10pc tax imposed on gain on disposal of assets outside Pakistan

KARACHI: A 10 percent rate of tax has been introduced on gain on disposal of assets outside Pakistan.
The finance bill had proposed 15 percent rate of tax but in the final the rate has been reduced to 10 percent.

The finance bill introduced a new section 101A of Income Tax Ordinance, 2001 whereby any gain from the disposal or alienation, outside Pakistan, of an asset located in Pakistan of a nonresident company shall be Pakistan-source.
The bill proposed that the person acquiring the asset from non-resident person shall deduct tax at 15 percent of fair market value of asset.
The rate of 15 percent for deduction of tax has been reduced to 10 percent.
It has also been clarified that in case any gain is taxable under this section and also under any other provision of Income Tax Ordinance, the gain shall be taxable under such other provision of ITO.

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