Tax Book 2023

Exemptions other than Covered in Respective Chapters Chapter- 20

105 Dividend from Saudia Pak Industrial and Agricultural Inv. Co.

105A Dividend from Pak-Kuwait Investment Co.

105B Dividend from Agriculture Income.

126B Profits and gains derived by a refinery

126EA Profits and gains derived by

132AA Profits and gains derived from sale of electricity by National Power Parks Management

Company (Pvt.) Ltd. or demerged entities of National Power Parks Management Company

(Pvt.) Ltd.

132C Profits and gains derived by a taxpayer from a bagasse/biomass based cogeneration power

project

149 Any sum remitted to Pakistan through banking channels in foreign currency and “Salary”

received not being a citizen or resident of Pakistan

REDUCTION IN TAX RATES (OTHER THAN SPECIFIED IN RESPECTIV CHAPTERS)

[PART II OF 2ND SCHEDULE]

CLAUSE PARTICULARS

5A Withholding tax on profit on debt payable to a non-resident person

5AA (^) Withholding tax on profit on debt payable to a non-resident person
5AB (^) 10% reduced withholding tax rate u/s 151 on POD subject to preconditions
5AC (^) 0% withholding tax rate u/s 152(2) or u/s 151 subject to preconditions
9AA (^) 0.25% tax on import of white sugar
9AB (^) 0.25% tax on commercial import of white sugar
9AC (^) 0.25% tax on import of white sugar by sugar industry / Mills
18C (^) 7.5% reduced withholding tax in case of dividends declared by specified company
24A 1% tax on Distributors of cigarette and pharmaceutical products and for large distribution
houses
24AA 6% tax equipment for construction of the Lahore Orange Line Metro Train Project
24C 0.25% withholding tax u/s 153(1)(a) in the case of distributors, dealers, sub-dealers,
wholesalers and retailers of fast moving consumer goods etc.
24CA 1.5% tax of gross amount of payment received for specified goods supply to utility store
corporation of Pakistan subject to fulfilment of specified conditions
24D Reduction in Minimum Tax rate for specified dealers and sub dealers
28C Person running online marketplace
28D Reduction in Minimum Tax rate for Traders^
28E Reduction in Minimum^ Tax rate for yarn Traders^
28F 2% reduced withholding tax u/s 153(1)(b) in case of oil tanker contractor services^
31 1% reduced withholding tax u/s 153(1)(b) in case of sale of gold and silver and articles^