ISLAMABAD: Pakistan and Afghanistan have agreed to hold first round of talks on avoidance of double taxation and prevention of fiscal evasion treaty.
An official source told Dawn on Friday that the talks are expected to be held in March this year.
A draft agreement on avoidance of double taxation and prevention of fiscal evasion convention was handed to Afghan authorities in the Joint Economic Commission (JEC) meeting held in February 2014. The treaty was drafted by Pakistani tax officials.
“We had shared the draft with the Afghan government for a feedback and are currently awaiting response,” the tax official said.
In a recent meeting of Pakistan-Afghan JEC in Islamabad, the Afghan authorities said that Kabul has already sent their feedback through diplomatic channel.
However, the tax official said the Federal Board of Revenue (FBR) did not receive any feedback. To resolve the issue, Afghan authorities handed a copy to Pakistani officials in a recent meeting.
The mutually agreed dates of the meeting will be finalised in next couple of weeks, the official said.
In the absence of any treaty on avoidance of double taxation between the two countries, Kabul has decided to tax Pakistan International Airlines.
As soon both countries finalise the treaty, exemption will be available to airlines of both the countries. The treaty will also facilitate and encourage bilateral investment.
Courtesy : Dawn News