Islamabad, 4 February 2023 (TDI): The third round of negotiations on the Convention for the Avoidance of Double Taxation between Pakistan and Afghanistan took place from February 1–3 at the Federal Board of Revenue (FBR) House in Islamabad.

The delegations from Pakistan and Afghanistan participated in the negotiations. Both delegations extensively deliberated on all outstanding issues identified during the second round of negotiations, which took place from December 27th to December 30th, 2021.

Overview of the third round of negotiations

The talks took place in a cordial atmosphere, with both parties presenting their points of view. Following a thorough discussion, the two sides agreed on a consensus drafting of the Convention to Avoid Double Taxation between Pakistan and Afghanistan.

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The heads of the two delegations signed off on the agreed-upon draft. Chairman FBR, Asim Ahmad thanked the Afghan delegation for visiting Pakistan.

He expressed hope that the Convention would strengthen economic relations between the two brotherly countries.

Nida Muhammad Seddiqi, Revenue Legal Services Director, led the Afghan delegation. From Pakistan’s side, Sajidullah Siddiqui, Director General of International Tax Operations & FBR, led the delegation.

First round of negotiations

The first round of negotiations between Pakistan and Afghanistan on the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion concerning Taxes on Income was held in Islamabad on March 28-30, 2016.

The two delegations reached an agreement on the majority of the Convention’s provisions. They decided to address the remaining issues in the second round of talks. The heads of the two delegations initialed the agreed-upon text at the end of three days of negotiations.

Second round of negotiations

Pakistan and Afghanistan conducted the second round of talks on the double taxation agreement (DTA) on December 27, 2021. In this vein, a four-member delegation of the Afghanistan Revenue Department (ARD) reached Pakistan.

Both delegations discussed all outstanding issues from the first round of negotiations, which took place in Islamabad from March 28th to March 30th, 2016. Both parties presented and appreciated each other’s positions.

However, it was agreed that the unresolved issues would be discussed and finalized in the third round of negotiations, which would take place on mutually agreed-upon dates in Kabul, Afghanistan.

It is pertinent to note that the third round took place in Pakistan because of the security concerns in Afghanistan.