Dual taxation, fiscal evasion: Islamabad, Beijing re-negotiating agreement

Pakistan and China are re-negotiating agreement for the avoidance of double taxation convention and the prevention of fiscal evasion with respect to taxes on income. Sources told Business Recorder Saturday that the revised convention may not be inked during the upcoming visit of Chinese President as the re-renegotiations have yet to be started between the tax authorities of both the countries.

Pursuant to Article 3 of the Agreement on the China-Pakistan Economic Corridor Energy Project Co-operation between the two governments, State Administration of Taxation (SAT) of China had formally approached Pakistan for negotiations on amendment to the Avoidance of Double Taxation Agreement.

The agreement between the Government of the People’s Republic of China and Pakistan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income was signed at Islamabad on November 15, 1989 as well as the Second Protocol to the DTA was signed at Beijing on April 17, 2007.