FBR briefs Chinese Ambassador about tax exemptions to foreign investors

A detailed briefing was given by the Federal Board of Revenue (FBR), headed by its Chairman, Mohammad Jehanzeb Khan, to the Ambassador of China to Pakistan, Yao Jing, and a team of Chinese investors regarding the tax exemption policies for foreign investors in Pakistan. They were also briefed on the tax exemptions available while investing under the China-Pakistan Economic Corridor (CPEC). Finally, the FBR also briefed on the custom tariff concessions present under the Pakistan-China Free Trade Agreement (FTA).

The Federal Board of Revenue (FBR) Tuesday briefed Chinese Ambassador to Pakistan Yao Jing and Chinese investors about the available tax concessions and exemptions to foreign investors under Pakistani tax laws. Sources told Business Recorder that the Chinese Ambassador to Pakistan Yao Jing and a delegation of Chinese investors met FBR team of tax managers headed by FBR Chairman Mohammad Jehanzeb Khan here at the FBR House on Tuesday.

The FBR side included FBR chairman, member operations and member policy of Inland Revenue and Customs.Both the sides discussed the importance of China-Pakistan Economic Corridor – a long-term and systematic project to promote economic cooperation through collaboration on Gwadar port, energy, transportation infrastructure and industrial cooperation. Tax exemptions available under the China Pakistan Economic Corridor (CPEC) projects were also discussed.

Tax authorities briefed Chinese team about the facility of advance ruling available to foreign investors. Through this facility non-residents can obtain, in advance, a binding ruling on the issues that could arise in determining their tax liabilities at a later stage.

The FBR also informed the Chinese investors about the customs tariff concessions available under Pakistan Customs Tariff and imports under Pak-China Free Trade Agreement (FTA).

The issues relating to the imports and applicability of duties and taxes on imports were also highlighted.

The FBR also informed the investors about the agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income signed between Pakistan and China. Tax authorities assured maximum facilitation to the new investors in Pakistan, sources added.