Scope of concessionary minimum tax regime extended

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ISLAMABAD: Federal Board of Revenue (FBR) has said that the concession of reduced rate of minimum tax at the rate of two percent of gross turnover from all sources extended to building maintenance services, services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited for the Tax Year 2018.
Explaining the major amendments in Income Tax laws through Circular No. 04 of 2017, the FBR said that through amendment made vide the Finance Act 2015, the tax deducted from payment on account of services to companies under Section 153(1)(b) of the Income Tax Ordinance, 2001 has been treated as minimum tax and clause 94 of Part IV of the Second Schedule of the Ordinance was inserted whereby facility of reduced rate of minimum tax at two percent of gross turnover from all sources was made available to various services sector subject to certain conditions.
The FBR said that such concessions has been extended for the Tax Year 2018 for the services sector specified in Clause 94 of Part IV of the Second Schedule to the Ordinance provided that the concerned company furnishes an irrevocable undertaking to present its accounts to the commissioner for audit of its income tax affairs for the tax year 2018.