Staff Reporter
Islamabad
The Federal Board of Revenue (FBR) on Wednesday issued a clarification on news item published in a section of press with a headline, “Authorities faces legal challenge on tax concession for Naya Pakistan Certificate.”
The board clarified that Naya Pakistan Certificate, a new instrument launched by the government/ State Bank of Pakistan, qualifies as debt instrument in terms of Clause (5AA) of Part-II of the Second Schedule of the Income Tax Ordinance, 2001. Therefore, profit on debt on the Naya Pakistan Certificate is subject to tax @ 10% which is final tax. the statement be added that the aforesaid concessionary tax regime is applicable to non-residents only. Moreover, the statement added, non-residents are not required to file tax return solely for the declaration of tax deduction on profit on debt.
