KARACHI: Section 12 of Income Tax Ordinance, 2001 explained the salary income for imposition of tax. Any amount received as salary by employees from employers is chargeable to tax.
(more…)Tag: Federal Board of Revenue
The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.
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Heads of income for imposition of tax
KARACHI: Section 11 of Income Tax Ordinance, 2001 deals with identifying categories of income. These incomes are chargeable to tax. The Federal Board of Revenue (FBR) issued the updated Income Tax Ordinance, 2001. The Ordinance incorporated amendments brought through Finance Act, 2021.
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Taxable income, total income under statute
In a bid to provide clarity on the computation of taxable income and total income for individuals in Pakistan, Sections 9 and 10 of the Income Tax Ordinance, 2001 play a pivotal role.
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General provisions for final tax regime
General provisions for final tax regime have been issued by the Federal Board of Revenue (FBR) through an updated version of the Income Tax Ordinance, 2001.
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Tax on builders, developers under Section 7C, 7D
ISLAMABAD: Section 7C and Section 7D of Income Tax Ordinance, 2001 deal with tax on income of builders and developers.
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Tax on profit on debt under Section 7B
The Federal Board of Revenue (FBR) has introduced a pivotal addition to the Income Tax Ordinance, 2001, with the incorporation of Section 7B. This section specifically addresses the taxation of profit on debt derived by individuals or non-corporate entities.
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Tax on shipping, air transport income of non-residents
ISLAMABAD: Section 7 of Income Tax Ordinance, 2001 deals with tax chargeability on shipping, air transport income of non-residents.
The Federal Board of Revenue (FBR) issued the updated Income Tax Ordinance, 2001. The Ordinance incorporated amendments brought through Finance Act, 2021.
Section 7: Tax on shipping and air transport income of a non-resident person.— (1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division V of Part I of the First Schedule, on every non-resident person carrying on the business of operating ships or aircrafts as the owner or charterer thereof in respect of –
(a) the gross amount received or receivable (whether in or out of Pakistan) for the carriage of passengers, livestock, mail or goods embarked in Pakistan; and
(b) the gross amount received or receivable in Pakistan for the carriage of passengers, livestock, mail or goods embarked outside Pakistan.
(2) The tax imposed under sub-section (1) on a non-resident person shall be computed by applying the relevant rate of tax to the gross amount referred to in sub-section (1).
(3) This section shall not apply to any amounts exempt from tax under this Ordinance.
Section 7A. Tax on shipping of a resident person.—(1) In the case of any resident person engaged in the business of shipping, a presumptive income tax shall be charged in the following manner, namely:—
(a) ships and all floating crafts including tugs, dredgers, survey vessels and other specialized craft purchased or bare-boat chartered and flying Pakistan flag shall pay tonnage tax of an amount equivalent to one US $ per gross registered tonnage per annum;
(b) ships, vessels and all floating crafts including tugs, dredgers, survey vessels and other specialized craft not registered in Pakistan and hired under any charter other than bare-boat charter shall pay tonnage tax of an amount equivalent to fifteen US cents per ton of gross registered tonnage per chartered voyage provided that such tax shall not exceed one US $ per ton of gross registered tonnage per annum:
Explanation.—For the purpose of this section, the expression “equivalent amount” means the rupee equivalent of a US dollar according to the exchange rate prevalent on the first day of December in the case of a company and the first day of September in other cases in the relevant assessment year; and
(c) A Pakistan resident ship owning company registered with the Securities and Exchange Commission of Pakistan after the 15th day of November, 2019 and having its own sea worthy vessel registered under Pakistan Flag shall pay tonnage tax of an amount equivalent to seventy five US Cents per ton of gross registered tonnage per annum.
(2) The provisions of this section shall not be applicable after the 30thJune, 2030.”
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Tax on payment to non-residents Section 6
ISLAMABAD: Section 6 of Income Tax Ordinance, 2001 deals with tax chargeability on certain payments made to non-residents.
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Section 5 of Income Tax Ordinance, 2001
ISLAMABAD: Section 5 of Income Tax Ordinance, 2001 deals with income of a persons who receives dividend from a company.
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Section 4B of Income Tax Ordinance, 2001: super tax
ISLAMABAD: The Section 4B of the Income Tax Ordinance, 2001 deals with super tax for rehabilitation of temporarily displaced persons. The Federal Board of Revenue (FBR) issued the updated Income Tax Ordinance, 2001.
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