What is ‘start up’ under income tax ordinance?

What is ‘start up’ under income tax ordinance?

Income Tax Ordinance, 2001 has defined the meaning of ‘start up’ 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), defined ‘startup’ as:

 (i) a business of a resident individual, AOP or a company that commenced on or after first day of July, 2012 and the person is engaged in or intends to offer technology driven products or services to any sector of the economy provided that the person is registered with and duly certified by the Pakistan Software Export Board (PSEB) and has turnover of less than one hundred million in each of the last five tax years; or

(ii) any business of a person or class of persons, subject to the conditions as the Federal Government may, by notification in the official Gazette, specify.

Leave a Reply

You have to agree to the comment policy.