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PSX to collect 3pc income tax on payments to non-residents

PSX to collect 3pc income tax on payments to non-residents

ISLAMABAD: Pakistan Stock Exchange (PSX) is required to deduct/collect a reduced rate of three percent income tax on payment to non-residents.

Officials of Federal Board of Revenue (FBR) said that amendment has been made through Finance Act, 2020 and various service providers are required to collect three percent income tax on payment to non residents.

These services are included:

* transport services,

* freight forwarding services,

* air cargo services,

* courier services,

* manpower outsourcing services,

* hotel services,

* security guard services,

* software development services,

* IT services and IT enabled services as defined in clause (133) of Part I of Second Schedule,

* tracking services,

* advertising services (other than by print or electronic media),

* share registrar services,

* car rental services,

* building maintenance services,

* services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited,

* inspection, certification, testing and training services.