Section 46 of Income Tax Ordinance, 2001 has granted tax exemption to a non-resident person on a security issued by a resident person.
Following is the text of Section 46 of the Income Tax Ordinance, 2001:
46. Profit on debt.— Any profit received by a non-resident person on a security issued by a resident person shall be exempt from tax under this Ordinance where—
(a) the persons are not associates;
(b) the security was widely issued by the resident person outside Pakistan for the purposes of raising a loan outside Pakistan for use in a business carried on by the person in Pakistan;
(c) the profit was paid outside Pakistan; and
(d) the security is approved by the 1[Board] for the purposes of this section.
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