[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The Federal Board of Revenue (FBR) has recently taken steps to initiate discussions regarding the Convention for the Elimination of Double Taxation concerning Taxes on Income and on Capital, as well as the Prevention of Tax Evasion and Avoidance, with the Republic of Iraq.
In pursuit of this objective, tax delegations from both nations convened in Islamabad for the inaugural round of negotiations held from August 7th to 9th.
Following extensive discussions, a mutual understanding was achieved, and the draft of the Convention was preliminarily endorsed by the respective leaders of the delegations on Wednesday.
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The Convention is designed not only to establish safeguards against dual taxation on the income of residents from both countries but also to facilitate economic cooperation and stimulate investments. Its implementation is set to reinforce the existing bilateral economic ties between the contracting states.
The Convention will furnish comprehensive clarity regarding taxation regulations applicable to cross-border business transactions, encompassing areas such as dividends, interests, royalties, fees for technical services, and income derived from automated digital services, among others. This collaborative effort is expected to alleviate the burden of double taxation for taxpayers in both nations, thereby fostering an environment conducive to increased trading activities between them.[/vc_column_text][/vc_column][/vc_row]
