Now the tax will be deducted from dividend in specie as well.
Tax from non-filers will now be deducted at 17.5% instead of 15%. This will not apply to dividend payable at reduced rate of 7.5%.
Deduction rate in case of clause (b) will be 12.5%
If a Developmental REIT Scheme with the object of development and construction of residential buildings is set up by thirtieth day of June, 2018, rate of deduction will be reduced by fifty percent for three years from thirtieth day of June, 2018.
Profit on Debt
Rate of deduction for non-filers increased to 17.5% from 15%.
Payments to non-residents
Tax will be now deducted as under from the payments made to Permanent Establishment of a non-resident:
In case of goods transport vehicles, now the tax of two rupees and fifty paisa per kilogram of the laden weight will be charged for filer and four rupees per kilogram of the laden weight for non-filer.”;
Now the tax on passenger transport vehicles plying for hire will be collected as under:
Rs per seat per annum
Four or more persons but less than ten persons.
Ten or more persons but less than twenty persons.
Twenty persons or more.
Amounts of tax collection on other private motor vehicles has been decreased for filers but increased for non-filers.
1001cc to 1199cc
1200cc to 1299cc
1300cc to 1499cc
1500cc to 1599cc
1600cc to 1999cc
2000cc & above
Revised provision for collection to tax is as under:
in the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card
14% of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form”;
Cash withdrawal from a Bank
Rate of collection of tax on cash withdrawal by a non-filer increased to 0.6% from 0.5%.
Division VI A
Advance tax on transactions in Bank
In case of non-filer, tax will be deducted at the rate of 0.6%.
The exemption provided to income of Rs 10,000 per annum from annuity issued by the Pakistan Postal Annuity Certificate Scheme on or after July 27, 1977 has been withdrawn by omitting this clause.
Profit and gains on sale of immoveable property to a Developmental REIT Scheme with the object of development and construction of residential building will now be exempt from tax upto June 30, 2020.
Income from inter – corporate dividend will be available only if the return of the group has been filed.
Period of exemption granted to China Overseas Ports Holding Company Ltd from Gwadar Port Operation has been extended from 20 years to 23 year starting from February 6, 2007.
Profits and gains of an industrial undertaking will be exempt for 05 years beginning July 01, 2015 if:
It is set-up by December 31, 2016; and
Is engaged in the manufacture of plant, machinery, equipment and items with dedicated use (no multiple usage) for generation of renewable energy from sources like solar and wind.
Profits and gains of an industrial undertaking will be exempt for 03 years beginning with the month in which it is set-up or commercial production is commenced, whichever is later, if:
it is set-up between July 01, 2015 and December 31, 2016; and
is engaged in operating warehousing or cold chain facilities for storage of agricultural produce.
Profits and gains of an industrial undertaking will be exempt for 04 years beginning with the month in which it is set-up or commercial production is commenced, whichever is later, if:
it is set-up between July 01, 2015 and June 30, 2017; and
is engaged in operating halal meat production and has obtained halal Certificate for the period of exemption.
Profits and gains of an industrial undertaking set-up in Khyber Pakhtunkhwa Province will be exempt for 05 years beginning with the month in which it is set-up or commercial production is commenced, whichever is later, if:
it is set-up between July 01, 2015 and June 30, 2018; and
the manufacturing unit is not set-up by splitting up or re-construction or re-constitution of an existing undertaking or by transfer of machinery or plant from an undertaking established in Pakistan before July 01, 2015.
Profits and gains from transmission line project set-up between July 01, 2015 and June 30, 2018 will be exempt (no period stated) if:
the project is owned and managed by a Company formed and registered in Pakistan for operating this project and with registered office in Pakistan;
the Company is not formed by splitting up or re-construction or re-constitution of an existing business;
the machinery or plant is not transferred to new business (Company) from a business carried on in Pakistan before July 01, 2015; and
the Company is not owned by a Company whose 50% shares are not held by or it is not controlled by the Federal or Provincial or a Local Government.
Profits and gains from an industrial undertaking will be exempt for 05 years from the year of commencement of business if:
New undertaking and machinery was not used before in Pakistan;
Commercial business commenced between July 01, 2015 and June 30, 2017;
Industrial undertaking is engaged in manufacture of cellular mobile phones; and
Certified by the Pakistan Telecommunication Authority.
Profit and gains of LNG Terminal Operators and Terminal Owners will be exempt for 05 years from the date when the commercial operations are commenced.
Income of Employees’ Social Security Institutions of the Provinces of Baluchistan, Khyber Pakhtunkhwa, Punjab and Sind, only from social security contributions, will be exempt.