Foreign govt officials entitled to tax exemption

Foreign govt officials entitled to tax exemption

Section 43 of Income Tax Ordinance, 2001 has granted tax exemption on the income of foreign government officials.

 The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.  

Following is the text of Section 43 of the Income Tax Ordinance, 2001:

43. Foreign government officials.— Any salary received by an employee of a foreign government as remuneration for services rendered to such government shall be exempt from tax under this Ordinance provided —

(a) the employee is a citizen of the foreign country and not a citizen of Pakistan;

(b) the services performed by the employee are of a character similar to those performed by employees of the Federal Government in foreign countries; and

(c) the foreign government grants a similar exemption to employees of the Federal Government performing similar services in such foreign country.

(Disclaimer: The text of above section is only for information. Team makes all efforts to provide the correct version of the text. However, the team is not responsible for any error or omission.)

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