The Taipei Economic and Trade Office and The Indonesian Economic
and Trade Office to Taipei desiring to conclude an Agreement for
the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income, have agreed as follows:

Article 1 PERSONAL SCOPE
This Agreement shall apply to persons who are residents of one
or both of the countries of the Contracting Parties.

Article 2 TAXES COVERED
1. The existing taxes to which the Agreement shall apply are:
(a) in the country represented by the Taipei Economic and Trade
Office: the profit seeking enterprise income tax and the
individual consolidated income tax;
(b) in the country represented by the indonesian economic and
Trade Office to Taipei: the income tax imposed under the
Undang-undang Pajak Penghasilan 1984 (Law No. 7 of 1983 as
amended).
2. The Agreement shall also apply to any identical or substantly
similar taxes which are imposed after the date of singature
of the agreement in addition to, or in place of, the existing
taxes. At the end of each year, the competent authorities of
the countries of the Contracting Parties shall notify each
other of significant changes which have been made in their
respective taxation laws.

Article 3 GENERAL DEFINITIONS
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a)
(i) the term "the country represented by the Taipei Economic
and Trade Office" comprises the territory of the said
country and the territorial sea thereof as well as any
area outside the territorial sea over which the said
country has sovereignty, sovereign rights or jurisdiction
in accordance with international law;
(ii) the term "the country represented by the Indonesian
Economic and Trade Office to Taipei" comprises the
territory of the said country and the adjacent areas
over which the said country has sovereignty, sovereign
rights or jurisdiction in accordance with international
law;
(b) the term "person" includes an individual, a company and any
other body of persons;
(c) the term "company" means any body corporate or any entity
which is treated as a body corporate for the tax purposes;
(d) the terms "enterprise of the country of a Contracting
Party" and "enterprise of the country of the other
Contracting Party, mean respectively an enterprise carried
on by a resident of the country of a Contracting Party and
an enterprise carried on by a resident of the country of
the other Contracting Party;
(e) the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise of the country
of a Contracting parity, except when the ship or aircraft
is operated solely between places in the country of the
other Contracting Party;
(f) the term "competent authority" means:
(i) in the country represented by the Taipei Economic and
Trade Office: the Director General, Department of
Taxation, Ministry of Finance or his authorised
representative;
(ii) in the country represented by the Indonesian Economic
and Trade Office to Taipei: the Director General of
Taxation, Ministry of Finance or his authorised
representative;
(g) the term "national" means:
(i) any individual possessing the nationality of the country
of a Contracting Parity;
(ii) any legal person, partnership and association deriving
its status as such from the laws in force in the country
of a Contracting Party;
(h) the terms "the country of a Contracting Party "and "the
country of the other Contracting Party" mean the country
represented by the Taipei Economic and Trade Office and the
country represented by the Indonesian Economic and Trade
Office to Taipei as the context required.
2. As regards the application of this Agreement, any term not
defined therein shall, unless the context otherwise requires,
have the meaning which it has under the laws of the country
to which the Agreement applies.

Article 4 RESIDENT
1. For the purposes of this Agreement, the term "resident of the
country of a Contracting Party" means any person who, under
the laws of that country, is liable to tax therein by reason
of his domicile, residence, place of management, place of
incorporation or any other criterion of a similar nature.
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both countries of the Contracting
Parties, then his status shall be determined as follows:
(a) he shall be deemed to be a resident of the country in which
he has a permanent home available to him; if he has a
permanent home available to him in both countries, he shall
be deemed to be a resident of the country with which his
personal and economic relations are closer (centre of vital
interests);
(b) if the country in which he has his centre of vital
interests cannot be determined, or if he has not a
permanent home available to him in either country, he shall
be deemed to be a resident of the country in which he has
an habitual abode;
(c) if he has an habitual abode in both countries or in neither
of them, the competent authorities of both countries shall
settle the question by mutual agreement.
3. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both countries of
the Contracting Parties, then it shall be deemed to be a
resident of the country in which its place of incorporation
is situated.

Article 5 PERMANENT ESTABLISHMENT
l. For the purposes of this Agreement, the term "permanent
establishment" means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a farm or plantation;
(g) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
3 The term "permanent establishment" likewise encompasses:
(a) a building site, a construction, assembly or installation
project or supervisory activities in connection therewith,
but only where such site or project or activities continue
in one of the countries of the Contracting Parties for a
period of more than 6 months;
(b) the furnishing of services, including consultancy services
by an enterprise through employees or other personnel
engaged by the enterprise for such purpose, but only where
activities of that nature continue (for the same or a
connected project) within the country for a period or
periods aggregating more than 120 days within any twelve
month period.
4. Notwithstanding the preceding provisions of this Article, the
term "permanent establishment" shall be deemed not to include:
(a) the use of the facilities solely for the purpose of storage
or display of goods or merchandise belonging to the
enterprise;
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
storage or display;
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the
purpose of advertising or for the supply of information;
(f) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
(g) the maintenance of a fixed place of business solely for any
combination of activities mentioned in sub-paragraphs (a)
to (f), provided that the overall activity of the fixed
place of business resulting from this combination is of a
preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs l and 2, where a
person--other than an agent of an independent status to whom
paragraph 6 applies--is acting in the country of a
Contracting Party on behalf of an enterprise of the country
of the other Contracting Party, that enterprise shall be
deemed to have a permanent establishment in the
first-mentioned country in respect of any activities which
that person undertakes for the enterprise, if such a person:
(a) has and habitually exercises in that country an authority
to conclude contracts in the name of the enterprise, unless
the activities of such person are limited to those
mentioned in pragraph 4 which, if exercised through a fixed
place of business, would not make this fixed place of
business a permanent establishment under the provisions of
that paragraph; or
(b) has no such authority, but habitually maintains in the
first-mentioned country a stock of goods or merchandise
from which he regularly delivers goods or merchandise on
behalf of the enterprise.
6. An enterprise of the country of a Contracting Party shall not
be deemed to have a permanent establishment in the country of
the other Contracting Party merely because it carries on
business in that other country through a broker, general
commission agent or any other agent of an independent status,
provided that such persons are acting in the ordinary course
of their business.
7. The fact that a company which is a resident of the country of
a Contracting Party controls or is controlled by a company
which is a resident of the country of the other Contracting
Party, or which carries on business in that other country
(whether through a permanent establishment or otherwise),
shall not of itself constitute either company a permanent
establishment of the other.

Article 6 INCOME FROM IMMOVABLE PROPERTY
1. Income derived by a resident of the country of a Contracting
Party from immovable property (including income form
agriculture or forestry) situated in the country of the other
Contracting Party may be taxed in that other country.
2 The term "Immovable property" shall have the meaning which it
has under the law of the country of the Contracting Party in
which the property in question is situated. The term shall
in any case include property accessory to immovable property,
livestock and equipment used in agriculture and forestry,
rights to which the provisions of general law respecting
landed property apply, usufruct of immovable property and
rights to variable or fixed payments as consideration for the
working of, or the right to work, mineral deposits, sources
and other natural resources; ships, boats and aircraft shall
not be regarded as immovable property.
3. The provisions of paragraph l shall also apply to income
derived from the direct use, letting, or use in any other
form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.

Article 7 BUSINESS PROFITS
1. The profits of an enterprise of the country of a Contracting
Party shall be taxable only in that country unless the
enterprise carries on business in the country of the other
Contracting Party through a permanent establishment situated
therein. if the enterprise carries on business as aforesaid,
the profits of the enterprise may be taxed in the other
country but only so much of them as is attributable to (a)
that permanent establishment; (b) sales in that other
country of goods or merchandise of the same or similar kind
as those sold through that permanent establishment provided
that the permanent establishment has contributed in any
manner in those sales.
2. Subject to the provisions of paragraph 3, where an enterprise
of the country of a Contracting Party carries on business in
the country of the other Contracting Party through a
permanent establishment situated therein, there shall in each
country be attributed to that permanent establishment the
profits which it might be expected to make if it were a
distinct and separate enterprise engaged in the same or
similar activities under the same or similar conditions and
dealing wholly independently with the enterprise of which it
is a permanent establishment.
3. In determining the profits of a permanent establishment,
there shall be allowed as deductions expenses which are
incurred for the purposes of the business of the permanent
establishment, including executive and general administrative
expenses so incurred, whether in the country in which the
permanent establishment is situated or elsewhere.
4. No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent
establishment of goods or merchandise for the enterprise.
5. For the purpose of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be
determined by the same method year by year unless there is
good and sufficient reason to the contrary.
6 . Where profits include items of income which are dealt with
separately in other Articles of this Agreement, then the
provisions of those Articles shall not be affected by the
provisions of this Article.

Article 8 SHIPPING AND AIR TRANSPORT
1. Profits of an enterprise of the country of a Contracting
Party from the operation of ships or aircraft in
international traffic shall be taxable only in that country.
2. The provisions of paragraph 1 shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.
3. Profits that mentioned in this Article include all profits
derived from the operation of ships and aircraft in
international traffic, including profits from the rental of
ships or aircraft on a full (time or voyage) basis and
profits from the rental of containers and related equipment
which is incidental to the operation of ships and aircraft in
international traffic.

Article 9 ASSOCIATED ENTERPRISES
1. Where
(a) an enterprise of the country of a Contracting Party
participates directly or indirectly in the management,
control or capital of an enterprise of the country of the
other Contracting Party, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of the
country of a Contracting Party and an enterprise of the
country of the other Contracting Party,
and in either case conditions are made or imposed between the
two enter-prises in their commercial or financial relations
which differ from those which would be made between
independent enterprises, then any profits which would, but
for those conditions, have accrued to one of the enterprises,
but, by reason of those conditions, have not so accrued, may
be included in the profits of that enterprise and taxed
accordingly.
2. Where the country of a Contracting Party includes in the
profits of an enterprise of that country--and taxes
accordingly--profits on which an enterprise of the country of
the other Contracting Party has been charged to tax in that
other country and the profits so included are profits which
would have accrued to the enterprise of the first-mentioned
country if the conditions made between the two enterprises
had been those which would have been made between independent
enterprises, then that other country shall make an
appropriate adjustment to the amount of the tax charged
therein on those profits. In determining such adjustment,
due regard shall be had to the other provisions of this
agreement and the competent authorities of the countries of
the Contracting Parties shall if necessary consult each other.

Article 10 DIVIDENDS
1. Dividends paid by a company which is a resident of the
country of a Contracting Party to a resident of the country
of the other Contracting Party may be taxed in that other
country.
2. However, such dividends may also be taxed in the country of
the Contracting Party of which the company paying the
dividends is a resident and according to the laws of that
country, but if the recipient is the beneficial owner of the
dividends the tax so charged shall not exceed 10 per cent of
the gross amount of the dividends.
This paragraph shall not affect the taxation of the company
in respect of the profits out of which the dividends are paid.
3. The term "dividends" as used in this Article means income
from shares or other rights, not being debt-claims,
participating in profits, as well as income from other
corporate rights which is subjected to the same taxation
treatment as income from shares by the laws of the country of
which the company making the distribution is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of the
country of a Contracting Party, carries on business in the
country of the other Contracting Party of which the company
paying the dividends is a resident, through a permanent
establishment situated therein, or performs in that other
country independent personal services from a fixed base
situated therein, and the holding in respect of which the
dividends are paid is effectively connected with such
permanent establishment or fixed base. In such case, the
provisions of Article 7 or Article 14, as the case may be,
shall apply.
5. Where a company which is a resident of the country of a
Contracting Party derives profits or income from the country
of the other Contracting Party, that other country may not
impose any tax on the dividends paid by the company, except
insofar as such dividends are paid to a resident of that
other country or insofar as the holding in respect of which
the dividends are paid is effectively connected with a
permanent establishment or a fixed base situated in that
other country, nor subject the company's undistributed
profits to a tax on the company’s undistributed profits,
even if the dividend paid or the undistributed profits
consist wholly or partly of profits or income arising in such
other country.
6. Notwithstanding any other provisions of this Agreement where
a company which is a resident of the country of a Contracting
Party has a permanent establishment in the country of the
other Contracting Party, the profits of the permanent
establishment may be subjected to an additional tax in that
other country in accordance with its law, but the additional
tax so charged shall not exceed 5 per cent of the amount of
such profits after deducting therefrom income tax and other
taxes on income imposed thereon in that other country.
7. The rate of tax in paragraph 6 of this Article shall not
affect the provisions contained in any production sharing
contracts or any other similar contracts relating to oil and
gas sector or other mining sector concluded by the country of
a Contracting Party, its instrumentality, its relevant state
oil and gas company or any other entity thereof with a person
who is a resident of the country of the other Contracting
Party.

Article 11 INTEREST
1. Interest arising in the country of a Contracting Party and
paid to a resident of the country of the other Contracting
Party may be taxed in that other country.
2. However, such interest may also be taxed in the country of
the Contracting Party in which it arises and according to the
laws of that country, but if the recipient is the beneficial
owner of the interest the tax so charged shall not exceed 10
per cent of the gross amount of the interest.
3 . Notwithstanding the provisions of paragraph 2, interest
arising in the country of a Contracting Party and derived by
the authority of the country of the other Contracting Party
including local authorities thereof, a political subdivision.
the Central Bank or any financial institution controlled by
that authority, the capital of which is wholly owned by the
authority of the country of the other Contracting Party, as
may be agreed upon from time to time between the competent
authorities of the countries of the Contracting Parties,
shall be exempt from tax in the first-mentioned country.
4. The term "interest" as used in this Article means income from
debt-claims of every kind, whether or not secured by mortgage
and whether or not carrying a right to participate in the
debtor's profits, and in particular, income from government
securities and income from bonds or debentures, including
premiums and prizes attaching to such securities, bonds or
debentures. Penalty charges for late payment shall not be
regarded as interest for the purpose of this Article.
5. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the interest, being a resident of the
country of a Contracting Party, carries on business in the
country of the other Contracting Party in which the interest
arises, through a permanent establishment situated therein,
or performs in that other country independent personal
services from a fixed base situated there in, and the
debt-claim in respect of which the interest is paid is
effectively connected with such permanent establishment or
fixed base. In such case, the provisions of Article 7 or
Article 14, as the case may be, shall apply.
6. Interest shall be deemed to arise in the country of a
Contracting Party when the payer is the authority of the
country of that Contracting Party itself, a local authority
or a resident of that country. where, however, the person
paying the interest, whether he is a resident of the country
of a Contracting Party or not, has in the country of a
Contracting Party a permanent establishment or a fixed base
in connection with which the indebtedness on which the
interest is paid was incurred, and such interest is borne by
such permanent establishment or fixed base, then such
interest shall be deemed to arise in the country in which the
permanent establishment or fixed base is situated.
7. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to
the debt-claim for which it is paid, exceeds the amount which
would have been agreed upon by the payer and the beneficial
owner in the absence of such relationship, the provisions of
this Article shall apply only to the last-mentioned amount.
In such case, the excess part of the payments shall remain
taxable according to the laws of the country of each
Contracting Party, due regard being had to the other
provisions of this Agreement.

Article 12 ROYALTIES
1. Royalties arising in the country of a Contracting Party and
paid to a resident of the country of the other Contracting
Party may be taxed in that other country.
2. However, such royalties may also be taxed in the country of
the Contracting Party in which they arise and according to
the laws of that country, but if the recipient is the
beneficial owner of the royalties, the tax so charged shall
not exceed 10 per cent of the gross amount of the royalties.
3. The term "royalties" as used in this Article means payments
of any kind received as a consideration for the use of, or
the right to use, any copyright of literary, artistic or
scientific work including cinematograph films or films or
tapes used for radio or television broadcasting, any patent,
trade mark, design or model, plan, secret formula or process,
or for the use of, or the right to use, industrial,
commercial or scientific equipment or for information
concerning industrial, commercial or scientific experience.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the royalties, being a resident of the
country of a Contracting Party, carries on business in the
country of the other Contracting Party in which the royalties
arise, through a permanent establishment situated therein, or
performs in that other country independent personal services
from a fixed base situated therein, and the right or property
in respect of which the royalties are paid is effectively
connected with such permanent establishment or fixed base. In
such case, the provisions of Article 7 or Article 14, as the
case may be, shall apply.
5. Royalties shall be deemed to arise in the country of a
Contracting Party when the payer is the authority of the
country of that Contracting Party itself, a local authority
or a resident of that country. Where, however, the person
paying the royalties, whether he is a resident of the country
of a Contracting Party or not, has in the country of a
Contracting Party a permanent establishment or a fixed base
in connection with which the liability to pay the royalties
was incurred, and such royalties are borne by such permanent
establishment or fixed base, then such royalties shall be
deemed to arise in the country in which the permanent
establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to
the use, right or information for which they are paid,
exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such
relationship, the provisions of this article shall apply only
to the last-mentioned amount. In such case, the excess part
of the payments shall remain taxable according to the laws of
each country of the Contracting Party, due regard being had
to the other provisions of this Agreement.

Article 13 CAPITAL GAINS
1. Gains derived by a resident of the country of a Contracting
Party from the alienation of immovable property referred to
in Article 6 and situated in the country of the other
Contracting Party may be taxed in that other country.
2. Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an
enterprise of the country of a Contracting Party has in the
country of the other Contracting Party or of movable property
pertaining to a fixed base available to a resident of the
country of a Contracting Party in the country of the other
Contracting Party for the purpose of performing independent
personal services, including such gains from the alienation
of such a permanent establishment (alone or with the whole
enterprise) or of such fixed base, may be taxed in that other
country.
3. Gains derived by an enterprise of the country of a
Contracting Party from the alienation of ships or aircraft
operated in international traffic or movable property
pertaining to the operation of such ships or aircraft shall
be taxable only in that country.
4. Gains form the alienation of any property other than that
referred to in the preceding paragraphs shall be taxable only
in the country of the Contracting Party of which the
alienator is a resident.

Article 14 INDEPENDENT PERSONAL SERVICES
1. Income derived by a resident of the country of a Contracting
Party in respect of professional services or other activities
of an independent character shall be taxable only in that
country unless he has a fixed base regularly available to him
in the country of the other Contracting Party for the purpose
of performing his activities or he is present in that other
country for a period or periods exceeding in the aggregate
120 days in the taxable year concerned. If he has such a
fixed base or remains in that other country for the aforesaid
period or periods, the income may be taxed in that other
country but only so much of it as is attributable to that
fixed base or is derived in that other country during the
aforesaid period or periods.
2. The term "professional services" includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as the independent activities of
physicians, engineers, lawyers, dentists, architects and
accountants.

Article 15 DEPENDENT PERSONAL SERVICES
l. Subject to the provisions of Articles l6, 18, 19 and 20,
salaries, wages and other similar remuneration derived by a
resident of a Contracting Party in respect of an employment
shall be taxable only in country unless the employment is
exercised in the country of the other Contracting Party. If
the employment is so exercised, such remuneration as is
derived therefrom may be taxed in that other country.
2. Notwithstanding the provisions of paragraph 1, remuneration
derived by a resident of the country of a Contracting Party
in respect of an employment exercised in the country of the
other Contracting Party shall be taxable only in the
first-mentioned country if:
(a) the recipient is present in the other country for a period
or periods not exceeding in the aggregate 183 days in the
taxable year concerned; and
(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other country; and
(c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other country.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic
by an enterprise of the country of a Contracting Party shall
be taxable only in that country.

Article 16 DIRECTORS' FEES
1. Directors' fees and other similar payments derived by a
resident of the country of a Contracting Party 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 country
of the other Contracting Party may be taxed in that other
country.
2. The remuneration which a person to whom paragraph 1 applies
derives from the company in respect of the discharge of
day-to-day functions of a managerial or technical nature may
be taxed in accordance with the provisions of Article l5.

Article 17 ARTISTES AND ATHLETES
1. Notwithstanding the provisions of articles l4 and 15, income
derived by a resident of the country of a Contracting Party
as an entertainer, such as a theatre, motion picture, radio
or television artiste, or a musician, or as an athlete, from
his personal activities as such exercised in the country of
the other Contracting Party, may be taxed in that other
country.
2. Where income in respect of personal activities exercised by
an entertainer or an athlete in his capacity as such accrues
not to the entertainer or athlete himself but to another
person, that income may, notwithstanding the provisions of
Articles 7, 14 and l5, be taxed in the country of the
Contracting Party in which the activities of the entertainer
or athlete are exercised.
3. Notwithstanding the provisions of paragraphs l and 2, income
derived from activities referred to in paragraph l performed
under a cultural agreement or arrangement between both
authorities of the countries of the Contracting Parties shall
be exempt from tax in the country of the Contracting Party in
which the activities are exercised if the visit to that
country is wholly or substantially supported by funds of one
or both countries of the Contracting Parties, a local
authority or public institution thereof.

Article 18 PENSIONS AND ANNUITIES
1. Subject to the provisions of paragraph 2 of Article 19, any
pension and other similar remuneration paid to a resident of
the country of one of the Contracting Parties from a source
in the country of the other Contracting Party in
consideration of past employment or services in the country
of that other Contracting Party and any annuity paid to such
a resident from such a source may be taxed in that other
country .
2. The term "annuity" as used in this Article means a stated sum
payable periodically at stated times during life or during a
specified or ascertainable period of time, under an
obligation to make the payments in consideration of money
paid.

Article 19 GOVERNMENT SERVICE
1.
(a) Remuneration, other than a pension, paid by the country of
a Contracting Party or a local authority thereof to an
individual in respect of services rendered to that country
or authority shall be taxable only in that country.
(b) However, such remuneration shall be taxable only in the
country of the other Contracting Party if the services are
rendered in that other country and the individual is a
resident of that country who:
(i) is a national of that country; or
(ii) did not become a resident of that country solely for the
purpose of rendering the services.
2.
(a) Any pension paid by, or out of funds created by, the
country of a Contracting Party or a local authority thereof
to an individual in respect of services rendered to that
country or authority shall be taxable only in that country.
(b) However, such pension shall be taxable only in the country
of the other Contracting Party if the individual is a
resident of, and a national of, that other country.
3. The provisions of Articles l5, 16 and l8 shall apply to
remuneration and pensions in respect of services rendered in
connection with a business carried on by the country of a
Contracting Party or a local authority thereof.

Article 20 TEACHERS, RESEARCHERS AND STUDENTS
1. An individual, who visits the country of a Contracting Party
at the invitation of that country or of a university,
college, school, museum or other cultural institution of that
country or under an official program of cultural exchange for
a period not exceeding two years solely for the purpose of
teaching, giving lectures or carrying out research at such
institution and who is, or was immediately before that visit,
a resident of the country of the other Contracting Party
shall be exempt from tax in the first-mentioned country on
his remuneration for such activity, provided that such
remuneration is derived by him from outside that country.
2 Payments which a student, apprentice or business trainee who
is or was immediately before visiting the country of a
Contracting Party, a resident of the country of the other
Contracting Party and who is present in the first-mentioned
country solely for the purpose of his full-time education or
training receives for the purpose of his maintenance,
education or training shall not be taxed in that
first-mentioned country, provided that such payments arise
from sources outside that first-mentioned country.

Article 21 OTHER INCOME
Items of income of a resident of the country of a Contracting
Party wherever arising, not dealt with in the foregoing Articles
of this Agreement shall be taxable only in that country.

Article 22 ELIMINATION OF DOUBLE TAXATION
Where a resident of the country of a Contracting Party derives
income from the country of the other Contracting Party, the
amount of tax on that income payable in that other country in
accordance with the provisions of this Agreement, may be
credited against the tax levied in the first-mentioned country
imposed on that resident. The amount of credit, however, shall
not exceed the amount of the tax on the first-mentioned country
on that income computed in accordance with its taxation laws and
regulations.

Article 23 NON-DlSCRlMlNATION
l. Nationals of the country of a Contracting Party shall not be
subjected in the country of the other Contracting Party to
any taxation or any requirement connected therewith which is
other or more burdensome than the taxation and connected
requirements to which nationals of that other country in the
same circumstances are or may be subjected.
2. The taxation on a permanent establishment which an enterprise
of the country of a Contracting Party has in the country of
the other Contracting Party shall not be less favorably
levied in that other country than the taxation levied on
enterprises of that other country carrying on the same
activities. This provision shall not be construed as obliging
the country of a Contracting Party to grant to residents of
the country of the other Contracting Party any personal
allowances, reliefs and reductions for taxation purposes on
account of civil status or family responsibilities which it
grants to its own residents.
3. Except where the provisions of paragraph 1 of Article 9,
paragraph 7 of Article 11, or paragraph 6 of Article 12
apply, interest, royalties and other disbursements paid by an
enterprise of the country of a Contracting Party to a
resident of the country of the other Contracting Party shall,
for the purpose of determining the taxable profits of such
enterprise, be deductible under the same conditions as if
they had been paid to a resident of the first-mentioned
country.
4. Enterprises of the country of a Contracting Party, the
capital of which is wholly or partly owned or controlled,
directly or indirectly, by one or more residents of the
country of the other Contracting Party, shall not be
subjected in the first-mentioned country to any taxation or
any requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which other similar enterprises of the first-mentioned
country are or may be subjected
5. In this article the term "taxation" means taxes which are the
subject of this Agreement.

Article 24 MUTUAL AGREEMENT PROCEDURE
1. Where a person considers that the actions of one or both of
the authorities of the countries of the Contracting Parties
result or will result for him in taxation not in accordance
with the provisions of this Agreement, he may, irrespective
of the remedies provided by the domestic law of those
countries, present his case to the competent authority of the
country of which he is a resident. The case must be presented
within three years from the first notification of the action
resulting in taxation not in accordance with the provisions
of the Agreement.
2. The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the country
of the other Contracting Party, with a view to the avoidance
of taxation which is not in accordance with the Agreement.
3. The competent authorities of the Countries of the Contracting
Parties shall endeavour to resolve by mutual agreement any
difficulties or doubts arising as to the interpretation or
application of the agreement. They may also consult together
for the elimination of double taxation in cases not provided
for in the Agreement.
4. The competent authorities of the countries of the Contracting
Parties may communicate with each other directly for the
purpose of reaching an agreement in the sense of the
preceding paragraphs. The competent authorities, through
consultations, shall develop appropriate bilateral
procedures, conditions, methods and techniques for the
implementation of the mutual agreement procedure provided for
in this Article.

Article 25 EXCHANGE OF lNFORMATION
1. The competent authorities of the countries of the Contracting
Parties shall exchange such information as is necessary for
carrying out the provisions of this Agreement or of the
domestic laws of the countries of the Contracting Parties
concerning taxes covered by the Agreement, insofar as the
taxation thereunder is not contrary to the Agreement, in
particular for the prevention of fraud or evasion of such
taxes. Any information received by the competent authority of
the country of a Contracting Party shall be treated as secret
in the same manner as information obtained under the domestic
laws of that country. However, if the information is
originally regarded as secret in the transmitting country it
shall be disclosed only to persons or authorities (including
courts and administrative bodies) involved in the assessment
or collection of, the enforcement or prosecution in respect
of, or the determination of appeals in relation to, the taxes
which are the subject of the agreement. Such persons or
authorities shall use the information only for such purposes
but may disclose the information in public court proceedings
or in judicial decisions.
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on the competent authority of the country of
a Contracting Party the obligation:
(a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
country ;
(b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that
or of the other country;
(c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or information, the disclosure of which
would be contrary to public policy (ordre public).

Article 26 ENTRY INTO FORCE
1. This Agreement shall enter into force on the later of the
dates on which the respective Contracting parties may notify
each other in writing that the formalities required in their
respective countries have been complied with.
2. This Agreement shall have effect:
(a) in respect of taxes withheld at source, for amounts paid or
credited on or after the first day of the second month
following the date on which the Agreement enters into
force; and
(b) in respect of other taxes on income, for taxable years
beginning on or after 1 January in the year next following
that in which the Agreement enters into force.

Article 27 TERMlNATION
This agreement shall remain in force until terminated by a
Contracting Party. Either Contracting Party may terminate the
Agreement, by giving written notice of termination on or before
the thirtieth day of June of any calendar year following after
the period of five years from the year in which the Agreement
enters into force.
In such case, the Agreement shall cease to have effect:
(a) in respect of taxes withheld at source, for amounts paid or
credited on or after l January in the year next following
that in which the notice of termination is given; and
(b) in respect of other taxes on income, for taxable years
beginning on or after l January in the year next following
that in which the notice of termination is given.

In witness whereof the undersigned, being duly authorized
thereto, have signed this Agreement.

DONE in duplicate at Taipei on this 1st day of March 1995 in the
Chinese, Indonesian and English Languages, the three texts being
equally authentic. In case of any divergency of interpretation,
the English text shall prevail.

Dr. Pao-Sun Lu J. B. OETORO

Representative Representative
FOR THE TAIPEI ECONOMIC FOR THE INDONESIAN ECONOMIC
AND TRADE OFFICE AND TRADE OFFICE TO TAIPEI