Finance Bill 2023 Proposes Reduced Tax Rates on Additional Advances for IT Sector

Jun 10

Budget 2023-2024, IT & Telecom, Taxation

Finance Bill 2023 Proposes Reduced Tax Rates on Additional Advances for IT Sector

The Finance Bill 2023 has introduced a proposal to reduce tax rates on additional advances for Information Technology (IT) services and IT-enabled services in Pakistan. The aim is to promote and support the growth of the IT sector. The key provisions related to this proposal are as follows:

by Hamza Shahnawaz

Government Introduces 1% Minimum Tax Rate for PSX Listed Companies

Jun 10

Budget 2023-2024, Stock & Commodity

Government Introduces 1% Minimum Tax Rate for PSX Listed Companies

The government of Pakistan has announced a new minimum tax rate of 1% for companies listed on the Pakistan Stock Exchange (PSX). This proposal is part of the amendments to tax rates related to the Minimum Tax under the Income Tax Ordinance, 2001, as outlined in the Finance Bill, 2023.

by Faisal Shahnawaz

Finance Bill 2023 Introduces New Tax Slabs for Super Tax

Jun 10

Budget 2023-2024, Taxation

Finance Bill 2023 Introduces New Tax Slabs for Super Tax

Islamabad, June 10, 2023: The recently introduced Finance Bill, 2023 has brought forth new tax slabs for the super tax applicable for various tax years. The rates mentioned below are applicable for tax year 2022 and onwards:

by Faisal Shahnawaz

Pakistan Imposes 10% Income Tax on Bonus Shares Issued by Companies

Jun 10

Budget 2023-2024, Stock & Commodity

Pakistan Imposes 10% Income Tax on Bonus Shares Issued by Companies

The government of Pakistan has introduced a new measure through the Finance Bill, 2023, which imposes a 10 percent income tax on the issuance of bonus shares by companies to their shareholders. This tax is implemented under a new section, 236Z, of the Income Tax Ordinance, 2001.

by Faisal Shahnawaz

New Provision Requires Employers of Foreign Workers to Pay Advance Tax

Jun 10

Budget 2023-2024, Taxation

New Provision Requires Employers of Foreign Workers to Pay Advance Tax

The Finance Bill 2023 has proposed a significant provision that mandates employers or agencies of foreign workers to pay advance tax. This development aims to streamline taxation processes and ensure compliance with the Income Tax Ordinance, 2001.

by Shahnawaz Akhter

Pakistan Introduces International Centre of Tax Excellence

Jun 10

Budget 2023-2024, Taxation

Pakistan Introduces International Centre of Tax Excellence

Pakistan is taking a significant step in advancing its tax policy development by establishing the International Centre of Tax Excellence.

by Shahnawaz Akhter

Finance Bill 2023 Proposes Tax Credit for Construction of New Houses

Jun 10

Budget 2023-2024, Taxation

Finance Bill 2023 Proposes Tax Credit for Construction of New Houses

The Finance Bill 2023 aims to boost the construction industry by introducing a tax credit for the construction of new houses.

by Shahnawaz Akhter

Tax Exemptions Introduced for Qualified Investments under Foreign Investment Act

Jun 10

Budget 2023-2024, Taxation

Tax Exemptions Introduced for Qualified Investments under Foreign Investment Act

The Finance Bill 2023 has brought forth a new section, 44A, to the Income Tax Ordinance, 2001. This section provides exemptions for taxes on income, withholding taxes, minimum and final taxes, as well as certain provisions of the Ordinance, for qualified investments as specified in the Foreign Investment (Promotion and Protection) Act, 2022.

by Shahnawaz Akhter

Finance Bill 2023 Introduces Additional Tax on Unexpected Income, Profits, and Gains

Jun 10

Budget 2023-2024, Taxation

Finance Bill 2023 Introduces Additional Tax on Unexpected Income, Profits, and Gains

The Finance Bill 2023 has introduced a new section, 99D, to the Income Tax Ordinance, 2001, enabling the government to impose an additional tax on certain income, profits, and gains.

by Shahnawaz Akhter

FBR Empowered to Recover Outstanding Liabilities under Other Laws

Jun 10

Budget 2023-2024, Taxation

FBR Empowered to Recover Outstanding Liabilities under Other Laws

KARACHI: In a notable development, the Federal Board of Revenue (FBR) has been granted the authority to recover outstanding liabilities under various statutes or laws. Section 146D of the Income Tax Ordinance, 2001, now empowers the Commissioner (Inland Revenue) to recover such liabilities and deposit the proceeds into the designated account specified in the respective […]

by Shahnawaz Akhter