Dual taxation treaty: new convention with Czech Republic notified

The Federal Board of Revenue (FBR) has notified a new convention inked between Pakistan and the Czech Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income of citizens of both countries. Sources said that the FBR has issued an S.R.O.1322(I)/2015 to notify the said convention. The provisions of the said Convention shall have effect in case of Pakistan regarding taxes withheld at source, to amounts paid or credited on or after July 1 next following the date on which the Convention enters into force.

The provisions of the said Convention, shall have effect in respect of other taxes, to income in any taxable year beginning on or after the first day of July next following the date on which the Convention enters into force. In the case of the Czech Republic, the provisions of the said Convention, shall have effect in respect of taxes withheld at source, to income paid or credited on or after the first day of January in the calendar year next following that in which the Convention enters into force and in respect of other taxes on income, to income in any taxable year beginning on or after the first day of January in the calendar year next following that in which the Convention enters into force. The Article 25 of the said convention deals with the exchange of information between Pakistan and the Czech Republic. The instruments of Ratification pertaining to the said convention were exchanged between the both countries on October 30, 2015.