S.R.O. 1194(I)/2006, Islamabad, the November 15, 2006

GOVERNMENT PAKISTAN AND THE GOVERNMENT SAUDI ARABIA HAVE EXECUTED A CONVENTION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION S.R.O. 1194(I)/2006, Islamabad, the November 15, 2006:- WHEREAS the Government of the Islamic Republic of Pakistan and the Government of the Kingdom of Saudi Arabia have executed a Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income on 2nd February, 2006, as set out in the Annexure to this notification; 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 Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect- (a) in case of Pakistan: (i) with regard to taxes withheld at source, in respect of amounts paid or credited on or after the first day of July next following the date upon which the Convention enters into force; and (ii) with regard to other taxes, in respect of taxable years beginning on or after the first day of July next following the date upon which the Convention enters into force; and (b) in case of Saudi Arabia: (i) with regard to taxes withheld at source, in respect of amounts paid or credited on or after the first day of January next following the date upon which the Convention enters into force; and (ii) with regard to other taxes, in respect of taxable years beginning on or after the first day of January next following the date upon which the Convention enters into force. Annexure CONVENTION BETWEEN THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF PAKISTAN AND THE GOVERNMENT OF THE KINGDOM OF SAUDI ARABIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME. PREAMBLE The Government of the Islamic Republic of Pakistan and the Government of…