Return on investment in sukuks Section 150A

Return on investment in sukuks Section 150A: Presently every special purpose vehicle or a company, at the time of making payment of a return on investment in Sukuks to a Sukuk Holder is required to deduct tax from the gross amount of return on investment at the rate of 10% to 25% depending on the nature of Sukuk Holder under section 150A.

Through Finance Bill 2021 it has been proposed to omit this section and has been proposed to add it under section 151 Profit on Debt.

Through this amendment now it is unclear that why it has been added under the section of Profit on Debt whereby in all part of the Ordinance return on investment in Sukuks is separately dealt with. However, may it be added here that by virtue of Section 8, taxation of return on investment in Sukuks would still fall under Final Tax Regime.

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