Pakistan and Estonia Sign Agreement to Eliminate Double Taxation

Pakistan and Estonia have signed the convention for the elimination of double taxation with income and the Prevention of Tax Evasion and Avoidance between the two countries. In this regard, the FBR has issued a notification. According to the notification, this convention shall apply to taxes on income imposed on behalf of a contracting State or local authorities, in respective of the manner in which they are levied. Under the convention, the gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other state. The gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.