Withholding Tax Card 2016/2017: advance tax from non-filers on insurance premium payment
KARACHI: Federal Board of Revenue (FBR) has updated advance tax rates to be collected from non –filers at the time of insurance premium payment during 2016/2017.
Advance tax on insurance premium under section 236U of Income Tax Ordinance.
Under Section (1): Every insurance company shall collect advance tax at the time of collection of insurance premium from non-filers in respect of general insurance premium and life insurance premium, at the rates specified in Division XXV of Part IV of the First Schedule.
Under Section (2): Insurance premium collected through agents of the insurance company shall be treated to have been collected by the insurance company.
Under Section (3): Advance tax collected under this section shall be adjustable.
Division XXV of Part IV of the First Schedule
|S.No.||Type of Premium||Rate|
|1.||General insurance premium||4%|
|2.||Life insurance premium if exceeding Rs 0.2 million per annum||1%|