Basic Concepts of Taxation in Pakistan, Starting Business in Pakistan
Reduction in tax rate for companies 
September 20, 2018
Tax rates for individuals tax year 2019
September 20, 2018

Reduction in tax rate on undistributed profit [Section 5A)

Through Finance Act 2017, section 5A was amended and a tax @ 7.5% was imposed on public companies if the said companies failed to distribute 40% of their after tax profits.

Through the Finance Act, 2018 the said rate of 7.5% has been reduced to 5% and limit of 40% has been reduced to 20%.

However, such distribution has to be made only through cash as the words “bonus shares” have also been omitted.

Waheed Ensari
Waheed Ensari
Waheed focuses on modern techniques in order to management of businesses through finances, learning & development, IT.Its his appetite which draws his attention & energy in helping people (business owners/entrepreneurs) – to get the crystal aspects of the business.

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