DTT with Pakistan enters into force

UniCredit Bank Czech Republic and Slovakia,a.s.
Tue, 03/11/2015

 

The Ministry of Finance of Czech Republic announced that the DDT with Pakistan, signed in Prague on 2 May 2014, entered into force on 30 October 2015.
The agreement, which will be published in both Czech and English in the Collection of International Treaties, will be applied as follows:

a)  in case of Czech Republic:

  • in respect of withheld taxes at source on amounts paid or credited on 1 January 2016 or later; and
  • in respect of other taxes on income, to income in any taxable year beginning 1 January 2016 or later

b)  in case of Pakistan:

  • in respect of withheld taxes at source on amounts paid or credited on 1 July 2016 or later; and
  • in respect of other taxes on income, to income in any taxable year beginning 1 July 2016 or later

Impact on investors: The DTT between Czech Republic and Pakistan, which entered in force on 30 October 2015, is expected to help foster a business friendly environment and encourage foreign investments in both countries.