CIRCULAR-LETTER NO: 1(7)IT-V/77 DATED: 05/07/1977

SROS: CIRCULAR-LETTER NO: 1(7)IT-V/77 DATED: 05/07/1977 APPROVAL OF EXPATRIATE TECHNICIANS U/S 4(3)(XIII) OF INCOME-TAX ACT, 1922 - INSTRUCTIONS REGARDING CIRCULAR-LETTER NO: 1(7)IT-V/77 DATED: 05/07/1977 GOVERNMENT OF PAKISTAN CENTRAL BOARD OF REVENUE Islamabad, the 5th July, 1977 From: Mr. Agha Kafeel Barik, Second Secretary. To: All Commissioners of Income-tax Subject: APPROVAL OF EXPATRIATE TECHNICIANS U/S 4(3)(XIII) OF INCOME-TAX ACT, 1922 - INSTRUCTIONS REGARDING Expatriate Technicians employed by an approved undertaking in Pakistan are exempt from the payment of income-tax on their income from salary subject to the fulfilment of the conditions as prescribed in Section 4(3) (Xiii) of Income Tax Act, 1922. So far Board was empowered to approve the contract of service between the undertaking and its foreign employees for the purpose of the said exemption. 2. Through the Finance Act, 1977, powers of approval of the contract have been delegated to the Commissioners of Income-tax. It is, therefore, considered appropriate to bring out the following directions explaining the procedure to be followed for the approval of the contract and grant of exemption to the expatriate technicians so as to ensure that a uniform policy is followed all over the department. 3. The application under Section 4(3) (xiii) would be submitted to the Commissioner of Income-tax on the prescribed form (Annex ˜I) by the employer on behalf of the foreign employers. The application should be accompanied by: (a) Personal declaration by expatriate technician in the prescribed form (Annexure ˜B). (b) Documentary evidence as regards qualifications and experience of employee so as to ensure that he is eligible within the meaning of the Explanation to Section 4(3) (xiii). (c) A ˜No Objection Certificate from the Department of Investment Promotion Bureau and supplies as regards the period for which the services of the foreign technicians have been approved. The approval under Section 4(3) (xiii) is to be restricted only to the period referred to in the said certificate. (d) A copy of contract of service between the employer and the foreign technicians duly signed by both the parties. (e) A…