Avoidance of dual taxation: Riyadh wants convention finalised

Saudi Arabia has asked Pakistan to finalise convention on avoidance of double taxation for promoting economic activities and strengthening bilateral relations between the two countries.
A CBR official told Business Recorder here on Friday that Pakistan and Saudi Arabia have completed two rounds of talks on Avoidance of Double Taxation during 2003.
Saudi Arabia has formally proposed to the Pakistani tax authorities to conclude the agreement in the light of previous meetings held between the two sides.
The next round of talks is expected in near future, as the Central Board of Revenue (CBR) is finalising details regarding the convention with Saudi Arabia.
The agreement would not only encourage investment between Pakistan and Saudi Arabia, but it would also be instrumental in enhancing trade activities.
Such conventions emphasise the concept of taxation on income of international business transactions in the home country of the recipient.