Highlights of Tax Laws (Amendment) Ordinance, 2021

ISLAMABAD: The federal cupboard approved the Tax Laws (Amendment) Ordinance, 2021 in its meeting continued Gregorian calendar month 09, 2021.

According to the approved draft of the ordinance, the govt is ensuring amendments in Customs Act, 1969; excise Act, 1990; Federal Excise Act, 2005; and tax Ordinance, 2001.

A major relief has been granted to holders of Roshan Digital Accounts (RDAs). The tax relief has been allowed:

— The exemption/concessions granted to non-residents holding Asian country Origin Card (POC),  National card for Overseas Pakistanis (NICOP), computerised National card (CNIC) for encouraging foreign remittances

— Exemption to profit on debt financial gain of RDAs

— If the investment is created through RDAs

>> Reduction in charge per unit from 15 August 1945 to 100% on the financial gain on disposal of shares available market— as final tax

>> Taxation of sale and buy of immoveable property @ I Chronicles as final tax in part of financial gain tax

>> Reduction in charge per unit from 2 hundredths to 100% on profit on debt from Naya Asian country Certificates as final tax

— discharge from the filing of coming to non-resident RDA holders and resultant investors in shares, Naya Asian country Certificates and immovable property

— Placement of on top of non-residents on ATL to avoid higher taxation

— Exemption to monotheism Naya Asian country Certificate Company Ltd

>> company tax

>> minimum tax on a flip over

>> Withholding taxes

Other tax concessions granted below numerous heads, that included:

— Exemption from withholding u/s 153(1)(a) for the whole of offer chain  of domestically factory-made portable Devices

— Imposition of withholding on vehicles, if sold  inside ninety days of delivery – to discourage investors/  “on money” trend  

— Extension of date of commencement of business for electricity transmission lines from 2018 to 2022 on the recommendation of cupboard Committee on CPEC – not even one project/company qualified for exemption before amendment (Pak Matiari-Lahore line Co.)

— Exemption from withholding u/s 153(1)(b) on services provided by National Telecommunication Company (NTC) –the tax accepted minimum tax thence nice hardship

— Cotton Ginners –Tax liability to be adequate I Chronicles of turnover as final tax. The tax regime existent up to 30-06-2019 projected to be fixed in line with 1994- agreement.

— Extension of the pertinency of super tax on banking firms from the tax year 2022 forrader

— Withholding and turnover tax rates for dealers, distributors, wholesalers and retailers of fertiliser and fast-paced trade goods projected to be reduced to zero.25%, provided they get themselves registered below excise Act, 1990 inside sixty days— for promotion of documentation and equity

— Exemption from withholding on temporary imports by international athletes for SAF Games.