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Small company defined by income tax ordinance

Income Tax Ordinance, 2001 has defined the meaning of ‘small company for the purpose of levying income tax.

The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained ‘small company as a company registered on or after the first day of July, 2005, under the Companies Ordinance, 1984 (XLVII) of 1984, which,—

(i) has paid up capital plus undistributed reserves not exceeding fifty million rupees;

(ia) has employees not exceeding two hundred and fifty any time during the year;

(ii) has annual turnover not exceeding two hundred and fifty million rupees; and

(iii) is not formed by the splitting up or the reconstitution of company already in existence.