ISLAMABAD: Federal Board of Revenue (FBR) granted income tax exemption on profits derived by foreign nationals on yield of Eurobonds and International Sukuk issued by the government of Pakistan.
In this regard the FBR issued two notifications to make changes in Income Tax Ordinance, 2001.
The FBR issued SRO 268(I)/2021 and SRO 269 (I)/2021.
The FBR granted the exemption while exercising powers available under the Second Schedule of the Ordinance. Under the Schedule the government has authority to grant tax exemption of the income derived by foreign nationals of companies.
According to the notifications, the government granted the exemption to the profit on debt income of an agency of a foreign government, a foreign national company, firm or association of a person or any other non-resident person, on Eurobonds and International Sukuks issued under the government’s medium term note program.