All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
AGREEMENTS
FOR TRANSFER OF TECHNOLOGY
PAYMENT OF ROYALTY/TECHNICAL FEE TO THE
FOREIGN COLLABORATORS:
Attention
of Authorized Dealers in invited to F.E.
Circular No.101 dated the 23rd December, 1992
regarding payments of Royalty / Technical Fee to the foreign
collaborators.
2.
The following sub-Para (iii) may be added in paragraph 10(a)
III, Chapter XIV of the Foreign Exchange manual, 1987:-
"(iii)
Payment of income tax supported by a certificate from
the auditors of the paying firm. In case it is claimed
that the amount of Royalty/Technical Fee is exempt from
levy of Pakistan taxes, the applicant should invariably
produce a certificate to this effect from the competent
tax authority and the said certificate should be enclosed
in original with the prescribed application to be sent
alongwith other relevant documents while reporting the
transaction to the Foreign Exchange Department".
3.
Please bring the above to the notice of your constituents
concerned.
