Minimum Tax on Turnover section 113
The Finance Act, 2022 has brought about certain amendments in the Income Tax Ordinance, 2001 (the Ordinance, hereafter). Some significant amendments on Minimum Tax on Turnover are explained hereunder: –
Minimum Tax on Turnover
Turnover tax on under section 113 is payable by a resident company, permanent establishment of a non-resident company, an individual or an AOP having turnover of Rs.100 million and above under certain specific situations mentioned therein.
Following major changes have been introduced in the minimum tax on turnover regime:
(a) Previously, a person who had paid minimum tax on turnover under section 113 was allowed to carry forward the said tax for five succeeding tax years. Now this carry forward has been restricted to three years.
(b) The rate of minimum tax on turnover of Oil Marketing Companies have been brought down from 0.75% to 0.5%.
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/