Pakistan, Morocco ink treaty to avoid double taxation
Pakistan and Morocco have concluded a treaty for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income of residents of the two countries.
The two sides exchanged Thursday an instrument of ratification at a ceremony held at the FBR House in the presence of FBR Chairman Mr. Sohail Ahmad who led the Pakistan side and Moroccan Ambassador to Pakistan, Mr. Mohammed Rida El-Fassi who represented the Kingdom of Morocco. FBR's Member Direct Policy Mr. Asrar Raouf and Chief International Taxes, Mr Saeedur Rahman were also present.
The negotiations for conclusion of the Convention for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income between the Islamic Republic of Pakistan and the Kingdom of Morocco held a couple of years ago before the Convention was signed in Rabat, Morocco on May 18, 2006.
Highlighting the salient features of the convention, Mr. Sohail Ahmad, Chairman FBR, 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. Funds received by the students for the purpose of education have been exempted from tax under the convention which also provides comprehensively for cooperation in all important areas of international taxation, including exchange of information.
The FBR Chairman believed the new arrangement would not only provide safeguards against double taxation but it would also lay the ground for promoting economic cooperation and furthering mutual trade and investment by ensuring certainty of tax treatment.
Speaking on the occasion, Moroccan Ambassador Mr. Mohammed Rida El-Fassi appreciated the warm welcome and expressed the hope “the convention would serve as a significant step in enhancing economic ties between the two brotherly countries”.