Media to pay 20pc final tax on foreign produced advertisements

ISLAMABAD: Federal Board of Revenue (FBR) has said that 20 percent as final tax will be collected from person paying an amount against production of commercial or advertisement to a foreign entity.

 

 

The FBR recently issued Income Tax Ordinance, 2001 under which the tax has been imposed through Section 152A.

The section says that every person responsible for making payment directly or through an agent or intermediary to a non resident person for foreign produced commercial for advertisement on any television channel or any other media shall deduct tax at the rate of twenty percent from the gross amount paid.

The tax deductable shall be final tax on the income of non-resident person arising out of such payment, the FBR said.

According to Withholding Tax Card for Tax Year 2019, the FBR said that the 20 percent tax will be collected by every person responsible for making payment to a non-resident person at the time of payment.

The FBR further said that the tax to be deducted from non-resident while making payments for foreign produced commercial for advertisement on any television channel or any other media.

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