islamabad

Pakistan and Austria here on Tuesday signed additional protocol amending the agreement on avoidance of double taxation (ADTA).

FBR Chairman Tariq Bajwa and Austrian Ambassador Ms Brigitta Blaha signed the document on behalf of their respective governments. Finance Minister Ishaq Dar witnessed the signing ceremony.

Austria and Pakistan, it may be added have been treaty partners for the last ten years as they signed the Convention on Avoidance of Double Taxation in August 2005 which was enforced in 2006. Now the signing of this protocol would facilitate hassle free exchange of information and help ensure transparency in tax related matters. Transparency and exchange of tax information was now a rising concern in the changed international scenario where the world was moving towards the automatic exchange of information through OECD sponsored concerns like Global Forum and Multilateral Convention. Therefore countries all over the world were updating their ADTA regime to make it compatible with the global standard on exchange of information.

Finance Minister, while welcoming signing of the document, said the amendment in the convention on avoidance of double taxation between Pakistan and Austria through Additional Protocol (updating article on exchange of information) was a step in the same direction for bringing it at par with Article 26 of the OECD Model Tax convention. We would remain a step ahead in making our laws compatible with the global standard on exchange of information, the finance minister remarked.

Ishaq Dar congratulated chairman FBR and the Austrian Ambassador on the occasion saying this bilateral facilitation would help businessmen and companies of both Austria and Pakistan. Austrian Ambassador Ms Briggitta said that she felt happy on the signing of this protocol as it would be mutually beneficial for enhancing transparency of the tax system and facilitating exchange of tax information. Chairman FBR said that the signing of this protocol would bring greater transparency in Tax matters and would pave the way for achieving the Ultimate Goal of Automatic exchange of Information.