Download PDF - Wipfli

More documents

Recommendations

Info

Pakistan Update The Federal Government of Pakistan has made significant changes through Finance Act, 2011 relating to Income Tax, Sales Tax, Federal Excise Duty, Customs and Capital Value Tax. The important changes are set out below. Income Tax 1 Tax credit is allowed on investment in new manufacturing units established between 1 July 2011 and 30 June 2016. Said tax credit will be equal to 100% of the tax liability of that unit for the five years from the date of setting up of the industrial undertaking or commencement of commercial production whichever is later. 2 Tax credit is allowed to the companies on their 100% equity in the purchase and installation of plant and machinery for the purposes of balancing, modernization and replacement or expansion of the already installed manufacturing facility provided such investment is made between the 1 July 2011 and 30 June 2016. Said tax credit will be allowed equal to the tax payable on the amount of investment and it is adjustable against the tax payable by the company in the first five years. 3 Basic exemption limit for individuals has been enhanced from Rs. 300,000 to Rs. 350,000. 4 Tax credit has been allowed on life insurance premiums and allows extended relaxations for tax credit on investments and premiums, while increasing the minimum holding period for shares for the purpose of credit to 36 months as against the prevailing period of 12 months. 5 Tax credit has been enhanced on enlistment from existing 5% to 15% of tax payable. 6 Carry-forward period of minimum tax under section 113 has been enhanced from existing three years to five years. 7 Persons subscribing to a commercial or industrial electricity connection with annual bill of Rs 1 Million and also the cases of business individuals having income between Rs 300,000 and Rs 350,000 are made liable to file return of income. 8 Enhance the threshold for filing of wealth statements from Rs 0.5 Million to Rs 1 Million. The requirement to file also to cover members of AOPs if their pre-tax share of income is Rs 1 Million or more. 9 Timeframe for payment of advance tax on capital gain is relaxed to non-individual investors from sale of securities from 7 to 21 days. 10 Tax deducted on profit on debt has been made final in case of corporate taxpayers, at par with other cases. 11 6% tax deduction on payment on account of services is brought under the ambit of minimum tax for companies also. 12 The non-taxable limit for withdrawal from pension funds at or after the retirement age has been enhanced from existing 25% to 50%. 13 6% tax on services will also be brought under the ambit of minimum tax for companies. 14 Filing of withholding statements has been made mandatory on monthly basis instead of previous quarterly frequencies. 15 Limit the scope of advance ruling to those cases of non-residents which do not have a permanent establishment in Pakistan. 16 Tax deducted on certain types of profit on debt received by non-resident persons has been brought under the ambit of final tax. 17 Increase in tax rate on dividend received by a banking company from its asset management company from existing 10% to 20%. Sales Tax Act 1990 1 Rate of Sales Tax has been reduced to 16% from existing 17%. 2 Sales tax exemption has been withdrawn in respect items of plant , machinery , equipments and apparatus including capital goods viz-a-viz agriculture machinery, CNG related machinery, fire fighting vehicles and equipment imported by town and municipal authorities, imports by Civil Aviation Authority for air traffic services and training, aircraft spares and allied items 31 // PKF International Tax Alert All Regions Issue 8 November 2011
Pakistan Update continued Federal Excise Duty Act, 2005 1 Federal Excise Duty has been enhanced on cigarettes to 20% ad val from existing rate of Rs1 per filter rod. 2 Federal Excise Duty on unmanufactured tobacco has been increased to Rs10/- kg from existing Rs 5/kg. 3 Special Excise Duty has been eliminated. 4 Rate of Federal Excise Duty on aerated beverages has been reduced from existing 12% to 6%. 5 Federal Excise Duty chargeable on services provided by property developers and promoters has been withdrawn. 6 Federal Excise Duty of 10% on motor vehicle, air conditioners, deep freezers & other specified goods has been withdrawn. Customs Act, 1969 7 Withdrawal of Regulatory Duty Regulatory duty applicable in the range of 5% to 35% has been withdrawn in respect of various dairy products, fruits (fresh and dried), sausage, confectionary, food preparations of flour, fruit/vegetables and allied items, sauces, water and beverages, vinegar/ perfumes and toilet papers, cosmetics, soap and allied, paper and paper board, natural stone and allied, glassware, glass beads & allied, padlocks and allied, pumps/ fans/ washing machines/ AC / freezers, electric appliances and allied, furniture and allied, scents sprays and allied items. For more information please contact: Malik Haroon Ahmad, FCA Partner Maqbool Haroon Shahid Safdar & Co T: +92 42 35776682-3 F: + 92 42 35776676 E: haroon@mhssco.com 32 // PKF International Tax Alert All Regions Issue 8 November 2011
Page 1 and 2: International Tax Alert Issue eight
Page 3 and 4: Malaysia 26 Lee Yiing Ting summaris
Page 5 and 6: Austria Update Publication of finan
Page 7 and 8: Australia Update continued the exis
Page 9 and 10: Australia Update continued Under th
Page 11 and 12: Canada Update New Canadian treaty-b
Page 13 and 14: Canada Update continued ■ ■ ■
Page 15 and 16: Cyprus Update Tax treaty update Cyp
Page 17 and 18: Ghana Update Highlights of the tax
Page 19 and 20: India Update An introduction to Tra
Page 21 and 22: Ireland Update Domestic Tax Changes
Page 23 and 24: Kenya Update continued at 0%. This
Page 25 and 26: Lebanon Update continued free zones
Page 27 and 28: Malaysia Update Below is a summary
Page 29 and 30: The Netherlands Update This article
Page 31: The Netherlands Update continued 8
Page 35 and 36: Romania Update There have been some
Page 37 and 38: Slovak Update Impact on income tax
Page 39 and 40: Slovenia Update Tax changes in 2011
Page 41 and 42: South Africa Update continued ■ a
Page 43 and 44: Spain Update There have been severa
Page 45 and 46: Uganda Update Introduction of Trans
Page 47 and 48: United Kingdom Update Changes propo
Page 49 and 50: USA Update Update on Reporting of S
Page 51 and 52: USA Update continued of any asset,
Page 53 and 54: USA Update continued LLC to be tran
Page 55: IMPORTANT DISCLAIMER: This publicat

Download PDF - Wipfli

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?