Islamabad, Oct 14: Pakistan and Estonia Sign Agreement to Eliminate Double Taxation
The pact to prevent tax evasion and avoidance between Pakistan and Estonia Sign Agreement to eliminate double taxation on income has been signed by both nations.
The FBR has released a notification in this regard. The notification states that regardless of how they are levied, income taxes collected on behalf of a contracting State or local government are subject to this agreement.
According to the convention, a resident of one Contracting State may be subject to taxation in the other Contracting State on profits made from the alienation of immovable property mentioned in Article 6 and located in that state.
The profits from the sale of mobile property that is a component of a permanent establishment’s commercial property that a contracting state’s enterprise owns in another contracting state
Gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, including movable property pertaining to a fixed base that is made available to a resident of one Contracting State in the other Contracting State for the purpose of performing independent personal services, may be subject to taxation in that other State.
