Exchange companies to pay 0.6pc withholding tax on cash withdrawal

Exchange companies to pay 0.6pc withholding tax on cash withdrawal

ISLAMABAD: The concessionary rate of tax allowed to exchange companies on cash withdrawal has been linked to active taxpayers list. The amendment has been brought through Tax Laws (Second Amendment) Ordinance, 2021, officials in Federal Board of Revenue (FBR) said.

The rate of tax is 0.15 percent under section 231A on cash withdrawal by an exchange company, duly licensed and authorized by the State Bank of Pakistan, exclusively dedicated for its authorized business-related transactions, subject to the condition that a certificate issued by the concerned Commissioner Inland Revenue for a financial year mentioning details and particulars of its Bank Account being used entirely for business transactions is provided.

Now, tax at rate of 0 percent will be charged 0.6 percent if the exchange company is not on active taxpayers list.