Staff Reporter Islamabad
Federal Board of Revenue (FBR) has clarified news circulating on social media about a proposal to withdraw exemption available to income from exports of computer software or IT services or IT enabled services.
FBR has clarified that under the current legal dispensation, the exports of computer software, IT Services or IT enabled services is exempt from tax as provided under clause (133) of Part-I of the Second Schedule to the Income Tax Ordinance, 2001.
This exemption is subject to condition that 80% of the export earnings are remitted to Pakistan through normal banking channel.
However, the persons claiming exemptions are subject to minimum tax on their turnover.
There is proposal to widen the scope of tax concessions available to income from the export of software, IT services and IT enabled services. For this purpose, the exemption is being shifted to tax credit regime.
