Pakistan and Latvia on October 25, 2017, after the second round of negotiations, concluded an agreement on the Avoidance of Double Taxation with regard to income tax and prevention of tax evasion and avoidance (ADTA).
Avoiding the double taxation agreement between Pakistan and Latvia will reduce tax obstacles to cross-border trade and investment by supporting taxpayers and tax administrations in their respective countries. The ADTA between the two countries will help to increase bilateral trade and investment, and to promote the exchange of goods and services, as well as the movement of capital and people between the two countries. It will also ensure the security of the tax treatment in each country, so that the investors are free from fear or concern. Moreover, through the exchange of information mechanism, information could be obtained on request basis for the administration or enforcement of the domestic tax laws which will help minimize the possibility of tax evasion.
