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Pakistan, Venezuela agree to negotiate avoidance of double taxation treaty

Pakistan and Venezuela have agreed reed to hold negotiation on a treaty for avoidance of double taxation applicable to trade, commerce and services between the two states. The agreement was reached at a meeting between the FBR officials and the Ambassador of Venezuela to Iran, concurrently accredited to Pakistan, His Excellency Mr. David Valesquez Caraballo, who visited the Federal Board of Revenue (HQs), Islamabad with a two‐member delegation here Monday. The two sides discussed the friendly relations existing between the two States and in particular the modalities for negotiating the Agreement on Avoidance of Double Taxation. The Cabinet had approved initiation of negotiations for Agreement on Avoidance of Double Taxation with Venezuela in the year 2008. The process for initiation of negotiations has already commenced with exchange of the Model Drafts on Avoidance of Double Taxation by the two States. The two sides were of the view that the proposed Agreement would not only provide safeguards against double taxation of income of the residents of the two States, but also promote economic cooperation, investment and further strengthen the existing economic relations. They expressed their confidence that the volume of trade between the two States, which stood at about $ 13 million for the preceding financial year, would get a strong boost after the Agreement comes into force. Earlier, the visiting delegates were welcomed by Mr. Khawar Khurshid Butt, Member (Inland Revenue), FBR and his International Taxes team. The Member thanked the Ambassador of Venezuela for his keen interest in promoting Pakistan‐Venezuela economic ties, which was reflected in his visit to FBR. The Ambassador of Venezuela thanked FBR for the warm welcome and expressed the hope that the Agreement will be a significant step in moving towards closer economic cooperation between Venezuela and Pakistan.