S.NO. |
QUESTION |
RULING |
DATE OF ISSUE |
AR No. 01 |
Whether the payment of Rs. 50 million
received by a non-resident as a result of amalgamation with
resident concern is taxable in Pakistan or not? |
The assessee being non-resident, the income
accruing or arising on account of merger and transfer of
bank operations with the new entity is revenue receipts in
the hands of the applicant, and being Pakistan source
income, is liable to tax under the Income Tax Ordinance,
2001. |
01.12.2004 |
AR No. 02 |
Whether the amount to be received by
non-resident company for rendering seismic data processing
services is chargeable to tax in Pakistan or not? |
The assessee being non-resident, the amount
received against seismic data processing/re-processing
services as a result of contract executed in Pakistan is
liable to tax in Pakistan under the head “business income”
in view of the provisions of section 6 of the Income Tax
Ordinance, 2001. |
05.01.2005 |
AR No. 03 |
Whether the amount of Rs.373 million
received from the State Bank of Pakistan by a non-resident
on conversion of excess amount of capital account to Pak
rupees for setting off against accumulated losses is
chargeable to tax? |
The amount received from the State Bank of
Pakistan by a non-resident on conversion of capital account
(maintained in Euros) to Pakistan rupees for off setting
accumulated losses is not chargeable to tax. |
27.04.2005 |
AR No. 04 |
Whether the income of non-resident person
not having any permanent establishment in Pakistan will be
taxable or not? |
Income of non-resident person is taxable in
Pakistan irrespective of the fact whether it is having PE or
not. Treatment of tax deducted, in both the situations,
will, however, be different accordingly to provisions of
section 153 of Income Tax Ordinance, 2001. |
31.05.2005 |
AR No. 05
|
In view of the applicant’s statement of
interpretation of law and facts of the case, is the income of
Overseas Private Investment Corporation arising from the Credit
Facility extended to Emerging Markets Consulting (Private)
Limited is exempt from Pakistan income tax and accordingly not
liable to withholding tax under the Income Tax Ordinance, 2001? |
Income of OPIC under the credit facility
extending to Emerging Markets Consultant (Pvt.) Ltd. would be
exempt in Pakistan from Income Tax and accordingly not liable to
withholding tax under Section 152 of the Income Tax Ordinance,
2001.
[This is a case-specific Ruling given under an
existing investment treaty between Pakistan and the USA.]
|
23.01.2006 |
|
AR No. 06 |
“The income of
Telcordia under the contract dated November 14, 2005 with
Pakistan MNP Database (Guarantee) Limited is liable to
withholding tax at 6% under section 153(1) and further under the
provisions of section 153(7) such withholding tax is the final
tax liability.” |
The sub-section (7) of section
153 of the Income Tax Ordinance, 2001 has been omitted vide
Finance Act, 2006. However, under sub-section (1A) [enacted vide
Finance Act, 2006] of section 152, payments received on account
of execution of a contract or sub-contract under a construction
assembly or installation project in Pakistan, including a
contract for the supply of supervisory activities in relation to
the such project or any other contract for construction or
services rendered relating thereto shall be liable to
withholding tax @ 6% as provided in sub-para (1) of Division II
of Part III of the 1st Schedule to the Income Tax Ordinance,
2001, and tax so deducted under sub-section (1A) shall be final
tax on the income of the non-resident person, under sub-section
(1B) of section 152, subject to the provisions of clause (41) of
part IV, of the Second Schedule to Income Tax Ordinance, 2001 |
04.07.2007 |
