Ordinance (general), as published 30 June 2021
This is the Ordinance (general) as it stood on 30 June 2021. It runs to 14 pages and contains 1 sections, with 0 amendment footnotes.
What this document is
Published by the Federal Board of Revenue as part of the Ordinance (general) collection. A consolidation of this kind folds every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2021 rather than as originally enacted.
The date above was taken from the file name rather than a consolidation statement on the cover, so treat it as approximate.
The shape of this version
The operative text holds roughly 3,187 words across 1 sections.
What changed since the previous version
Against the version published 30 June 2021, this one has 1 new section and 3 that no longer appear.
New in this version
- section 65G, Tax credit for specified industrial undertakings
No longer present
These appeared in the previous version and not in this one. That usually means omission by a later law, though it can also mean a heading was formatted in a way the extraction did not recognise.
- section 3, Amendments in the Sales Tax Act, 1990
- section 4, Amendments in the Income Tax Ordinance, 2001 (XLIX of 2001)
- section 5, Amendments in the Federal Excise Act, 2005
The source file
| File name | Tax Laws (Second Amendment) Ordinance, 2021.pdf |
| Pages | 14 |
| Size | 3.67 MB |
| Text extraction | markitdown |
| Extraction confidence | high |
| Position in this collection | 6 of 10 |
SHA-256 of the source PDF:
d7b96b4b140e401926616ffe968ff02f3a55388e530399378219a60782902e25Checking that value against the file you download confirms it is the same document these figures came from.
A note on these figures
Counts here are produced by software reading the PDF, not compiled by hand. The same method is applied to every document, which makes comparisons between versions meaningful, but a section with unusual formatting can be missed. Treat them as close measurements and the official document as the authority.
This is information, not legal or tax advice. Qanoon Digest is independent and not affiliated with the Federal Board of Revenue or the Government of Pakistan.
The full text of this version
All 1 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.
65G. Tax credit for specified industrial undertakings
(1) When
making certain eligible capital investments as specified in sub- section (2),
the eligible taxpayers defined in sub-section (3) shall be allowed to take an
investment tax credit of twenty-five percent of the eligible investment
amount, against tax payable under the provisions of this Ordinance
including minimum and final taxes. The tax credit not fully adjusted during
the year of investment shall be carried forward to the subsequent tax year
subject to the condition that it may be carried forward for a period not
exceeding two years.
For the purposes of this section, the eligible investment means
investment made in purchase and installation of new machinery, buildings,
equipment, hardware and software, except self-created software and used
capital goods.
For the purpose of this section, eligible person means -
(a) green field industrial undertaking as defined in clause (27A)
of section 2 engaged in -
the manufacture of goods or materials or the subjection
of goods or materials to any process which substantially
changes their original condition; or
ship building:
Provided that the person incorporated between the 301h day of June, 2019 and the 30th day of June, 2024 and
the person is not formed by the splitting up or reconstitution
of an undertaking already in existence or by transfer of
machinery, plant or building from an undertaking
established in Pakistan prior to commencement of the new
business and is not part of an expansion project; and
hu..;:nuu.
:)L..1 up by be 30 uay oi June 2023
and engaged in the manufacture of plant, machinery,
equipment and items with dedicated use (no multiple uses)
for generation of renewable energy from sources like solar
and wind, for a period of five years beginning from the date
such industrial undertaking is set up.“;
(8) for section 100C, the following shall be substituted, namely:-
“100C. Tax credit for charitable organizations.- (1) The persons mentioned in sub-section (2) shall be allowed a tax credit equal to one
hundred percent of tax payable under any of the provisions of this
Ordinance including minimum and final taxes in respect of incomes
mentioned in sub-section (3) subject to the conditions and limitations laid
down in sub-section (4).
(2) The provisions of this section shall apply to the following
persons, namely:-:
persons specified in Table - II of clause (66) of Part I of
the Second Schedule to this Ordinance;
a trust administered under a scheme approved by the
Federal Government and established in Pakistan
exclusively for the purposes of carrying out such activities
as are for the welfare of ex-employees and serving
personnel of the Federal Government or a Provincial
Government or armed forces including civilian employees
of armed forces and their dependents where the said trust
is administered by a committee nominated by the Federal
Government or a Provincial Government;
a trust;
a welfare institution registered with Provincial Or
Islamabad Capital Territory (ICT) social welfare
department;
a not for profit company registered with the Securities and
Exchange Commission of Pakistan under section 42 of
the Companies Act, 2017;
a welfare society registered under the provincial or
Islamabad Capital Territory (ICT) laws related to
registration of co-operative societies;
a waqf registered under Mussalman Waqf Validating Act,
1913 (VI of 1913) or any other law for the time being in
force or in the instrument relating to the trust or the
institution;
a university or education institutions being run by non-
profit organization existing solely for educational purposes
and not for the purposes of profit;
a religious or charitable institution for the benefit of public
registered under any law for the time being in force; and
international non-governmental organizations (ING0s)
approved by the Federal Government.
(3) The following income is eligible for tax credit, namely:-
income from donations, voluntary contributions and
subscriptions;
income from house property;
income from investments in the securities of the Federal
Government;
profit on debt from scheduled banks and microfinance
banks;
grant received from Federal, Provincial, Local or foreign
Government;
(1) so much of the income chargeable under the head
“income from business” as is expended in Pakistan for
the purposes of carrying out welfare activities:
Provided that in the case of income under the head
“income from business”, only so much of such income
shall be eligible for tax credit under this section that
bears the same proportion as the said amount of
business income bears to the aggregate of income from
all sources; and
(g) any income of the persons mentioned in clauses (a), (b)
and (h) of sub-section (2) of this section.
(4) Eligibility for tax credit shall be subject to the following
conditions, namely:-
return has been filed;
tax required to be deducted or collected has been
deducted or collected and paid;
withholding tax statements for the relevant tax year
have been filed;
the administrative and management expenditure
does not exceed 15% of the total receipts:
Provided that clause (d) shall not apply to a non-
profit organization, if-
(I)
charitable and welfare activities of the non-
profit organization have commenced for the
first time within last three years; or
(ii) total receipts of the non-profit organization
during the tax year are less than one hundred
million Rupees;
approval of Commissioner has been obtained as per
requirement of clause (36) of section 2:
Provided that the condition of approval in
respect of persons mentioned in Table - II of clause
(66) of Part I of the Second Schedule to this
Ordinance, shall take effect from the first day of
July, 2022 and the requirements of clause (36) of
section 2, shall not be applicable for earlier years;
none of the assets of trusts or %A/09m inititutionc:
confers, or may confer, a private benefit to the
donors or family, children or author of the trust or his
descendants or the maker of the institution or to any
other person:
Provided that where such private benefit is
conferred, the amount of such benefit shall be
added to the income of the donor; and
a statement of voluntary contributions and donations
received in the immediately preceding tax year has
been filed in the prescribed form and manner.
Notwithstanding anything contained in sub-section (1), surplus
funds of organizations to which this section applies shall be taxed at a
rate of ten percent.
For the purpose of sub-section (5), surplus funds mean funds
or monies -
not spent on charitable and welfare activities during the
tax year;
received during the tax year as donations, voluntary
contributions, subscriptions and other incomes;
which are more than twenty-five percent of the total
receipts of the non-profit organization received during
the tax year; and
are not part of restricted funds.
Explanation.- For the purpose of this clause,
“restricted funds” mean any fund received by the
organization but could not be spent and treated as
revenue during the year due to any obligation placed by
the donor or funds received in kind.“;
in section 152, in sub-section (1E), for the expression “on the income of
the non-resident company arising out of such capital gain“, Me
expression “in respect of persons and income mentioned therein” shall be
substituted;
in section 182, in sub-section (1), in the Table, in column (1), _
(a) against S. No. 1, in column (3), in the proviso and before the
explanation, for the full stop at the end, a colon shall be substituted
and thereafter the following new provisos shall be added, namely:-
“Provided further that if taxable income is up-to eight hundred
thousand Rupees, the minimum amount of penalty shall be five
thousand Rupees:
Provided also that the amount of penalty shall be reduced by
75%, 50% and 25% if the return is filed within one, two and three
months respectively after the due date or extended due date of
filing of return as prescribed under the law.“;
(b) against S. No. 1A, in column (3), for the full stop at the end, a
colon shall be substituted and thereafter the following proviso shall
be added namely: -
“Provided that where it stands established that no tax was
required to be deducted or collected during the relevant period,
minimum amount of penalty shall be ten thousand Rupees.“;
(c) against S. No. 6,-
in column (2),-
(1) after the word “tax”, occurring for the first time, the
expression “paid is” shall be inserted; and
(II)
the expression “is paid” shall be omitted; and
in column (3), for the full stop at the end, a colon shall be
substituted and thereafter the following proviso shall be
added, namely: -
“Provided that no penalty shall be imposed to the
extent of the tax shortfall occurring as a result of the
taxpayer taking a reasonably arguable position on the
application of this Ordinance to the taxpayer’s position.“;
(d) against S. No. 10,-
in column (3), for the figure “100%7, the figure “50%” shall
be substituted; and
in column (4), for the expression “and general”, the
expression “114A, 118” shall be substituted;
(e) against S. No. 11, in column (3), for the words “one hundred” the
word “fifty” shall be substituted;
(0
against S. No. 15, for the entries in column (4), the expression
“Division II or Division III of Part V of Chapter X or Chapter XII”
shall be substituted;
(g) against S. No. 16,-
(i) in column (2), after the letters “NTN”, the expression “or
business licence“ shall be inserted; and
(H) in column (4), after the figure “181C”, the expression “and
181D“ shall be added;
S. No. 19 and entries relating thereto shall be omitted;
S. No. 20 and entries relating thereto shall be omitted;
(11) in the Second Schedule, -
(a) in Part I, -
in clause (57), in sub-clause (1), paragraph (iii) shall be
omitted:
clauses (61), (64A), (64B), (64C) and (65) shall be omitted;
in clause (66), in the Table 1, in column (1), after S. No. xxxvi
and entries relating thereto in column (2), following new entry
shall be added, namely:-
“(xxxvii)
Islamic Naya Pakistan Certificates Company Limited
(INPCCL).“;
clauses (72A) and (74) shall be omitted;
for clause (75), the following shall be substituted, namely:-
“(75) Any profit on debt and capital gains derived by any
agency of foreign Government or any non-resident person
approved by the Federal Government for the purpose of this
clause from debt and debt instruments approved by the
Federal Government.“;
clauses (90), (90A), (91), (98), (100), (101), (103C), (104),
(105), (105A), (110B), (110C) and (114) shall be omitted;
for clause (126B), the following shall be substituted, namely:-
“(126B) Profits and gains derived by a refinery -
(a) from new deep conversion refinery of at least 100,000
barrels per day for which approval is given by the
Federal Government before the 31st day of December, 2021; or
(b) for the purpose of upgradation, modernization or
expansion project of any refinery existing on the date of
commencement of the Income Tax (Second
Amendment) Ordinance, 2021 for which such refinery
makes undertaking to the Federal Government in writing
before the 31st day of December, 2021.“;
clauses (126BA), (126G), (1261),(1260) and (131) shall be
omitted;
in clause (132), in sub-clause (c), in the fifth proviso, for the
full stop at the end, a colon shall be substituted and thereafter
the following new proviso shall be added, namely:-
“Provided further that no exemption under this clause shall
be available to persons, who enter into agreement or to whom
letter of intent is issued by Federal or Provincial Government
for setting up an electric power generation project in Pakistan
after the 30th day of June, 2021.“; and
clauses (132A), (132B), (133), (135A), (136), (141), (143),
(146) and (148) shall be omitted;
(b) in Part II,-
clauses (2), (3), (3B), (5B), (13), (18B), (24AA) shall be
omitted;
in clause (24D), after the expression “retailers of the
expression “locally manufactured mobile phones,” shall be
inserted; and
clauses (28A) and (28B) shall be omitted;
(c) in Part ill,-
clauses (2), (7) and (8) shall be omitted;
in clause (9), for the full stop at the end, a colon shall be
substituted and thereafter the following new proviso shall be
added, namely:-
“Provided that exemption under this clause shall
continue to remain available to such projects which
commence on or before the 30th day of June, 2024.“ and
(iii) in clause (9B), for the full stop at the end, a colon shall be
substituted and thereafter the following new proviso shall be
added, namely:-
“Provided that exemption under this clause shall
continue to remain available to such projects which
commence on or before the 30th day of June, 2024.“; and
(d) in Part IV, clause (2) shall be omitted;
(12) in the Third Schedule,-
in Part 1, in the Table, in the first column, against S, No. IV, entry (a)
in the Fer.nr )7nt-1 nn“ Jr.-’
::-.11! k r. , ,,-;4-4 7 -1; pr , r1 .-.
in Part II,-
(1) (II)
in the heading, the expression “23Aw shall be omitted; and
in paragraph (2), the expression “section 23A and” shall be
omitted;
(13) in the Fifth Schedule,-
(a) in Part II, rule 4 shall be omitted;
(14) after the Twelfth Schedule, the following new Schedule shall be added,
namely: -
“THE THIRTEENTH SCHEDULE
S.No
(1) Name
(2) any Sports Board or institution recognised by the Federal Government for the purposes of promoting, controlling or regulating any sport or game The Citizens Foundation. Fund for Promotion of Science and Technology in Pakistan.
Fund for Retarded and Handicapped Children. National Trust Fund for The Disabled. Fund for Development of Mazaar of Hazarat Burn i Imam. Rabita-e-lslami’s Project for printing copies of the Holy Quran. Fatimid Foundation, Karachi. Al-Shifa Trust. Society for the Promotion of Engineering Sciences and Technology in Pakistan.’ ’ Citizens-Police Liaison Committee, Central Reporting Cell, Sindh Governor House, Karachi. ICIC Foundation. National Management Foundation. Endowment Fund of the institutions of the Agha Khan Development Network (Pakistan listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic, of Eo:„stai, Li, io r1/4 .1i,ot i\liaii Development Network.
Shaheed Zulfigar Ali Bhutto Memorial Awards Society.
Cancer Research Foundation of Pakistan, Lahore.
Shaukat Khanum Memorial Trust, Lahore.
Christian Memorial Hospital, Sialkot.
National Museums, National Libraries and Monuments or institutions declared to be National Heritage by the Federal Government.
Mumtaz Bakhtawar Memorial Trust Hospital, Lahore.
Kashmir Fund for Rehabilitation of Kashmir Refugees and Freed= Fighters. Institutions of the Agha Khan Development Network (Pakistan) listed in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the Government of the Islamic Republic of Pakistan and Agha Khan Development Network. Azad Kashmir President’s Mujahid Fund,1972. National Institute of Cardiovascular Diseases, (Pakistan) Karachi. Businessmen Hospital Trust, Lahore. Premier Trust Hospital, Mardan. Faisal Shaheed•Memorial Hospital Trust, Gujranwala. Khair-un-Nisa Hospital Foundation, Lahore. Sind and Balochistan Advocates’ Benevolent Fund.
Rashid Minhas Memorial Hos ital Fund.
Any relief or welfare fund established by the Federal Government.
Mohatta Palace Gallery Trust.
Bagh-e-Quaid-e-Azam project, Karachi. Any amount donated for Tameer-e-Karachi Fund. Pakistan Red Cres-cent Society. Sank of Commerce and Credit International Foundation for Advancement of Science and Technology.
Federal Board of Revenue Foundation. The Indus Hospital, Karachi.
SAAD ly
Section nicer _ ’shy of Law atm e . Government of Pakistazva- Iglanutbad
Pakistan Sweet Homes Angels and Fairies Place. Al-Shifa Trust Eye Hospital. Aziz Tabba Foundation. Sindh Institute of Urology and Transplantation,SIUT Trust and Society for the Welfare of SIUT. Sharif Trust. The Kidney Centre Post Graduate Institute. Pakistan Disabled Foundation. Sardar Trust Eye Hospital, Lahore. Supreme Court of Pakistan - Diamer Bhasha & Mohmand Dams - Fund. Layton Rahmatullah Benevolent Trust (LRBT). Akhuwat. The Prime Minister’s COVIE)-19 Pandemic Relief Fund-2020.
Ghulam Ishaq Khan Institute of Engineering Sciences and Technology
(GIK1). Lahore University of Management Sciences.
-
- Dawat-e-Hadiya, Karachi. 88. Baitussalam Welfare Trust.
Patients’ Aid Foundation. Alkhidmat Foundation. Alamqir Welfare Trust International. Prime Minister’s Special Fund for victims of terrorism
Chief Ministers(Punjab) Relief Fund for Internally Displaced Persons
(10Ps) of KPK Prime Ministers Flood Relief Fund 2010 and Provincial Chief Ministers Relief Funds for victims of flood 2010
Waqf for Research on Islamic History, Art and Culture, Istanbul
Provided that the Federal Government shall have the power to add,
amend or omit any entry in this Schedule.“; and
klbj The following provisions of the Income Tax Ordinance, 2001 (XLIX of 2001) already expired or expiring, on thirtieth day of June, 2021 are omitted, provided that the existing beneficiaries shall continue to enjoy die tepeatea provisions for the periods and subject to
conditions and limitations specified in these repealed provisions, namely:-
Section 65D;
Following clauses of Part I of the Second Schedule:- (72), (126C), (126H), (126J), (126K), (126L) and (126N); and Clause (18A) of Part II of the Second Schedule.
SAA T IQT.WCAN, Section Officer Ministry of Law 1k Justice Government of Pakistau Islamabad
DR. ARIF ALVI PRESIDENT
RAJA NAEEM AICBAR SECRETARY