Tax Laws (Amendment) Ordinance, 2016, as published 2016
This is the Tax Laws (Amendment) Ordinance, 2016, as published by the Federal Board of Revenue in 2016. It runs to 4 pages and contains 3 sections.
Transcribed from page images. This document had no text layer, so its 4 pages were read and transcribed from the scanned images. Check figures, dates and tables against the official PDF before relying on them.
What this document is
The Federal Board of Revenue publishes this document in its Income Tax Ordinance, 2001 collection. It is reproduced here as printed in the source file, without later amendments folded in.
The source file states no date, so the year above is when the Federal Board of Revenue published the file. Treat it as approximate.
The shape of this document
The operative text holds roughly 837 words across 3 sections.
The source file
| File name | Tax Laws (Amendment) Ordinance, 2016.pdf |
| Pages | 4 |
| Size | 2.39 MB |
| Text extraction | Transcribed from page images |
| Extraction confidence | medium |
| Position in this collection | 3 of 17 |
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The full text of this document
All 3 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.
1. Short title and commencement
(1) This Ordinance may be called the Tax Laws (Amendment) Ordinance, 2016.
(2) It shall come into force at once, except section 2, which shall have effect from the first day of July, 2016.
2. Amendment of Sales Tax Act, 1990
In the Sales Tax Act, 1990, in section 2, in clause (14),-
(a) in sub-clause (c) the word “and” at the end shall be omitted; and
(b) after sub-clause (c), amended as aforesaid, the following new clause shall be inserted, namely:-
“(d) provincial sales tax levied on services rendered or provided to the person; and”;
3. Amendment of Ordinance XLIX of 2001
In the Income Tax Ordinance, 2001 (XLIX of 2001),-
(1) after section 5A, the following new section shall be inserted, namely:-
“5AA. Tax on return on investments in sukuks.-(1) Subject to this Ordinance, a tax shall be imposed, at the rate specified in Division IIIB of Part I of the First Schedule, on every person who receives a return on investment in sukuks from a special purpose vehicle.
(2) The tax imposed under sub-section (1) on a person who receives a return on investment in sukuks shall be computed by applying the relevant rate of tax to the gross amount of the return on investment in sukuks.
(3) This section shall not apply to a return on investment in sukuks that is exempt from tax under this Ordinance.“;
(2) in section 8, after the figure “5A”, occurring twice, the comma and figure “, 5AA” shall be inserted;
(3) in section 28, in sub-section (2), after the word “securitization” the words “or issuance of sukuks” shall be inserted;
(4) after section 150, the following new section shall be inserted, namely:-
“150A. Deduction of tax by special purpose vehicle.-Every special purpose vehicle making payment of a return on investment in sukuks to a sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule.”;
(5) in section 153, in sub-section (5), in clause (g), after the word “receivables” the words “or issuance of sukuks” shall be inserted;
(6) in section 236C,-
(a) in sub-section (1), for the full stop at the end a colon shall be substituted and thereafter the following proviso shall be added, namely:-
“Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service.”; and
(b) sub-section (4) shall be omitted;
(7) in the First Schedule,-
(a) in Part I, after Division IIIA, the following new Division shall be inserted, namely:-
“Division IIIB
Rate of Tax on Return on investment in sukuks received from a special purpose vehicle
The rate of tax imposed under section 5AA on return on investment in sukuks received from a special purpose vehicle shall be-
(a) 25 % in the case the sukuk-holder is a company;
(b) 12.5% in case the sukuk-holder is an individual or an association of person, if the return on investment is more than one million; and
(c) 10% in case the sukuk-holder is an individual and an association of person, if the return on investment is less than one million.“; and
(b) in Part III, after Division IA, the following new Division shall be inserted, namely:-
“Division IB
Return on Investment in Sukuks
The rate of tax to be deducted under section 150A shall be-
(a) 15% in case the sukuk-holder is a company;
(b) 12.5% in case the sukuk-holder is an individual or an association of person, if the return on investment is more than one million;
(c) 10% in case the sukuk-holder is an individual and an association of person, if the return on investment is less than one million; and
(d) 17.5% in case the sukuk-holder is a non-filer”; and
(8) in the Second Schedule,-
(a) in Part I, in clause (136), in the proviso, after the word “securitization” the words “or redemption of sukuks” shall be inserted; and
(b) in Part IV, in clause (38),
(i) for the figure and word “and 233” the comma, figures and word “,233 and 236Q” shall be substituted; and
(ii) after the word “securitization” the words “or issue of sukuks” shall be added.
MAMNOON HUSSAIN, President.
NYLA QURESHI, Acting Secretary.
PRINTED BY THE MANAGER, PRINTING CORPORATION OF PAKISTAN PRESS, ISLAMABAD. PUBLISHED BY THE DEPUTY CONTROLLER, STATIONERY AND FORMS, UNIVERSITY ROAD, KARACHI.