Capital Gain Dependent vs Independent Services Other Income Tax Treaty: Capital Gain Dependent vs Independent Services Other Income

Pengenaan Pajak atas Capital Gain (Art. 13) Para 1: keuntungan yang diperoleh oleh penduduk suatu negara dari pemindahtanganan harta tak bergerak (yang terletak di negara lainnya) dapat dikenai pajak di negara di mana harta tersebut terletak. Harta tak bergerak: termasuk ternak, peralatan dalam usaha pertanian/kehutanan, hak untuk mengerjakan kandungan mineral, dsb.

Ilustrasi Paragraph 1 – Capital gains (Art. 13) Company R Harta tak bergerak capital gains

Pengenaan Pajak atas Capital Gain (Art. 13) Para 2: capital gain dari pemindahtanganan harta bergerak yang menjadi bagian dari suatu BUT atau tempat usaha tetap (fixed place of business) dikenai pajak di negara di mana BUT/fixed place of business itu berada. Harta bergerak: semua jenis harta atau aktiva di luar harta tak bergerak, termasuk harta tak berwujud.

Pengenaan Pajak atas Capital Gain (Art. 13) Para 3: capital gain dari pemindahtanganan kapal laut, pesawat udara yang dioperasikan dalam jalur lalu-lintas internasional, perahu yang melayani angkutan sungai serta harta bergerak yang menjadi bagian dari pengoperasiannya hanya dikenai pajak di negara di mana effective management berkedudukan.

Pengenaan Pajak atas Capital Gain (Art. 13) Para 4: keuntungan dari pengalihan saham suatu perusahaan yang aktivanya secara langsung maupun tidak langsung terutama (principally= >50% dari seluruh harta) terdiri dari harta tak bergerak di salah satu negara dapat dikenai pajak di negara tersebut

Pengenaan Pajak atas Capital Gain (Art. 13) Share sales Company X Company Z Company Y Harta Tak Bergerak

Pengenaan Pajak atas Capital Gain (Art. 13) Para 5: capital gain dari pengalihan saham-saham selain yang disebutkan di para 4 yang mewakili pernyertaan lebih dari….persen (persentasenya ditentukan oleh kesepakatan kedua negara) dari suatu perusahaan yang berdomisili di salah satu Negara dapat dikenai pajak di Negara itu  Negara domisili perusahaan

Pengenaan Pajak atas Capital Gain (Art. 13) Para 6: capital gain dari pemindahtanganan harta selain yang disebut di para 1-5  dikenai pajak di Negara domisili pihak yang mengalihkan

Independent Personal Service

ARTICLE 14 Independent Professional Services UN MODEL ARTICLE 14 Independent Professional Services Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State: (a) If he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or (b) If his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any 12 month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from his activities performed in that other State.

ARTICLE 14 Independent Professional Services UN MODEL ARTICLE 14 Independent Professional Services 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

Dependent Personal Service

ARTICLE 15 INCOME FROM EMPLOYMENT 1. SUBJECT TO THE PROVISIONS OF ARTICLES 16, 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 MAY BE TAXED IN THAT OTHER STATE.

ARTICLE 15 INCOME FROM EMPLOYMENT OECD Model ARTICLE 15 INCOME FROM EMPLOYMENT 2. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 1, REMUNERATION DERIVED BY A RESIDENT OF A CS IN RESPECT OF AN EMPLOYMENT EXERCISED IN THE OTHER CS SHALL BE TAXABLE ONLY IN THE FIRST MENTIONED STATE IF: THE RECIPIENT IS PRESENT IN THE OTHER STATE FOR A PERIOD OR PERIODS NOT EXCEEDING IN THE AGGREGATE 183 DAYS IN ANY TWELVE MONTH PERIOD COMMENCING OR ENDING IN THE FISCAL YEAR CONCERNED, AND THE REMUNERATION IS PAID BY, OR ON BEHALF OF, AN EMPLOYER WHO IS NOT A RESIDENT OF THE OTHER STATE, AND THE REMUNERATION IS NOT BORNE BY A PERMANENT ESTABLISHMENT WHICH THE EMPLOYER HAS IN THE OTHER STATE

ARTICLE 15 INCOME FROM EMPLOYMENT OECD Model ARTICLE 15 INCOME FROM EMPLOYMENT 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, or aboard a boat engaged in inland waterways transport, may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

Dependent personal service Pada dasarnya, employment related income dikenai pajak di Negara Domisili penerima income. Jika pekerjaan itu dikerjakan di negara lain negara lain dapat memajaki imbalan tsb, kecuali: Si penerima penghasilan berada di negara lain itu < 183 hari dalam jangka waktu 12 bulan; dan Balas jasa tersebut dibayar oleh atau atas nama pemberi kerja yang bukan merupakan penduduk negara lain tsb. Balas jasa tersebut tidak menjadi beban dari suatu BUT atau fixed base yang dimiliki oleh pemberi kerja di negara lain tersebut.

Pengenaan Pajak atas Dependent Personal Services - Ilustrasi COMPANY R Salary payment STEVE PE dependent personal service < 183 days within 12 months Remuneration Not borne by PE Company S

Case study A foreign parent company sets up a subsidiary in Indonesia. The Subsidiary employs local staff but the management is provided in the form of a regular succession of short term secondments of senior executives from the parent company to the subsidiary. Each executive continues to be paid by the parent company (usually into a foreign bank account) and remains in Indonesia for less than 183 days. Can Indonesia tax the salary of the employees?

Other Income

International taxation on other income OECD Model Art. 21 (1) “Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall taxable only in that state.” UN Model Art. 21 (1) “Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall taxable only in that state.”

International taxation on other income OECD Model Art. 21 (2) “The provision of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through PE situated therein and the right or property in respect of which the income is paid is effectively connected with such PE. In such case, the provision of Article 7 shall apply.” UN Model Art. 21 (2) “The provision of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through PE 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 income is paid is effectively connected with such PE or fixed base. In such case, the provision of Article 7 or article 14 shall apply.”

International taxation on other income OECD Model Art. 21 (3) n/a UN Model Art. 21 (3) “Notwithstanding the provision of paragraph 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing articles of this Convention and arising in the other Contracting State may also be taxed in that other State.”

Pengenaan Pajak atas Penghasilan lain-lain Penghasilan lain-lain = jenis penghasilan yang tidak masuk ke dalam kategori di pasal-pasal sebelumnya dan juga mencakup penghasilan yang sumbernya tidak secara tegas disebutkan. Residence principle taxation  negara domisili berhak sepenuhnya mengenakan pajak atas penghasilan tersebut. Kecuali: jika penghasilan tersebut ada hubungannya dengan suatu BUT/tempat usaha tetap, maka hak pemajakannya diberikan kepada negara di mana BUT/fixed base itu terletak.