Business

BERN – The Swiss Federal Council has adopted a dispatch on the implementation of a new double taxation agreement (DTA) with Pakistan, according to the Tax News.

The DTA was signed in March. According to the Swiss Federal Council, the agreement makes a number of improvements to the previous DTA, including on the taxation of service fees and capital gains from the disposal of a shareholding of more than 20 percent of the capital of a company.

The new agreement also contains an anti-abuse clause for the prevention of unwarranted claims of treaty benefits, and an arbitration clause designed to increase legal certainty for taxpayers.

In addition, there is an administrative assistance clause, which is in line with the current international standard for the exchange of information upon request.