Tax Book 2023

Deduction / Payment of Tax Chapter- 23

This section is not applicable to any profit on debt u/s 152(2).

Tax deducted under this section shall be minimum tax on profit on debt arising to taxpayer other than a company or a profit on debt that is taxable

u/s 7B.

The rate of tax for person appearing in ATL shall be 15% and 30% for person not appearing in ATL if the yield or profit paid is equal or less than Rs.

5 ,000,000.

Tax rate is applied on the gross amount of Yield as reduced by Zakat paid.

NON APPLICABILITY OF PROVISIONS OF TAX AT SOURCE U/S 151 UNDER VARIOUS CLAUSES OF PART IV OF SECOND SCHEDULE TO THE ITO, 2001:

1. U/C 11C The provisions of this section are not applicable to inter-corporate profit on debt within the group companies entitled to Group
   Taxation, subject to condition that the return of the group has been filed of the latest completed tax year.


2. U/C 16 Non application of minimum tax and other provisions on institutions of the Agha Khan Development Network (Pakistan).


3. U/C 36A Any amount paid as yield or profit on investment in Bahbood Saving Certificates or Pensioners Benefit Account.


4. U/C 38 Special purposes vehicle (SPV)for the purposes of
   securitization.


5. U/C 38A A Venture Capital Company.


6. U/C 38C Islamic Development Bank.
   7.^ U/C 47B Any person making payment to NIT, a collective Scheme, approved pension fund, approved income payment plan, a REIT Scheme^ including
   Special purpose Vehicle or a recognized provident fund, and approved superannuation fund or an approved gratuity fund.
   Explanation.
   For the purpose of this clause, Special Purpose Vehicle shall have the same meaning as defined under the Real Estate Investment Trust Regulations, 2015.


7. U/C 59(i) Profit or interest paid on TFC's issued by Prime Minister's Housing Development Company (Pvt.) Ltd. (PHDCL).

(ii) Any payment as profit or interest on Prime Minister's Housing Development Company which has been issued on or after 01- 07 - 1999.

(iii) Income of a resident individual from Saving Accounts scheme of Directorate of National Savings, if monthly installment is up to Rs. 1,000.^

9. U/C 67 The provisions of section 151 shall not apply in respect of payments made to the International Finance Corporation established under the
   International Finance Corporation Act, 1956.


10. U/C 68 The provisions of section 151 shall not apply in respect of payments made to the Pakistan Domestic Sukuk Company Ltd.


11. U/C 69 The provisions of section 151 shall not apply in respect of payments made to the Asian Development Bank established under the Asian
    Development Bank Ordinance, 197 1.


12. U/C 70 The provisions of section 14 8, regarding withholding tax on imports, shall not apply in respect of goods or classes of goods for the
    execution of contract, imported by contractors and sub-contractors engaged in the execution of power project under the agreement between the
    Islamic Republic of Pakistan and HUB Power Company Limited.


13. U/C 72 Payments made to The ECO Trade and Development Bank.

152

152(1)

Payments to non residents

Royalty and fee for technical services

15% of

gross

amount

For

ATL

15 % of

gross

amount

For

non

Nil Minimum Tax Payer Payment

(^) to non-resident