Payments to Non-Residents Section 152

Payments to Non-Residents Section 152: Finance Act, 2024 — Explanation regarding Important Amendments made in the Income Tax Ordinance, 2001

Important amendments made in Income Tax Ordinance, 2001 (“the Ordinance”) through Finance Act, 2024 are explained in the subsequent paragraphs.

Payments to Non-Residents Section 152

Under sub-section (4A) of Section 152, the Commissioner, on application by a recipient of payment referred to in sub-section (1A) of section 152 having P.E in Pakistan or by a recipient of payment referred to in sub-section (2A), where tax deductible is not minimum, could allow any person to make payment without deduction of tax or with deduction of tax at a reduced rate.

After amendment made through the Finance Act, 2024, the Commissioner cannot issue a 100% exemption certificate and can only issue a reduced rate certificate but such reduction shall not exceed 80% of the rate specified in Division II of Part III of the First Schedule.

Read full text of Explanation of Finance Act, 2024 Amendments made in the Income Tax Ordinance, 2001 for more updates on taxes from FBR click here.