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Income Tax Ordinance, 2001
CHAPTER-II CHARGE OF TAX
From: 2023-07-01 - To: 0000-00-00 6. Tax on certain payments to non-residents.- (1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IV of Part I of the First Schedule, on every non-resident person who receives any Pakistan-source royalty 1[fee for offshore digital services 2[, fee for money transfer operations, card network services, payment gateway services, interbank financial telecommunication services]] or fee for technical services. (2) The tax imposed under sub-section (1) on a non-resident person shall be computed by applying the relevant rate of tax to the gross 3[amounts of receipts mentioned in sub-section (1).] (3) This section shall not apply to - (a) any royalty where the property or right giving rise to the royalty is effectively connected with a permanent establishment in Pakistan of the non-resident person; (b) any fee 4[***] where the services giving rise to the fee are rendered through a permanent establishment in Pakistan of the non-resident person; or (c) any royalty or fee for technical services that is exempt from tax under this Ordinance. (4) Any Pakistani-source royalty 5[or fee] received by a non-resident person to which this section does not apply by virtue of clause (a) or (b) of sub-section (3) shall be treated as income from business attributable to the permanent establishment in Pakistan of the person. _______________________________________________________________ 1-Inserted vide Finance Act, 2018, (XXX of 2018) assented on 22nd May, 2018 2-The words inserted by Finance Act, 2022, dated 30-06-2022 3-For the words amount of the royalty fee for offshore digital services] or fee for technical services substituted by Finance Act, 2022, dated 30-06-2022 4-The Words for technical services or fee for offshore digital services omitted by Finance Act, 2022, dated 30-06-2022 5-For the expression , fee for offshore digital services] or fee for technical services substituted by Finance Act, 2022, dated 30-06-2022 From: 2022-07-01 - To: 2023-06-30 6. Tax on certain payments to non-residents.- (1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IV of Part I of the First…
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