Pakistan (tax/treaty)

ELIMINATION OF DOUBLE TAXATION 1. Where a resident of a Contracting State derives income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first- mentioned State shall, subject to the provisions of paragraph 2, exempt such income from tax. 2. Where a resident of a Contracting State derives items of income which, in accordance with the provisions of Article 10 and 11, may be taxed in the other Contracting State, the first-mentioned State shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in that other State. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from that other State. 3. In the case of the Kingdom of Saudi Arabia, the methods for elimination of double taxation will not prejudice to the provisions of the Zakat collection regime as regards Saudi nationals.