Withholding Tax Card 2016/2017: advance tax on education expenses remitted abroad
KARACHI: Federal Board of Revenue (FBR) has updated advance tax rate to be collected by financial institutions and banks on education related expenses remitted abroad during 2016/2017.
Collection of advance tax on education related expenses remitted abroad under section 236R of Income Tax Ordinance, 2001.
Sub-Section (1): There shall be collected advance tax at the rate of five percent on the amount of education related expenses remitted abroad.
Sub-Section (2): Banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax from the payer of education related expenses.
Sub-Section (3): Tax collected under this section shall be adjustable against the income of the person remitting payment of education related expenses.
Sub-Section (4): For the purpose of this section, “education related expenses” includes tuition fee, boarding and lodging expenses, any payment for distant learning to any institution or university in a foreign country and any other expense related or attributable to foreign education.