Direktorat Jenderal Pajak - Tax Knowledge Base

Tax Treaty

Indonesia - Afrika Selatan ( South Africa )

BerlakuEfektif:01Januari1999

AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF SOUTH AFRICA
FOR
THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
Article 1
PERSONS COVERED
ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.
Article 2
TAXES COVERED
1.

ThisAgreementshallapplytotaxesonincomeimposedonbehalfofaContractingStateorofitspoliticalsubdivisions,irrespective
ofthemannerinwhichtheyarelevied.

2.

Thereshallberegardedastaxesonincomealltaxesimposedontotalincome,oronelementsofincome,includingtaxesongains
fromthealienationofmovableorimmovableproperty.

3.

4.

TheexistingtaxestowhichthisAgreementshallapplyare:
(a)
inIndonesia:
(i) theincometaximposedundertheUndang-undangPajakPenghasilan1984(LawNumber7of1983,asamended);
(hereinafterreferredtoas"Indonesiantax");and
(b)
inSouthAfrica:
(i) thenormaltax;and
(ii) thesecondarytaxoncompanies;
(hereinafterreferredtoas"SouthAfricantax").
TheAgreementshallapplyalsotoanyidenticalorsubstantiallysimilartaxeswhichareimposedbyeitherContractingStateafterthe
date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting
Statesshallnotifyeachotherofanysignificantchangeswhichhavebeenmadeintheirrespectivetaxationlaws.
Article 3
GENERAL DEFINITIONS

1.

ForthepurposesofthisAgreement,unlessthecontextotherwiserequires:
(a)
(b)

Theterm"Indonesia"meanstheterritoryoftheRepublicofIndonesiaasdefinedinitslaws,andpartsofthecontinentalshelf
andadjacentseasoverwhichtheRepublicofIndonesiahassovereignty,sovereignrightsorjurisdictioninaccordancewith
internationallaw;and
theterm"SouthAfrica"meanstheRepublicofSouthAfricaand,whenusedinageographicalsense,includestheterritorial
seathereofaswellasanyareaoutsidetheterritorialsea,includingthecontinentalshelf,whichhasbeenormayhereafterbe
designated, under the laws of South Africa and in accordance with international law, as an area which South Africa may
exercisesovereignrightsorjurisdiction;

(c)
(d)
(e)
(f)
(g)
(h)
(i)

theterms"aContractingState"and"theotherContractingState"meanIndonesiaofSouthAfrica,asthecontextrequires;
the term "company" means any body corporate or any entity which is treated as a company or body corporate for tax
purposes;
term"competentauthority"means:
(i)
inIndonesia,theMinisterofFinanceorhisauthorisedrepresentative;and
(ii)
inSouthAfrica,theCommissionerforInlandRevenueorhisauthorisedrepresentative;
theterms"enterpriseofaContractingState"and"enterpriseoftheotherContractingState"meanrespectivelyanenterprise
carriedonbyaresidentofaContractingStateandanenterprisecarriedonbyaresidentoftheotherContractingState;
the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State,
exceptwhentheshiporaircraftisoperatedsolelybetweenplacesintheotherContractingState;
theterm"national"means:
(i)
anyindividualpossessingthenationalityofaContractingState;
(ii)
anylegalpersonorassociationderivingitsstatusassuchfromthelawsinforceinaContractingState;and
the term "person" includes an individual, a company and any other body of persons which is treated as an entity for tax
purposes.

2.

AsregardstheapplicationoftheprovisionsoftheAgreementatanytimebyaContractingState,anytermnotdefinedthereinshall,
unlessthecontextotherwiserequires,havethemeaningwhichithasatthattimeunderthelawofthatStateforthepurposesofthe
taxestowhichtheAgreementapplies,anymeaningundertheapplicabletaxlawsofthatStateprevalingoverameaninggivento
thetermunderotherlawsofthatState.
Article 4
RESIDENT

1.

ForthepurposesofthisAgreement,theterm"residentofaContractingState"means:
(a)
(b)
(c)

inIndonesia,anypersonwho,underthelawsofIndonesia,isliabletotaxthereinbyreasonofhisdomicile,residence,place
of management or any other criterion of a similar nature, but this term does not include anyperson who is liableto tax in
IndonesiainrespectonlyofincomefromsourcesinIndonesia;
inSouthAfrica,anyindividualwhoisordinarilyresidentinSouthAfricaandanypersonotherananindividualwhichhasits
placeofeffectivemanagementinSouthAfrica;
thatStateandanypoliticalsubdivisionorlocalauthoritythereof.

2.

Where by reason of the provisions of paragraph 1 an individual is a resident of both Contacting States, then his status shall be
determinedasfollows:
(a)
(b)
(c)
(d)

he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a
permanenthomeavailabletohiminbothStates,heshallbedeemedtobearesidentoftheStatewithwhichhispersonaland
economicrelationsarecloser(centreofvitalinterests);
iftheStateinwhichhehashiscentreofvitalinterestscannotbedetermined,orifhehasnotapermanenthomeavailableto
himineitherState,heshallbedeemedtobearesidentonlyoftheStateinwhichhehasanhabitualabode;
ifhehasanhabitualabodeinbothStatesorinneitherofthem,heshallbedeemedtobearesidentonlyoftheStateofwhich
heisanational;
if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the
questionbymutualagreement.

3.

Where by reason of the provisions of paragraph1 a person other thanan individual isa resident of both Contracting States, the
competentauthoritiesoftheContractingStatesshallsettlethequestionbymutualagreement.
Article 5

PERMANENT ESTABLISHMENT
1.

For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the
businessofanenterpriseiswhollyorpartlycarriedon.

2.

Theterm"permanentestablishment"includesespecially:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)

aplaceofmanagement;
abranch;
anoffice;
afactory;
aworkshop;
awarehouseorpremisesusedasasalesoutlet;
amine,anoilorgaswell,aquarryorotherplaceofextractionofnaturalresources;and
aship,drillingrig,installationorotherstructureusedfortheexplorationorexploitationofnaturalresources.

3.

Theterm"permanentestablishment"likewiseencompasses:
(a)
(b)

anbuildingsite,aconstruction,assemblyorinstallationprojectorsupervisoryactivityinconnectionwithsuchsiteoractivity,
butonlywheresuchsite,projectoractivitycontinuesforaperiodofmorethansixmonths;
thefurnishingofservices,includingconsultancyservices,byanenterprisethroughemployeesorotherpersonnelengagedby
anenterpriseforsuchpurpose,butonlywhereactivitiesofthatnaturecontinue(forthesameoraconnectedproject)within
the Contracting State for a period or periods aggregating more than 120 days in any twelve-month period commencing or
endinginthefiscalyearconcerned.

4.

NotwithstandingtheprecedingprovisionsofthisArticle,theterm"permanentestablishment"shallbedeemednottoinclude:
(a)
(b)
(c)
(d)
(e)
(f)

theuseoffacilitiessolelyforthepurposeofstorageordisplayofgoodsormerchandisebelongingtotheenterprise;
themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeofstorageordisplay;
the maintenance of a stock of goods or merchandise belonging to the erterprise solely for the purpose of processing by
anotherenterprise;
the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting
information,fortheenterprise;
themaintenanceofafixedplaceofbusinesssolelyforthepurposeofcarryingon,fortheenterprise,anyotheractivityofa
preparatoryorauxiliarycharacter;and
themaintenanceofafixedplaceofbusinesssolelyforanycombinationofactivitiesmentionedinsubparagraphs(a)to(e),
providedthattheoverallactivityofthefixedplaceofbusinessresultingfromthiscombinationisofapreparatoryorauxiliary
character.

5.

Notwithstanding the provisions of paragraphs 1 and 2, where a person -- other than an agent of an independent status to whom
paragraph6applies--isactingonbehalfofanenterpriseandhas,andhabituallyexercises,inaContractingStateanauthorityto
concludecontractsinthenameoftheenterprise,thatenterpriseshallbedeemedtohaveapermanentestablishmentinthatStatein
respect of any activities which that person undertakes for the enterprise, unless theactivities ofsuch person are limitedto those
mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a
permanentestablishmentundertheprovisionsofthatparagraph.

6.

AnenterpriseshallnotbedeemedtohaveapermanentestablishmentinaContractingStatemerelybecauseitcarriesonbusiness
inthatStatethroughabroker,generalcommissionagentoranyotheragentofanindependentstatus,providedthatsuchpersons

areactingintheordinarycourseoftheirbusiness.
7.

ThefactthatacompanywhichisaresidentofaContractingStatecontrolsoriscontrolledbyacompanywhichisaresidentofthe
otherContractingState,orwhichcarriesonbusinessinthatotherState(whetherthroughapermanentestablishmentorotherwise),
shallnotofitselfconstituteeithercompanyapermanentestablishmentoftheother.
Article 6
INCOME FROM IMMOVABLE PROPERTY

1.

IncomederivedbyaresidentofaContractingStatefromimmovableproperty,includingincomefromagricultureorforestry,situated
intheotherContractingStatemaybetaxedinthatotherState.

2.

Theterm"immovableproperty"shallhavethemeaningwhichithasunderthelawoftheContractingStateinwhichthepropertyin
questionissituated.Thetermshallinanycaseincludepropertyaccessorytoimmovableproperty,livestockandequipmentusedin
agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable
propertyandrightstovariableorfixedpaymentsasconsiderationfortheworkingof,ortherighttowork,mineraldeposits,sources
andothernaturalresources.Ships,boatsandaircraftshallnotberegardedasimmovableproperty.

3.

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

4.

provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from
immovablepropertyusedfortheperformanceofindependentpersonalservices.
Article 7
BUSINESS PROFITS

1.

TheprofitsofanenterpriseofaContractingStateshallbetaxableonlyinthatStateunlesstheenterprisecarriesonbusinessinthe
otherContractingStatethroughapermanentestablishmentsituatedtherein.Iftheenterprisecarriesonbusinessasaforesaid,the
profitsoftheenterprisemaybetaxedintheotherStatebutonlysomuchofthemasisattributableto:
(a)
(b)
(c)

thatpermanentestablishment;
salesinthatorderStateofgoodsormerchandiseofthesamekindasthosesoldthroughthatpermanentestablishment;or
other business activities carried on in that other State of the same kind as those effected through that permanent
establishment.

2.

Subjecttotheprovisionsofparagraph3,whereanenterprise ofaContractingState carriesonbusinessintheotherContracting

State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent
establishmentthe profitswhichitmightbeexpectedto makeifitwereadistinctand separateenterpriseengagedin thesame or
similaractivitiesunderthesameorsimilarconditionsanddealingwhollyindependentlywiththeenterpriseofwhichitisapermanent
establishment.

3.

Indeterminingtheprofitsofapermanentestablishment,thereshallbeallowedasdeductionsexpenseswhichareincurredforthe
purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the
ContractingStateinwhichthepermanentestablishmentissituatedorelsewhere.

4.

InsofarasithasbeencustomaryinaContractingStatetodeterminetheprofitstobeattributedtoapermanentestablishmenton
the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that
Contracting State from determining the profits to be taxed by such an apportionment as may be customary. The method of
apportionmentadoptedshall,however,besuchthattheresultshallbeinaccordancewiththeprinciplescontainedinthisArticle.

5.

No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of
goodsormerchandisefortheenterprise.

6.

Forthepurposesoftheprecedingparagraphs,theprofitstobeattributedtothepermanentestablishmentshallbedeterminedbythe
samemethodyearbyyearunlessthereisgoodandsufficientreasontothecontrary.

7.

Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of
thoseArticlesshallnotbeaffectedbytheprovisionsofthisArticle.
Article 8
SHIPPING AND AIR TRANSPORT

1.

ProfitsofanenterpriseofaContractingStatefromtheoperationofshipsoraircraftininternationaltrafficshallbetaxableonlyinthat
State.

2.

ForthepurposesofthisArticle,profitsfromtheoperationofshipsoraircraftininternationaltrafficshallincludeprofitsderivedfrom
therentalonabareboatbasisofshipsoraircraftusedininternationaltraffic,ifsuchprofitsareincidentaltotheprofitstowhichthe
provisionsofparagraph1apply.

3.

Profits of an enterprise of a Contracting State from the use, maintenance or rental of containers (including trailers, barges and
related equipment for the transport of containers) used for the transport in international traffic of goods or merchandise, shall be
taxableonlyinthatState.

4.

Theprovisionsofparagraph1shallalsoapplytoprofitsfromtheparticipationinapool,ajointbusinessoraninternationaloperating
agency.
Article 9
ASSOCIATED ENTERPRISES

1.

Where:
anenterpriseofaContractingStateparticipatesdirectlyorindirectlyinthemanagement,controlorcapitalofanenterpriseof
theotherContractingState,or
(b)
thesamepersonsparticipatedirectlyorindirectlyinthemanagement,controlorcapitalofanenterpriseofaContractingState
andanenterpriseoftheotherContractingState,
andineithercaseconditionsaremadeorimposedbetweenthetwoenterprisesintheircommercialorfinancialrelationswhichdiffer
from those which would be made between independent enterprises, then any profits which would, but for those conditions, have
accruedtooneoftheenterprises, but, by reasonofthose conditions, havenotsoaccrued,maybeincludedintheprofits of that
enterpriseandtaxedaccordingly.
(a)

2.

WhereaContractingStateincludesintheprofitsofanenterpriseofthatStateandtaxesaccordinglyprofitsonwhichanenterprise
oftheotherContractingStatehasbeenchargedtotaxinthatStateandtheprofitssoincludedareprofitswhichhaveaccruedtothe

enterprise ofthefirst-mentionedStateiftheconditionsmadebetweenthetwoenterprisehad beenthosewhichwould havebeen

madebetweenindependent enterprise,then thatotherStatemaymakeanappropriateadjustmenttothe amount of thetaxother
chargedthereinonthoseprofits.Indeterminingsuchadjustment,dueregardshallbehadtotheotherprovisionofthisAgreement
andthecompetentoftheContractingStateshallifnecessaryconsulteachother.
Article 10
DIVIDENDS
1.

DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybetaxedin
thatotherState.

2.

However,suchdividendsmayalsobetaxedintheContractingStateofwhichthecompanypayingthedividendsisaresidentand
accordingtothelawsofthatState,butifthebeneficialownerofthedividendsisaresidentoftheotherContractingState,thetaxso
chargedshallnotexceed:
(a)

10percentofthegrossamountofthedividendsifthebeneficialownerisacompanywhichholdsatleast10percentofthe
capitalofthecompanypayingthedividends;or
(b)
15percentofthegrossamountofthedividendsinallothercases.
ThecompetentauthoritiesoftheContractingStatesshallsettlethemodeofapplicationoftheselimitationsbymutualagreement.
Thisparagraphshallnotaffectthetaxationofthecompanyinrespectoftheprofitsoutofwhichthedividendsarepaid.

3.

Theterm"dividends"asusedinthisArticlemeansincomefromsharesorotherrightsparticipatinginprofits(notbeingdebt-claims),
aswellasincomefromothercorporaterightswhichissubjectedtothesametaxationtreatmentasincomefromsharesbythelaws
oftheContractingStateofwhichthecompanymakingthedistributionisaresident.

4.

Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialownerofthedividends,beingaresidentofaContractingState,
carriesonbusiness intheother ContractingStateofwhichthecompanypayingthe dividendsisaresident,throughapermanent
establishmentsituatedtherein,orperformsinthatotherStateindependentpersonalservicesfromafixedbasesituatedtherein,and
theholdinginrespectofwhichthedividendsarepaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixedbase.In
suchcase,theprovisionsofArticle7orArticle14,asthecasemaybe,shallapply.

5.

WhereacompanywhichisaresidentofaContractingStatederivesprofitsorincomefromtheotherContractingState,thatother
Statemaynotimposeanytaxonthedividendspaidbythecompany,exceptinsofarassuchdividendsarepaidtoresidentofthat
other State or in so far as the holding in respect of which the dividends are paid is effectively connected with a permanent
establishmentorafixedbasesituatedinthatotherState,norsubjectthecompany'sundistributedprofitstoataxonundistributed
profits,evenifthedividendspaidortheundistributedprofitsconsistwhollyorpartlyofprofitsorincomearisinginsuchotherState.
Article 11
INTEREST

1.

InterestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherContracting
Stateifsuchresidentisthebeneficialowneroftheinterest.

2.

The rate of tax imposed by one of the Contracting States on interest derived from sources within that Contracting State and
beneficiallyownedbyaresidentoftheotherContractingStateshallnotexceed10percentofthegrossamountoftheinterest.

3.

Notwithstandingtheprovisionsofparagraph2,interestarisinginaContractingStateshallbeexemptfromtaxinthatStateif:
(a)
(b)
(c)

thepayeroftheinterestistheGovernmentofthatContractingStateorapoliticalsubdivisionoralocalauthoritythereof;or
theinterestispaidtotheGovernmentoftheotherContractingStateorapoliticalsubdivisionoralocalauthoritythereof;or
theinterestispaidtotheBankofIndonesiaortheSouthAfricanReserveBank.

4.

Theterm"interest"asusedinthisArticlemeansincomefromdebt-claimsofeverykind,whetherornotsecuredbymortgageand
whetherornotcarryingarighttoparticipateinthedebtor'sprofits,andinparticular,incomefromgovernmentsecuritiesandincome
from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income
assimilatedtoincomefrommoneylentunderthetaxationlawoftheStateinwhichtheincomearises,includinginterestondeferred
paymentsales.PenaltychargesforlatepaymentshallnotberegardedasinterestforthepurposesofthisArticle.

5.

Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheinterest,beingaresidentofaContractingState,
carriesonbusinessintheotherContractingStateinwhichtheinterestarises,throughapermanentestablishmentsituatedtherein,
orperforms in thatotherStateindependent personal services fromafixed basesituatedtherein,andthedebt-claiminrespectof
whichtheinterestispaidiseffectivelyconnectedwith:
(a)
(b)
(c)

suchpermanentestablishmentorfixedbase,orwith
businessactivitiesreferredtounder,
ofparagraph1ofArticle7.Insuchcase,theprovisionsofArticle7orArticle14,asthecasemaybe,shallapply.

6.

Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person
payingtheinterest,whetherheisaresidentofaContractingStateornot,hasinaContractingStateapermanentestablishmentora
fixedbaseinconnectionwithwhichtheindebtednessonwhichtheinterestispaidwasincurred,andsuchinterestisbornebysuch
permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent
establishmentorfixedbaseissituated.

7.

Where,byreason of a specialrelationship between the payerandthebeneficial ownerorbetweenbothofthem and someother

person,theamountoftheinterest,havingregardtothedebt-claimforwhichitispaid,exceedstheamountwhichwouldhavebeen
agreeduponbythepayerandthebeneficialownerintheabsenceofsuchrelationship,theprovisionsofthisArticleshallapplyonly
to the last-mentionedamount. In such case, the excess part of the paymentsshall remain taxable according to the lawsof each
ContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.
Article 12
ROYALTIES

1.

RoyaltiesarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.

2.

However,suchroyaltiesmayalsobetaxedintheContractingStateinwhichtheyarise,andaccordingtothelawsofthatState,butif
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.

3.

Theterm"royalties"inthisArticlemeanspaymentsorcredits,whetherperiodicalornot,andhoweverdescribedorcomputed,tothe
extenttowhichtheyaremadeasconsiderationfor:

(a)
(b)
(c)
(d)
(e)

(f)

theuseof,ortherighttouse,anycopyright,patent,designormodel,plan,secretformulaorprocess,trademarkorotherlike
propertyorright;or
theuseof,ortherighttouse,anyindustrial,commercialorscientificequipment,excludingcontainersusedininternational
traffic;or
thesupplyofscientific,technical,industrialorcommercialknowledgeorinformation;or
thesupply of any assistance that isancillaryandsubsidiaryto, and is furnished asa meansofenabling the application or
enjoyment of, any such property or right as is mentioned in subparagraph (a), any such equipment as is mentioned in
subparagraph(b)oranysuchknowledgeorinformationasismentionedinsubparagraph(c);or
theuseof,ortherighttouse;
(i)
motionpicturefilms;or
(ii)
filmsorvideoforuseinconnectionwithtelevision;or
(iii)
tapesforuseinconnectionwithradiobroadcasting;or
totalorpartialforbearanceinrespectoftheuseorsupplyoranypropertyorrightreferredtointhisparagraph.

4.

Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheroyalties,beingaresidentofaContractingState,
carriesonbusinessintheotherContractingStateinwhichtheroyaltiesarise,throughapermanentestablishmentsituatedthereinor
performsinthatotherStateindependentpersonalservicesfromafixedbasesituatedtherein,andtherightorpropertyinrespectof
which the royalties are paid is effectively connected with (a) such permanent establishment or fixed base, or with (b) business
activitiesreferredtounder(c)ofparagraph1ofArticle7.Insuchcase,theprovisionsofArticle7orArticle14,asthecasemaybe,
shallapply.

5.

RoyaltiesshallbedeemedtoariseinaContractingStatewhenthepayerisaresidentofthatState.Where,however,theperson
payingtheroyalties,whetherheisaresidentofaContractingStateornot,hasinaContractingStateapermanentestablishmentor
afixedbasewithwhichtherightorpropertyinrespectofwhichtheroyaltiesarepaidiseffectivelyconnected,andsuchroyaltiesare
borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the
permanentestablishmentorfixedbaseissituated.

6.

Where,byreason of a specialrelationship between the payerandthebeneficial ownerorbetweenbothofthem and someother

person,theamountoftheroyalties,havingregardtotheuse,rightorinformationforwhichtheyarepaid,exceedstheamountwhich
would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this
Articleshallapplyonlytothelast-mentionedamount.Insuchcase,theexcesspartofthepaymentsshallremaintaxableaccording
tothelawsofeachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.
Article 13
CAPITAL GAINS

1.

GainsderivedbyaresidentofaContractingStatefrom,thealienationofimmovablepropertyreferredtoinArticle6andsituatedin
theotherContractingStatemaybetaxedinthatotherState.

2.

Gains from the alienation of movable property forming part of the business property of a permanent establishment which an
enterpriseofaContractingStatehasintheotherContractingStateorofmovablepropertypertainingtoafixedbaseavailabletoa
residentofaContractingStateintheotherContractingStateforthepurposeofperformingindependentpersonalservices,including
suchgainsfromthealienationofsuchapermanentestablishment(aloneorwiththewholeenterprise)orofsuchfixedbase,maybe
taxedinthatotherState.

3.

Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or
movablepropertypertainingtotheoperationofsuchshipsoraircraft,shallbetaxableonlyinthatState.

4.

Gains from the alienation of any property other than that referred to in the preceding paragraphs, shall be taxable only in the
ContractingStateofwhichthealienatorisaresident.
Article 14
INDEPENDENT PERSONAL SERVICES

1.

IncomederivedbyanindividualwhoisaresidentofaContractingStateinrespectofprofessionalservicesorotheractivitiesofan
independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other
Contracting State forthe purposeof performing his activities. If he hassuch a fixed base, the incomemay be taxed in the other
Statebutonlysomuchofitasisattributabletothatfixedbase.ForthepurposesofthisAgreement,whereanindividualwhoisa
residentofaContractingStateispresentintheotherContractingStateforaperiodorperiodsexceedingintheaggregate120days
inanytwelve-monthperiodcommencingorendinginthefiscalyearconcerned,heshallbedeemedtohaveafixedbaseregularly
availabletohiminthatotherStateandtheincomethatisderivedfromhisactivitiesthatareperformedinthatotherStateshallbe
attributabletothatfixedbase.

2.

Theterm"professionalservices"includesespeciallyindependentscientific,literary,artistic,educationalorteachingactivitiesaswell
astheindependentactivitiesofphysicians,lawyers,engineers,architects,dentistsandaccountants.
Article 15
DEPENDENT PERSONAL SERVICES

1.

Subject to the provisions of Articles 16, 18, and 19, salaries, wages and other similar remuneration derived by a resident of a
ContractingStateinrespectofanemploymentshallbetaxableonlyinthatStateunlesstheemploymentisexercisedintheother
ContractingState.Iftheemploymentissoexercised,suchremunerationasisderivedtherefrommaybetaxedinthatotherState.

2.

Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an
employmentexercisedintheotherContractingStateshallbetaxableonlyinthefirst-mentionedStateif:
(a)
(b)
(c)

therecipientispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysinanytwelve-month
periodcommencingorendinginthefiscalyearconcerned;and
theremunerationispaidbyoronbehalfofanemployerwhoisnotaresidentoftheotherState;and
theremunerationisnotbornebyapermanentestablishrnentorafixedbasewhichtheemployerhasintheotherState.

3.

NotwithstandingtheprecedingprovisionsofthisArticle,remunerationderivedinrespectofanemploymentexercisedaboardaship
oraircraftoperatedininternationaltrafficbyanenterpriseofaContractingStatemaybetaxedinthatState.
Article 16
DIRECTORS' FEES

Directors'feesandsimilarpaymentsderivedbyaresidentofaContractingStateinhiscapacityasamemberoftheboardofdirectorsorany
othersimilarorganofacompanywhichisaresidentoftheotherContractingStatemaybetaxedinthatotherState.
Article 17
ENTERTAINERS AND SPORTSPERSONS
1.

NotwithstandingtheprovisionsofArticles7,14and15,incomederivedbyaresidentofaContractingStateasanentertainersuch
as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such

exercisedintheotherContractingState,maybetaxedinthatotherState.
2.

Whereincomeinrespectofpersonalactivitiesexercisedbyanentertainerorasportspersoninhiscapacityassuchaccruesnotto
theentertainerorsportspersonhimselfbuttoanotherperson,thatincomemay,notwithstandingtheprovisionsofArticles7,14and
15,betaxedintheContractingStateinwhichtheactivitiesoftheentertainerorsportspersonareexercised.

3.

Income derived by a resident of a Contracting State from activities exercised in the other Contracting State as envisaged in
paragraphs1and2ofthisArticle,shallbeexemptfromtaxinthatotherStateifthevisittothatotherStateissupportedwhollyor
mainly by public funds of the first-mentioned Contracting State, a political subdivision or a local authority thereof, or takes place
underaculturalagreementorarrangementbetweentheGovernmentsoftheContractingStates.
Article 18
PENSIONS AND ANNUITIES

1.

Subjecttotheprovisionsofparagraph2ofArticle19,pensionsandothersimilarremunerationandannuitiesarisinginaContracting
StateandpaidtoaresidentoftheotherContractingState,maybetaxedinthefirst-mentionedState.

2.

Theterm"annuity"meansastatedsumpayableperiodicallyatstatedtimesduringlifeorduringaspecifiedorascertainableperiod
oftimeunderanobligationtomakethepaymentsinreturnforadequateandfullconsiderationinmoneyormoney'sworth.
Article 19
GOVERNMENT SERVICE

1.

2.

3.

(a)

Salaries,wagesandsimilarremuneration,otherthanapension,paidbyaContractingStateorapoliticalsubdivisionoralocal
authoritythereoftoanindividualinrespectofservicesrenderedtothatStateorsubdivisionorauthorityshallbetaxableonlyin
thatState.
(b) However,suchsalaries,wagesandsimilarremunerationshallbetaxableonlyintheotherContractingStateiftheservicesare
renderedinthatStateandtheindividualisaresidentofthatStatewho:
(i)
isanationalofthatState;or
(ii)
didnotbecomearesidentofthatStatesolelyforthepurposeofrenderingtheservice.
(a) Anypensionpaidby,oroutoffundscreatedby,aContractingStateorapoliticalsubdivisionoralocalauthoritythereoftoan
individualinrespectofservicesrenderedtothatStateorsubdivisionorauthorityshallbetaxableonlyinthatState.
(b) However,suchpensionshallbetaxableonlyintheotherContractingStateiftheindividualisaresidentof,andanationalof,
thatState.
The provisions of Articles 15,16, 17 and 18 shall applyto salaries,wages and similar remuneration,andto pensions in respect of
servicesrenderedinconnectionwithabusinesscarriedonbyaContractingStateorapoliticalsubdivisionoralocalauthoritythereof.

Article 20
STUDENTS, APPRENTICES AND BUSINESS TRAINEES
Astudent,apprenticeorbusinesstraineewhoispresentinaContractingStatesolelyforthepurposeofhiseducationortrainingandwhois,
orimmediatelybeforebeingsopresentwas,aresidentoftheotherContractingState,shallbeexemptfromtaxinthefirst-mentionedStateon
paymentsreceivedfromoutsidethatfirst-mentionedStateforthepurposesofhismaintenance,educationortraining.
Article 21
OTHER INCOME
ItemsofincomearisinginaContractingStatewhicharenotdealtwithintheforegoingArticlesofthisAgreementmaybetaxedinthatState.

Article 22
ELIMINATION OF DOUBLE TAXATION
Doubletaxationshallbeeliminatedasfollows:
(a)

In Indonesia, South African tax paid by residents of Indonesia in respect of income taxable in South Africa, in accordance with the
provisions of this Agreement, shall be deducted from the taxes due according to Indonesian tax law. Such deduction shall not,
however, exceed the amount of the Indonesian tax payable on that income computed in accordance with its taxation laws and
regulations.
In South Africa, Indonesian tax paid by residents of South Africa in respect of income taxable in Indonesia, in accordance with the
provisions ofthis Agreement,shallbe deducted from the taxes due according toSouth African fiscallaw.Suchdeductionshallnot,
however,exceedanamountwhichbearstothetotalSouthAfricantaxpayablethesameratioastheincomeconcernedbearstothe
totalincome.

(b)

Article 23
NON-DISCRIMINATION
1.

NationalsofaContractingStateshallnotbesubjectedintheotherContractingStatetoanytaxationoranyrequirementconnected
therewithwhichisotherormoreburdensomethanthetaxationandconnectedrequirementstowhichnationalsofthatotherStatein
the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to
personswhoarenotresidentsofoneorbothoftheContractingStates.

2.

ThetaxationonapermanentestablishmentwhichanenterpriseofaContractingStatehasintheotherContractingStateshallnot
belessfavourablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatotherStatecarryingonthesameactivities.
This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any
personalallowances,reliefsandreductionsfortaxationpurposesonaccountofcivilstatusorfamilyresponsibilitieswhichitgrantsto
itsownresidents.

3.

EnterprisesofaContractingState,thecapitalofwhichiswhollyorpartlyownedorcontrolled,directlyorindirectly,byoneormore
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
enterprisesofthatfirst-mentionedStateareormaybesubjected.

4.

Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 apply, interest,
royaltiesandotherdisbursementspaidbyanenterpriseofaContractingStatetoaresidentoftheotherContractingStateshall,for
thepurposeofdeterminingthetaxableprofitsofsuchenterprise,bedeductibleunderthesameconditionsasiftheyhadbeenpaid
toaresidentofthefirst-mentionedState.

5.

Nothinginthisconventionshallbeconstruedaspreventing:
(a)

(b)

IndonesiafromimposingontheprofitsofacompanyattributabletoapermanentestablishmentinIndonesia,ataxinaddition
to the tax which would be chargeable on the profits of a company which is a resident of that State, provided that any
additionaltaxsoimposedshallnotexceed10percentoftheamountofsuchprofitsafterdeductingtherefromincometaxand
othertaxesonincomeimposedthereoninIndonesia.
SouthAfricafromimposingataxontheprofitsattributabletoapermanentestablishmentinSouthAfricaofacompanywhich
isaresidentofIndonesiaataratewhichdoesnotexceedtherateofnormaltaxoncompaniesbymorethantenpercentage
points.

6.

The provisions of paragraph 5 of this Article shall not affect the provisions contained in any production sharing contract and
contracts of work (or any other similar contracts) relating to the oil and gas sector or other mining sector concluded by the
GovernmentofIndonesia,itsinstrumentality,itsrelevantstateoilandgascompanyoranyotherentitythereofwithapersonwhois
aresidentoftheotherContractingState.

7.

InthisArticletheterm"taxation"meanstaxeswhicharethesubjectofthisAgreement.
Article 24
MUTUAL AGREEMENT PROCEDURE

1.

Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in
accordance with this Agreement, he may, irrespective of the remediesprovided bythe domestic law of those States, present his
casetothecompetentauthorityoftheContractingStateofwhichheisaresidentor,ifhiscasecomesunderparagraph1ofArticle
23,tothatoftheContractingStateofwhichheisanational.Thecasemustbepresentedwithintwoyearsfromthefirstnotification
oftheactionresultingintaxationnotinaccordancewiththeprovisionsoftheAgreement.

2.

The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a
satisfactory solution, to resolvethecase by mutualagreementwith the competent authority of the otherContractingState, witha
view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented
notwithstandinganytimelimitsinthedomesticlawoftheContractingStates,butinanycase,notmorethantenyearsfromtheend
ofthetaxableyearinrespectofwhichtheactionenvisagedinparagraph1hasarisen.

3.

The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts
arisingastotheinterpretationorapplicationoftheAgreement.Theymayalsoconsulttogetherfortheeliminationofdoubletaxation
incasesnotprovidedforintheAgreement.

4.

The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral
exchange of opinions, such exchange may take place through a joint commission consisting of representatives of the competent
authoritiesoftheContractingStates.
Article 25
EXCHANGE OF INFORMATION

1.

ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformationasisnecessaryforcarryingouttheprovisions
ofthisAgreementorof thedomesticlawsoftheContractingStatesconcerningtaxescoveredby theAgreement, insofarasthe
taxation thereunder is not contrary to this Agreement, in particular for the prevention of fraud or evasion of such taxes. The
exchangeofinformationisnotrestrictedbyArticle1.AnyinformationreceivedbyaContractingStateshallbetreatedassecretin
thesamemannerasinformationobtainedunderthedomesticlawofthatState.However,iftheinformationisoriginallyregardedas
secret in the transmitting State it shall be disclosed only to persons or authorities (including courts and administrative bodies)
involvedintheassessmentorcollectionof,theenforcementorprosecutioninrespectof,orthedeterminationofappealsinrelation
to,thetaxeswhicharethesubjectoftheAgreement.Suchpersonsorauthoritiesshallusetheinformationonlyforsuchpurposes
butmaydisclosetheinformationinpubliccourtproceedingsorinjudicialdecisions.

2.

Innocaseshalltheprovisionsofparagraph1beconstruedsoastoimposeonaContractingStatetheobligation:
(a)

tocarryoutadministrativemeasuresatvariancewiththelawsortheadministrativepracticeofthatoroftheotherContracting

(b)
(c)

State;
tosupply information which is not obtainable under thelawsor inthe normal course ofthe administrationof that orof the
otherContractingState;
to supply information which would disclose any trade, business, industriai, commercial or professional secret or trade
process,orinformation,thedisclosureorwhichwouldbecontrarytopublicpolicy(ordrepublic).

Article 26
MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS
Nothing inthisAgreement shall affectthe fiscal privileges ofmembers of diplomaticmissions or consular postsunderthe general rules of
internationallaworundertheprovisionsofspecialagreements.
Article 27
ENTRY INTO FORCE
1.

EachoftheContractingStatesshallnotifytotheotherthecompletionoftheproceduresrequiredbyitslawforthebringingintoforce
ofthisAgreement.TheAgreementshallenterintoforceonthedateofreceiptofthelaterofthesenotifications.

2.

TheprovisionsoftheAgreementshallapply:
(a)
(b)

with regard to taxes withheld at source, in respect of amounts paid or credited on or after the first day of January next
followingthedateuponwhichtheAgreemententerintoforce;and
with regard toothertaxes,inrespectoftaxableyearsbeginningonorafterthefirstdayofJanuarynext followingthedate
uponwhichtheAgreemententersintoforce.
Article 28
TERMINATION

1.

This Agreement shall remain in force indefinitely but either of the Contracting States may terminate the Agreement through the
diplomaticchannel,bygivingtotheotherContractingStatewrittennoticeofterminationnotlaterthan30Juneofanycalendaryear
startingfiveyearsaftertheyearinwhichtheAgreemententeredintoforce.

2.

InsucheventtheAgreementshallceasetoapply:
(a)
(b)

with regard to taxes withheldat source,in respectof amounts paid orcredited after the end ofthe calendar year inwhich
suchnoticeisgiven;and
with regardto othertaxes, inrespectof taxable years beginning aftertheendof the calendar year in whichsuchnotice is
given.

INWITNESSWHEREOFtheundersigned,beingdulyauthorisedthereto,havesignedthisAgreement.
DONEatJakartainduplicate,thisfifteenthdayofJuly1997
FORTHEGOVERNMENTOFTHEFORTHEGOVERNMENTOFTHE
REPUBLICOFINDONESIAREPUBLICOFSOUTHAFRICA

sgdsgd


ALIALATASA.B.NZO
MINISTERFORFOREIGNAFFAIRSMINISTERFORFOREIGNAFFAIRS
PROTOCOL
AtthetimeofsigningtheAgreement between theGovernment oftheRepublicofIndonesia andtheGovernmentoftheRepublicofSouth
AfricafortheAvoidanceofDoubleTaxationandthePreventionofFiscal
EvasionwithrespecttoTaxesonIncome,theundersignedhaveagreedthatthefollowingshallformanintegralpartoftheAgreement:
Withregardtoparagraph3ofArticle5,paragraph1ofArticle14andparagraph2ofArticle15,itisunderstoodthatthephrase"anytwelvemonthperiodcommencingorendinginfiscalyearconcerned"hastheeffectof
enablingtheperiodoftwelvemonthstobecalculatedfromanydatewithinafiscalyeareitherforwardorbackwardfromthatdate.
INWITNESSWHEREOFtheundersigned,beingdulyauthorisedthereto,havesignedthisProtocol.

DONEatJakartainduplicate,thisfifteenthdayofJuly1997
FORTHEGOVERNMENTOFTHEFORTHEGOVERNMENTOFTHE
REPUBLICOFINDONESIAREPUBLICOFSOUTHAFRICA

sgdsgd

ALIALATASA.B.NZO
MINISTERFORFOREIGNAFFAIRSMINISTERFORFOREIGNAFFAIRS

10February2014-09:02