| |
|
 |
| For business information, annual reports, laws, ordinances, regulations and articles. |
|
|
|
Ireland
AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION BETWEEN
PAKISTAN AND IRELAND
CENTRAL BOARD OF REVENUE
S.R.O. 197(I)/75, dated the 15th January, 1975. - Whereas
the annexed Convention between the Government of Pakistan and the Government of Ireland
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 49-AA of the Income Tax
Act, 1922 (XI of 1922), the Federal Government is pleased to direct that all the
provisions of the said agreement shall be given effect to in Pakistan.
Annex
CONVENTION BETWEEN PAKISTAN AND IRELAND
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
The Government of Pakistan and the Government of Ireland;
Desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with respect to Taxes on Income:
Have agreed as follows:
ARTICLE I
(1) The taxes which are the subject of this Convention are :-
(a) In Pakistan -
the income-tax, and
the super-tax,
(hereinafter referred to as "Pakistan tax").
and the agricultural income-tax to the extent provided for in Article XV;
(b) In Ireland -
the income-tax (including sur-tax) and
the corporation profits tax,
(hereinafter referred to as "Irish tax").
(2) The present Convention shall also apply to any other taxes of a substantially similar
character imposed by either Contracting State subsequently to the date of signature of
this Convention or by the Government of any territory to which the present Convention is
extended under Article XXIII.
ARTICLE II
(1) In this Convention, unless the context otherwise requires:
(a) The term "Pakistan" means the Provinces of Pakistan and such other States
and territories as are or may become included in Pakistan, whether by accession or
otherwise;
(b) The terms "a Contracting State" and "the other Contracting State"
mean Pakistan, or Ireland as the context requires;
(c) The term "tax" means Pakistan tax or Irish tax as the context requires;
(d) The term "person" includes natural persons, companies and all other entities
which are treated as taxable units under the tax laws of either of the Contracting States;
(e) The term "nationals" means all individuals possessing the nationality of a
Contracting State and all legal persons, partnerships and associations deriving their
status as such from the law in force in a Contracting State;
(f) The term "company" means any body corporate and includes an entity which is
treated as a body corporate for tax purposes under the laws of either of the Contracting
States;
(g) The terms "resident of Pakistan" and "resident of Ireland" mean
respectively any person who is resident in Pakistan for the purposes of Pakistan tax and
not resident in Ireland for the purposes of Irish tax and any person who is resident in
Ireland for the purposes of Irish 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 and as resident in Ireland if its business is managed
and controlled in Ireland; provided that nothing in this paragraph shall affect any
provision of the law of Ireland regarding the imposition of corporation profits tax in the
case of a company incorporated in Ireland whose business is not managed and controlled in
Pakistan:
(h) The term "Pakistan company" means a company which is a resident of Pakistan
and the term "Irish company" means a company which is a resident of Ireland;
(i) The terms "Pakistan enterprise" and "Irish enterprise" mean
respectively an industrial or commercial enterprise or undertaking carried on by a
resident of Pakistan and an industrial or commercial enterprise or undertaking carried on
by a resident of Ireland; and the terms "enterprise of a Contracting State" and
"enterprise of the other Contracting State" mean a Pakistan enterprise or an
Irish enterprise, as the context requires;
(j) The term "industrial or commercial profits" does not include rents or
royalties in respect of motion picture films and films for use in connection with
television or income from the operation of ships or aircraft, or income in the form of
dividends, interest, rents, or royalties or a fee or other remuneration derived by an
enterprise from the management, control or supervision of the trade, business, or other
activities of another enterprise or concern, or remuneration for labour or personal
(including profession) services;
(k) The term "permanent establishment", when used with respect to an enterprise
of a Contracting Estate, means a fixed place of business in which the business of the
enterprise is wholly or partly carried on. It includes an office, a branch, a place of
management, a factory, a workshop, a mine, quarry or other place of natural resources
subject to exploitation or a building site or construction or assembly project which exist
for more than twelve months. In this connection -
(i) an enterprise of a Contracting State shall not be deemed to have a permanent
establishment in the other Contracting State merely because it carries on business
dealings in that other Contracting State through a bona fide broker, general commission
agent or other independent agent acting in the ordinary course of his business as such, or
because it makes purchases of goods or merchandise direct from an independent exporter in
that other Contracting State in the normal course of international trade;
(ii) the use of mere storage facilities or the maintenance in a Contracting State of a
stock of goods or merchandise by an enterprise of the other Contracting State, whether in
a warehouse or not, merely for the convenience of delivery and not for purposes of display
shall not of itself constitute a permanent establishment;
(iii) an enterprise of a Contracting State shall be deemed to have a permanent
establishment in the other Contracting State if it has in that other Contracting State an
agent or employee who -
(a) has and habitually exercises a general authority to negotiate and conclude contracts
on behalf of the enterprise;
(b) has in that other Contracting State a stock of goods or merchandise from which he
regularly fills orders on behalf of the enterprise.
(iv) the fact that a company which is a resident of a Contracting State has a subsidiary
company which is a resident of the other Contracting State or which carries on a trade or
business in that other State (whether through a permanent establishment or otherwise)
shall not of itself constitute that subsidiary company a permanent establishment of its
parent company.
(1) The term "competent authorities" means, in the case of Pakistan, the Central
Board of Revenue or their authorised representative, and, in the case of Ireland, the
Revenue Commissioners or their authorised representative; and in the case of any territory
to which the present Convention is extended under Article XXIII, the competent authority
for the administration in such territory of the taxes to which the present Convention
applies.
(2) Where under this Convention any income is exempt from tax in a Contracting State if
(with or without other conditions) it is subject to tax in the other State and that income
is subject to tax in that other State by reference to the amount thereof which is remitted
to or received in that other State, the exemption to be allowed under this Convention in
the first-mentioned State shall apply only to the amount so remitted or received.
(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 a
Contracting State shall not be subject to tax in the other Contracting State unless the
enterprise is engaged in trade or business in that other Contracting State through a
permanent establishment situated therein. If it is so engaged, tax may be imposed on those
profits by that other Contracting State, but only on so much of them as is attributable to
that permanent establishment.
(2) Where an enterprise of a Contracting State is engaged in trade or business in the
other Contracting State 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 Contracting State 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 determining the industrial or commercial profits of a permanent establishment there
shall be allowed as deductions all expenses which would be deductible if the permanent
establishment were an independent enterprise in so far as they are reasonably allocable to
the permanent establishment, including executive and general administrative expenses so
deductible and allocable, whether incurred in the Contracting State in which the permanent
establishment is situated or elsewhere.
ARTICLE IV
Where -
(a) an enterprise of a Contracting State participates directly or indirectly in the
management, control or capital of-an enterprise of the other Contracting State, or
(b) the same persons participate directly or indirectly in the management, control or
capital of an enterprise of a Contracting State and an enterprise of the other Contracting
State,
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
independent enterprises, than 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 taxes accordingly.
ARTICLE V
(1) Notwithstanding the provisions of Articles III and IV,
profits derived by an enterprise of a Contracting State from the operation of aircraft
owned or chartered by that enterprise shall be exempt from tax in the other Contracting
State, unless the aircraft is operated wholly or mainly between places within that other
State.
(2) Notwithstanding the provisions of Articles III and IV, profits which an enterprise of
a Contracting State derives from the operation of ships whose port of registry is in that
State shall be exempt from tax in the other Contracting State, unless the ship is operated
wholly or mainly between places within that other State.
(3) The provisions of paragraphs (1) and (2) shall likewise apply in respect of profits
derived from participation in pools by enterprises engaged in air or shipping transport.
ARTICLE VI
(1) Where a company which is a resident of a Contracting State,
derives profits or income from sources within the other Contracting State, there shall not
be imposed in that other Contracting State any form of taxation on dividends paid by the
company to persons not resident in the other Contracting State, or any form of taxation
chargeable in connection with or in lieu of the taxation of dividends or any tax in the
nature of an undistributed profits tax on undistributed profits of the company, whether or
not those dividends or undistributed profits represent, in whole or in part, profits or
income so derived:
Provided that nothing contained in this paragraph shall affect the provisions of the
Pakistan law providing for the allowance of rebate of super-tax at a higher rate to
companies which make such arrangements, as may be prescribed in this behalf, for the
declaration and payment of dividends and the deduction of super-tax from dividends paid by
them than that allowed to other companies:
Provided further that nothing contained in this paragraph shall have the effect that
super-tax may be imposed on the profits of a company which is a resident of Ireland and
which does not make the aforesaid prescribed arrangements at a rate exceeding the rate
payable by a company, which makes those arrangements, by more than 10 per cent.
(2) The rate of Pakistan super-tax on dividends paid to a public company, being a resident
of Ireland by a company, being a resident of Pakistan and engaged in an industrial
undertaking in Pakistan, shall, if the first-mentioned company owns more than 50 per cent
of the voting shares of the latter company and the dividends are allocable to profits of
the industrial undertaking and Pakistan income-tax and super-tax has been paid by the
Pakistan company on such profits, not exceeding 10 per cent.
(3) The provisions of section 23-A of the Pakistan Income-tax Act relating to the
compulsory distribution of company profits shall not apply to the income of a company
being a resident of Pakistan, more than 50 per cent of the voting shares of which are
owned by a public company, being a resident of Ireland, if the first-mentioned company is
engaged in an industrial undertaking in Pakistan and its undistributed profits are wholly
or mainly retained for the purposes of industrial development and expansion in Pakistan.
(4) Where an individual, who is a resident of Ireland and is not engaged in any trade or
business in Pakistan through a permanent establishment situated therein, receives a
dividend in respect of which he is subject to Irish tax from a company which is
incorporated in Pakistan, the Pakistan tax payable by him in respect of the aforesaid
dividend shall not exceed the Pakistan tax which would have been payable in respect of
that dividend computed at the rates which would have been applicable to his total world
income if he had been resident and ordinarily resident in Pakistan and the aforesaid total
world income had been his total income:
Provided that nothing contained in this paragraph shall entitle such an individual to a
refund of income-tax deemed to have been paid by him under the provisions of section 49B
of the Pakistan Income-tax Act in respect of that dividend.
(5) Dividends paid by a company which is a resident of Ireland to a resident of Pakistan,
who is subject to tax in Pakistan in respect thereof and does not carry on a trade or
business in Ireland through a permanent establishment situated therein, shall be exempt
from Irish sur-tax.
(6) In paragraphs (2) and (3) of this Article:
(a) The term "public company" means, in relation to any year of assessment -
(i) a company which does not restrict the right to transfer its shares, which does not
prohibit the issue of its shares to the public or the sale of its shares at a recognised
stock exchange and of which shares carrying more than 50 per cent of the voting power were
held or controlled at any time during the previous year by not less than six persons; or
(ii) a company all the shares of which were held at the end of the previous year by one or
more such public companies as defined in sub-paragraph (a) (i) of this paragraph; and
(b) The term "industrial undertaking" means -
(i) an undertaking engaged in -
(aa) the manufacture of goods or materials or the subjection of goods or materials to any
process which results in substantially changing their original condition; or
(bb) ship-building; or
(cc) electricity, hydraulic power, gas or water supply; or
(dd) mining including the working of an oil-well or the sources of any mineral deposit; or
(ii) any other undertaking which is declared by the taxation authorities in Pakistan to be
an industrial undertaking for the purposes of Pakistan tax laws.
ARTICLE VII
(1) Interest on bonds, securities, notes, debentures or any other
form of indebtedness from sources within a Contracting State by a resident of the other
Contracting State shall be exempt from tax in that other Contracting State if it is taxed
in the first-mentioned State, provided that such interest shall be taxable only in the
first-mentioned State if it is paid or guaranteed by the Government of that State or if it
is payable on a loan in respect of which that Government has given approval
recognised for purposes of the application of any enactment.
(2) Notwithstanding the provisions of paragraph (1) of this Article -
(a) the State Bank of Pakistan shall be exempt from Irish tax with respect to interest
from sources within Ireland;
(b) the Central Bank of Ireland shall be exempt from Pakistan tax with respect to interest
from sources within Pakistan;
(c) the Government of a Contracting State shall be exempt from the tax of the other
Contracting State with respect to interest on loans or dividends received by that
Government from sources within that other Contracting State.
ARTICLE VIII
(1) Any royalty derived from sources within a Contracting State
by a resident of the other Contracting State shall be exempt from tax in the
first-mentioned State unless he is engaged in trade or business in the State through a
permanent establishment situated therein and the royalty is attributed to the permanent
establishment.
(2) In this Article, the term "royalty" means any royalty or other amount paid
as consideration for the use of, or the privilege of using, any copyright, patent, design,
secret process or formula, trade mark or other like property (including motion picture
films and films and tapes for use in connection with television) but does not include any
royalty or other amount paid in respect of the operation of a mine or quarry or other
extraction of natural resources.
(3) Where any royalty exceeds a fair and reasonable consideration in respect of the rights
for which it is paid, the exemption provided by this Article shall apply only to so much
of the royalty as represents such fair and reasonable consideration.
ARTICLE IX
(1) Income from immovable property may be taxed in the
Contracting State in which the property is situated.
(2) Interest on debts secured by mortgages on immovable property and 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 purposes of this Article, be regarded as
income derived from immovable property.
ARTICLE X
(1) Remuneration, including pensions, paid by, or on behalf of a
Contracting State, a political sub-division thereof or a local authority thereof to any
individual for service rendered to that State or sub-division or local authority in the
discharge of functions, of a public nature shall be exempt from tax in the other
Contracting State unless the individual is a national of that State without also being a
national of the first-mentioned State.
(2) The provisions of this Article shall not apply to payments in respect of services
rendered in connection with any trade or business carried on by a Contracting State, a
political sub-division thereof or a local authority thereof for purposes of profit.
ARTICLE Xl
(1) Profits or remuneration in respect of professional services
including services as director of a company or in respect of an employment derived by an
individual, who is a resident of a Contracting State, may be taxed in that other
Contracting State when the services are performed or the employment is exercised in that
other State.
(2) Notwithstanding the provisions of paragraph (1) an individual who is a resident of a
Contracting State, shall be exempt from tax in the other Contracting State in respect of
profits or remuneration from professional services (including services as director of a
company) or services rendered as an employee if :-
(a) he is temporarily present in that other State for a period or periods not exceeding in
the aggregate 183 days in the fiscal year concerned;
(b) the services are performed for or on behalf of a resident of the first-mentioned
State; and
(c) the profits or remuneration are borne a resident of the first-mentioned State (but not
by a permanent establishment which such resident has in the other State) and are subject
to tax therein.
(3) Notwithstanding the provisions of paragraph (2) of this Article, profits or
remuneration of public entertainers, such as stage, 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.
(4) Where an individual is in any year domiciled in Ireland and is in that year resident
in Pakistan for the purposes of Pakistan tax but not ordinarily resident in Pakistan, the
income, profits and gains accruing or arising to him without Pakistan during that year and
not received in or brought into Pakistan during that year shall not be included in his
income for that year subject to tax in Pakistan unless they are derived from a business
controlled, or a profession or vocation set up, in Pakistan.
(5) For the purposes of paragraph (4) of this Article an individual shall be deemed to be
not ordinarily resident in Pakistan in any year if-
(a)he has not been resident in Pakistan for the purposes of Pakistan tax in nine out of
the ten years preceding that year, or
(b) he has not during the seven years preceding that year been in Pakistan for a period
of, or for periods amounting in all to, more than two years.
ARTICLE XII
(1) Any pension (other than a pension 'to which paragraph (1) of
Article X applies) and any annuity, derived from sources within a Contracting State by an
individual, who is a resident of the other Contracting State, shall be exempt from tax in
the first-mentioned State, provided that a pension or annuity payable from a
superannuation fund approved or recognised under the tax laws of a Contracting State may
be taxed in that Contracting State.
(2) The term "pension", as used in this Article, means periodic payments made in
consideration of past services or by way of compensation for injuries received.
(3) The term "annuity", as used in this Article, 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 XIII
A resident of a Contracting State who visits the other Contracting State for a period not exceeding two years, for the purpose of teaching or of carrying out advanced study or research at a university, research institute, college, school or other educational establishment in that other Contracting State shall be exempt from tax in that other Contracting State in respect of any payments which he receives for such activity.
ARTICLE XIV
(1) An individual, who immediately before visiting a Contracting
State, is a resident of the other Contracting State, and is temporarily present in the
first-mentioned State solely as a student at a recognised university, college or school in
the first-mentioned State, or as a business apprentice therein, shall be exempt from tax
in the first-mentioned state on -
(a) all remittances from the other Contracting State for the purposes of his maintenance,
education or training; and
(b) any remuneration for personal services rendered in the first-mentioned State with a
view to supplementing the resources available to him for such purposes.
(2) An individual, who immediately before visiting a Contracting State is a resident of
the other Contracting State and is temporarily present in the first-mentioned State for a
period not exceeding two years for the purpose of study, research or training solely as a
recipient of a grant, allowance or award from a scientific, educational, religious or
charitable organisation or under a technical assistance programme entered into by one of
the Contracting Governments shall be exempt from tax in the first-mentioned State on -
(a) the amount of such grant, allowance or award; and
(b) any remuneration for personal services rendered in the first-mentioned State provided
such services are in connection with his study, research or training or are incidental
thereto.
(3) An individual, who immediately before visiting a Contracting State, is a resident of
the other Contracting State and is temporarily present in the first-mentioned State for a
period not exceeding twelve months solely as an employee of, or under contract with, the
Government or an enterprise of the other Contracting State for the purpose of acquiring
technical, professional or business experience shall be exempt from tax in the
first-mentioned State on:-
(a) all remittances from the other Contracting State for the purposes of his maintenance,
education or training; and
(b) any remuneration, so far as it is not in excess of 500 pounds sterling or its
equivalent sum in Pakistani rupees at the rate of exchange, for personal services rendered
in the first-mentioned State provided such services are in connection with his studies
training or are incidental thereto.
ARTICLE XV
(1) Subject to the provisions of the law of Ireland regarding the
allowance as a credit against Irish tax of tax payable in a territory outside Ireland,
Pakistan tax payable under the laws of Pakistan, whether directly or by deduction, in
respect of income from sources within Pakistan shall be allowed as a credit against any
Irish tax payable in respect of that income.
Where such income is an ordinary dividend paid by a company which is a resident of
Pakistan, the credit shall take into account (in addition to any Pakistan tax appropriate
to the dividend) the Pakistan "tax payable in respect of its profits by the company
paying the dividend, and where it is a dividend paid on participating preference shares
and representing both a dividend at the fixed rate to which the shares are entitled and an
additional participation in profits the Pakistan tax so payable by the company shall
likewise be taken into account in so far as the dividend exceeds that fixed rate.
(2) For the purposes of paragraph (1) of this Article, the term "Pakistan tax
payable" shall-
(a) include the agricultural income-tax imposed by the Government of any Province in
Pakistan and any tax of substantially similar character imposed after the date of
signature of this Convention by the Government of Pakistan or any Province or State in
Pakistan or by the Government of any territory to which the present Convention is extended
under paragraph (1) of Article XXIII; and
(b) be deemed to include any amount which would have been payable as Pakistan tax for any
year but for an exemption granted or a rebate in allowed for that year or any part thereof
under -
(i) any of the following provisions or statutory rules, that is to say -
(aa) section 15BB of the Pakistan Income Tax Act;
(bb) clauses (xiii) and Ixiv) of sub-section (2) of section 4 of the said Act;
(cc) Notification SRO 17(R), dated the 1st July, 1960, under section 60(I) of the said
Act; and
(dd) Finance Act, 1968 (No. XI of 1968) insofar as it relates to incentive rebates in tax
in respect of profits from exports, mining and processing, freezing, preserving and
canning of food, vegetable, fruit, grain, meat, fish and poultry), so far as they were in
force on, and have not been modified since the date of the signature of this Convention,
or have been modified only in minor respects so as not to affect their general character;
or
(ii) any other provisions or statutory rules which may subsequently be made granting an
exemption which is agreed by the taxation authorities of the Contracting States to be of a
substantially similar character, if it has not been modified thereafter or has been
modified only in minor respects so as not to affect its general character.
(3) Subject to the provisions of the Pakistan Income Tax Law regarding the allowance as a
credit against Pakistan tax of tax payable in a country outside Pakistan, Irish tax
payable, whether directly or by deduction, by a person resident in Pakistan, in respect of
income from sources within Ireland (including income accruing or arising in Ireland but
declined, under the provisions of the law of Pakistan, to accrue or arise in Pakistan)
shall be allowed as a credit against any Pakistan tax payable in respect of that income.
(4) For the purpose of paragraph (3), "Irish tax payable" shall be deemed to
include -
(i) the Irish tax which would have been payable on any profits granted tax incentive
exemption or relief in Ireland but for such tax incentive exemption or relief;
(ii) the Irish income-tax which would have been deductible from any dividend paid out of
profits granted tax incentive exemption or relief in Ireland but for such tax incentive
exemption or relief.
For the purposes of the foregoing provisions of this paragraph -
(a) "profits granted tax incentive exemption or relief in Ireland" means profits
which were not taken into account for the purposes of Irish tax or which were exempted or
relieved from Irish tax by reason of the provisions of one or more of the enactments set
out in (c) below;
(b) "dividend paid out of profits granted tax incentive exemption or relief in
Ireland" means a dividend received from a company resident in Ireland and paid out of
profits granted tax incentive exemption or relief in Ireland by reason of the provisions
of one or more of the enactment set out in (c) below;
(c) (i) The Finance (Profits of Certain Mines) (Temporary Relief from*
Taxation) Act, 1956 (No. 8 of 1956), as amended;
(*The word "from" has wrongly appeared as "form" in the
Official Gazette.)
(ii) Parts II and III of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of
1956), as amended;
(iii) Part II of the Finance (Miscellaneous Provisions) Act, 1958 No. 28 of 1958), as
amended; and
(iv) Part XXV of the Income Tax Act, 1967 (No. 6 of 1967), as amended.
(5) Income derived from sources in the United Kingdom by an individual who is resident in
Ireland shall be deemed, for the purposes of paragraph (3), to be income from sources in
Ireland if such income is not subject to United Kingdom incomes tax.
(6) Where tax is imposed by both Contracting States on income derived from sources outside
both Pakistan and Ireland by a person who is resident in Pakistan for the purposes of
Pakistan tax and is also resident in Ireland for the purposes of Irish tax, there shall be
allowed against the tax imposed by each Contracting State - on so much of that income as
is subjected to tax in both Contracting States - a credit which bears the same proportion
to the amount of that tax (as reduced by any credit allowed in respect of tax payable in
the country from which the income is derived) or to the amount of the tax imposed by the
other Contacting State (reduced as aforesaid), whichever is the less, as the former amount
(before any such reduction) bears to the sum of, both amounts (before any such reduction).
(7) For the purposes of this Article, profits or remuneration for personal (including
professional) services performed in a Contracting State shall be treated as income from
sources within that State, and the services of an individual whose services are wholly or
mainly Performed in ships or aircraft operated by a resident of a Contracting State (other
than ships or aircraft operated wholly or mainly between places in the other Contracting
State) shall be treated as performed in that State.
ARTICLE XVI
(1) Individuals who are residents of Pakistan shall be entitled
to the same personal allowances, reliefs and reductions for the purposes of Irish tax as
nationals of Ireland who are not resident in Ireland.
(2) Individuals who are residents of Ireland shall be entitled to the same personal
allowances, reliefs and reductions for the purposes of Pakistan tax as those to which
nationals of Pakistan who are not resident in Pakistan may be entitled.
ARTICLE XVII
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 exemption which may be granted to such officers.
ARTICLE XVIII
(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 for the administration of statutory
provisions against legal avoidance, in relation to the taxes which are the subject of this
Convention. Any information so exchanged shall be treated as secret and shall not be
disclosed to any persons other than persons, including a court or other adjudicating
authority, concerned with the assessment and collection of the taxes which are the subject
of this Convention or the determination of appeals in relation thereto. No information
shall, however, be exchanged which would disclose any trade, business, industrial or
professional secret or any trade process.
(2) In no case shall the provisions of paragraph (1) be construed so as to impose upon a
Contracting State the obligation to carry out administrative measures at variance with the
regulations and practice of that Contracting State or which would be contrary to its
sovereignty, security or public policy or to supply particulars which are not procurable
under the legislation of that and of the other Contracting State.
ARTICLE XIX
(1) Where a resident of a Contracting State shows proof that the
action of the tax authorities of the Contracting States has resulted or will result in
double taxation contrary to the provisions of this Convention, he shall be entitled, to
present his case to the State of which he is a resident. Should his claim be deemed worthy
of consideration the competent authority of the State to which the claim is made shall
endeavour to come to an agreement with the competent authority of the other State with a
view to the avoidance of double taxation.
(2) For the settlement of difficulties or doubts in the interpretation or application of
this convention or in respect of its relation to any Convention of a Contracting State
with a third State, the competent authorities of the Contracting States shall endeavour to
reach a mutual agreement as quickly as possible.
ARTICLE XX
The competent authorities of the Contracting States may consult together as may be necessary and communicate with each other directly for the purpose of giving effect to the provisions of this Convention.
ARTICLE XXI
The competent authorities of the Contracting States may prescribe regulations necessary to carry out the provisions of this Convention within the respective States.
ARTICLE XXII
(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.
(2) Where an enterprise of a Contracting State has a permanent establishment in the other
Contracting State, such permanent establishment shall not be subjected in that other
Contracting State to any taxation or any requirement connected therewith which is higher
or more burdensome than the taxation and connected requirements to which the enterprises
of such other Contracting State carrying on the same activities may be subjected.
(3) 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, higher or more burdensome than the
taxation and connected requirements to which similar enterprises of that first-mentioned
State are or may be subjected.
(4) Nothing contained in this Article shall be construed -
(a) as obliging a Contracting State to grant to persons not resident in that State those
personal allowances and reliefs for tax purposes which are by law available to persons who
are so resident;
(b) as obliging Ireland to grant to any company other than a company incorporated in
Ireland and resident therein for the purposes of income-tax, any relief or exemption
allowed in accordance with the provisions of;
(i) the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 (No.
8 of 1956), as subsequently amended, or
(ii) Part II of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), as
subsequently amended, or
(iii) Chapter II or Chapter III of Part XXV of the Income Tax Act, 1967 (No. 6 of 1967),
as subsequently amended,
(c) as affecting the law of Pakistan relating to the grant of rebate of tax to companies
fulfilling specified requirements regarding the declaration and payment of dividends
unless these requirements are fulfilled.
(5) The term "taxation", as used in this Article, means the taxes which are
mentioned in Article I.
ARTICLE XXIII
(1) This Convention may be extended, either in its entirety or
with modifications, to any territory. for whose international relations either of the
Contracting States is responsible and which imposes taxes substantially similar in
character to those which are the subject of the Convention and 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 to between the Contracting
States in notes to be exchanged for this purpose.
(2)The termination of this Convention under Article XXV shall, unless otherwise expressly
agreed to by both Contacting States, terminate the application of the Convention to any
territory to which it has been extended under this Article.
ARTICLE XXIV
(1) This Convention shall be ratified and the instruments of
ratification shall be exchanged as soon as possible at Dublin.
(2) The Convention shall come into force on the date on which the instruments of
ratification are exchanged and shall thereupon have effect:
(a) In Ireland:
(i) as respects income-tax (including super-.tax), for any year of assessment beginning on
or after the 6th day of April, 1968;
(ii) as respects corporation profits tax, for any accounting period beginning on or after
the first day of April, 1968 and for the unexpired portion of any accounting period
current at that date;
(b) In Pakistan:
as respects income-tax and super-tax for any year of assessment beginning on or after the
first day of July, 1968.
ARTICLE XXV
This Convention shall continue in effect indefinitely but either
of the Contracting States may, on or before the thirtieth day of June in any calendar year
not earlier than the year 1973, give to the other Contracting State written notice of
termination and, in such event, the Convention shall cease to be effective:
(a) In Ireland:
(i) as respects income-tax (including super-tax), for any year of assessment beginning on
or after the sixth day of April in the calendar year next following that in which the
notice is given;
(ii) as respects corporation profits tax, for any accounting period beginning on or after
the first day of April in the calendar year next following that in which notice is given
and for the unexpired portion of any accounting period current at that date;
(b) In Pakistan:
as respects income-tax and super-tax, for any year of assessment beginning on or after the
first day of July in the calendar year next following that in which the notice is given.
In witnesses whereof the undersigned duly authorised thereto, have signed this Convention
and have affixed thereto their seals.
DONE at Paris this day of April, 1973 in duplicate, in the English language.
SD/- |
SD/- |
RIAZ AHMAD
Additional Secretary
No. 2(12) T.L./62
Published in the Gazette of Pakistan, Extraordinary, Pages 309-22(II), dated
15-02-1975.
|
|
|
|
|
|
| Home | About Us | Contact | Information Resources |