Switzerland, Pakistan sign new tax treaty

Switzerland and Pakistan signed a tax treaty on March 21, Switzerland’s Federal Council has announced.

The agreement, which would replace the countries’ existing tax treaty, would amend provisions on the taxation of service fees and capital gains resulting from the sale of qualifying participations.

The new agreement also contains an arbitration clause, a provision on the exchange of information, and an anti-abuse provision meeting OECD/G20 base erosion profit shifting (BEPS) agreement minimum standards.

The agreement must be ratified by both countries; it is not yet in force.

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