Minimum tax exemption granted to public sector universities

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ISLAMABAD: The federal government has allowed exemption from the levy of minimum tax on public sector universities. The decision to allow exemption has been taken at a meeting of Economic Coordination Committee (ECC) of the cabinet held a day earlier.
The minimum tax has been levied on the income on turnover basis on companies and Association of Persons (AOPs) and individuals having turnover of Rs10 million, showing losses during a year.
Prior to grant of exemption under this section to public sector universities, the Federal Board of Revenue (FBR) already allowed exemption to the following:
The provisions of section 113, regarding minimum tax, shall not apply to,-
(i) National Investment (Unit) Trust or a collective investment scheme authorized or registered under the Non-banking Finance Companies (Establishment and Regulation) Rules, 2003 or a real estate investment trust approved and authorized under the Real Estate Investment Trust Regulations, 2015‖, or a pension fund registered under the Voluntary Pension System Rules, 2005 or any other company in respect of turnover representing transactions in shares, or securities listed on a registered stock exchange;
(ii) petroleum dealers, in so far as they relate to turnover on account of sale of petroleum and petroleum products, notwithstanding their status as a company, a registered firm or an individual, engaged in retail sale of petroleum and petroleum products through petrol pumps for the purposes of assessment of their income and determination of tax thereon:
Provided that this exemption shall not apply to the sale of petroleum and petroleum products through petrol pumps which are directly operated or managed by companies engaged in distribution of petroleum and petroleum products.
Explanation.- For the removal of doubt it is declared that the companies engaged in distribution of petroleum and petroleum products other than through petrol pumps shall not be entitled to the benefits of this exemption;
(iii) Hub Power Company Limited so far as they relate to its receipts on account of sale of electricity;
(v) companies, qualifying for exemption under clause (132) of Part-I of this Schedule, in respect of receipts from sale of electricity;
(vi) Provincial Governments and Local Governments, qualifying for exemption under section 49 and other Government bodies which are otherwise exempt from income tax:
Provided that nothing shall be construed to authorize any refund of tax already paid or the collection of any outstanding demand created under the said section;
(vii) Pakistan Red Crescent Society;
(viii) special purpose, non-profit companies engaged in securitizing the receivables of Provincial Governments;
(ix) non-profit organizations approved under clause (36) of section 2 or clause (58) or included in clause (61) of Part-I of this Schedule;
(x) a taxpayer who qualifies for exemption under clause (133) of Part-I of this Schedule, in respect of income from export of computer software or IT services or IT enabled services;
(xi) a resident person engaged in the business of shipping who qualifies for application of reduced rate of tax on tonnage basis as final tax under clause (21) of Part II of the Second Schedule;
(xii) a venture capital company, venture capital fund and Private Equity and Venture Capital Fund which is exempt under clause (101) of Part-I of this Schedule;
(xiii) a Modaraba registered under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (XXXI of 1980);
(xiv) Corporate and Industrial Restructuring Corporation (CIRC);
(xv) The corporatized entities of Pakistan Water and Power Development Authority, so far as they relate to their receipts on account of sales of electricity, from the date of their creation upto the date of completion of the process of corporatization i.e. till the tariff is notified;
(xvi) a morabaha bank or a financial institution approved by the State Bank of Pakistan or the Securities and Exchange Commission of Pakistan (SECP), as the case may be, for the purpose of Islamic Banking and Finance in respect of turnover under a morabaha arrangement;
(xvii) WAPDA First Sukuk Company Limited ; and
(xviii) companies, qualifying for exemption under clause (132B) of Part-I of this Schedule, in respect of receipts from a coal mining project in Sindh, supplying coal exclusively to power generation projects.
(xviii) Pakistan International Sukuk Company Limited.”
(xix) Second Pakistan International Sukuk Company Limited.”
(xix) LNG Terminal Operators and LNG Terminal Owners.
(xx) taxpayers located in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA for tax year 2010, 2011 and 2012 excluding manufacturers and suppliers of cement, sugar, beverages and cigarettes.
(xxi) Rice Mills for the Tax Year 2015.
(xxii) taxpayers qualifying for exemption under clauses (126I) of Part-I of this Schedule in respect of income from manufacture of equipment with dedicated use for generation of renewable energy.
(xxiii) taxpayers qualifying for exemption under clauses (126J) of Part-I of this Schedule in respect of income from operating warehousing or cold chain facilities for storage of agriculture produce.
(xxiv) taxpayers qualifying for exemption under clauses (126K) of Part-I of this Schedule in respect of income from operating halal meat production, during the period mentioned in clause (126K).
(xxv) taxpayers qualifying for exemption under clauses (126L) of Part-I of this Schedule in respect of income from a manufacturing unit set up in Khyber Pukhtunkhwa Province between 1st day of July, 2015 and 30th day of June, 2018 ; and
(xxvi)China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty three years, with effect from the sixth day of February, 2007.
(xxvii)companies, qualifying for exemption under clause (126M) of Part-I of this Schedule, in respect of profits and gains derived from a transmission line project.
(xxviii) Third Pakistan International Sukuk Company Limited.
(xxix) start-up as defined in clause (62A) of section 2.