“This Convention will enhance legal certainty for Lithuanian businesses and residents operating in Pakistan and will ensure that the same income is not taxed twice in different countries. Moreover, the Convention will contribute to the international efforts to combat tax avoidance, abuse and profit shifting in implementation of instruments approved by the OECD and G20”, Minister of Finance K. Vaitiekūnas says.
Currently, Lithuania has double taxation conventions with 58 countries. The new Convention with Pakistan will facilitate bilateral economic cooperation, investments and trade, while strengthening tax transparency and preventing tax avoidance and tax evasion.
The Convention will come into force only after its ratification by both parties. Its provisions will apply from the calendar year following the Convention coming into force – in Lithuania from 1 January, while in Pakistan from 1 July. The ratification of the Convention is subject to the approval by the Parliament.
