background image
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

PROTOCOL

At the moment of signing the Agreement between the Government of the Republic of Indonesia and the Government of the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned have agreed that the following provisions shall form an integral part of the Agreement.

Ad Article 4:

In the case of Indonesia, it is understood that the term "resident of a Contracting State" used in the first sentence of paragraph (1) includes that State itself, any political subdivision or local authority thereof as well as any financial institution of and controlled by that state, political subdivision or local authority.

Ad Article 10 and Article 11:

With respect to paragraph (4) of Article 10 and paragraph (3) of Article 11 of this Agreement, it is understood that the Contracting State, means:

  • (i) In the case of Republic of Indonesia:
    • (1) Bank Indonesia (the Central Bank of Indonesia);
    • (2) PT Sarana Multi Infrastruktur (Indonesia State Owned Infrastructure Financing Company);
    • (3) Lembaga Pembiayaan Ekspor Indonesia (the Indonesia Eximbank);
    • (4) Lembaga Penjamin Simpanan (Indonesia Deposit Insurance); and
  • any other entity the capital of which is wholly directly or indirectly owned by the Government of the Republic of Indonesia, including a political subdivision and local authority thereof as may be agreed upon from time to time between the Governments of the Contracting States through notifications by the competent authorities.
  • (ii) In case of the United Arab Emirates:
    • (1) Central Bank of the United Arab Emirates;
    • (2) Abu Dhabi Investment Authority;
    • (3) Emirates Investment Authority;
    • (4) Mubadala Investment Company; and

any other entity the capital of which is wholly directly or indirectly owned by the federal or local Governments of the United Arab Emirates, including a political subdivision and local authority thereof as may be agreed upon from time to time between the Governments of the Contracting States through notifications by the competent authorities.

Ad Article 8:

Remuneration derived by an employee of an enterprise operating ships or aircraft in international traffic in respect of an employment directly connected with such operation shall be taxable only in the State in which the place where the enterprise is resident.

Ad Article 13:

(1) With respect to Article 13 of this Agreement, it is understood that paragraphs (4) and (5) of Article 13 of this Agreement does not apply to income tax imposed to the alienation of shares carried out through recognized securities markets.

(2) With reference to paragraph (4) of Article 13 of the Agreement, it is understood that the term "recognized securities market" means:

  • (a) In case of the Republic of Indonesia:
    • (i) Bursa Efek Indonesia (Indonesia Stock Exchange);
  • (b) In case of the United Arab Emirates:
    • (i) Dubai Financial Market;
    • (ii) Abu Dhabi Securities Exchange;
    • (iii) NASDAQ Dubai;
    • (iv) Abu Dhabi Global Market; and

any other stock exchange which the competent authorities of the Contracting States agree to recognize for the purposes of that Article.

Ad Article 26:

With respect to Article 26, it is understood that exchange of information for non-tax purposes can be exchange only if the following conditions are cumulatively met:

  • (a) The competent authority of requesting State should specify the competent authority of the supplying State the other purposes to which it wishes to use the information;
  • (b) To identify the authorities with which the requesting State to share the information of tax for additional non-tax purposes;
  • (c) If the laws of the supplying State allow such exchange of information for non-tax purposes; and
  • (d) The supplying State authorizes such use.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Protocol.

DONE in duplicate at Bogor, Indonesia on the Twenty-Fourth day of July in the year Two Thousand and Nineteen, in the Indonesian, English and Arabic languages, all texts being equally authentic. In the event of any divergence of interpretation of the provisions of this Protocol, the English text shall prevail.

FOR THE GOVERNMENT OF THE REPUBLIC OF INDONESIA:

SRI MULYANI INDRAWATI

MINISTER FOR FINANCE

FOR THE GOVERNMENT OFTHE UNITED ARAB EMIRATES:

SULTAN BIN AHMED ALJABER

MINISTER OF STATE