Federal Board of Revenue issues clarification on news item – authorities faces legal challenge on tax concession for Naya Pakistan certificate

Islamabad, December 03, 2020 (PPI-OT): Federal Board of Revenue (FBR) has issued a clarification on the news item published in daily “The News” with a caption, “Authorities faces legal challenge on tax concession for Naya Pakistan Certificate”. FBR has 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. Moreover, such non-residents are not required to file tax return solely for the declaration of tax deduction on profit on debt. It may be added that the aforesaid concessionary tax regime is applicable to non-residents only.

For more information, contact:
Second Secretary (Public Relations)
Federal Board of Revenue (FBR)
FATE Wing, Federal Board of Revenue,
Constitution Avenue, Sector G-5,
Islamabad, Pakistan
Phone: +92-51-9217267
Fax: +92-51-9208456
Email: mujeeb.talpur@fbr.gov.pk, talpur35@gmail.com
Website: https://www.fbr.gov.pk/