Islamabad, July 2, 2025 – Think tax amnesties are a thing of the past? Think again. In a surprising twist, the Finance Act, 2025 may have quietly reintroduced an amnesty—but this time, it’s wrapped in legalese and called the “declaration of sufficient sources.” Confused? Let’s walk through it.
(more…)Tag: tax amnesty
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Ineligible persons get tax amnesty in Pakistan
Karachi, June 30, 2025 – In a dramatic turn that defies earlier promises and fiscal discipline, the government has secretly opened the doors of tax amnesty to ineligible persons under the garb of “declaration of sufficient sources.”
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Tax Package for Real Estate Unlikely Before Budget 2025-26
Islamabad, February 9, 2025 – The government is unlikely to introduce any tax package for the real estate sector before the presentation of the budget for the fiscal year 2025-26.
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Pakistan Commits No Tax Amnesty in 2024-25
Islamabad, May 11, 2024: Pakistan has pledged not to launch any tax amnesty schemes in fiscal year 2024-25 as part of its commitment to bolster the country’s fiscal sustainability and ensure continuous fiscal consolidation.
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Pakistan Announces Tax Amnesty for 2024
Karachi, January 17, 2024 – Pakistan has taken a significant step to boost its economy by announcing a tax amnesty for certain foreign currency transactions during the tax year 2024.
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Pakistan withdraws tax amnesties for industrial promotion
KARACHI: Pakistan has withdrawn tax amnesties for industrial promotion through Finance Act, 2022 by making certain amendments to the Income Tax Ordinance, 2001,
READ MORE: Pakistan expands tax exemptions under foreign treaties
Analysts at PwC A. F. Ferguson & Co. explained amendments made through Finance Act, 2022 to Sections 59C, Section 65H and Section 100F of the Income Tax Ordinance, 2001.
READ MORE: Capital gains tax revamped on disposal of immovable properties
The analysts said that amnesties, introduced vide the Income Tax (Amendment) Ordinance, 2022, with respect to the following investments have been withdrawn with effect from March 2, 2022:-
a) New & existing industrial undertakings – Section 59C;
READ MORE: Tax on deemed income arising from capital assets in Pakistan
b) Industries owned by overseas Pakistanis and resident Pakistanis having declared foreign assets
– Section 65H; and
c) Revival of sick units – Section 100F.
READ MORE: Pakistan imposes tax at 10% on money transfers to non-residents
Through the Finance Act, 2022 certain tax credits for industrial promotion under Section 60C, Section 62 and Section 62A of Income Tax Ordinance, 2001 have also been withdrawn.
Tax credits and deductible allowances in respect of the following, have been withdrawn:-
a) Profit on debt incurred on house financing – Section 60C;
b) Investment in new shares of listed companies, mutual funds or life insurance policies, Sukuk, etc. – section 62; and
c) Purchase of Health insurance policies – section 62A.
READ MORE: Significant changes to sales tax laws through Finance Act 2022
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FBR explains tax amnesty on equity investment
ISLAMABAD: The Federal Board of Revenue (FBR) has explained tax amnesty granted on equity investment for already existing or new industrial under taking.
The government has granted immunity from questioning of source of funds through Income Tax (Amendment) Ordinance, 2022.
A new section 100F has been inserted to the Income Tax Ordinance, 2001 to give immunity from probe under Section 111 of the Income Tax Ordinance, 2001.
READ MORE: Tax amnesty launched for setting up new industrial units
To explain this important change, the FBR issued an explanation circular No. 13 of 2022.
The FBR said in order to promote industrialization in the country, immunity from probe under section 111 of the Ordinance has been granted on equity investment made by eligible persons in a new company formed for establishing an industrial undertaking or to an existing company being an industrial undertaking (for investment in expansion and modernization) after paying an amount of tax equal to five percent on such investment and upon fulfilling other conditions as mentioned in this section.
The amount of undeclared funds for investment has to be credited into a dedicated bank account of such company before due date of filing of statement i.e. September 30, 2022 and can only be used either for purchase or import of plant and machinery including IT hardware through a letter of credit or software and IT services, or for construction of building and structure in case of new industrial undertaking and for construction of only manufacturing premises in case of existing unit.
The term modernization has been defined in this section which includes acquisition or upgradation of IT hardware, software and IT services.
READ MORE; FBR launches new Active Taxpayers List; return filing grows by 58%
The minimum qualifying equity investment to avail benefit under this section is Rs50 million.
The tax paid under this section is not refundable or adjustable against any other tax liability of the company and the declarant will be entitled to incorporate the amount of declared funds in his wealth statement, financial statements or books of accounts as the case may be.
The industrial undertaking established under the provision of this section, as the case may be, will have to commence its commercial production by June 30, 2024 and a certificate issued by the Engineering Development Board to that effect is required to be furnished by the company with income tax return for tax year 2024.
READ MORE: POS invoice verification for prize scheme surges by 63%
In case of misrepresentation or suppression of facts, statement filed under sub-section (1) will be treated as void ab-initio and all the provisions of Income Tax Ordinance, 2001 will apply accordingly. It is emphasized that investment opportunity offered to investors under this section is not an amnesty scheme. Rather, it is a conditional tax concession.
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Tax amnesty launched for setting up new industrial units
ISLAMABAD: The federal government on Thursday launched a tax amnesty scheme for setting up new industrial units. The amnesty scheme has been introduced through a presidential ordinance.
Under the amnesty scheme, the Federal Board of Revenue (FBR) will not ask the source of funds to be utilized for setting up the new industrial undertaking. However, five per cent tax shall be levied for whitening the money.
READ MORE: FBR issues new list of active taxpayers
According to the Income Tax (Amendment) Ordinance, 2022, any eligible person may file a statement by September 30, 2022, declaring the amount of funds (which have not been declared in any of the returns of income up to tax year 2021 filed by December 31, 2021) for investment in a new company formed for establishing and operating an industrial undertaking in accordance with this section.
The funds shall be deposited in rupees in a dedicated bank account in Pakistan as equity of the newly formed company, incorporated under the Companies Act, 2017 (XIX of 2017), before the filing of the statement and such funds shall only be used for purchase or import of plant and machinery through letter of credit or for construction of building and structure for the industrial undertaking.
READ MORE; FBR launches new Active Taxpayers List; return filing grows by 58%
The minimum amount which would qualify for the purposes of this section shall be fifty million rupees.
The provisions of section 111 of the Income Tax Ordinance, 2001 (related to undisclosed income) shall not apply to the funds declared subject to fulfilment of conditions as laid down in this section and payment of an amount equal to five percent thereof along with the statement filed.
The new industrial undertaking in which such investment is made shall commence commercial production by the June 30, 2024 and a certificate to that effect, duly issued by Engineering Development Board, is submitted to the Commissioner along with the return filed for tax year 2024.
READ MORE: POS invoice verification for prize scheme surges by 63%
Any amount of tax paid under this section shall not be refundable or adjustable against any other tax liability of the declarant.
Where a declarant has paid tax under this section in respect of funds declared under sub-section (1), the declarant shall be entitled to incorporate the same in his wealth statement, financial statements or books of accounts, as the case may be.
READ MORE: Sales tax exempted on all petroleum products
For the purposes of this section, eligible person means all persons, except-
(a) holders of public office, their spouses and dependent children;
(b) a public company as defined in clause (47) of section 2 of this Ordinance;
(c) a person who has filed a declaration under the Voluntary Declaration of Domestic Assets Act, 2018, the Foreign Assets (Declaration and Repatriation) Act, 2018, or the Assets Declaration Act, 2019;
(d) a person that has been declared a bank loan defaulter by a bank or a financial institution within the last three years; or
READ MORE: FBR registration made mandatory for housing projects
(e) a director of a company who has been declared a bank loan defaulter by a bank or a financial institution within the last three years.
(7) The provisions of this section shall not apply to —
(a) any proceeds of crime, corruption, money laundering and terror financing;
(b) any amount which is subject of any departmental or court proceedings;
(c) the investments made in following sectors, namely:–
(i) arms and ammunitions;
(ii) explosives;
(iii) sugar;
(iv) cigarettes;
(v) aerated beverages;
(vi) flour mills;
(vii) vegetable ghee; and
(viii) cooking oil manufacturing excluding extraction units.
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Ordinance notified to extend tax amnesty for construction sector
ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified changes made through presidential ordinance to tax amnesty scheme available to developers and builders.
The Presidential Ordinance has been promulgated on January 19, 2021, which is called as the Income Tax (Amendment) Ordinance, 2021 and it has been enforced from January 01, 2021.
Through the ordinance amendments have been made to Income Tax Ordinance, 2001.
According to this, amendment has been made to Section 100D of Income Tax Ordinance, 2001, the completion of project for availing amnesty on invested amount has been extended to September 30, 2023 from September 30, 2022.
The date has also been extended for the amnesty on investment made in a housing project up to June 30, 2021 from the date of December 31, 2020.
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Tax amnesty on money invested by builders, developers available till December 31
ISLAMABAD – A tax amnesty providing relief on undeclared money to builders and developers for new housing projects is set to expire on December 31, 2020.
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