Agreement between the Government of the United Mexican States and the Government of the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

• Coming into Force: 28 October 2004
• Date of Conclusion: 06 September 2002
• Registration Number: 44074
• Citation: UNTS v. 2450 (p.3)
• Registration Date: 16 July 2007
• Subject Terms: Taxation
• Type of Document: Bilateral
• Participants: Indonesia,México
• Party Submitting the Application for Registration: Mexico

Volume 2450, I-44074

3

No. 44074

____

Mexico

and

Indonesia

Agreement between the Government of the United Mexican States and the Go-

vernment of the Republic of Indonesia for the avoidance of double taxation and

the prevention of fiscal evasion with respect to taxes on income (with protocol).

Los Cabos, 6 September 2002

Entry into force: 28 October 2004 by notification, in accordance with article 28

Authentic texts: English, Indonesian and Spanish

Registration with the Secretariat of the United Nations: Mexico, 16 July 2007

Mexique

et

Indonésie

Accord entre le Gouvernement des États-Unis du Mexique et le Gouvernement de la

République d'Indonésie tendant à éviter la double imposition et à prévenir

l'évasion fiscale en matière d'impôts sur le revenu (avec protocole). Los Cabos,

6 septembre 2002

Entrée en vigueur : 28 octobre 2004 par notification, conformément à l'article 28

Textes authentiques : anglais, indonésien et espagnol

Enregistrement auprès du Secrétariat des Nations Unies : Mexique, 16 juillet 2007

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4

[ ENGLISH TEXT – TEXTE ANGLAIS ]

AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED MEXI-

CAN STATES AND THE GOVERNMENT OF THE REPUBLIC OF IN-

DONESIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE

PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON

INCOME

The Government of the United Mexican States and the Government of the Republic

of Indonesia, desiring to conclude an Agreement for the avoidance of double taxation

and the prevention of fiscal evasion with respect to taxes on income, which shall hereaf-

ter be referred to as the "Agreement", have agreed as follows:

Article 1. Personal Scope

This Agreement shall apply to persons who are residents of one or both of the Con-

tracting States.

Article 2. Taxes Covered

1. This Agreement shall apply to taxes on income imposed on behalf of a Contrac-

ting State or of its political subdivisions or local authorities, 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 gains from the alienation of movable or im-

movable property.

3. The existing taxes to which the Agreement shall apply are in particular:

a) in Mexico:

the federal income tax (el impuesto sobre la renta)

(hereinafter referred to as "Mexican tax");

b) in Indonesia:

the income tax

(hereinafter referred to as "Indonesian tax").

4. The Agreement shall apply also to any identical or substantially similar taxes

which are imposed after the date of signature of the Agreement in addition to, or in place

of, the existing taxes. The competent authorities of the Contracting States shall notify

each other of any 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:

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a) the term "Mexico" means the United Mexican States; when used in a geographical

sense it includes the territory of the United Mexican States, as well as the integrated parts

of the Federation; the islands, including the reefs and cays in the adjacent waters; the is-

lands of Guadalupe and Revillagigedo; the continental shelf and the seabed and sub-soil

of the islands, cays and reefs; the waters of the territorial seas and the inland waters and

beyond them the areas over which, in accordance with the international law, Mexico may

exercise its sovereign rights of exploration and exploitation of the natural resources of

the seabed, sub-soil and the suprajacent waters; and the air space of the national territory

to the extent and conditions established by international law;

b) the term "Indonesia" means the territory of the Republic of Indonesia as defined

in its laws;

c) the term "a Contracting State" and "the other Contracting State" mean Mexico or

Indonesia, as the context requires;

d) the term "person" includes an individual, a company and any other body of per-

sons;

e) the term "company" means any body corporate or any entity which is treated as a

body corporate for tax purposes;

f) the terms "enterprise of a Contracting State" and "enterprise of the other Contrac-

ting 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 an enterprise of a Contracting State, except when the ship or aircraft is operated solely

between places in the other Contracting State;

h) the term "national" means:

i) any individual possessing the nationality of a Contracting State;

ii) any legal person, partnership or association deriving its status as such from the

laws in force in a Contracting State;

i) the term "competent authority" means:

i) in Mexico, the Ministry of Finance and Public Credit;

ii) in Indonesia, the Ministry of Finance or his authorised representative.

2. As regards the application of the Agreement at any time by a Contracting State,

any term not defined therein shall, unless the context otherwise requires, have the mea-

ning that it has at that time under the law of that State for the purposes of the taxes to

which the Convention applies; any meaning under the applicable tax laws of that State

shall prevail over a meaning given to the term under the laws of that State.

Article 4. Resident

1. For the purposes of this Agreement, the term "resident of a Contracting State"

means any person who, under the laws of that State, is liable to tax therein by reason of

his domicile, residence, place of management or any other criterion of a similar nature.

But this term does not include any person who is liable to tax in that State in respect only

of income from sources in that State.