Tax rates on payments to non-residents during TY22

Tax rates on payments to non-residents during TY22

The advance tax rates on payments to non-residents for the tax year 2022 are under the First Schedule of the Income Tax Ordinance, 2001.

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.

(1) The rate of tax to be deducted from a payment referred to in sub-section (1A) of section 152 shall be 7 per cent of the gross amount payables.

(1A) The rate of tax to be deducted from payments referred to in sub-section (1AA) of section 152, shall be 5 per cent of the gross amount paid.

(2) The rate of tax to be deducted under sub-section (2) of section 152 shall be 20 per cent of the gross amount paid.

(3) The rate of tax to be deducted under sub-section (1AAA) of section152, shall be 10 per cent of the gross amount paid.

(3A) The rate of tax to be deducted under sub-sections (1D) and (1DA) of section 152 shall be 10 per cent of the amount of capital gain.

(4) The rate of tax to be deducted from a payment referred to in clause (a) of sub-section (2A) of section 152 shall be—

(i) in case of a company, 4 per cent of the gross amount payable; and

(ii) in any other case, 4.5 per cent of the gross amount payable

(5) The rate of tax to be deducted from a payment referred to in clause (b) of sub-section (2A) of section 152 shall be—

(i) 3 per cent of the gross amount payable, in the cases of transport services, freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services, IT services and IT enabled services as defined in section, tracking services, advertising services (other than by print or electronic media), share registrar services, engineering services, car rental services, building maintenance services, services rendered of Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited inspection and certification, testing and training services, oilfield services;

(ii) in cases other than sub-paragraph (i),—

(a) in case of a company, 8 per cent of the gross amount payable; and

(b) in any other case, 10 per cent of the gross amount payable;

(6) The rate of tax to be deducted from a payment referred to in clause (c) of sub-section (2A) of section 152 shall be,—

(i) 10 per cent of the gross amount payable in case of sportspersons;

(ii) 7 per cent of the gross amount payable

(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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