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ARTICLE 14

U.S. Income Tax Treaty — Indonesia Income Tax Treaty - 1988 · 2026-10-03 edition · updated 2026-10-04 · United States

Capital Gains

(1) Gains derived by a resident of a Contracting State from the alienation of property described in Article 6 (Income from Immovable (Real) Property) and situated in the other Contracting State may be taxed in that other State. The term "property described in Article 6 (Income from Immovable (Real) Property) situated within the other Contracting State" includes (a) Where Indonesia is the other Contracting State, an interest in real property situated in Indonesia; and

(c) Where the United States is the other Contracting State, a United States real

property interest.

(2) A resident of one of the Contracting States shall be except from tax by the other Contracting State of gains derived from the sale, exchange, or other disposition of capital assets other than assets described in paragraph (1) unless (a) The recipient of the gain has a permanent establishment or fixed base in the other Contracting State and the property giving rise to the gain is effectively connected with such permanent establishment or fixed base, in which case the provisions of Article

8 (Business Profits) or Article 15 (Independent Personal Services) shall apply; or (b) The recipient of the gain is an individual and is present in the other Contracting State for a period or periods aggregating 120 days or more during the taxable year.

(3) Notwithstanding paragraph (2), gains derived by a resident of a Contracting State from the deemed alienation of assets described in paragraph 2 (i) of Article 5 (Permanent Establishment) and used for the exploration for or exploitation of oil and gas resources shall be taxable only in that State.

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▸Contents — U.S. Income Tax Treaty — Indonesia Income Tax Treaty - 1988
U.S. Income Tax Treaty — Indonesia Income Tax Treaty - 1988

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