Second round of FTA negotiations between China and Pakistan
The 2nd round of the China-Pakistan free trade agreement (FTA) negotiations was held in Beijing on October 14 to 16. The negotiations were based on tax reduction for trade in goods; further opening of trade in services; Pakistan’s regulation
See MorePakistan: IMF discusses fiscal and tax policy
On 6 October 2015 the IMF held a conference call on completion of the eighth review of Pakistan’s economic performance under an EFF arrangement. The IMF considers that Pakistan’s economic performance has been generally positive under the program
See MorePakistan: Compulsory Electronic tax return Filing for Individuals
The Federal Board of Revenue announced via Notification S.R.O. 791 (I) /2015 on 10 August 2015, that all individuals earning taxable salary income must file their income tax returns electronically. This will be effective from tax year 2015
See MorePakistan: Budget for 2015/16
The Budget for the fiscal year 2015/16 (tax year 2016) was presented on 5 June 2015. The Budget proposals will basically take effect from 1 July. The proposed measures are summarized below: Corporate Tax: The corporate income tax rate is to be
See MoreDTA between Ireland and Pakistan signed
The Income Tax Treaty between Ireland and Pakistan was signed for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income in Dublin on 16 April 2015. Once in force and effective, the new treaty will
See MorePakistan: WTO Conducts Trade Policy Review
The World Trade Organization (WTO) is conducting a trade policy review of Pakistan on 24 and 26 March 2015. The report issued in connection with the review notes that Pakistan’s economy has shown resilience and that real GDP growth averaged 3.2%
See MoreBahrain and Pakistan Sign a Protocol to Amend the 2005 Tax Treaty
On January 7, 2015 Bahrain and Pakistan signed a protocol. This is the first protocol to amend the double tax treaty of 2005. It will enter into force after the exchange of the ratification
See MoreIMF reports on discussions on Pakistan’s economic position
The IMF has held meetings with officials from Pakistan to conduct discussions as part of the sixth review under its Extended Fund Facility and has issued a press release reporting on its preliminary findings. A Memorandum of Economic and Financial
See MorePakistan: Companies operating in Gwadar Free Zone to get 20-year tax holiday
The Pakistan government plans to provide a 20-year tax holiday to companies that want to establish their business in Gwadar Port's Free Zone. The government has also decided to exempt from customs duties, machinery, equipment and other
See MorePakistan: Government states withholding tax rate for non-filers on registration of immovable property
The government announced on 14 January 2015, through Notification No. 30(I)/2015 that any non-filer (i.e. a taxpayer whose name does not appear on the active taxpayers list issued by the Federal Board of Revenue or who is not a holder of a
See MoreThird Meeting of Second Phase of Negotiations on China-Pakistan Free Trade Area Held in Islamabad
The Third Meeting of the Second Phase of negotiations on the China-Pakistan Free Trade Area was successfully held in Islamabad on January 6-8, 2015. The two sides had talks on various topics including the implementation of reduced taxes in the first
See MorePakistan: Government Declares Sales Tax Rate From 2015
The government of Pakistan issued Notification No. 1152(I)/2014 on 30 December 2014, declaring the sales tax rate to be charged on certain items. The current rate will be effective from 1 January 2015, the sales tax is to be charged at the rate of
See MoreCzech Republic & Pakistan: DTA ratified by Pakistan
The Income Tax Treaty between Czech Republic and Pakistan has ratified by Pakistan on 2nd October 2014. The signing draft of this treaty has approved by the Pakistan’s Cabinet on 29th August 2013. Further details of the treaty will be reported
See MorePakistan: Planning to raise further tax to 2%
The Federal Board of Revenue (FBR) is planning to raise 'further tax' from existing 1 % to 2% in budget (2014-15) on supplies made to persons who have not obtained sales tax registration numbers (STRNs), doubling the burden of extra sales tax on
See MorePakistan: Budget for 2014-2015 has been presented to the parliament
The Pakistan Government has presented to parliament the nation's 2014-2015 Budget, which includes proposals aimed increasing tax compliance rates, increasing progressive direct taxes, and lowering the burden of indirect taxes. The 2014 budget set
See MorePakistan: Budget 2014/15 introduces GST and excise changes
With the Budget 2014/15 Pakistan is introducing a number of minor changes to the Goods & Services Tax (GST) and Excise Duty regimes from July 2014. Following changes will take place: Simplified GST regime introduced for the retail
See MorePakistan Warns Banks to Register For FATCA
The State Bank of Pakistan has issued advice to financial institutions to ensure that they register with the US IRS in respect of the Foreign Account Tax Compliance Act (FATCA). They have given this advice because the intergovernmental agreement
See MorePakistan Needs to Chase Non-Taxpayers
Currently Pakistan has one of the world’s lowest ratios of tax to gross domestic product (GDP). The ratio in Pakistan is 9 percent compared to India’s tax to GDP ratio of 16 percent, Indonesia’s ratio of 14 percent, and Malaysia’s 15 percent
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