Amendment in definition of small company Clause 59AB of Section 2

Amendment in definition of small company Clause 59AB of Section 2: The Finance Bill seeks to streamline the definition of Small Company and to differentiate it from SME.

The definition of small company has four conditions with respect to paid up capital and undistributed reserves not exceeding 50m and no. of employees not exceeding 250 and turn over not exceeding 250m and is not formed by splitting existing business.

Now to put more emphasis, another condition is that it is not small and medium enterprise as defined in clause 59A.

For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/

For taxation services please contact us and to read more of our blogs click here.