Tax Consultancy, Taxation

Minimum tax on certain payments to non-residents section 152

Posted on by Muhammad Waheed Ensari

Minimum tax on certain payments to non-residents section 152

Minimum tax on certain payments to non-residents section 152: Prior to the Finance Act, 2019, tax deductible under sub-section (1A) of section 152 on payment to a non-resident on execution of contracts mentioned in clauses (a), (b) & (c) was final tax if the non-resident opted for the final tax regime.

Through the Finance Act, 2019, tax deductible under sub-section (1A) has been made minimum tax.

Similarly, tax deductible under sub-section (IAA) of section 152 on payment to a non-resident for insurance premium or re-insurance premium was final tax. The same has now been made minimum tax.

These explanations have been issued by FBR after the Finance Act 2019 approved / passed from the parliament of Pakistan.

Muhammad Waheed Ensari

Founder & CEO, BeSpoke Consulting and Training with 20+ Years of Professional Experience (International and National) in the field of Business Development, Taxation, Accounting, Finance & Auditing with good understanding of financial management system. Strong exposure in the field of general accounting, G/L maintenance, financial reporting and Internal control procedures. Expert in handling people of diverse nationalities, and renowned for being an excellent team player with a positive “can do” attitude. Energetic & self-motivated with a high degree of cultural sensitivity.

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