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Income Tax Ordinance, 2001
CHAPTER-III TAX ON TAXABLE INCOME PART X TAX CREDITS
From: 2023-07-01 - To: 0000-00-00 1[***] __________________________________________________________ 1-Section “65H” omitted by substituted by Finance Act, 2022, dated 30-06-2022, with effect from 2nd March, 2022. Earlier Section “65H” inserted by Income Tax (Amendment) Ordinance, 2022, dated 03-03-2022. Before omission section “65H” read as: 65H. Tax credit for foreign investment for industrial promotion,- (1) Where a taxpayer being - (a) a non-resident Pakistani citizen having continued non-residential status for more than five years; or (b) a resident individual having foreign assets declared in terms of section 116 or 116A by the 31st December, 2021, invests in a company incorporated on or after the 1st March, 2022, to set up an industrial undertaking in Pakistan with equity, not less than filly million rupees, with funds remitted into Pakistan through proper banking channel as per the procedure to be proscribed by the Stale Bank of Pakistan, at any lime up to the 31st December, 2022, that company shall be entitled to a one-time tax credit equal to one hundred percent of the amount remitted and credited in rupees in the bank account of such company against tax liability for the tax year in which commercial production commences. (2) Where no tax is payable by the taxpayer in respect of the tax year in which the commercial production has commenced or where the tax payable is less than the amount of credit as aforesaid, the amount of the credit or so much of it as is in excess thereof, as the case may be, shall be carried forward and deducted from the tax payable by the taxpayer in respect of the following tax year and so on, but no such amount shall be carried forward for more than live tax years in the case of investment referred to in sub-section (1), however, the deduction made under this section shall not exceed in aggregate the limit specified in sub-section (1). (3) This section shall not apply to a company or an industrial undertaking established by splitting up or reconstitution of a company or an industrial undertaking already in existence or by transfer of machinery or plant from an industrial undertaking established at any time before the 1st March,…
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