Tax Book 2023

Final Tax Regime and Minimum Tax Chapter- 22

e. Return of income is required to be filed where the only source of income is final tax regime.

f. There shall be no refund of the tax collected or deducted except where the tax so collected or

deducted is in excess of the amount for which the taxpayer is chargeable under the ordinance.

g. If tax deductible has not been deducted, or short deducted, the said non-deduction or short

deduction may be recovered under section 162, and all the provisions of this Ordinance shall

apply accordingly.

h. Where the tax collected^ or deducted is final tax under any provision^ of this Ordinance and

100% higher tax rate has been prescribed for the said tax under the 10 th Schedule, the final

tax shall be the tax rate prescribed in the First Schedule and the excess tax collected under

the 10 th Schedule specified for persons not appearing in the ATL shall be adjustable in case

the return is filed before finalization of assessment as provided in rule 4 of the 10 th Schedule.

B. Following incomes are chargeable to tax under final tax regime (Minimum tax where
specified):

Sr. Nature of payment Section Rate

1. Imports 148 Minimum tax (other than specified
   cases)


2. Dividend / dividend in specie 5 and 150 / 236S Detail given as under


3. Profit on debt 151(3) & 7B Detail given as under


4. Payments to non-residents 6 and 152(1E) Minimum Tax - Detail given as under


5. Payment for foreign
   produced commercials

152A Omitted by Finance Act, 2021

6. Sale of goods, rendering of

services and contracts

153 Minimum Tax - Detail given as under

7. Exporters of goods 154 Final tax @ 1% & 5%

8. Exporters of services 154A Final tax @ 1%

9. Prizes and winnings 156(3) 15% & 20%

10. Petroleum products 156A 12 %

11. Brokerage and commission 233 Minimum Tax - 10 % / 12% / 15%

12. CNG stations

234A

Omitted by Finance Act, 2021.

13. Electricity consumption 235 Final tax for Tier-2 retailers and
    services to be specified by FBR.


14. Bonus Shares issued by
    companies quoted on stock
    exchange

236M

Deleted by Finance Act, 2018.

15. Bonus Shares issued by

companies not quoted on

stock exchange

236N

Deleted by Finance Act, 2018.

1. 
   

   Imports [Section 148(7)]: (Covering NTR / FTR / MTL)

   
   


2. 
   

   Tax rate The Collector of Customs shall collect advance tax from every importer
   of goods (other than the goods or persons specified by the Board) on
   the value of the goods at:
    1 % of Assessed value of capital goods specified in Part I of 12 th
   Schedule.
    2% (3.5% for commercial importer) of Assessed value of raw
   material specified in Part II of 12th Schedule.