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France
CONVENTION BETWEEN THE REPUBLIC OF PAKISTAN AND THE 'REPUBLIC OF FRANCE FOR THE AVOIDANCE
OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
MINISTRY OF FINANCE
S.R.O. 79(1)/69 dated the 17th May, 1969. - WHEREAS the
annexed Convention between the Republic of Pakistan and the Republic of France for the
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on
income, has been made.
Now THEREFORE in exercise of the powers conferred by section 49AA of the Income Tax Act,
1922 (XI of 1922), the Central Government is pleased to direct that all the provisions of
the said agreement shall be given effect to in Pakistan.
Annexure
CONVENTION
BETWEEN
THE REPUBLIC OF PAKISTAN
AND THE REPUBLIC OF FRANCE
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
The President of the Republic of Pakistan and the President of
the French Republic,
Desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with respect to Taxes on Income.
Have appointed for that purpose as their Plenipotentiaries ·
The President of the Republic of Pakistan.
His Excellency Mr. Jalaluddin ABDUR RAHIM:
Ambassadeur Extraordinarie et Plenipotentiaire;
The President of the French Republic.
His Excellency Mr. Gilbert de CHAMBRUN, Ministre Plenipotentiatire, Directcur des
Conventions, Administratives et des Affaires Consulaires are Ministere des Affaires
Etrangeres;
Who, having exhibited their respective powers, found in good and due form, have agreed as
follows:
ARTICLE I
(1) The taxes are the subject of this Convention are
(a) in Pakistan:
- the income-tax and
- the super-tax; (hereinafter referred to as "Pakistan tax");
(b) in France:
- the income-tax on individuals (import sur le revenue des personnes physiques),
- the complementary tax (taxe complementaire),
- the tax on the profits of the companies and other legal entities (import sur less
benefices des societies et autres personnes morales) (hereinafter referred to as
"French tax").
2. This Convention shall also apply to any identical or substantially similar taxes which
are subsequently imposed in addition, to, or in place of, the existing taxes by either
Contracting Government subsequently to the date of signature of this Convention. The
competent authorities of the Contracting States shall notify to each other, at the
beginning of each year, any changes which have been made in their respective taxation laws
and when the tax laws of any of the Contracting States are modified affecting
substantially the nature or the character of the taxes mentioned in paragraph (1) of the
present Article, the competent authorities of both States shall consult together to
determine the changes it would be eventually necessary to make in the present Convention.
ARTICLE II
(1) In this Convention, -
(a) The term "Pakistan" means the Provinces of Pakistan;
(b) The term "France" means the metropolitan France and the overseas departments
(Guadeloupe, Guiana, Martinique and Reunion);
(c) The terms "one of the territories" and "the other territory" mean
Pakistan or France as the context requires;
(d) The term "tax" means Pakistan tax or French tax as the context requires;
(e) The term "person" includes natural persons, companies, and all other
entities which are treated as taxable units under the tax laws of the respective States;
(f) The term "citizen" means a natural person, who is a citizen according to the
laws of the respective States;
(g) The term "company" means any body corporate or any entity which is treated
as a body corporate for tax purposes under the laws of the respective States;
(h) The terms "resident of Pakistan" and "resident of France" mean
respectively any person who is resident in Pakistan for the purposes of Pakistan tax and
not resident in France for the purposes of French tax, and any person who is resident in
France for the purposes of French tax and not resident in Pakistan for the purposes of
Pakistan tax.
A company shall be regarded as resident in Pakistan if its business is managed and
controlled in Pakistan.
A company shall be regarded as resident in France if its business is managed and
controlled in France.
(i) The term "Pakistan company" means a company which is a resident of Pakistan
and the term "French company" means a company which is a resident of France;
(j) The terms "Pakistan enterprise" and French enterprise" mean
respectively an industrial or commercial enterprise or undertaking carried on in Pakistan
by a resident of Pakistan and an industrial or commercial enterprise or undertaking
carried on in France by a resident of France; and the terms "enterprise of one of the
territories" and "enterprise of the other territory" mean a Pakistan
enterprise or a French enterprise, as the context requires;
(k) The term "permanent establishment", when used with respect to an enterprise
of one of the territories, means a fixed place of business in which the business of the
enterprise is wholly or partly carried on, a branch, a place of management, an office, a
factory, a workshop, a mine, quarry or other place of extraction of natural resources.
An enterprise of one of the territories shall be deemed to have a permanent establishment
in the other territory if it has, in the other territory, an agent or an employee, who has
and habitually exercises a general authority to negotiate and conclude contracts on behalf
of the enterprise, or, has in that other territory a stock of goods or merchandise from
which he regularly fills orders secured by him on behalf of the enterprise.
An enterprise of one territory shall not be deemed to have a permanent establishment in
the other territory merely because it carries on business through a broker, general
commission agent, or any other agent of an independent status, where such persons are
acting in the ordinary course of their business.
The use of mere storage facilities or the maintenance of a stock of goods or merchandise,
in one of the territories by an enterprise of the other territory, whether in a warehouse
or not, merely for convenience of delivery and not for purposes of display shall not
constitute by itself a permanent establishment, even if such goods or merchandise are
delivered according to the instructions given by the enterprise in that other territory,
after it has accepted an order obtained by an agent of the enterprise other than that who
maintains this stock of goods.
An enterprise of one of the territories shall not be deemed to have a permanent
establishment in the other territory if it carries on in that territory technical
installations or setting up of machinery, if the duration of that activity does not exceed
183 days in a taxable year, notwithstanding the fact that it has a fixed place of business
in such other territory within the meaning of paragraph (k) of the present Article unless
such activity is attributable to that permanent establishment.
An enterprise of one of the territories shall not be deemed to have a permanent
establishment in the other country merely because it maintains a fixed place of business
solely for the purpose of advertising or the supply of information, for scientific
research or for similar activities which have a preparatory or auxiliary character, for
that enterprise.
The fact that a company which is resident of a Contracting State controls or is controlled
by a company which is a resident of the other Contracting State, or which carries on
business in that other State (whether through a permanent establishment or otherwise)
shall not of itself constitute either company a permanent establishment of the other.
(2) The term "competent authorities" means, in the case of Pakistan, the Central
Board of Revenue or their authorised representative, and, in the case of France, the
Director of Taxes (Director-General des Imports), and in the case of any territory to
which the present Convention is extended under Article XXV, the competent authority for
the administration in such territory of the taxes to which the present Convention applies;
(3) In the application of the provisions of this Convention by one of the Contracting
states any term not otherwise defined in this Convention shall, unless the context
otherwise requires, have the meaning which it has under the laws in force in the territory
of that State relating to the taxes which are the subject of this Convention.
ARTICLE III
(1) The industrial or commercial profits of an enterprise of one
of the territories shall not be subjected to tax in the other territory unless the
enterprise carries on a trade or business in the other territory through a permanent
establishment situated therein. If it carries on a trade or business in that other
territory through a permanent establishment situated herein, tax may be imposed on those
profits in the other territory but only on so much of them as is attributable to that
permanent establishment.
(2) Where an enterprise of one of the territories carries on a trade or business in the
other territory through a permanent establishment situated therein, there shall be
attributed to that permanent establishment the industrial or commercial profits which it
might be expected to derive in that other territory if it were an independent enterprise
engaged in the same or similar activities under the same or similar conditions and dealing
at arm's length with the enterprise of which it is a permanent establishment.
(3) In the determination of the profits of a permanent establishment, there shall be
allowed as a deduction expenses which are reasonable allocable to the permanent
establishment including executive and general administration expenses so allocable,
whether incurred in the State in which the permanent establishment is situated or
elsewhere.
(4) The term "industrial or commercial profits", as used in this Article, does
not include income from the operation of ships or aircraft, interest on bonds, securities
or debentures or any other form of indebtedness, dividends, or royalties, fee or other
remuneration derived from the management, control or supervision of the trade, business or
other activities of an enterprise or remuneration for labour or personal (including
professional) services, except any such income which, under the laws of any of the
Contracting States and in accordance with this Article is attributable to a permanent
establishment situated therein.
ARTICLE IV
Where -
(a) the person carrying on an enterprise of one of the territories participates directly
or indirectly in the management, control or capital of an enterprise of the other
territory, or
(b) the same person participates directly or indirectly in the management, control or
capital of an enterprise of one of the territories and an enterprise of other territory,
and in either case, conditions are made or imposed between the two enterprises in their
commercial or financial relations, which differ from those which would be made between
dependent enterprises, then any profits, which would, but for those conditions have
accrued to one of the enterprises but by reason of those conditions have not so accrued,
may be included in the profits of that enterprise and taxed accordingly.
ARTICLE V
(1) Profits derived by an enterprise of one of the territories
from the operation of aircraft owned or chartered by that enterprise shall be exempt from
tax in the other territory, unless the aircraft is operated wholly or mainly between
places within such other territory.
(2) The provisions of paragraph (1) shall likewise apply in respect of participations in a
pooled service, in a joint air transport operating organisation or an international
operating agency by a resident of one of the territories operating aircraft.
(3) Notwithstanding the provisions of Article III, profits which a resident of one of the
territories derives from operating ships in the other territory, including profits of that
resident from the sale of tickets for passages by such ships, shall be exempt from tax in
the first-mentioned territory if such profits are subject to tax in the other territory.
ARTICLE VI
(1) When a French company owns not less than fifty per cent of
the equity capital of a Pakistan company, the rate o Pakistan tax payable in respect of
the dividends paid by such Pakistan company to such French company shall not exceed -
(i) 10 per cent when such dividends are derived from the income of an industrial
undertaking in Pakistan, and
(ii) 20 per cent in the case of dividends derived from other income.
(2) The rate of French tax on dividends paid by a French company to a Pakistan company
owning shares not less than fifty per cent o the equity capital of the French company
shall not exceed 15 per cent.
(3) The provisions of paragraphs (1) and (2) shall not apply if the recipient of the
dividends, being a resident of a Contracting State, has in the other Contracting State, of
which the company paying the dividends is a resident, a permanent establishment with which
the holding by virtue of which the dividends are paid is effectively connected. In such a
case, Article III concerning the allocation of profits to permanent establishment shall
apply.
(4) In paragraph (1) of the present Article, the term "industrial undertaking"
means an undertaking falling under any of the classes mentioned below if it is set up or
commenced in Pakistan after the present Convention comes into force or if the shares of
the company engaged therein are acquired by an enterprise of the other Contracting State
after that date:-
(a) The manufacture of goods or materials or the subjection of goods or materials to any
process which results in substantially changing their original conditions;
(b) Ship-building;
(c) Electricity, hydraulic power, gas and water supply;
(d) Mining including the working of an oil-well or the source of any mineral deposits; and
(e) Any other undertaking, which may be declared by the competent authorities in Pakistan
to be an industrial undertaking for the purpose of this Article.
ARTICLE VII
A Pakistan company shall not be liable to the withholding tax on income from securities as provided in Articles 109-2 and 1674 of the General Tax Code unless it has a permanent establishment in France within the meaning of paragraph (k) of Article II of the present Convention. The income taxable under Article 109-2 shall not, however, exceed the amount of the profits realised by the permanent establishment in France, determined in accordance with the provisions of Article III of the present Convention.
ARTICLE VIII
(1) The rate of Pakistan tax on interest paid by a resident of
Pakistan to a French company or partnership in respect of indebtedness incurred on or
after the 1st January, 1962, shall not exceed 30 per cent.
Notwithstanding the provisions of the preceding sub-paragraph, interest paid by a resident
of Pakistan to a French company or partnership on approved loans (including loans in the
form of deferred payments) shall be exempt from Pakistan tax payable thereon.
(2) The rate of French tax on interest paid by a resident of France to a Pakistan Company
in respect of indebtedness incurred on or after the 1st January, 1962, shall not exceed 12
per cent.
(3) Paragraphs (1) and (2) of the present Article shall not apply where a French company
or a Pakistan Company, as the case may be, receiving the interest has a permanent
establishment in the other territory and such interest is, under the laws of such other
territory and in accordance with Article III of the present Convention, attributable to
that permanent establishment.
(4) In the present Article,
(a) the term "interest" includes income from bonds, securities, notes,
debentures, or any other form of indebtedness whether or not secured by
"mortgages";
(b) the term "approved loan" means a loan made to an industrial under-taking in
Pakistan and approved by the Government of Pakistan and the term "industrial
undertaking" means an undertaking falling under any of the classes mentioned in
paragraph (4) of Article VI.
ARTICLE IX
(1) Royalties arising in a Contracting State and paid to a
resident of the other Contracting State shall be taxable only in that other State.
(2) The term "royalties" as used in the present Article means payments of any
kind received as consideration for the use of, or the right to use, any copyright of
literary, artistic or scientific work including cinematograph films and films for use in
connection with television, any patent, trade mark, design or model, plan, secret formula
or process.
(3) Profits from the alienation of any rights or property mentioned in paragraph (2) shall
be taxable only in the Contracting State of which the alienator is a resident.
(4) The provisions of paragraphs (1) and (3) shall not apply if the recipient of the
royalties or the profits, being a resident of a Contracting State, has in the other
Contracting State in which the royalties arise a permanent establishment with which the
right or property giving rise to the royalties is effectively connected. In such a case,
Article II! concerning the allocation of profits to permanent establishment shall apply.
(5) Where, owing to a special relationship between the payer and the recipient or between
both of them and some other persons, the amount of the royalties paid, having regard to
the use or right for which they are paid, exceeds the amount which would have been agreed
upon by the payer and the recipient in the absence of such relationship, the provisions of
the present Article shall apply only to the last-mentioned amount. In that case, the
excess part of the payments shall remain taxable according to the Contracting States' own
laws, due regard being had to the other provisions of this Convention.
ARTICLE X
(1) Income from immovable property may be subjected to tax in the
territory in which the property is situated.
(2) Royalties or other amounts paid in respect of the operation of a mine, quarry or other
place of extraction or exploitation of natural resources shall, for the purpose of the
present Article, be regarded as income derived from immovable property.
ARTICLE XI
(1) Income derived by a resident of a Contracting State in
respect of professional services or other independent activities of a similar character
shall be taxable only in the State where such services are exercised.
(2) Income derived by public entertainers, such as theatre, motion picture, radio or
television artists and musicians, and by athletes, from their personal activities as such
may be taxed in the Contracting State in which these activities are exercised.
ARTICLE XII
(1) Subject to the provisions of Articles XIII, XIV and XV,
salaries, wages and other similar remuneration derived by a resident of a Contracting
State in respect of an employment shall be taxable only in that State unless the
employment is exercised in the other Contracting State. If the employment is so exercised,
such remuneration as is derived therefrom may be taxed in that other State.
(2) Notwithstanding the provisions of paragraph (1) above, remuneration derived by a
resident of a Contracting state in respect of an employment exercised in the other
Contracting State shall be taxable only in the first-mentioned State if:
(a) the recipient is present in the other State for a period or periods not exceeding in
the aggregate 183 days in the fiscal year concerned, and
(b) the remuneration is paid by, or on behalf of an employer who is not a resident of the
other State, and
(c) the remuneration is not deducted from the profits of a permanent establishment or a
fixed base which the employer has in the other State.
(3) Notwithstanding the provisions of paragraphs (1) and (2) of the present Article,
remuneration for personal services performed abroad [*] a ship or
aircraft in international traffic may be taxed in the Contracting State of the enterprise
by which it is owned or chartered.
ARTICLE XIII
(1) Remuneration, including pensions, paid by or out of funds
created by a Contracting State or a political sub-division or a local authority thereof to
any individual in respect of services rendered to that State or sub-division or local
authority thereof in the discharge of functions of public nature may be taxed in that
State only.
(2) The provisions of Article XI, XIV and XV shall apply to remuneration and pensions in
respect of services rendered in connection with any trade or business carried on by one of
the Contracting States or a political sub-division or a local authority thereof.
ARTICLE XIV
Directors’ fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.
ARTICLE XV
(1) Any pension [other than pension to which paragraph (1) of
Article XIII applies] and any annuity derived from sources within one of the territories
by an individual, who is a resident of the other territory, may be taxed in the
first-mentioned territory.
(2) The term "pension", as used in Article XIII and the present Article, means
periodic payments made in consideration for services rendered or by way of compensation
for injuries received.
(3) The term "annuity" as used in paragraph (1), means a stated sum payable
periodically at stated times, during life or during a specified or ascertainable period of
time, under an obligation to make the payments in return for adequate and full
consideration in money or money’s worth.
ARTICLE XVI
A professor or teacher from one of the territories who receives remuneration for teaching during a period of temporary residence not exceeding two years at a university, college, school or other recognised educational institution in the other territory, shall, if Article XXII does not apply to him, be exempt from tax in that other territory in respect of that remuneration.
ARTICLE XVII
The law of each Contracting State shall continue to govern the
taxation of incomes derived from either territory, except where a contrary provision is
made in the present Convention. Where the income is subject to tax in both territories, an
adjustment for the avoidance of the double taxation shall be made according to the
provisions of the following paragraph:-
(1) In Pakistan, French tax payable, whether directly or by deduction, by a person
resident in Pakistan, in respect of income from sources within France shall, subject to
the tax laws of Pakistan, be allowed as credit against any Pakistan tax payable in respect
of that income.
(2) In France:
(a) Incomes, other than those mentioned in sub-paragraphs (c) and (d) below shall be
exempt from the French tax specified in Article 1 of the present Convention where such
income is exclusively taxable in Pakistan.
(b) Notwithstanding the provisions of sub-paragraph (a) above, French taxes specified in
Article I of the present Convention shall be computed on the incomes liable in France
according to this Convention at the rate applicable to the total incomes taxable under the
French tax laws.
(c) Dividends received by a resident of France from a Pakistan company shall be exempt in
France from the withholding tax where they have borne in Pakistan tax at a rate not less
than 30 per cent, Pakistan tax so paid being deemed as wholly covering this present rate
of French withholding tax. However, the recipient of such dividends shall have the right
to get tax credit in the same way as if this withholding tax had been paid.
In the case of dividends referred to in paragraph (1) of Article VI, received by a
resident of France from a Pakistan company, credit shall be allowed for the Pakistan tax
paid in respect of such dividends.
(d) In the case of interest referred to in paragraph (1) of Article VIII which is derived
from Pakistan sources and which is subject to Pakistan tax according to the provisions of
the said paragraph, credit shall be allowed in respect of the latter tax:
(i) as respects interest from negotiable bonds subject to French withholding tax, against
the amount of this withholding tax,
(ii) as respects other interest, which is not subject to the French withholding tax,
either against the complementary tax leviable, or, as the case may be, against the
income-tax on individuals, or the company tax that the recipient of this interest is
liable to pay on the same income.
For the purposes of this credit, Pakistan tax exempted in accordance with the provisions
of the second sub-paragraph of paragraph (1) of Article VIII shall be deemed to have been
effectively borne at the rate of 30 per cent.
(e) In the cases not covered by the provisions of the present Convention, income received
by a person having his habitual residence in France (whether or not that person is
regarded as residing in Pakistan for the purposes of the Pakistan tax laws) shall be
exempt from the French tax where it has its source in Pakistan and is taxable therein
according to the Pakistan tax laws.
ARTICLE XVIII
The provisions of the Convention shall not be construed to deny or affect in any manner the right of diplomatic and consular officers to other or additional exemptions which may be granted to such officers.
ARTICLE XIX
(1) The competent authorities of the Contracting States shall,
upon request, exchange such information (being information available under the respective
taxation laws of the Contracting States) as is necessary for carrying out the provisions
of this Convention or for the prevention of fraud, or the like, in relation to the taxes
which are subject of this Convention. Any information so exchanged shall be treated as
secret and shall not be disclosed to any persons other than those concerned with the
assessment and collection of the taxes which are the subject of this Convention. No
information shall, however, be exchanged which would disclose any commercial, industrial
or professional secret or any commercial or industrial process.
(2) In no case shall the provisions of paragraph (1) be construed so as to impose upon
either of the Contracting States the obligation to carry out administrative measures at
variance with the regulations and practice of either Contracting State or which would be
contrary to its sovereignty, security or public police or to supply particulars which are
not procurable under the laws of either State.
ARTICLE XX
(1) The nationals of a Contracting State shall not be subjected
in the other Contracting State to any taxation or any requirement connected therewith
which is other or more burdensome than the taxation and connected requirements to which
nationals of that other State in the same circumstances are or may be subjected. In
particular, the citizens of one Contracting State who are subject to tax in the territory
of the other Contracting State shall benefit in the same condition that the citizens of
that later State, any exemption; deduction, credit or other allowance accorded in
consideration of the family charges.
(2) The term "nationals" means:
(a) all individuals possessing the nationality of a Contracting State;
(b) all legal persons' partnerships and associations deriving their status as such from
the law in force in a Contracting State.
(3) The taxation on a permanent establishment which an enterprise of a Contracting State
has in the other Contracting State shall not be less favourably levied in that other State
than the taxation levied on enterprises of that other State carrying on the same
activities.
(4) Enterprises of a Contracting State, the capital of which is wholly or partly owned or
controlled, directly or indirectly, by one or more residents of the other Contracting
State, shall not be subjected in the first-mentioned Contracting State to any taxation or
any requirement connected therewith which is other or more burdensome than the taxation
and connected requirements to which that similar enterprises of that first-mentioned State
are or may be subjected.
(5) Nothing contained in paragraphs (1) to (4) of this Article shall affect provisions of
the Pakistan Law providing for a higher allowance or rebate of super-tax to those
companies which make the prescribed arrangements for the declaration and payment of
dividends and the deduction of super-tax from dividends paid by them.
ARTICLE XXI
(1) A resident of one of the territories who is temporarily
present in the other territory, solely-
(a) as a student at a recognised university, college or school in such other territory,
(b) as an apprentice, or
(c) as the recipient of a grant, allowance or award for the primary purpose of study or
research from religious, charitable, scientific, or educational organisation of the former
territory, shall be exempt from tax by such other territory:
(i) on all remittances from abroad for the purposes of his maintenance, education or
training, and
(ii) with respect to any amount, representing remuneration for an employment in that other
territory, if that employment is related with his studies or his training or if it is
necessary for his maintenance.
(2) A resident of one of the territories who is temporarily present in the other territory
for a period not exceeding one year, as an employee of, or under contract with, an
enterprise of the former territory or an organisation referred to in paragraph (1) solely
to acquire technical, professional or business experience from a person other than such
enterprise or organisation, shall be exempt from tax by such other territory or
remuneration for such period in an amount not in excess of 15,000 French Francs (or the
equivalent thereof in Pakistan currency at the official rate of exchange) (including
remuneration from such person in other territory).
(3) A resident of one of the territories temporarily present in the other territory under
arrangements with the Government of such other territory or any agency or instrumentality
thereof solely for the purpose of training, study or orientation shall be exempt from tax
by such other territory with respect to remuneration not exceeding 25,000 French Francs or
the equivalent thereof in Pakistan currency at the official rate of exchange for the
rendition of services directly related to such training, study or orientation (including
remuneration, if any, from the employer abroad of such resident).
ARTICLE XXII
The remuneration of citizens of one Contracting State going to the territory of the other Contracting State according to a French-Pakistan cultural and technical cooperation mission may be taxed in the former State even if that remuneration is partly borne by that other State or an institution or an enterprise of that State.
ARTICLE XXIII
The competent authorities of the two Contracting States may consult together as may be necessary to prescribe regulations necessary to carry into effect this Convention within the respective territories. They may communicate with each other directly for the purpose of giving effect to this Convention.
ARTICLE XXIV
(1) Where a resident of a Contracting State considers that the
action of one or both of the Contracting States results or will result for him in taxation
not in accordance with this Convention, he may, notwithstanding the remedies provided by
the national laws of those States, present his case to the competent authority of the
Contracting State of which he is a resident.
(2) The competent authority shall endeavour, if the objection appears to it to be
justified and if it is not itself able to arrive at an appropriate solution, to resolve
the case by mutual agreement with the competent authority of the other Contracting State
with a view to the avoidance of taxation not in accordance with this Convention.
(3) The competent authorities of the Contracting States shall endeavour to resolve by
mutual agreement any difficulties arising as to the application of this Convention. They
may also consult together for the elimination of double taxation in cases not provided for
in this Convention.
ARTICLE XXV
This Convention may be extended, either in its entirety or with
necessary modifications, to the overseas territories of the French Republic, or to one or
to several of them, which imposes taxes substantially similar in character to those to
which this convention applies. Any such extension shall take effect from such date and
subject to such modifications and conditions (including conditions as to termination) as
may be specified and agreed between the Contracting States in notes to be exchanged
through the diplomatic channels or in any other manner in accordance with their
Constitutional procedure.
(2) Unless otherwise agreed by both Contracting States the termination of this Convention
by one of the Contracting States under Article XXVII shall also terminate the application
of this Convention to any territory to which it has been extended under this Article.
ARTICLE XXVI
(1) The present Convention shall be ratified and the instruments
of ratification shall be exchanged as soon as possible at Islamabad.
(2) The present Convention shall come into force on the date on which the instruments of
ratification are exchanged and shall thereupon have effect -
(a) in Pakistan, in respect of the "previous year" (as defined by the tax laws
of Pakistan) beginning on or after the first day of July, 1961;
(b) in France, in respect of the fiscal years beginning on or after the first day of
January, 1962.
ARTICLE XXVII
The present Convention shall continue in effect without
limitation of duration, but either of the Contracting States may, on or before the 30th
day of June of any calendar year after 1971, give to the other Contracting State notice of
termination and in such event, this Convention shall cease to be effective-
(a) in Pakistan, in respect of the previous years (as defined by the tax laws of Pakistan)
beginning on or after the first day of July next following such written notice of
termination; and
(b) in France, in respect of the fiscal years beginning, on or after the first day of
January next following such written notice of termination.
IN WITNESS WHEREOF, the undersigned have signed this Convention have affixed thereto their
seals.
DONE in duplicate at PARIS on twenty-second day of July, One Thousand Nine Hundred
Sixty-six in the English and French languages, both texts being equally authentic.
| J.A. RAHIM, for the President of the Republic of Pakistan. |
GILBERT DE CHAMBRUN, for the President of the French Republic |
ZAFAR HUSSAIN, T.Q.A., PT.S.,
FOR JOINT SECRETARY.
C.NO. 2(11)-TL/60
Published in the Gazette of Pakistan, Extraordinary, dated 17-05-1959.
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