ISLAMABAD, Aug 28: Pakistan and Yemen are likely to conclude an agreement in October for the avoidance of double taxation between the two countries.

Central Board of Revenue spokesman Vakil Ahmed Khan said on Thursday tax delegations from Pakistan and Yemen after an extensive deliberation during the last four days had agreed on 11 out of 20 Articles of the proposed agreement.

He said both sides also agreed to develop consensus on remaining articles and proposed to have another round of talks in Yemen before the meeting of joint ministerial commission of the two countries which was expected to be held in October.

The CBR spokesman said Charge d’ Affairs, Yemen Embassy at Islamabad, Mohammad Nasser, also participated in the opening and closing sessions and expressed wishes for the early conclusion of the agreement.

According to the spokesman, the proposed agreement essentially emphasizes the concept of taxation on income of international business transactions in the home country of the recipient.

It clearly defines the tax rules that will apply in case of cross-border business transactions. Although at present Pakistan’s trade with Yemen is not much, there still exists considerable potential for its expansion and reciprocal investments, he added.

The agreement when concluded will be an important step towards strengthening bilateral economic relations and promotion of investment, he said and added thus it would be beneficial for both the countries.

Pakistan’s delegation was led by member direct taxes Vakil Ahmed Khan, while Yemen delegation was led by Ahmed Mohammed Rajlh, director general, Control and Inspection of Yemen.