KEPPRES

Keputusan Presiden Nomor 148 Tahun 1999 tentang PENGESAHAN PERSETUJUAN ANTARA PEMERINTAH RI DAN PEMERINTAH FEDERASI RUSIA TENTANG PENGHINDARAN PAJAK BERGANDA DAN PENCEGAHAN PENEGLAKAN PAJAK DAN PENGHASILAN

KEPPRES Nomor 148 Tahun 1999

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Article 1

Mengesahkan Persetujuan antara Pemerintah Republik INDONESIA dan Pemerintah Federasi Rusia tentang Penghindaran Pajak Berganda dan Pencegahan Pengelakan Pajak atas Penghasilan, yang telah ditandatangani Pemerintah Republik INDONESIA di Jakarta, pada tanggal 12 Maret 1999, sebagai hasil perundingan antara Delegasi-delegasi Pemerintah Republik INDONESIA dan Pemerintah Federasi Rusia yang salinan naskah aslinya dalam bahasa INDONESIA, Rusia dan Inggris sebagaimana terlampir pada Keputusan PRESIDEN ini.

Article 2

Article 3

Correction

PENGERTIAN-PENGERTIAN UMUM 1. Kecuali jika dari hubungan kalimatnya harus diartikan lain, yang dimaksud dalam Persetujuan ini dengan : a) istilah "Negara pihak pada Persetujuan" dan "Negara pihak lainnya pada Persetujuan" berarti Republik INDONESIA (INDONESIA) atau Federasi Rusia (Rusia); b) istilah "Rusia" berarti wilayah Federasi Rusia, yang meliputi zona ekonomi eksklusif dan landas kontinennya, sesuai dengan ketentuan Konvensi PBB mengenai Hukum Laut, 1982; c) istilah "INDONESIA" berarti wilayah sebagaimana ditentukan dalam perundang-undangannya, dan zona ekonomi eksklusif dan landas kontinennya di mana Republik INDONESIA memiliki yurisdiksi dan hak-hak berdaulat sesuai dengan hukum internasional; d) istilah "orang/badan" meliputi orang pribadi, perseroan dan setiap kumpulan dari orang-orang dan/atau badan-badan; e) istilah "perseroan" berarti setiap badan hukum atau setiap entitas yang untuk tujuan pemungutan pajak yang diperlakukan sebagai suatu badan hukum; f) istilah "perusahaan dari suatu Negara pihak pada Persetujuan" dan "perusahaan dari Negara pihak lainnya pada Persetujuan" berarti berturut-turut 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; g) istilah "lalu lintas internasional" berarti setiap pengangkutan oleh kapal laut atau pesawat udara yang dilakukan oleh penduduk dari suatu Negara pihak pada Persetujuan, kecuali jika kapal atau pesawat udara itu semata-mata dioperasikan antara tempat-tempat di Negara pihak lainnya pada Persetujuan; h) istilah "pejabat yang berwenang" berarti - Dalam hal INDONESIA - Menteri Keuangan atau wakilnya yang sah; - Dalam hal Federasi Rusia - Menteri Keuangan atau wakilnya yang sah; i) istilah "warganegara" berarti setiap orang pribadi yang menjadi penduduk dari suatu Negara pihak pada Persetujuan. 2. Sehubungan dengan penerapan Persetujuan ini oleh salah satu Negara pihak pada Persetujuan, setiap istilah yang tidak dirumuskan mempunyai arti menurut perundang-undangan Negara itu sepanjang mengenai pajak-pajak yang diatur dalam Persetujuan ini, kecuali jika dari hubungan kalimatnya harus diartikan lain.

Article 5

Correction

BENTUK USAHA TETAP 1. Untuk kepentingan Persetujuan ini istilah "bentuk usaha tetap" berarti suatu tempat usaha tetap di mana seluruh atau sebagian usaha suatu perusahaan dari suatu Negara pihak pada Persetujuan dijalankan di Negara pihak lainnya pada Persetujuan. 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 penyimpanan barang sebagai tempat penjualan; g) suatu pertanian atau perkebunan; h) suatu tambang, suatu sumur minyak atau gas, suatu penggalian atau tempat pengambilan atau eksplorasi ssumber daya alama lainnya, anjungan untuk pemboran atau kapal yang digunakan untuk eksplorasi dan eksploitasi sumber-sumber daya alam. 3. Istilah "bentuk usaha tetap" juga meliputi : a) suatu bangunan atau suatu proyek konstruksi, atau kegiatan pengawasan yang ada hubungan dengan proyek tersebut, tetapi hanya apabila bangunan, proyek atau kegiatan tersebut berjalan di satu Negara pihak pada Persetujuan untuk masa lebih dari 3 bulan; b) suatu perakitan atau proyek instalasi yang berlangsung untuk masa lebih dari 3 bulan; c) Pemberian jasa termasuk jasa konsultan yang dilakukan oleh suatu perusahaan melalui karyawannya atau orang lain yang dipekerjakan oleh perusahaan itu untuk tujuan tersebut. 4. Menyimpang dari ketentuan-ketentuan sebelumnya dari Pasal ini, istilah "bentuk usaha tetap" tidak meliputi : a) penggunaan fasilitas-fasilitas semata-mata dengan maksud untuk menyimpan atau memamerkan barang-barang atau barang dagangan milik perusahaan; b) pengurusan suatu persediaan barang-barang atau barang dagangan milik perusahaan semata-mata dengan maksud untuk disimpan atau dipamerkan; c) pengurusan suatu persediaan barang-barang atau barang dagangan milik perusahaan semata-mata dengan maksud untuk diolah oleh perusahaan lain; d) pengurusan suatu tempat tertentu semata-mata dengan maksud untuk pembelian barang-barang atau barang dagangan atau untuk mengumpulkan informasi bagi keperluan perusahaan; e) pengurusan suatu tempat tertentu semata-mata dengan maksud untuk tujuan periklanan, untuk memberikan keterangan-keterangan; f) pengurusan suatu tempat tertentu semata-mata ditujukan untuk melakukan gabungan kegiatan-kegiatan seperti disebutkan pada sub-ayat (a) sampai dengan sub ayat (e), asalkan hasil penggabungan kegiatan-kegiatan tersebut bersifat persiapan atau penunjang. 5. Menyimpang dari ketentuan-ketentuan ayat 1 dan 2, apabila orang itu atau badan, kecuali agen yang bertindak bebas sebagaimana berlaku ayat 7, bertindak di suatu Negara pihak pada Persetujuan atas nama perusahaan yang berkedudukan di Negara pihak lainnya pada Persetujuan, maka perusahaan tersebut dianggap memiliki bentuk usaha tetap di Negara yang disebutkan pertama atas kegiatan-kegiatan yang dilakukan oleh orang atau badan tersebut, jika ia : 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; b) tidak mempunyai wewenang seperi itu, tetapi biasa melakukan pengurusan persediaan barang-barang atau barang dagangan di Negara yang disebut pertama di mana secara teratur ia menyerahkan barang-barang atau barang dagangan atas nama perusahaan tersebut; atau c) membuaat atau mengolah di negara tersebut untuk kepentingan perusahaan barang-baranag atau barang dagangan milik perusahaan. 6. Suatu perusahaan asuransi dari Negara pihak pada Persetujuan, kecuali yang berkenaan dengan reasuransi, akan dianggap mempunyai suatu bentuk usaha tetap di Negara pihak lainnya pada Persetujuan jika perusahaan tersebut memungut premi di wilayah Negara lainnya itu atau menanggung risiko yang terjadi di sana melalui seorang pegawai atau melalui suatu perwakilan yang bukan merupakan agen yang bertindak bebas seperti dimaksud pada ayat 7. 7. Suatu perusahaan dari suatu Negara pihak pada Persetujuan tidak akan dianggap mempunyai suatu bentuk usaha tetap di Negara pihak lainnya pada Persetujuan hanya semata-mata karena perusahaan itu menjalankan usaha di Negara pihak lainnya pada Persetujuan melalui makelar, komisioner umum, atau agen lainnya yang bertindak bebas, sepanjang orang atau badan tersebut bertindak dalam rangka kegiatan usahanya yang lazim. 8. Jika suatu perseroan yang berkedudukan di suatu Negara pihak pada Persetujuan menguasai atau dikuasai oleh perseroan yang berkedudukan di Negara pihak lainnya pada Persetujuan ataupun menjalankan usaha di Negara pihak lainnya itu (baik melalui suatu bentuk usaha tetap ataupun dengan suatu cara lain), maka hal itu tidak dengan sendirinya akan berakibat bahwa salah satu dari perseroan itu merupakan bentuk usaha tetap dari yang lainnya.

Article 7

Correction

LABA USAHA 1. Keuntungan suatu perusahaan dari Negara pihak pada Persetujuan hanya akan dikenakan pajak di Negara itu kecuali jika perusahaan itu menjalankan usaha di Negara pihak lainnya pada Persetujuan melalui suatu bentuk usaha tetap. Apabila perusahaan tersebut menjalankan usahanya sebagai dimaksud di atas, maka laba perusahaan itu dapat dikenakan pajak di negara lainnya tetapi hanya atas bagian laba yang berasal dari : a) bentuk usaha tetap tersebut; b) penjualan yang dilakukan di Negara lainnya atas barang-barang atau barang dagangan yang sama atau jenisnya sama dengan yang dijual melalui bentuk usaha tetap itu; atau c) kegiatan-kegiatan usaha lainnya yang dijalankan di Negara lain itu yang sama atau jenisnya sama dengan yang dilakukan melalui bentuk usaha tetap tersebut. 2. 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 tersebut. 3. 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 lain. Namun demikian tidak diperkenankan untuk dikurangkan ialah 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. Sebaliknya tidak akan diperhitungkan sebagai laba bentuk usaha tetap adalah jumlah-jumlah yang dibebankan oleh bentuk usaha tetap kepada kantor pusatnya atau Kantor-kantor lain milik Kantor Pusatnya (selain 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 manejemen, atau, kecuali dalam hal usaha perbankan, berupa bunga atas pinjaman yang diberikan kepada kantor pusatnya atau kantor lain milik kantor pusatnya. 4. Demi penerapan ayat-ayat terdahulu, besarnya laba bentuk usaha tetap harus ditentukan dengan cara yang sama dari tahun ke tahun, kecuali jika terdapat alasan yang kuat dan cukup untuk melakukan penyimpangan. 5. Jika dalam jumlah laba termasuk bagian-bagian penghasilan yang diatur secara tersendiri pada pasal-pasal lain dalam Persetujuan ini, maka ketentuan pasal-pasal tersebut tidak akan terpengaruh oleh ketentuan-ketentuan pasal ini.

Article 10

Correction

DIVIDEN 1. Dividen yang dibayarkan oleh suatu perusahaan yang berkedudukan di suatu Negara pihak pada Persetujuan kepada penduduk Negara pihak lainnya pada Persetujuan dapat dikenakan pajak di Negara lain tersebut. 2. Namun demikian dividen itu dapat juga dikenakan pajak di Negara pihak pada Persetujuan di mana perseroan yang membayarkan dividen tersebut berkedudukan dan sesuai dengan perundang-undangan Negara tersebut, akan tetapi apabila penerima dividen adalah pemilik saham yang menikmati dividen itu, maka pajak yang dikenakan tidak akan melebihi 15 persen dari jumlah kotor dividen. 3. Istilah "dividen" sebagaimana digunakan dalam pasal ini berarti penghasilan dari saham-saham, atau hak-hak lainnya yang bukan merupakan surat-surat piutang, yang berhak atas pembagian laba, maupun penghasilan lainnya dari hak-hak perseroan yang oleh UNDANG-UNDANG perpajakan Negara di mana perseroan yang membagikan dividen itu berkedudukan, dalam pengenaan pajaknya diperlakukan sama dengan penghasilan dari saham-saham. 4. Ketentuan-ketentuan ayat 1 dan 2 tidak akan berlaku apabila pemilik saham yang menikmati dividen, yang merupakan penduduk dari suatu Negara pihak pada Persetujuan, melakukan kegiatan usaha di Negara pihak lainnya pada Persetujuan, di mana perseroan yang membayarkan dividen itu berkedudukan, melalui suatu bentuk usaha tetap yang berada di sana, atau menjalankan pekerjaan bebas dengan suatu tempat tertentu yang berada di sana dan pemilikan saham-saham yang menghasilkan dividen itu mempunyai hubungan yang efektip dengan bentuk usaha tetap atau tempat tertentu itu. Dalam hal demikian, tergantung pada masalahnya berlaku ketentuan-ketentuan Pasal 7 atau Pasal 14. 5. Menyimpang dari ketentuan-ketentuan lainnya dalam Persetujuan ini, apabila suatu perseroan yang berkedudukan di suatu Negara pihak pada Persetujuan mempunyai bentuk usaha tetap di Negara pihak lainnya pada Persetujuan, maka keuntungan bentuk usaha tetap tersebut dapat dikenakan pajak tambahan di Negara lainnya itu berdasarkan UNDANG-UNDANG, namun pajak tambahan tersebut tidak akan melebihi 12,5 persen dari jumlah keuntungan setelah dikurangi dengan pajak penghasilan dan pajak-pajak lainnya atas penghasilan yang dikenakan di Negara lain tersebut. 6. Tarif-tarif pajak pada ayat 2 dan ayat 5 Pasal ini tidak akan mempengaruhi tarif pajak yang terdapat dalam setiap kontrak bagi hasil atau kontrak lainnya yang serupa mengenai sektor minyak dan gas bumi atau sektor pertambangan lainnya yang disetujui oleh Pemerintah INDONESIA, badan-badan pemerintahannya, perusahaan minyak dan gas milik begara, atau badan-badan lainnya yang merupakan penduduk Federasi.

Article 11

Correction

BUNGA 1. Bunga yang berasal dari suatu Negara pihak pada Persetujuan dan dibayarkan kepada penduduk Negara pihak lainnya pada Persetujuan dapat dikenakan pajak di Negara lain tersebut. 2. Namun demikian, bunga tersebut dapat juga dikenakan pajak di Negara pihak pada Persetujuan tempat bunga itu berasal, dan sesuai dengan perundang-undangan Negara tersebut, akan tetapi apabila penerima dan pemilik bunga adalah pemberi pinjaman yang menikmati bunga itu, maka pajak yang dikenakan tidak akan melebihi 15 persen dari jumlah kotor bunga. 3. Menyimpang dari ketentuan-ketentuan ayat 2, bunga yang berasal di suatu Negara pihak pada Persetujuan dan diterima oleh Pemerintah Negara pihak lainnya pada Persetujuan termasuk pemerintah daerahnya, bagian ketatanegaraan, Bank Sentral, harus dibebaskan dari pengenaan pajak di Negara yang disebut pertama. 4. Istilah "bunga" yang digunakan dalam Pasal ini berarti penghasilan dari semua jenis tagihan hutang, baik yang dijamin dengan hipotik maupun tidak dan baik yang mempunyai hak atas pembagian laba maupun tidak dan khususnya penghasilan dari surat-surat perbendaharaan Negara dan surat-surat obligasi atau surat-surat hutang, termasuk premi dan hadiah yang terikat pada surat-surat berherga, obligasi atau surat-surat hutang tersebut, demikian pula semua penghasilan yang dipersamakan dengan penghasilan yang diperoleh dari uang yang dipinjamkan berdasarkan UNDANG-UNDANG perpajakan dari negara dimana penghasilan itu berasal, termasuk bunga atas pembayaran untuk penjualan dimuka. 5. Ketentuan-ketentuan ayat 1 sampai ayat 2 tidak akan berlaku apabila pemberi pinjaman yang menikmati bunga tadi berkedudukan di suatu Negara pihak pada Persetujuan, melakukan kegiatan usaha di Negara pihak lainnya pada Persetujuan di mana tempat bunga itu berasal melalui suatu bentuk usaha tetap yang berada di sana, atau menjalankan pekerjaan bebas di Negara lainnya melalui suatu tempat tetap yang berada di sana, dan tagihan hutang yang menghasilkan bunga itu mempunyai hubungan yang efektif dengan bentuk usaha tetap atau tempat tetap itu. Dalam hal demikian, tergantung pada masalahnya, berlaku ketentuan-ketentuan Pasal 7 atau Pasal 14. 6. Bunga dianggap berasal dari suatu Negara pihak pada Persetujuan apabila yang membayarkan bunga adalah Negara itu sendiri, bagian ketatanegaraannya, pemerintah daerahnya, atau penduduk Negara tersebut. Namun demikian, apabila orang atau badan yang membayar bunga itu, tanpa memandang apakah ia penduduk suatu Negara pihak pada Persetujuan atau tidak, mempunyai bentuk usaha tetap atau tempat tetap di suatu Negara pihak pada Persetujuan di mana bunga yang dibayarkan menjadi beban bentuk usaha tetap atau tempat tetap tersebut, maka bunga itu akan dianggap berasal dari Negara pihak pada Persetujuan di mana bentuk usaha tetap atau tempat tetap itu berada. 7. Jika karena alasan adanya hubungan istimewa antara pembayar bunga dengan pemilik yang menikmati bunga atau antara keduanya dengan orang atau badan lain dengan memperhatikan besarnya tagihan hutang yang menghasilkan bunga itu, jumlah bunga yang dibayarkan melebihi jumlah yang seharusnya disetujui antara pembayar dan pemilik yang menikmati bunga seandainya hubungan istimewa itu tidak ada, maka ketentuan-ketentuan Pasal ini akan berlaku hanya atas jumlah yang telah disetujui tersebut. Dalam hal demikian, jumlah kelebihan pembayaran tersebut akan tetap dikenakan pajak sesuai dengan perundang-undangan masing-masing Negara pihak pada Persetujuan, dengan memperhatikan ketentuan-ketentuan lainnya dalam Persetujuan ini

Article 12

Correction

ROYALTI 1. Royalti yang berasal dari Negara pihak pada Persetujuan dan dibayarkan kepada penduduk dari suatu Negara pihak lainnya pada Persetujuan dapat dikenakan pajak di negara lain tersebut. 2. Namun demikian, apabila penerima royalti adalah pemilik yang berhak menikmati royalti dikenakan pajak di Negara pihak pada Persetujuan di mana royalti itu berasal dan sesuai dengan perundang-undangan Negara itu, maka pajak yang dikenakan tidak akan melebihi 15 persen dari jumlah kotor royalti tersebut. 3. Istilah "royalti" dalam Pasal ini berarti pembayaran-pembayaran baik secara periodik atau tidak, dan dengan bentuk apapun yang mencakup imbalan untuk : a) penggunaan, atau hak untuk menggunakan, setiap hak cipta, patent, pola atau model, rumus atau cara pengolahan yang dirahasiakan, merk dagang ataupun kekayaan atau hak lainnya; atau b) penggunaan, atau hak untuk menggunakan alat-alat perlengkapan industri, perdagangan atau ilmu pengetahuan; atau c) penyediaan pengetahuan dibidang ilmu pengetahuan, teknik, industri atau perdagangan atau informasi; atau d) penyerahan berbagai bantuan yang merupakan pelengkap dan tambahan dan yang diberikan dengan maksud memungkinkan awal penggunaan dari setiap kekayaan atau hak seperti yang disebut sub ayat (a), setiap perlengkapan seperti dalam sub ayat (b) atau setiap pengetahuan atau informasi seperti disebutkan pada sub ayat (c); atau e) penggunaan, atau hak untuk menggunakan : i) film-film bioskop; atau ii) film-film atau video yang digunakan dalam hubungannya dengan televisi; atau iii) pita-pita yang digunakan dalam hubungannya dengan siaran radio; atau f) menahan seluruh atau sebagian pembayaran oleh karena adanya penggunaan atau penyediaan penawaran atau sesuatu kekayaan atau hak yang ditunjuk dalam ayat ini. 4. Ketentuan-ketentuan ayat 1 dan ayat 2 tidak berlaku, apabila pihak yang memiliki hak menikmati, yang merupakan penduduk suatu Negara pihak pada Persetujuan menjalankan usaha di Negara pihak lainnya pada Persetujuan di mana royalti berasal, melalui suatu bentuk usaha tetap yang berada disana, atau melakukan suatu pekerjaan bebas di Negara lainnya itu melalui suatu tempat tetap, dan hak atau milik yang menghasilkan royalti itu mempunyai hubungan yang efektif dengan bentuk usaha tetap atau tempat tetap itu. Dadlam hal demikian ketentuan Pasal 7 atau Pasal 14 akan berlaku. 5. Royalti dapat dianggap berasal dari Negara pihak pada Persetujuan apabila pembayarnya adalah Negara itu sendiri, bagian ketatanegaraan, pemerintah daerah, atau penduduk dari Negara tersebut. Namun demikian, apabila orang atau badan yang membayarkan royalti itu, tanpa memandang apakah ia penduduk suatu Negara pihak pada Persetujuan atau bukan, memiliki bentuk usaha tetap atau tempat tetap di suatu Negara pihak pada Persetujuan di mana kewajiban membayar royalti timbul, dan royalti tersebut menjadi beban bentuk usaha tetap atau tempat tetap tersebut, maka royalti itu dianggap berasal dari Negara di mana bentuk usaha tetap atau tempat tetap itu berada. 6. Jika karena alasan adanya hubungan istimewa antara pembayar dengan pemilik hak yang menikmati atau antara kedua-duanya dengan orang/badan lain, berkenaan dengan penggunaan hak atau keterangan yang mengakibatkan pembayaran itu, jumlah royalti yang dibayarkan itu melebihi jumlah yang seharusnya disepakati oleh pembayar dan pemilik hak seandainya tidak ada hubungan istimewa, maka ketentuan-ketentuan Pasal ini hanya akan berlaku terhadap jumlah yang disebut terakhir. Dalam hal demikian, jumlah kelebihan pembayaran tersebut akan tetap dikenakan pajak sesuai dengan perundang-undangan masing-masing Negara pihak pada Persetujuan dengan meperhatikan ketentuan-ketentuan lainnya dalam Persetujuan ini.

Article 23

Correction

TATA CARA PERSETUJUAN BERSAMA 1. Apabila seseorang atau suatu badan menganggap bahwa tindakan-tindakan salah satu atau kedua Negara pihak pada Persetujuan mengakibatkan atau akan mengkibatkan pengenaan pajak yang tidak sesuai dengan Persetujuan ini, maka terlepas dari cara-cara penyelesaian yang diatur oleh perundang-undangan nasional dari masing-masing Negara, maka ia dapat mengajukan masalahnya kepada pejabat yang berwenang di Negara pihak pada Persetujuan di mana ia berkedudukan, atau apabila masalah yang timbul menyangkut ayat 1 Pasal 23 kepada pejabat yang berwenang di Negara pihak pada Persetujuan dimana ia menjadi penduduk. Masalah tersebut harus diajukan dalam waktu dua tahun sejak pemberitahuan pertama dari tindakan yang mengkibatkan pengenaan pajak yang tidak sesuai dengan ketentuan-ketentuan Persetujuan ini. 2. Apabila keberatan yang diajukan itu cukup beralasan untuk diselesaikan dan apabila atas masalah itu tidak dapat ditemukan suatu penyelesaian yang memuaskan, Pejabat yang berwenang akan berusaha menyelesaikan masalah itu melalui persetujuan bersama dengan pejabat yang berwenang dari Negara pihak lainnya pada Persetujuan, untuk mencegah penghindaran pajak yang tidak sesuai dengan Persetujuan ini. 3. Pejabat-pejabat yang berwenang dari kedua Negara pihak pada Persetujuan akan berusaha untuk menyelesaikan melalui suatu persetujuan bersama atas setiap kesulitan atau keragu-raguan yang timbul dalam penafsiran atau penerapan Persetujuan ini. Mereka dapat juga berkonsultasi bersama untuk mencegah pengenaan pajak berganda dalam hal tidak diatur dalam persetujuan. 4. Pejabat-pejabat yang berwenang dari kedua Negara pihak pada Persetujuan dapat berhubungan langsung satu sama lain untuk mencapai persetujuan sebagaimana dimaksud pada ayat-ayat sebelumnya. Pejabat-pejabat yang berwenang, melalui konsultasi akan MENETAPKAN prosedure-prosedure, syarat-syarat, cara-cara dan teknik-teknik untuk merealisir prosedur persetujuan bersama yang diatur dalam Pasal ini.

Article 24

Correction

PERTUKARAN INFORMASI 1. Pejabat-pejabat yang berwenang dari kedua Negara pihak pada Persetujuan akan melakukan tukar menukar informasi yang diperlukan untuk melaksanakan ketentuan-ketentuan dalam Persetujuan ini atau untuk melaksanakan UNDANG-UNDANG nasional Negara masing-masing mengenai pajak-pajak yang dicakup dalam Persetujuan, sepanjang pengenaan pajak menurut UNDANG-UNDANG Negara yang bersangkutan tidak bertentangan dengan Persetujuan ini, khususnya untuk mencegah terjadinya penggelapan atau penyelundupan pajak. Pertukaran informasi tidak dibatasi oleh ketentuan Pasal 1. Setiap informasi yang diterima oleh suatu Negara pihak pada Persetujuan akan dijaga kerahasiaannya dengan cara yang sama seperti apabila informasi itu diperoleh berdasarkan perundang-undangan nasional Negara tersebut. Bagaimanapun, informasi yang dianggap rahasia itu hanya dapat diungkapkan kepada orang atau badan atau pejabat-pejabat (termasuk pengadilan dan badan-badan administratif) yang berkepentingan dalam penetapan atau penagihan pajak, pelaksanaan UNDANG-UNDANG atau penuntutan, atau dalam MEMUTUSKAN keberatan berkenaan dengan pejak-pajak yang dicakup dalam Persetujuan ini. Orang atau badan atau para pejabat tersebut hanya boleh memberikan informasi itu untuk maksud tersebut di atas, namun demikian dapat juga mengungkapkan informasi itu dalam pengadilan umum atau dalam pembuatan keputusan-keputusan pengadilan. 2. Bagaimanapun juga ketentuan-ketentuan ayat (1) sama sekali tidak dapat ditafsirkan sedemikian rupa sehingga membebankan kepada Negara pihak pada Persetujuan kewajiban untuk : a) melaksanakan tindakan-tindakan administratif yang bertentangan dengan perundang-undangan atau praktek administrasi yang berlaku di Negara itu di Negara pihak lainnya pada Persetujuan; b) memberikan informasi yang tidak mungkin diperoleh berdasarkan perundang-undangan atau dalam praktek administrasi yang lazim di Negara tersebut atau di Negara pihak lainnya pada Persetujuan; c) memberikan informasi yang mengungkapkan rahasia apapun dibidang perdagangan, usaha, industri, perniagaan atau keahlian, atau tata cara perdagangan atau informasi lainnya yang pengungkapannya bertentangan dengan kebijaksanaan Negara.

Article 28

Correction

BERAKHIRNYA PERSETUJUAN Persetujuan ini akan tetap berlaku sampai diakhiri oleh salah satu Negara pihak pada Persetujuan. Masinga-masing Negara pihak pada Persetujuan dapat mengakhiri berlakunya Persetujuan ini, melalui saluran-saluran diplomatik, dengan menyampaikan pemberitahuan tertulis tentang berakhirnya Persetujuan pada atau sebelum tanggal tigapuluh bulan Juni setiap tahun takwim berikutnya setelah jangka waktu 5 (lima) tahun sejak berlakunya Persetujuan. Dalam hal demikian, Persetujuan ini akan tidak berlaku lagi : a) mengenai pajak yang dipotong pada sumber penghasilan, untuk penghasilan yang diperoleh pada atau setelah tanggal 1 Januari tahun takwim berikutnya setelah tahun pemberitahuan berakhirnya Persetujuan diberikan; b) mengenai pajak-pajak lainnya atas penghasilan, untuk tahun-tahun pajak yang dimulai pada tahun setelah tanggal 1 Januari tahun takwim berikutnya setelah tahun pemberitahuan berakhirnya Persetujuan diberikan. DENGAN KESAKSIAN para penandatanganan di bawah ini, yang telah memperoleh kuasa yang sah telah menandatangani Persetujuan ini. DIBUAT di Jakarta pada tanggal dua belas Maret 1999 dalam bahasa INDONESIA, Rusia, Inggris. Ketiga naskah tersebut berkekuatan sama. Dalam hal terjadi perbedaan, penafsiran akan diberikan menurut naskah dalam bahasa Inggris. UNTUK PEMERINTAH UNTUK PEMERINTAH FEDERASI RUSIA ttd ttd AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, The Government of the Republic of INDONESIA and the Government of the Russian Federation, 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 Contracting States. Article 2 TAXES COVERED 1. This Agreement shall apply to taxes on income imposed on behalf of one of the Contracting States, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on income from the alienation of movable or immovable property. 3. The taxes, to which the Agreement shall apply are : a) in the case of the Republic of INDONESIA : the income tax imposed under the UNDANG-UNDANG Pajak Penghasilan 1984 (Law no. 7 of 1983 as amended) (hereinafter referred to as "Indonesian tax"); b) in the case of the Russian Federation : i) the tax on profits of enterprises and organizations; ii) the tax on income of individuals (hereinafter referred to as "Russian tax"). 4. The Agreement shall also apply to any identical or substantially similar taxes on income which are subsequently imposed after the date of signature of the Agreement in addition to, or in place of, those referred to in paragraph 3. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS 1. For the purposes of this Agreement, unless the context otherwise requires : a) the terms "Contracting State" and "the other Contracting State" mean the Republic of INDONESIA (INDONESIA) or the Russian Federation (Russia); b) the term "the Russia" means the territory of the Russian Federation as well as its exclusive economic zone and continental shelf, defined in conformity with the UN Convention on the Law of the Sea, 1982; c) the term "INDONESIA" means the territory of the Republic of INDONESIA as defined in its laws, and its exclusive economic zone and continental shelf in which the Republic of INDONESIA exercises jurisdiction and sovereign rights in accordance with international law; d) the term "person" includes an individual, a company and any other body of persons; e) the term "company" means any body corporate or any entity which is treated as a body corporate for the tax purposes; f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g) the term "international traffic" means any transport by a ship or aircraft operated by a resident of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; h) the term "competent authority" means : - In the case of INDONESIA - the Minister of Finance or his authorized representative; - In the case of the Russian Federation - the Ministry of Finance or its authorized representative; i) the term "citizen" means any individual prossesing the citizenship of a Contracting State. 2. As regard this application of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the agreement applies. Article 4 RESIDENT 1. For the purposes of the Agreement, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to taxation therein by reason of his domicile, residence, place of incorporation, place of management 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 Contracting States, then his status shall be determined as follows; a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; c) if he has an habitual abode in both States or in neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the States shall settle the question by mutual agreement. Article 5 PERMANENT ESTABLISHMENT 1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business throuh which the business of an enterprise of a Contracting State is wholly or partly carried on in the other Contracting State. 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 warehouse or premises used as sales outlet; g) a farm or plantation; h) a mine, an oil or gas well, a quarry or any other place of extraction or exploration of natural resources, drilling rig or ship used for exploration or exploitation of natural resources. 3. The term "permanent establishment" likewise encompasses; a) a building site or a construction project, or supervisory activities in connection therewith, but only where such site, project or activities continue in one of the Contracting States for a period of more than 3 months; b) an assembly or installation project which exists for more than 3 months; c) the furnishing of services, including consultancy services by an enterprise through employees or other personnel engaged by the enterprise for such purpose. 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 for 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 any combination of activities mentioned in sub paragraphs (a) to (e), provided that the activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. 5. Notwithstanding the provisions of paragraphs 1 and 2, where a person-other than an agent of an independent status to whom paragrap 7 applies- is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the firs-mentioned Contracting State in respect of any activities which that person undertakes for the enterprise, if such a person : a) has, and habitually exercises in that State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph; b) has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise; or c) manufactures or processes in that State for the enterprise goods or merchandise belonging to the enterprise. 6. An insurance enterprise of a Contracting State shall, except with regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in that other State or insures risks situated therein through an employee or through a representative who is not an agent of an independent status within the meaning of paragraph 7. 7. An 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 in that other Contracting State through a broker, general commissioner or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 8. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. Article 6 INCOME FROM IMMOVABLE PROPERTY 1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. Ships, boats and aircraft shall not be regarded as immovable property. 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, rights known as 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. 3. The provisions of paragraph 1 shall also apply to income derived from the direct use, letting, or use in any other form of immovable property. 4. The provisions of paragraph 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. Article 7 BUSINESS PROFITS 1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to : a) that permanent establishment; b) sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment; or c) other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment. 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the head office of the enterprise or any of its other offices. 4. 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. 5. 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 INCOME FROM INTERNATIONAL TRANSPORTATION 1. Income from sources within a Contracting State derived by a resident of the other Contracting State from the operation of ships in international traffic may be taxed in the firs-mentioned State, but the tax imposed shall be reduced by an amount equal to 50 per cent thereof. 2. Income from the operation of aircraft in international traffic shall be taxable only in the Contracting State of which person operating the aircraft is a resident. 3. The provisions of paragraphs 1 and 2 shall also apply to income from the participation in a pool, a joint business or an international operating agency. Article 9 ADJUSTMENTS OF TAXABLE INCOME Where a) a person who is a resident of a Contracting State participates directly or indirectly in the management, control or capital of a person who is a resident of the other Contracting State, or b) the same persons participate directly or indirectly in the management, control or capital of a resident of a Contracting State and a resident of the other Contracting State, and in either case conditions are made or imposed between the two persons in their commercial or financial relations which differ from those which would be made between independent persons, then any profits which would, but for those conditions, have accrued to one of the persons, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. 3. The term "dividends" as used in this Article means income from shares or other rights, not being debt claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. Notwithstanding any other provisions of this Agreement where a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State, the profits of the permanent establishment may be subjected to an additional tax in that other State in accordance with its law, but the additional tax so charged shall not exceed 12,5 per cent of the amount of such profits after deducting therefrom income tax and other taxes on income imposed thereon in that other State. 6. The rates of tax in paragraph 2 and in paragraph 5 of this Article shall not affect the rate of tax applied in any production sharing contracts or any other similar contracts relating to oil and gas sector or other mining sector concluded by the Government of INDONESIA, its instrumentality, its relevant state oil and gas company or any other entity thereof with a person who is a resident of the Russian Federation. Article 11 INTEREST 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 15 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and derived by the Government of the other Contracting State including local authorities thereof, a political subdivision or the Central Bank, shall be exempt from tax in the first-mentioned State. 4. The term "interest" as used in this Article means income from debt claims of every kind, whether or not secured by a mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation law of the State in which the income arises, including interest on deferred payment sales. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority, or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 7. Where by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absece of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. Article 12 ROYALTIES 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, if the recipient is the beneficial owner of such royalties the tax so charged in the Contracting State in which they arise and according to the laws of that State, shall not exceed 15 per cent of the gross amount of the royalties. 3. The term "royalties" in this Article means payments, whether periodical or not, and however described, to the extent to which they are made as consideration for : a) the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trade mark or other like property or right; or b) the use of, or the right to use, any industrial, commercial or scientific equipment; or c) the supply of scientific, technical, industrial or commercial knowledge or information; or d) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the initial application of, any such property or right as is mentioned in subparagraph (a), any such equipment as is mentioned in subparagraph (b) or any such knowledge or information as is mentioned in subparagraph (c); or e) the use of, or the right to use : i) motion picture films; or ii) films or video tapes for use in connection with television; or iii) tapes for use in connection with radio broadcasting; or f) total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority, or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payment shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. Article 13 INCOME FROM ALIENATION OF PROPERTY 1. Income derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State. 2. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. The term "movable property" means property which is recognized as such by the legislation of the Contracting State where such property is located. 3. Income from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident. Article 14 INCOME FROM INDEPENDENT PERSONAL SERVICES 1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character performed in the other Contracting State may be taxed in that other Contracting State. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists, and accountants. Article 15 EMPLOYMENT INCOME 1. Subject to the provisions of Articles 16, 17, 18, and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom mmay be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State, if : a) the recipient is present in that other State for a period or periods not exceeding in the aggregate 90 days within any calendar year concerned; and b) the remuneration is paid by, or on behalf of, an employer who is not a resident of that other State; and c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic shall be taxable only in the Contracting State of which the operator is a resident. Article 16 DIRECTOR'S FEES 1. Director's fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or any other similar organ of a company which is a resident of the other Contracting State may be taxed in that other State. 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 15. Article 17 PENSIONS Any pension or other similar remuneration paid from sources in a Contracting State shall be taxable only in that State. Article 18 INCOME FROM GOVERNMENT SERVICE 1. a) Remuneration, other than a pension, paid by a Contracting State, a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in that State. b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who : i) is a citizen of that State; or ii) did not become a resident of that State solely for the purpose of rendering the services. 2. The provisions of Articles 15, 16 and 17 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State, a political subdivision or a local authority thereof. Article 19 INCOME OF PROFESSORS, TEACHERS, RESEARCHERS, STUDENTS AND BUSINESS APPRENTICES 1. An individual who visits a Contracting State at the invitation of that State or of a university, college, school, museum or other cultural institution of that State or under an official programme of scientific, research, or cultural exchange for a period not exceeding two years primarily 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 other Contracting State shall be exempt from tax in the first-mentioned State on his remuneration for such activity, provided that such remuneration is derived by him from the other Contracting State. 2. Payments which a student, apprentice or business trainee who is or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, receives for the purpose of his maintenance, education or training, shall not be taxed in that first-mentioned State, provided that such payments are made to him from the other Contracting State. Article 20 OTHER INCOME Items of income of a resident of a Contracting State which are not expressly mentioned in the foregoing Articles of this Agreement and derived from sources within the other Contracting State may be taxed in that other State. Article 21 METHOD OF ELIMINATION OF DOUBLE TAXATION Where a resident of a Contracting State derives income from the other Contracting State, the amount of tax on that income payable in that other Contracting State in accordance with the provisions of this Agreement, may be credited against the tax levied in the first-mentioned Contracting State imposed on that resident. The amount of credit, however, shall not exceed the amount of the tax of the first-mentioned Contracting State on that income computed in accordance with its taxation laws and regulations. Article 22 NON-DISCRIMINATION 1. Citizens of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which citizens of that other State in the same circumstances are or may be subjected. 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on the enterprises of that other State carrying on the same activities. 3. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more resident of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. 4. The provisions of this Agreement shall not be construed to restrict in any manner any exclusion, exemption, deduction, credit, or other allowance now or hereafter accorded by the laws of a Contracting State in the determination of the tax imposed by that State. 5. In this Article the term "taxation" means taxes which are the subject of thir Agreement. Article 23 MUTUAL AGREEMENT PROCEDURE 1. Where a person considers that the actions of one or both of the Contracting State result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 23, to that of the Contracting State of which he is a citizen. The case must be presented within two 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 solutin, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with this Agreement. 3. The competent authorities of the Contracting State 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 Contracting State 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 24 EXCHANGE OF INFORMATION 1. The competent authorities of the Contracting State shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement, insofar as the taxation thereunder is not contrary to the Agreement, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of the State. However, if the information is originally regarded as secret in the transmitting State 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 a Contracting State the obligation : a) to carry out administrative measures at variance with the laws and administrative practise of that or of the other Contracting State; b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to State policy. Article 25 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR ESTABLISHMENTS Nothing in this Agreement shall affect the fiscal privileges of the members of diplomatic missions or consular establishments under the general rules of international law or under the provisions of special agreements. Article 26 LIMITATION OF BENEFITS Each of the Contracting States shall endeavor to collect on behalf of the other Contracting State such taxes imposed by that ohter Contracting State as will ensure that any exemption or reduced rate of tax granted under this Agreement by that other Contracting State shall not be enjoyed by persons not entitled to such benefits. The competent authorities of the Contracting States may consult together for the purpose of giving effect to this Article. Article 27 ENTRY INTO FORCE 1. This Agreement shall enter into force on the later of the dates on which the respective Governments notify each other in writing that the formalities required by the legislation of their respective States have been complied with. 2. The povisions of this Agreement shall have effect : a) in respect of tax withheld at the source to income derived on or after 1 January in the year next following that in 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 28 TERMINATION This Agreement shall remain in force until terminated by a Contracting State Either of Contracting State may terminate the Agreement, through diplomatic channels, by giving written notice of termination on or before the thirtieth day of June of any calendar year following after the period of 5 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 tax withheld at source to income derived on or after 1 January in the year next following that in which the notice of termination is given; 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 notice of termination is given. IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Agreement. DONE at Jakarta, this 12th day of March 1999, in Indonesian, Russian and English languages in duplicate. All the three texts are equally authentic. In case of any divergence, the interpretation shall be given in accordance with the English text. FOR THE GOVERNMENT FOR THE OVERNMENT OF THE REPUBLIC OF INDONESIA OF THE RUSSIAN FEDERATION SIGNED SIGNED