Withholding Tax on Payments to Foreign Domestic Helpers Employed in Pakistan Section 231C
Withholding Tax on Payments to Foreign Domestic Helpers Employed in Pakistan Section 231C: Finance Act 2023 to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws WHEREAS, it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws for the purposes hereinafter appearing;
Finance Act, 2023 has introduced a new section 231C whereby advance tax of Rs. 200,000 will be collected and deposited by any Pakistan authority issuing or renewing domestic aide visa to such foreign domestic worker. Such authority will collect this advance tax from the employer or sponsor or agency, as the case may be, at the time of issuance or renewing of domestic aide visa.
This is an adjustable tax and the person from whom this tax has been collected can adjust this advance tax against tax liability assessed for a tax year.
The provision of rule (1) of Tenth Schedule to the Income Tax Ordinance will apply if the person name, from whom the tax is collectable under this section, is not appearing in Active Taxpayer list.
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