ISLAMABAD, May 31 : The government has notified the ratification of the agreement for avoidance of double taxation between Pakistan and Kuwait.

The agreement will come into force retrospectively from January 1, 1999, said an income tax notification issued on Friday.

Pakistan and Kuwait had signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income on June 30, 1998.

According to the notification, the provisions of the said agreement will come into force in both states in respect of taxes withheld at source, for amounts paid or credited on or after the January 1, 1999.

Similarly, in case of other taxes, for taxable periods beginning on or after the first day of January 1, 1999.

The notification No SRO291, which reads as: “Whereas the Islamic Republic of Pakistan and the State of Kuwait signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income on June 30, 1998, corresponding to 6th Rabi-ul-Awwal, 1419 H. Whereas in terms of its article 29, the agreement was subject to ratification and was to enter into force upon the exchange of instruments of ratification. And whereas the instruments of ratification were exchanged on September 3, 2000 and thus, the agreement has entered into force; now therefore in exercise of the powers conferred by section 163 of the income tax ordinance 1979 (ordinance no XXXI of 1979), the federal government is pleased to direct that the provisions of the said agreement have become effective in both contracting states. a) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January One thousand nine hundred ninety nine (1-1-1999); b) in respect of other taxes, for taxable periods beginning on or after the first day of January one thousand nine hundred ninety nine (1- 1-1999).”