LAHORE: The Federal Board of Revenue (FBR) has conveyed to the IT services or IT-enabled services that no tax has been imposed on the IT sector under the Income Tax Second Amendment Bill 2021.
Senior FBR officials were responding to the queries and concerns of the IT sector regarding the replacement of the income tax exemption with the tax credit scheme under the proposed Bill 2021.
They said that the IT sector should not be worried about the new tax credit regime due to the following reasons:
FBR officials said that the IT sector would not be required to pay any kind of 29 percent income tax. The IT sector has also been exempted from payment of 1.5 percent turnover tax or minimum tax applicable to the exempt entities. This would enable many sectors to avail tax credits in their income tax returns.
The IT sector would not be required to pay any tax on exports like other sectors which are paying one percent tax on exports of goods. The IT sector would not be bound to pay any such kind of tax at the export stage.
They said that the biggest concern of the IT sector is documentation and interaction with the FBR’s field officials for claiming 100 percent tax credit.
Responding to this, senior FBR officials told Propakistani that the IT sector would be required to follow only 2-3 basic documentary requirements. To avail 100 percent tax credit, they would file their income tax return, wealth statement, and monthly sales tax returns already filed or required to be filed, if necessary.
FBR officials stated that no heavy documentation is required for the IT sector.
