S.R.O. 1138(I)/2008, Islamabad, the November 1, 2008

SROS: S.R.O. 1138(I)/2008, Islamabad, the November 1, 2008 PAKISTAN AND THE GOVERNMENT OF JAPAN HAVE SIGNED A CONVENTION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME ON THE 23RD JANUARY 2008 S.R.O. 1138(I)/2008, Islamabad, the November 1, 2008:- WHEREAS the Government of the Islamic Republic of Pakistan and the Government of Japan have signed a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income on the 23rd January 2008, as reproduced in the Annexure to this notification; AND WHEREAS the aforesaid Convention has been ratified by both the Contracting States and the Diplomatic Notes to this effect have been exchanged on the 10th day of October 2008 and upon entry into force of this Convention its provisions shall override previous Convention of the Contracting States regarding Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on income; NOW, THEREFORE, in exercise of the powers conferred by sub-section(1) of section 107 of the Income Tax Ordinance, 2001(XLIX of 2001), the Federal Government is pleased to direct that the provisions of the said Convention shall enter into force from the 9th day of November 2008, and shall apply with respect to,- (a) In case of the Islamic Republic of Pakistan- (i) with respect to taxes withheld at source, for amounts taxable on or after 1st January of the calendar year next following that in which the Convention enters into force; and (ii) with respect to all other taxes, for the tax year beginning on or after 1st July of the calendar year next following that in which the Convention enters into force; and (b) In case of Japan- (i) with respect to taxes withheld at source, for amounts taxable on or after 1st January of the calendar year next followingthat in which the Convention enters into force; and (ii) with respect to taxes on income which are not withheld at source and the enterprise tax, as regards income for any taxable year beginning on or after 1st January of the calendar year next following that in which the Convention enters into force. Annexure CONVENTION…