A high-level delegation of tax experts from Brunei is expected to arrive in March 2005 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 Tuesday that Pakistan and Brunei have completed first rounds of talks on avoidance of double taxation during recent visit of Pakistani tax officials to Brunei.
During the visit, both the sides have reached consensus on most of the articles of convention, which will be finalised during the upcoming meeting. Next round of talks is expected in March 2005 as central board of revenue (CBR) is finalising details regarding the convention with Brunei. The agreement would not only encourage investment between Pakistan and Brunei, but it would 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.
The purpose of agreement clearly defines the tax rules that would apply in case of cross border business transactions. Although, Pakistan's trade with some countries is not significant, there still exists considerable potential for its expansion with room for reciprocal investments. There is need for the exploration of new markets and avenues for investment, he added.
Comments
Comments are closed.