Pakistan And Morocco Conclude DTA

by Mary Swire, Tax-News.com, Hong Kong

12 October 2009

The Chairman of Pakistan’s Federal Bureau of Revenue, Sohail Ahmad, and the Moroccan Ambassador to Pakistan, Mohammed Rida El-Fassi, have signed the ratification instruments for the convention for the avoidance of double taxation between their two countries.

The convention was originally signed in Rabat, Morocco on May 18, 2006. While indicating its significant effects, 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.

The convention also provides for cooperation in all important areas of international taxation, including exchange of information. Sohail Ahmad believed the new arrangement would not only provide safeguards against double taxation but would also lay the ground for promoting economic cooperation and furthering mutual trade and investment by ensuring certainty of tax treatment.

Mohammed Rida El-Fassi, on the occasion of the ratification, expressed the hope that the convention would serve as a significant step in enhancing economic ties between the two countries.

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