ISLAMABAD – The Federal Board of Revenue (FBR) has clarified the tax treatment applicable to non-residents investing in the Pakistan Stock Exchange (PSX) through Roshan Digital Accounts (RDA).
According to the clarification, a non-resident holding an RDA is not required to file an income tax return for investments made through the account. Such account holders are also not subject to non-filer tax rates.
However, tax will be deducted at filer rates on gains from PSX investments and on dividends where the investment is made from profits received through the RDA.
The FBR further clarified that transferring funds back abroad through an RDA does not attract tax.
Non-residents are also not required to file an income tax return because income earned as profit on debt through an RDA is exempt from tax.
The clarification addresses queries received by the FBR regarding PSX investments made through RDAs and the repatriation of investment-related profits.
A day earlier, the KSE-100 Index of the Pakistan Stock Exchange (PSX) turned around to bearish trend on Thursday, losing 1,733.57 points,.
The market witnessed a trading volume of 759.974 million shares, compared to 773.593 million shares traded in the previous session, while the traded value increased to Rs27.539 billion from Rs26.453 billion.
Market capitalisation decreased to Rs18.971 trillion from Rs19.178 trillion recorded a day earlier.
Out of 495 companies that traded in the ready market, 101 posted gains, 358 suffered losses, while 36 remained unchanged.
