Pakistan, HK SAR sign deal
HONG KONG: Pakistan and Hong Kong SAR signed a landmark agreement for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income on Friday, a statement said.
The agreement once implemented by Pakistan and Hong Kong SAR would encourage investment and business between the two parties and would inculcate trust and confidence among their business communities.
The agreement is destined to benefit individuals and companies working in Pakistan and Hong Kong SAR, simultaneously, so that they don’t pay double taxes on their incomes, it said.
This will promote more trade and business activities between Pakistan and Hong Kong by making their economies more competitive vis-a-vis other countries, which enjoy similar arrangements. The agreement will apply to persons who are residents of one or both of the regions and would apply to taxes on income imposed on behalf of the contracting parties, ie, Pakistan and Hong Kong SAR or of its political divisions or local authorities irrespective of the manner in which they levied, the statement said. In case of Hong Kong, the agreement will apply on profit tax, salaries tax and property tax, while in Pakistan’s case this would include income tax and super tax or any other tax identical to such taxes.
The third round of negotiations on the agreement, which lasted for four days, was conducted in a friendly, cooperative and constructive atmosphere of mutual understanding.
On behalf of Pakistan, Malik Amjad Zubair Tiwana, Chief Income Tax Policy, who also led the delegation, signed the agreement, whereas on behalf of Hong Kong SAR, MEI Yin, Mabel, Chief Assessor Inland Revenue, signed the agreement in Hong Kong.
