ISLAMABAD: The Federal Board of Revenue (FBR) has granted income tax exemption on profit derived by foreign nationals against purchase of Sukuk (Islamic bond).
The tax exemptions were notified through three different notifications. According to a notification issued by the FBR, the government allowed exemption from tax to the income of agency of a foreign government, a foreign national (company, firm or association of persons), or any other non-resident person, from profit on moneys borrowed in respect of Pakistan International Sukuk 2016 issued by ‘The Third Pakistan International Sukuk Company Limited.’
Through another notification, the government exempted the capital value tax on Third Pakistan International Sukuk Company Limited.
The exemption from income tax on the yield of Sukuk has been approved by the Economic Coordination Committee of the Cabinet few days back.
The government is intended to launch the Sukuk to the tune of $500 million to $ 1 billion in US capital market and intended to complete the transactions by October 5, reports said.
In other two notifications issued by the FBR also excluded the Third Pakistan International Sukuk Company Limited from income tax and capital value tax.
