Computation of Taxable Income Chapter- 06
1.2 Super tax on high earning persons [Section 4C]
A super tax shall be imposed for tax year 2022 and onwards at the rates specified in Division IIB of
Part I of the First Schedule, on income of every person:
Provided that this section shall not apply to a banking company for tax year 2022.
For the purposes of this section, “income” shall be the sum of the following:—
(i) profit on debt, dividend, capital gains, brokerage and commission;
(ii) taxable income (other than brought forward depreciation and brought forward business losses)
under section 9 of the Ordinance, excluding amounts specified in clause (i);
(iii) imputable income as defined in clause (28A) of section 2 excluding amounts specified in clause
(i); and
(iv) income computed, other than brought forward depreciation, brought forward amortization and
brought forward business losses under Fourth, Fifth and Seventh Schedules.
The tax payable as above shall be paid, collected and deposited on the date and in the manner as
specified in section 137 (1) and all provisions of Chapter X of the Ordinance shall apply.
Where the tax is not paid by a person liable to pay it, the Commissioner shall by an order in writing,
determine the tax payable, and shall serve upon the person, a notice of demand specifying the tax
payable and within the time specified under section 137 of the Ordinance.
Where the tax is not paid by a person liable to pay it, the Commissioner shall recover the tax payable
as above and the recovery and collection provisions of the Ordinance shall apply.
The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this
section.- Tax on un-distributed profits [U/s 5A]
For the tax year 2017 to 2019, a tax shall be imposed at the rate of 5% of its accounting profit before
tax on every public company, other than a scheduled bank or a modaraba, that derives profit for
a tax year but does not distribute at least 20% of its after tax profits within six months of the end of
the tax year through cash:
Provided that for tax year 2017, bonus shares or cash dividends may be distributed before the due
date mentioned in sub-section (2) of section 118, for filing of a return.
The above provisions shall not apply to
(a) a company qualifying for exemption U/C (132) Part I of the Second Schedule.
(b) a company in which not less than 50% shares are held by the government.2.1 Tax on return on investments in Sukuk [U/s 5AA]
Subject to income tax Ordinance, 2001 a tax shall be imposed, at the rate specified in Division IIIB of
Part I of the First schedule, on every person who receives a return on investment in sukuks from a
special purpose vehicle or a company.
The tax imposed above on a person who receives a return on investment in sukuks shall be
computed by applying the relevant rate of tax to the gross amount of the return on investment in
sukuks.
This section shall not apply to a return on investment in sukuks that is exempt from tax under this
Ordinance.- Tax on shipping of a resident [U/s 7A]
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:-