As another step toward creating opportunities for Pakistan’s tech-savvy youth, the government will most likely issue an ordinance granting incentives, such as tax breaks, to the Information Technology (IT) sector, freelancers, and startups.
The Federal Board of Revenue (FBR) has informed that a Presidential Ordinance to facilitate the IT sector is being drafted. According to them, the biggest demand in the sector is the tax exemption incenntives.
The revision of income tax slabs for the salaried class, on the other hand, would not be included in the aforementioned ordinance. Officially stated, this ordinance would only provide tax breaks and would not impose any new taxes.
It should be noted that Prime Minister Imran Khan recently announced a complete tax exemption for IT companies and freelancers, restoring the IT industry’s previous tax-exempt status.
In addition to easing foreign exchange restrictions for the industry, the package includes a 100 percent capital gains tax exemption for investments in IT startups.
The FBR has drafted the Income Tax Ordinance, which will be promulgated in the coming days, according to officials.
The Prime Minister has directed that IT/ITES companies and freelancers be allowed to keep 100% of remittances received through proper banking channels in FCY Accounts without being forced to convert them into Pakistani Rupees.
Furthermore, PSEB-registered IT companies and freelancers will not face any restrictions on outward remittances from FCY accounts.
To read our blog on “PSEB is now live the Financial Incentive Application form,” click here.
