The Asia Internet Coalition (AIC), representing global digital media giants, has expressed serious concerns about Pakistan’s domestic tax law definition of a permanent establishment (PE).In a letter to the Chairman of the Federal Board of Revenue (FBR), the AIC stated that the amendments made to the PE definition are not aligned with international best practices and could potentially harm Pakistan’s economy.
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The coalition highlighted concerns about the wider impacts of the virtual PE amendment on foreign investment and the risk of retaliatory measures from other countries, including the United States. The AIC emphasized the negative consequences for the growth of Pakistan’s technology sector.
