Indonesia - Residence

Article 4. Fiscal Domicile

Definition tax residence (lid 1)

1. For the purposes of this Agreement, the term "resident of one of the two States" means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature.

Tie breaker – dual residence individuals (lid 2)

3. Where by reason of the provisions of paragraph 1 an individual is a resident of both States, then this case shall be determined in accordance with the following rules:

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 closest (centre of vital interests);

b)if the State 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 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 two States shall settle the question by mutual agreement.

Tie breaker – dual residence corporations (lid 3)

4. Where by reason of the provisions of paragraph 1 a person other than an individual and other than an enterprise to which the provisions of Article 8 apply, is a resident of both States, then it shall be deemed to be a resident of the State in which its place of effective management is situated. If the competent authorities of the two States consider that a place of effective management is present in both States, they shall settle the question by mutual agreement.