On 21 March 2017, Switzerland and Pakistan signed a new double taxation agreement (DTA) in the field of income taxes.
According to a press release by the Federal Department of Finance (FDF) dated 21 March 2017, the current DTA between Switzerland and Pakistan dated 19 July 2005 is to be replaced by the new agreement.
The new DTA contains, among other things, improvements in the area of taxation of service charges and of gains from the sale of major holdings. The agreement also contains an arbitration clause, a provision on the exchange of information in accordance with international standards, and a misuse provision in accordance with the minimum standard set by the OECD/G20 BEPS project.
The new DTA must first go through the parliamentary approval process in both countries before it can enter into force.