taxable profits of such enterprise, be deductirjjU un,der- the same'conditions as i f they had been paid to a resident of the- firs^mentiontfel State.

'Article 26

M U T U A L A G R E E M E N T P R O C E D U R E

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 k w of -those States, present his case to the competent authority of ehe Contracting State o f which he is a resident or, i f his case comes under paragraph 1 of Article 25, to that of the Contracting State of which hs is a. national. The case must he presented within three years from the firs? notification of the action resulting in taxation not i n accordance with the provisions of the Agreement

The competent authority shall endeavor, i f the objection, appears to it to be justified and i f it is not itself able to active at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Conttacting State,, with a view to the avoidanec of taxation which is not in accordance, with, this Agreement.

-The competent authorities of the Contracting States, shall. endeavor to resolve by mutual ^reementany difficulties or doubts arising aa to the interpretation i or application of the Agreement. They may also consult together for the elimination of doubfc 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 i n the sense of preceding paragraphs. T&e competent authorities,, through consultations, shall develop appropriate: bilateral procedures, conditions, methods and t e c h n i c s the irriplementation of the mutual agceement'proced^.provideBl £or.in"'thi$ Article.

Article 27

E X C H A N G E O F I N F O R M A T I O N

The competent authorities of the Cuntn-tcung States shall exchange such information as is necessary for carrying out the provisions o f this Agreement

or of the domestic laws of ttjc Contracting States <Mncernmg taxes covered by the Agreement, insofar as taxation thereunder is not contrary to this Agreement, in particular forthe prevention of fraud or: evasion of such taxes. The exchange of mformauon.is not .restricted by Article 1* Anyi'infoimation received, by a Contracting State shall be "treated as sec^et^in'ime same.manner as information obtained under the domestic laws ofrthat Stated However, i f the ^formation isoriginally regarded as secret, it* the tfansniitung State it shall be disclosed only to person* or authorities (including courts and acbairiislxative bodies) involved 'in the assessment or eduction of, the enforcement or prosecution in respect of, ot the determination of appeals'in. relation to, the taxes which are the subject ofthe Agreement. Such persons or. authorities 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 paragraphs! be construed; so as to impose on a Cootracting.State the obligation:

a) , to carry out adn^rnistrative measures, at variance with the laws and administrative practice of that or of the other Conttacting State;

b) .to supply information which is not obtainable, under the laws, or in the normal course of the adrnlnisitation of that or of the other Contracting State;

c) . to supply information wh}ch would enclose ,any trade;, business* industrial, commercial or professional secret or tuacjc process,, or.irtfe^mation,, the

Article 28

M E M B E R S O F D I P L O M A T I C M I S S I O N S A N D C O N S U L A R P O S T S

Nothing in this Agreement shall afreet the rascal, privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements,

C H A P T E R V F I N A L P R O V I S I O N S

Article 29 E N T R Y I N T O F O R C E

This Agreement shall enter, into force o n the later o f .the dates o n w h i c h the respective Governments may notify each other in -writing through diplomatic channels, that the formalities cofistimtionally r e t i r e d i n their respective Contracting States .for the entry b[to;force , of this Agreement .have been complied with. This Agreement shall have effect;

(a) in Papua New Guinea;

(i) in respect of withholding, tax bn inC6me i ^ t : i $ : derived ..by a non-resident, i n relation to income derived on .c^raftet/l January to the calendar year next following tha;t in; vwla, -the later of these notifications is given,

(ii) in respect of any other Papua New guinea .taxj inrclation to income of any^yea&of:income beginning on or a t a i j ^ u a r v i n the calendar year ncxtTollbwmg that in-which theiatsf o f Jfettte n o t i S ^ o n s i s $vcn*

(b) in Indonesia;

(i) in respect of tax withheld at the gource to income derived on or after 1 January in the year nest fottcwmg 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 year next rbllc*wiflg t n a t i n which the Agreement enters into force.

Article 30 T E R M I N A T X O N

In such case, the Agreement * W « a w to W c eitc-(a) i n Indonesia:

ffl i n respect of tax withheld at source to income derived o n or after 1 January i n the year next f l a w i n g that i n which tbs notice o f terrnination is given.

(u) i n respect o f other taxes on income, for taxable years begmning on or after 1 January in the year nest fpliowing that in. w h i c h the notice o f tennination is given,

(b) i n Papua N e w Guinea

(i) i n respect o f w i t h h o l d tax on income that is derived by a non-resident, i n relation to income d e r ~ , l o n or after 1; January i n the calendar year next following that in which notification is given;

(H) i n respect of any other Papua N e w & w n e a tax, i n - r a t i o n toincome o f aay year o f income beginning o*i or * & * I J a f l t t ^ i a ^ calendar year next following in which the notification is given.

I N W I T N E S S W H E R E O F , the u n d e r f e d , duly authorized thereto, have signed this-Agrcement.

D O N E i n duplicate

A i f . ^ o

m

^

f i i

^ J ^ ^

ofMflnC.h2O.l0 i n

the-English language. B o t h texts being equally authentic.

leotofthe

donesia _{Independent State, of!Ijfcpo«a N e w Guinea} F o r the. G o v e r n m e n t o f the

H O N :

PERSETUJUAN ANTARA

PEMERINTAH REPUBLIK INDONESIA DAN

PEMERINTAH NEGARA BERDAULAT PAPUA NUGINI UNTUK

PENGHINDARAN PAJAK BERGANDA DAN

PENCEGAHAN PENGELAKAN PAJAK

YANG BERKENAAN DENGAN PAJAK ATAS PENGHASILAN

PEMERINTAH REPUBLIK INDONESIA DAN

PEMERINTAH NEGARA BERDAULAT PAPUA NUGINI

Berhasrat untuk menjalin Persetujuan untuk penghindaran pajak berganda dan pencegahan pengelakan pajak yang berkenaan dengan pajak atas penghasilan,

BAB I

RUANG LINGKUP PERSETUJUAN

Pasal 1

ORANG DAN BAD AN YANG TERCAKUP DALAM PERSETUJUAN INI

Persetujuan ini beriaku terhadap orang dan badan yang menjadi penduduk salah satu atau kedua Negara.

_ Pasal 2

PAJAK-PAJAK YANG DICAKUP DALAM PERSETUJUAN INI

2. Yang dianggap sebagai pajak atas penghasilan adalah s e m u a oaiak penghasHan, termasuk pajak-pajak atas keuntungan dari p e n L T h a n

harta bergerak atau tidak bergerak. iy««inan 3. Pajak-pajak yang beriaku menurut Persetujuan ini adalah:

(a) dalam hal Indonesia: pajak penghasilan.

(selanjutnya disebut sebagai "pajak Indonesia") (b) dalam hal Papua Nugini:

pajak penghasilan yang dikenakan sesuai undang-undang Papua

Nugini, meliputi: y p

(i) pajak gaji atau upah;

(ii) tambahan pajak keuntungan atas tambahan keuntungan dari aktivitas penambangan;

(iii) tambahan pajak keuntungan atas tambahan keuntungan dari aktivitas perminyakan;

(iv) tambahan pajak keuntungan atas tambahan keuntungan dari aktivitas gas;

(v) pemotongan pajak dividen atas penghasilan dividen kena pajak;

(vi) pemotongan pajak kontraktor luar negeri; (vii) pemotongan pajak biaya manajemen; (viii) pajak pembayaran-pembayaran bisnis; dan

(ix) pemotongan pajak bunga.

(selanjutnya disebut sebagai "pajak Papua Nugini")

BAB II DEFINISI-DEFINISI

Pasal 3

PENGERTIAN-PENGERTIAN UMUM

Dalam Persetujuan ini, kecuali jika dari hubungan kalimatnya harus diartikan lain:

(a) i) istilah "Indonesia'' berarti wilayah Republik Indonesia sebagaimana ditegaskan dalam perundang-undangannya, dan bagian-bagian dari landas kontinen dan lautan sekitarnya' yang berbatasan, di mana Republik Indonesia mempunyai kedaulatan, hak-hak kedaulatan atau hak-hak lainnya sesuai dengan hukum internasional;

ii) istilah "Papua Nugini" berarti Negara Berdaulat Papua Nugini dan, jika digunakan dalam kontek geografis, mencakup wilayah di sekitar perbatasan wilayah Papua Nugini di mana, sejalan dengan hukum internasional, hukum Papua Nugini dapat diterapkan berkaitan dengan aktivitas eksploitasi sumber daya alam di landas kontinen, dasar laut dan lapisan tanah di bawahnya;

(b) istilah-istilah "Negara pihak pada Persetujuan" dan "Negara pihak lainnya pada Persetujuan" berarti Indonesia atau Papua Nugini sesuai dengan hubungan kalimatnya;

(c) istilah "orang/badan" meliputi orang pribadi, perseroan, dan setiap kumpulan dari orang-orang dan/atau badan-badan;

(d) istilah "Perseroan" berarti setiap badan hukum atau setiap entitas yang untuk tujuan pemungutan pajak diperlakukan sebagai suatu badan hukum;

(e) istilah "perusahaan dari suatu Negara Pihak pada Persetujuan" dan "perusahaan dari Negara Pihak lainnya pada Persetujuan" masing-masing berarti suatu perusahaan yang dijalankan oleh penduduk dari suatu Negara Pihak pada Persetujuan dan suatu perusahaan yang dijalankan oleh penduduk dari Negara Pihak lainnya pada Persetujuan;

(f) istilah "pajak" berarti pajak Indonesia pajak atau Papua Nugini sesuai dengan hubungan kalimatnya;

(g) istilah "warganegara" berarti:

(i) setiap orang pribadi yang memiliki kewarganegaraan dari suatu Negara Pihak pada Persetujuan;

(ii) setiap badan hukum, usaha bersama dan persekutuan yang statusnya mereka peroleh berdasarkan hukum yang beriaku pada salah satii Negara Pihak pada Persetujuan;

(h) istilah "lalu lintas internasional" berarti setiap pengangkutan oleh kapal laut atau pesawat udara yang dilakukan oleh suatu perusahaan dari suatu Negara Pihak pada Persetujuan, kecuali jika

2 .

kapal atau pesawat udara itu semata-mata dioperasikan antara tempat-tempat di Negara Pihak lainnya pada Persetujuan;

(i) istilah "pejabat yang berwenang" berarti:

(i) dalam hal Indonesia, Menteri Keuangan atau Wakilnya yang sah; (ii) dalam hal Papua Nugini, Direktur Jenderal Pajak atau Wakilnya

yang sah; dan y

Dalam persetujuan ini istilah-istilah "pajak Indonesia" dan "pajak Papua Nugini tidak mencakup jumlah yang merupakan bentuk sanksi atau bunga yang dikenakan berdasarkan Undang-Undang masing-masinq Negara Pihak pada Persetujuan berkaitan dengan pajak-pajak di mana Persetujuan ini beriaku.

3. Sehubungan dengan penerapan Persetujuan ini oleh salah satu Negara Pihak pada Persetujuan, setiap istilah yang tidak dirumuskan dalam Persetujuan ini mempunyai arti menurut perundang-undangan Negara itu sepanjang mengenai pajak-pajak yang diatur dalam Persetujuan ini, setiap istilah yang didasarkan pada undang-undang perpajakan Negara tersebut mengalahkan arti yang didasarkan pada perundang-undangan lainnya dari Negara tersebut.

Pasal 4 PENDUDUK

1

" ^S^

i

S^

s

^:rt

,

T

suatu

^

perundang-undangan Negara^tereebut d ^ H , ^ ya"9 menurut itu berdasarkan d o m i S I ?a t d' k e n a k a n pajak di Negara manajemennya S u n atas das. .kedlam an^ . ^rnpat kedudukan mencakup p u b " Negara t e £ b u t Z ^ y f 9 S i f a t n y a s e m Pa d a n

tersebut akan drtentukan dengan ketentuan-ketentuan sebagai berikut:

( a ) n LaH o9pt e r SfU t a kfn d i an " ap s e b a9a i Penduduk Negara Pihak

pada Persetujuan di mana ia mempunyai tempat tinggal tetap; (b) apabila orang tersebut mempunyai tempat tinggal tetap yana

S K w ,N e 9,a r a' a t 8 U t i d a k m e m i , i k i t e ^ p a i T n g g a r i kedua Negara, .a akan dianggap sebagai penduduk Negara di mana

erdapat hubungan-hubungan pribadi dan ekonomi y a n ^ e b h emt (pusatkepentingan-kepentinganpokok);

(C)

Ii

1

!

3 N

,T

ra

.

d

!

m a na p u s a t k ePe ntingan-kepentingan pokoknya tidak

dapat drtentukan, atau jika ia tidak mempunyai tempat tinggal tetap yang tersed.a baginya di salah satu Negara, maka ia akan dianggap sebagai penduduk Negara di mana ia biasanya berdiam;

(d) jika ia mempunyai tempat kebiasaan berdiam di kedua Negara atau sama sekali tidak mempunyainya di salah satu Negara tersebut maka ia akan dianggap sebagai penduduk Negara Pihak pada Persetujuan di mana ia menjadi warganegara;

(e) jika ia menjadi warganegara dari kedua Negara atau sama sekali tidak menjadi warganegara dari salah satu negara tersebut maka pejabat-pejabat yang berwenang dari Negara Pihak pada Persetujuan akan menyelesaikan masalahnya berdasarkan persetujuan bersama.

3. _{Apabila berdasarkan ketentuan-ketentuan ayat (1), suatu badan}

mempunyai tempat Kedudukan di kedua Negara Pihak pada persetujuan, maka pejabat yang berwenang di Negara Pihak pada persetujuan akan menyelesaikan masalahnya berdasarkan persetujuan bersama.

Pasal 5

BENTUK USAHA TETAP

Untuk kepentingan Persetujuan ini, istilah "bentuk usaha tetap" berarti suatu tempat usaha tetap di mana seluruh atau sebagian usaha suatu perusahaan dari salah satu Negara dijalankan.

2. Istilah "bentuk usaha tetap" terutama meliputi: (a) suatu tempat kedudukan manajemen; (b) suatu cabang;

(c) suatu kantor; (d) suatu pabrik; (e) suatu bengkel;

(f) suatu gudang atau tempat yang digunakan sebagai outlet penjualan;

(g) suatu tambang, sumur minyak atau sumur gas, tempat penggalian atau tempat eksplorasi dan eksploitasi sumber-sumber daya alam lainnya, rig untuk pengeboran atau kapal kerja yang digunakan untuk eksplorasi dan eksploitasi sumber-sumber daya alam;

(h) suatu pertanian atau perkebunan atau tempat lainnya dimana pertanian, pedusunan, kehutanan atau kegiatan perkebunan dilakukan; dan

3. Pengertian "bentuk usaha tetap" juga meliputi:

(a) suatu bangunan, konstruksi, proyek perakitan atau instalasi atau kegiatan penyeliaan yang berhubungan dengannya, tetapi hanya apabila bangunan, proyek, atau kegiatan tersebut beriangsung untuk masa lebih dari 120 hari;

(b) pemberian jasa-jasa, selain jasa teknik sebagaimana diatur dalam Pasal 13, yang dilakukan oleh suatu perusahaan melalui pegawai atau orang lain yang dipekerjakan oleh perusahaan untuk tujuan tersebut tetapi hanya apabila kegiatan-kegiatan tersebut beriangsung (dalam proyek yang sama atau yang berhubungan) di salah satu Negara untuk suatu masa atau masa-masa yang berjumlah lebih dari 120 hari dalam periode 12 (dua belas) bulan. 4. Menyimpang dari ketentuan-ketentuan sebeiumnya dari Pasal ini,

(c) Pengurusan suatu persediaan barang-barang atau barang H f l h9?nKm i l l k p e u r u s a h a a n s e m a t a" mata dengan maksud untuk

aiolah oleh perusahaan lain;

(d) pengurusan suatu tempat usaha tetap semata-mata dengan maksud untuk pembelian barang- barang atau barang dagangan atau untuk mengumpulkan informasi bagi keperluan perusahaan; (e) pengurusan suatu tempat usaha tetap semata-mata dengan

maksud untuk tujuan periklanan, atau untuk memberikan informasi bagi keperluan perusahaan;

(f) pengurusan suatu tempat usaha tetap semata-mata dengan maksud menjalankan kegiatan lainnya yang bersifat persiapan atau penunjang bagi perusahaan;

(g) pengurusan suatu tempat usaha tetap semata-mata dengan maksud untuk melakukan gabungan kegiatan-kegiatan seperti disebutkan pada sub-ayat (a) sampai (f), sepanjang hasil penggabungan semua kegiatan-kegiatan tersebut bersifat persiapan atau penunjang.

5. Menyimpang dari ketentuan-ketentuan ayat 1 dan 2, apabila orang atau badan, seiain agen yang bertindak bebas yang baginya beriaku ketentuan pada ayat 6, bertindak di suatu Negara Pihak pada Persetujuan atas nama suatu perusahaan Negara lainnya Pihak Pada Persetujuan, maka perusahaan tersebut dianggap memiliki bentuk usaha tetap di Negara pertama berkaitan dengan aktivitas-aktivitas yang dilakukan oleh orang atau badan bagi perusahaan, jika orang atau badan tersebut:

(a) mempunyai dan biasa melakukan wewenang untuk menutup kontrak-kontrak atas nama perusahaan tersebut, kecuali kegiatan itu hanya terbatas pada apa yang diatur dalam ayat 4 yang meskipun dilakukan melalui suatu tempat usaha tetap, tempat tersebut bukan merupakan bentuk usaha tetap sesuai dengan ketentuan ayat tersebut; atau

(b) tidak mempunyai wewenang seperti itu, tetapi biasa melakukan pengurusan persediaan barang-barang atau barang dagangan di Negara yang tersebut pertama di mana secara teratur ia menyerahkan barang-barang atau barang dagangan atas nama perusahaan tersebut; atau

(c) Membuat atau mengolah di Negara tersebut untuk kepentingan perusahaan, barang-barang atau barang dagangan milik perusahaan.

6. Suatu perusahaan tidak akan dianggap mempunyai suatu bentuk usaha tetap di suatu Negara Pihak pada Persetujuan hanya semata-mata karena perusahaan itu menjalankan usaha di Negara itu melalui makelar, komisioner umum, atau agen lainnya yang bertindak bebas, sepanjang orang atau badan tersebut bertindak dalam rangka kegiatan usahanya yang lazim. Namun demikian, bilamana kegiatan agen dimaksud seluruhnya atau hampir seluruhnya dilakukan untuk perusahaan itu, maka ia tidak akan dianggap sebagai agen yang bertindak bebas dalam pengertian ayat ini.

7. Bahwa suatu perusahaan yang merupakan penduduk salah satu Negara menguasai atau dikuasai oleh perusahaan yang merupakan

penduduk Negara lainnya, atau yang menjalankan usaha di Neqara

a! n ?yV ! T ^ ( b a i k m 6 , a l U i b e n t u k usaha t e t aP m a u P ^ dengan cara

lain), tidak dengan sendirinya mengakibatkan salah satu dari perusahaan tersebut merupakan bentuk usaha tetap dari perusahaan

BAB III

PENGENAAN PAJAK ATAS PENGHASILAN Pasal 6

PENGHASILAN DARI HARTA TIDAK BERGERAK

1- Penghasilan yang diperoleh seorang penduduk dari suatu Negara Pihak pada Persetujuan dari harta tak bergerak (termasuk penghasilan yang diperoleh dan pertanian atau kehutanan) yang berada di Negara Pihak lainnya pada Persetujuan dapat dikenakan pajak di Negara lain tersebut.

2. Istilah "harta tidak bergerak" akan diartikan sesuai dengan perundang-undangan Negara di mana harta yang bersangkutan berada. Dalam setiap kasus, istiiah tersebut mencakup benda-benda yang menyertai harta tidak bergerak, ternak dan peralatan yang dipergunakan dalam pertanian dan kehutanan, hak-hak di mana ketentuan-ketentuan dalam perundang-undangan umum yang berkenaan dengan pertanahan beriaku, hak memungut hasil atas harta tidak bergerak, dan hak atas pembayaran-pembayaran tetap maupun tak tetap sebagai penggantian atas pengerjaan, atau hak untuk mengerjakan, atau hak untuk mengeksplorasi, kandungan mineral, kandungan minyak atau gas, tambang-tambang atau tempat penggalian sumber-sumber daya alam lainnya termasuk produk kayu asli dan eksotis atau hasil hutan lainnya. Kapal laut, perahu, dan pesawat udara tidak dianggap sebagai harta tidak bergerak.

3. Ketentuan-ketentuan dalam ayat 1 beriaku pula terhadap penghasilan yang diperoleh dari penggunaan secara langsung, penyewaan, atau bentuk lain penggunaan harta tidak bergerak.

4. Setiap kepemilikan atau hak yang berkaitan dengan ayat 2 akan dianggap berada di tempat dimana tanah, kandungan mineral, sumber-sumber dan sumber daya alam lainnya berada atau di tempat dimana aktivitas ekplorasi mungkin dilakukan.

5. Ketentuan-ketentuan dalam ayat 1 dan 3 beriaku pula terhadap penghasilan dan harta tidak bergerak suatu perusahaan dan terhadap penghasilan dari harta tidak bergerak yang dipergunakan untuk menjalankan pekerjaan bebas.

Pasal 7 LABA USAHA

Laba perusahaan dari salah satu Negara hanya akan dikenakan pajak di Negara tersebut kecuali jika perusahaan tersebut menjalankan usahanya di Negara lainnya melalui suatu bentuk usaha tetap yang terletak di sana. Apabila perusahaan tersebut menjalankan usahanya sebagaimana dimaksud di atas, maka atas laba perusahaan tersebut dapat dikenakan pajak di Negara lainnya tetapi hanya atas bagian laba yang berasal dari:

(a) bentuk usaha tetap tersebut; atau

(b) penjuaian barang-barang atau barang dagangan yang sama atau serupa jenisnya dengan yang dijual melalui bentuk usaha tetapnya di Negara Pihak lainnya Pada Persetujuan; atau

(c) kegiatan-kegiatan usaha lainnya yang dilakukan di Negara lain yang sifatnya sama seperti yang dilakukan melalui bentuk usaha tetapnya. Dengan memperhatikan ketentuan-ketentuan ayat 3, jika suatu perusahaan dari suatu Negara Pihak pada Persetujuan menjalankan usaha di Negara Pihak lainnya pada Persetujuan melalui suatu bentuk usaha tetap yang berada di sana, maka yang akan diperhitungkan sebagai laba bentuk usaha tetap itu oleh masing-masing negara ialah laba yang diperolehnya seandainya bentuk usaha tetap tersebut merupakan suatu perusahaan yang terpisah dan bertindak bebas yang melakukan kegiatan-kegiatan yang sama atau serupa, dalam keadaan yang sama atau serupa, dan mengadakan hubungan yang sepenuhnya bebas dengan perusahaan yang memiliki bentuk usaha tetap itu.

Dalam menentukan besarnya laba suatu bentuk usaha tetap, dapat dikurangkan biaya-biaya yang dikeluarkan untuk kepentingan usaha dari bentuk usaha tetap itu termasuk biaya-biaya pimpinan dan biaya-biaya administrasi umum baik yang dikeluarkan di Negara di mana bentuk usaha tetap itu berada ataupun di tempat lainnya. Namun demikian tidak diperkenankan untuk dikurangkan ia|ah pembayaran-pembayaran yang dilakukan oleh bentuk usaha tetap kepada kantor pusatnya atau kantor-kantor lain milik kantor pusatnya (selain dari penggantian biaya yang benar-benar dikeluarkan) berupa royalti, biaya atau pembayaran-pembayaran serupa lainnya karena penggunaan paten atau hak-hak lain, atau berupa komisi untuk jasa-jasa tertentu yang dilakukan atau untuk manajemen, atau, kecuali dalam hal usaha perbankan, berupa bunga atas pinjaman yang diberikan kepada bentuk usaha tetap. Juga, tidak ada akun yang harus dibuat, dalam menentukan besarnya laba suatu bentuk usaha tetap, untuk jumlah yang dikenakan (selain dari penggantian biaya yang benar-benar dikeluarkan) oleh bentuk usaha

4. Suatu bentuk usaha tetap tidak akan dianggap memperoleh iaba hanya karena bentuk usaha tetap tersebut melakukan pembelian barang-barang atau barang-barang dagangan untuk perusahaan induknya.

5. Apabila laba usaha mencakup bagian-bagian penghasilan yang terpisah di Pasal-Pasal lain dari Persetujuan ini, maka ketentuan-ketentuan dalam Pasal-Pasal tersebut tidak akan dipengaruhi oleh ketentuan-ketentuan dalam Pasal ini.

6. Untuk kepentingan ayat-ayat sebelumnya, besarnya laba bentuk usaha tetap harus drtentukan dengan metode yang sama dari tahun ke tahun kecuali jika terdapat alasan yang kuat dan cukup untuk melakukan penyimpangan.

7. Ketentuan dalam Pasal ini tidak akan mempengaruhi penerapan hukum di salah satu Negara pihak Pada Persetujuan berkaitan dengan pengenaan pajak atas laba yang diperoleh oleh penduduk asing atas premi asuransi yang dikumpulkan, atau dari asuransi yang berkaitan dengan resiko yang bersumber atau berkaitan dengan properti yang berada di Negara tersebut tanpa memandang apakah hukum di Negara tersebut menganggap keberadaan bentuk usaha tetap benar-benar ada atau tidak berkaitan dengan aktivitas tersebut.