Pakistan and Afghanistan have successfully concluded the third round of negotiations on the Convention for the Avoidance of Double Taxation between the two countries. The negotiations took place from 1st -3rd February, 2023 at the Federal Board of Revenue (FBR) House in Islamabad.
The Afghan delegation, headed by Mr. Nida Muhammad Seddiqi, Revenue Legal Services Director, and the Pakistani delegation, headed by Mr. Sajidullah Siddiqui, Director General, Directorate General of International Tax Operations, FBR, thoroughly deliberated over all the outstanding issues identified during the second round of negotiations held in Islamabad from 27th-30th December, 2021.
The negotiations were conducted in a friendly atmosphere where both sides presented their respective viewpoints. After detailed discussions, the two sides agreed over a consensus draft of the Convention for the Avoidance of Double Taxation between Pakistan and Afghanistan. The agreed draft was initialed by the heads of the two delegations.
In the concluding ceremony, Chairman FBR Mr. Asim Ahmad thanked the Afghan delegation for visiting Pakistan and expressed optimism that the Convention will further strengthen economic relations between the two brotherly countries.
The Convention for the Avoidance of Double Taxation aims to eliminate the double taxation of income that arises in both countries. This Convention will benefit individuals and companies who are engaged in cross-border economic activities, as they will not have to pay double taxes on the same income. It will also provide a framework for resolving any disputes that may arise in the future related to taxation between Pakistan and Afghanistan.
This agreement is a positive step towards strengthening the economic ties between the two countries. It will not only promote investment and trade but also enhance people-to-people contacts. The successful conclusion of negotiations on the Convention for the Avoidance of Double Taxation between Pakistan and Afghanistan is a testament to the commitment of both countries to further strengthen their economic relations.
In conclusion, the Convention for the Avoidance of Double Taxation is a crucial step towards creating a more conducive environment for businesses and individuals operating in Pakistan and Afghanistan. It is expected that this agreement will have far-reaching positive impacts on the economies of both countries.