ISLAMABAD -  Pakistan and Bulgaria on Wednesday signed the Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income (ADTA) after the conclusion of second round of negotiations in Islamabad.

The ceremony was overseen by Federal Board of Revenue Chairman Dr Muhammad Irshad and Bulgaria Ambassador Roumen Pirontchev. Mohammad Iqbal, head of Pakistan delegation and Iskra Slavcheva, head of Bulgarian delegation signed the ADTA.

Speaking on the occasion, the FBR chairman said that the ADTA between the two countries will reduce tax impediments to cross-border trade and investment by assisting taxpayers and tax administrations of the respective countries. The ADTA between Pakistan and Bulgaria will help in increasing bilateral trade and investment besides promoting exchange of goods and services and movement of capital and persons between the two countries.

It will also provide certainty of tax treatment in each country so that the investors feel free from any fear or apprehension. Moreover, through the exchange of information mechanism, information could be obtained on request basis for the administration or enforcement of the domestic laws which will help minimise the possibility of tax evasion.

Pirontchev thanked the FBR for the warm hospitality it had extended to the visiting delegation. He underscored the significance of the ADTA between Pakistan and Bulgaria and said that it will go a long way in strengthening the bilateral relationship between the two countries. Both Pakistan and Bulgaria will now complete their respective internal procedures for the signing and ratification of the ADTA.