Pakistan, Morocco conclude tax treaty
Updated at: 1809 PST, Friday, October 09, 2009
ISLAMABAD: Pakistan and Morocco have concluded a treaty for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on the income of residents of the two countries. The two sides on Thursday exchanged an instrument of ratification at a ceremony held at the FBR House in the presence of FBR Chairman Sohail Ahmad and Moroccan Ambassador to Pakistan Mohammed Rida El-Fassi.

Negotiations for conclusion of the Convention for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income between the two countries were held a couple of years ago before the convention was signed in Rabat, Morocco on May 18, 2006.

Highlighting salient features of the convention, Sohail Ahmad said the treaty had done away with the double taxation of income between the two countries to promote bilateral trade and commerce. Under the convention, principles had also been laid down for taxation of all sources of income as well as residential status of individuals and corporate entities.

Funds received by students for the purpose of education have been exempted from tax under the convention which also provides for cooperation in all important areas of international taxation, including exchange of information.

The FBR chairman believed the new arrangement would not only provide safeguards against double taxation but it would also lay the ground for promoting economic cooperation.

The Moroccan ambassador expressed hope that “the convention would serve as a significant step in enhancing economic ties between the two countries.”