FBR clarifies position on tax exemption of computer, IT services exports
- It said that this exemption was subject to condition that 80% of the export earnings were remitted to Pakistan through normal banking channel.
ISLAMABAD: The Federal Board of Revenue (FBR) Wednesday clarified the news, circulating on social media, about a proposal to withdraw exemption available to income from exports of computer software or IT services or IT enabled services.
“Under the current legal dispensation, the exports of computer software, IT Services or IT enabled services is exempt from tax as provided under clause (133) of Part-I of the Second Schedule to the Income Tax Ordinance, 2001,” FBR said in a statement.
It said that this exemption was subject to condition that 80% of the export earnings were remitted to Pakistan through normal banking channel.
However, the persons claiming exemptions are subject to minimum tax on their turnover.
The statement said that there was a proposal to widen the scope of tax concessions available to income from the export of software, IT services and IT enabled services.
For this purpose, the exemption was being shifted to tax credit regime, it added.
It has been proposed that such income may be provided hundred percent tax credit against tax liability including minimum tax liability on their turnover.
The proposal enhances the scope of concession to the IT sector contrary to the news circulating in social media, it said.
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