Tax Book 2023

Preliminary Chapter- 04

(i) 10 or more persons in Pakistan and involves the use of electrical energy or any other form of

energy which is mechanically transmitted and is not generated by human or animal energy; or

(ii) 20 or more persons in Pakistan and does not involve the use of electrical energy or any other

form of energy which is mechanically transmitted and is not generated by human or animal

energy and which is engaged in,-

(i) the manufacture of goods or materials or the subjection of goods or materials to any

process which substantially changes their original condition; or

(ii) ship-building; or

(iii) generation, conversion, transmission or distribution of electrical energy, or the supply of

hydraulic power; or

(iv) the working of any mine, oil-well or any other source of mineral deposits;

(aa) from the 1st day of May, 2020, a person directly involved in the construction of buildings, roads,
bridges and other such structures or the development of land, to the extent and for the purpose of
import of plant and machinery to be utilized in such activity, subject to such conditions as may be
notified by the Board; and

(ab) from the first day of July, 2020 a .resident company engaged in the hotel business in
Pakistan;
(c) telecommunication companies operating under the license of Pakistan Telecommunication Authority
(PTA).;

Explanation: It may create adverse impact for exemption clauses where originally no intention was

manifested by the legislature for restrictive scope of the expression. Since the Federal Government now

enjoys power to declare any other concern as industrial undertaking, it is hoped hardship cases, if any,

would be dealt sympathetically and judiciously.

"Intangible" [U/s 2(30)] "intangible" means any patent, invention, design or model, secret formula or

process, copyright, trade mark, scientific or technical knowledge, computer software, motion picture film,

export quotas, franchise, licence, intellectual property, or other like property or right, contractual rights and

any expenditure that provides an advantage or benefit for a period of more than one year (other than

expenditure incurred to acquire a depreciable asset or unimproved land).

Explanation: This refers to assets mentioned in section 24, viz. all shades of intellectual property, or other

like property or right that provides advantage or benefit for a period of more than one year. This is an

exclusive definition and therefore eliminates any other possible meaning of the term "intangible." Since the

word "intangible" is defined in section 2, it covers the entire Ordinance unless there is anything repugnant in

the subject or context.

“integrated enterprise” [U/s (30A)] means a person integrated with the Board through approved fiscal

electronic device and software, and who fulfills obligations and requirements for integration as may be

prescribed;

"Investment company" [U/s 2(30AA)] means an investment company as defined in the Non-Banking

Finance Companies Rules, 2003;

Explanation: "Investment company" was not defined in Investment Companies Advisors Rules, 971.

Rather, certain conditions were laid down for the companies intending to carry on the business of

investment. They were as under:

Eligibility for registration

A company proposing to commence business as an investment company shall be eligible for registration

under these rules if it fulfils or complies with the following conditions or requirements, namely:-

• that such company is registered as a public limited company under the Companies Ordinance, 1984;


• that it is to function as a closed-end investment company with a capital of not less than Rs. 100
  million: