Preliminary Chapter- 04
Explanation: It is an exhaustive definition which means any profit, yield, interest, discount, premium or
other amount payable or receivable under a debt, other than a return on capital and any service fee or other
charge in respect of a debt including any such charge on a credit facility which has not been utilized.
"Public company" [U/s 2(47)] means -
(a) a company in which not less than 50% of the shares are held by the Federal Government or
Provincial Government;
(ab) a company in which not less than 50% of the shares are held by a foreign Government, or a foreign
company owned by a foreign Government;
(b) a company whose shares were traded on a registered stock exchange in Pakistan at any time in the
tax year and which remained listed on that exchange at the end of that year; or
(c) a unit trust whose units are widely available to the public and any other trust as defined in the Trusts
Act, 1882;
Explanation: It is defined to mean a company in which at least 50% of the shares are held by the Federal
or Provincial Governments, listed companies and unit trusts and any other public trust. This is a specific
definition that has nothing to do with the Companies Ordinance 1984, where the term is defined differently.
“REIT Scheme” [U/s 2(47A)] means a REIT Scheme as defined in the Real Estate Investment Trust
Regulations 2015;
"Real Estate Investment Trust Management Company (RMC)" [U/s 2(47B)] means RMC as defined
under the Real Estate Investment Trust Regulations, 2015;
“Rental REIT Scheme” [U/s 2(47C)] means a Rental REIT Scheme as defined under the Real Estate
Investment Trust Regulations, 2015;
Explanation of u/s 2(47A) and (47Bl: "Real Estate Investment Trust (REIT) Scheme" and "Real Estate
Investment Trust Management Company (REITMC)"
These corporate bodies approved by the Securities and Exchange Commission Pakistan are meant for the
purpose of investment in real estate. These two entities have been given special benefits under the ITO,
2001 to promote a dose end collective scheme constituted as a unit trust and managed by a real estate
trust management company.
"Recognised provident fund" [U/s 2(48)] means a provident fund recognised by the Commissioner Inland
Revenue in accordance with Part I of the Sixth Schedule;
Explanation: It means a provident fund recognized in accordance with Part I of the Sixth Schedule.
"Rent" [U/s 2(49)] means rent as defined in section 15(2) and includes an amount treated as rent u/s 16;
"rent" means any amount received or receivable by the owner of land or a building as consideration for the
use or occupation of, or the right to use or occupy, the land or building, and includes any forfeited deposit
paid under a contract for the sale of land or a building.
Rent also includes Non-adjustable amounts received in relation to buildings.
Explanation: The word "rent" wherever used in the Ordinance will have the above meanings unless the
context otherwise requires,
"Repealed Ordinance" [U/s 2(49A)] means Income Tax Ordinance, 1979;
Explanation: The Income Tax Ordinance, 1979 as a reference wherever appears in the new Ordinance will
be referred to as "repealed Ordinance". Repeal and savings should be seen in section 239.
"Resident company" [U/s 2(50)] A company shall be a resident company for a tax year if -
(a) it is incorporated or formed by or under any law in force in Pakistan;