ISLAMABAD: Pakistan and Tajikistan have revised the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion, allowing tax authorities of the two countries to exchange information about their taxpayers.

The Federal Board of Revenue (FBR) issued SRO 82(I)/2023 on Monday in this regard.

Pakistan and Tajikistan signed the Protocol on September 17, 2021, to amend the existing Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between Pakistan and Tajikistan signed in Islamabad on May 13, 2004; Whereas, in terms of Article 2 of the Protocol "The Contracting State shall notify each other through diplomatic channels that all legal procedures for the entry into force of this Protocol have been completed", and "This Protocol shall enter into force on the date of the later of the notifications".

The federal government has directed that the provisions of the said protocol shall come into force from June 17, 2022, and the provisions of the said protocol shall apply, in case of Pakistan, from July 1 next following the date upon which the Protocol enters into force; and in case of Republic of Tajikistan, from July 1 following the date upon which the Protocol enters into force.

According to the new exchange of information provision, Avoidance of Double Taxation, "The competent authorities of the Contracting States shall exchange such information as is foresee ably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions, insofar as the taxation there under is not contrary to the Convention.”

Copyright Business Recorder, 2023