The new double taxation agreement (DTA) between Switzerland and Pakistan entered into force on 29 November 2018.
As can be seen from the press release issued by the Federal Department of Finance (FDF) on 3 December 2018, the new DTA between Switzerland and Pakistan entered into force on 29 November 2018. It replaces the existing agreement between the two countries. The provisions of the agreement will be applied from 1 January 2019.
Switzerland and Pakistan signed the new DTA on 21 March 2017 in Islamabad. It entered into force on 29 November 2018 following completion of the approval process in both contracting states.
Among other things, the DTA contains improvements in the area of taxation of service charges and of gains from the sale of major holdings. These rules promote economic exchange in bilateral relations. It also contains an arbitration clause which is intended to guarantee that double taxation is avoided. The agreement also contains a provision on the exchange of information in accordance with the international standard, as well as an abuse provision in accordance with the minimum standard of the G20/OECD BEPS project.
The press release and the related documents are available here.
