ISLAMABAD: The Federal Board of Revenue (FBR) has granted tax exemptions in respect of International Sukuk Issuance under the Government of Pakistan Trust Certificate Issuance Program.

Through an SRO 1457(1)/2021 issued here on Friday, the FBR has amended Second Schedule of the Income Tax Ordinance, 2001.

The Finance Division now intends to access the international capital markets through issuance of international Sukuk under a Sukuk MTN programme, known as a “Trust Certificate Issuance Programme (TCIP)”.

The FBR has also announced income tax exemption in respect of any profit on debt and capital gains derived by any agency of foreign government or any non-resident person from International Sukuk Certificates, including tap issues, issued or to be issued from time to time by the Pakistan Global Sukuk Programme Company Limited under its Trust Certificate Issuance Programme.

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The FBR has granted income tax exemption to the Pakistan Global Sukuk Programme Company Limited.

The provisions of sections, 147, 151, 152, 236A, and 236K shall not apply to the Second Pakistan International Sukuk Company Limited, the Third Pakistan International Sukuk Company Limited, and The Pakistan Global Sukuk Programme Company Limited, as a payer.

The section 147 is related to the advance tax paid by the taxpayer; section 151 deals with the deduction of tax from the gross amount of return on investment; section 152 deals with the payments to non-residents; section 236A is related to the advance tax at the time of sale by auction, and section 236K deals with the advance tax on purchase or transfer of immovable property.

Copyright Business Recorder, 2021