December 30, 2006	Saturday	Zilhaj 08, 1427

ISLAMABAD, Dec 29: Pakistan and Saudi Arabia have notified the Convention for the Avoidance of Double Taxation and Prevention of Tax-Evasion with respect to taxes on income.

The treaty is believed to give some relief to Pakistanis working in Saudi Arabia from the proposed move of Saudi Shura to levy income tax on the non-residents.

The convention would come into effect, retrospectively from July 1, 2006, in Pakistan while it would be implemented from January 1 in Saudi Arabia.

Both the countries had signed the agreement on Feb 2, 2006, following extensive negotiations between their tax officials.

The convention covers taxation of income from immovable property; business profits; shipping and air transport; associated enterprises; dividends; income from debt; claims; royalties; capital gains; independent personal services; dependent personal services; directors' fees; artistes and sports persons; pensions; government service; students; teachers and researchers and other income groups.