ISLAMABAD, March 28: Pakistan has inked a revised treaty with Austria for the avoidance of double taxation between the two countries, a senior official told Dawn.

The convention will be sent to cabinet shortly for its formal ratification. Vakil Ahmed Khan, member direct taxes, said the agreement would be an important step towards strengthening bilateral relations and promotion of investment between the two countries. Mr Khan said that Pakistan would get benefit from sharing of tax on shipping business, immovable property, interest, royalties, fee for technical services and capital gains.

He said under the treaty Pakistan would tax any income of Austrian resident from ship businesses in the country at a rate of 50 per cent, while he will be given the tax credit in Austria against it. And in case of immovable property owned by any Austrian resident in Pakistan will be taxed against which he will be given tax credit by the Austrian government.