ISLAMABAD: Federal Board of Revenue (FBR), through a circular, has explained the rationalisation and extension of super tax [Section 4B].
The Board clarified that the taxable income for the purpose of computation of super tax on corporate sector will be taken before the adjustment of brought forward depreciation or business losses.
It is pertinent to mention that the super tax was imposed at 4 per cent on every banking company and 3 per cent for every person, other than a banking company, having income of Rs 500 million and more, for tax year 2015. It has now been extended for the tax year 2016 through Finance Act 2016.
The computation of super tax has been clarified through amendment in sub-section (2) of section 4B of the Ordinance that taxable income for the purpose of computation of super tax shall be taken before the adjustment of brought forward depreciation or business losses.
The FBR further clarified that an explanation has been added to sub-section (1) of section 113, which clarifies that super tax paid or payable u/s 4B shall not be considered as tax payable or paid for the purpose of minimum tax u/s 113.
