KARACHI: Federal Board of Revenue has asked the non–filers of income tax return to pay 17.5 percent withholding tax on return received on investment made in Islamic bond i.e. Sukuk.
The FBR in its updated withholding tax rate card for tax year 2017-18 said that special purpose vehicle and a company is required to deduct withholding tax from Sukuk holders on payment of gross amount of return on investment at the time of actual payment under Section 150A of Income Tax Ordinance, 2001.
The rate of withholding tax on payment of return on investment in Sukuks:
15 percent in case the Sukuk – holder is a company.
12.5 percent in case the Sukuk – holder is an individual or an association of person, if the return on investment is more than one million.
10 percent in case the Sukuk – holder is an individual and association of person, if the return on investment is less than one million, and
17.5 percent in case the Sukuk – holder is a non-filer.
