ISLAMABAD: The third round of negotiations on Agreement of Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on income between Pakistan and the Hong Kong SAR started on Monday.
According to a press release received here on Monday from Hong Kong, the Agreement, once adopted by Pakistan and Hong Kong, the Special Administered Region of the People’s Republic of China (SAR) shall apply to taxes on income imposed on behalf of the contracting parties i.e. Pakistan and Hong Kong SAR or of its political divisions or local authorities irrespective of the manner in which they levied.
The Agreement is destined to benefit individuals and companies working in Pakistan and Hong Kong SAR, simultaneously so that they don’t pay double taxes on their incomes. This will promote more trade and business activities between Pakistan and Hong Kong by making their economies more competitive viz a viz other countries which enjoy similar agreements.
The negotiations are being conducted in a shared sprit of friendship and mutual understanding. The Consulate General of Pakistan in Hong Kong is facilitating the negotiations, which are being held between representatives of the Federal Board of Revenue (FBR) Pakistan and the Inland Revenue Department of the Hong Kong SAR.
Malik Amjad Zubair Tiwana, Chief Income Tax Policy heads Pakistan delegation, accompanied by Ms. Sajida Kausar, Secretary International Taxes Policy whereas the Hong Kong SAR team is led by Ms. MEI Yin, Mabel, Chief Assessor Inland Revenue and comprised members from the Departments of Judiciary, Inland Revenue and the Treasury of the Hong Kong SAR.
The 2nd round of the negotiations between Pakistan and Hong Kong SAR, on avoidance of double taxation was held in Pakistan in January last year, wherein the consensus had been reached on most of the provisions of the draft Agreement. The 3rd round will be completed by October 16, 2015.