Business

FBR Exempts Income Tax on Profits From Govt-Backed Debt Securities

The Federal Board of Revenue (FBR) has exempted income tax on debt profits and capital gains from debt and debt instruments approved by the Federal government derived by any approved non-resident banking company.

Through a notification issued on Thursday, the FBR amended the Seventh Schedule (rules for calculating a banking company’s profits and gains and the tax payable thereon) of the Income Tax Ordinance 2001.

 

According to the notification, the federal government has amended the Seventh Schedule in furtherance of the powers conferred by rule 10 of the Seventh Schedule to the Income Tax Ordinance, 2001.

Profit on debt and capital gains from debt and debt instruments approved by the federal government are exempt from tax under the Income Tax Ordinance if they are derived by any non-resident banking company approved by the federal government for the purpose of this sub-rule, according to the FBR.

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