Profit on debt

Exemptions under this section +

  1. Inter-corporate profit on debt within the group companies entitled to group taxation under section 59AA
  2. The Institutions of the Agha Khan Development Network (Pakistan)
  3. Non-residents, in respect of receipts from Pak rupees denominated Government and listed corporate securities and redeemable capital receipts, where the investments are made exclusively from foreign exchange remitted into Pakistan through a Special Convertible Rupee Account maintained with a bank in Pakistan
    (excluding local branches or subsidiaries or offices of foreign banks, companies, associations of persons or any other person operating in Pakistan)
  4. Behbood Savings Certificate or Pensioner's Benefit Account and Shuhada Family Welfare Account
  5. Promissory notes and sales tax refund bonds
  6. Pakistan Banao Certificate
  7. Sarmaya-e-Pakistan Limited
  8. Bonds issued under the Federal Government Duty Drawback Bonds Rules, 2019
  9. Special purpose vehicle for the purpose of securitization or issue of sukuks.
  10. Venture Capital Company
  11. Islamic Development Bank
  12. National Disaster Risk Management Fund
  13. Any person making payments to:
    • National Investment Unit Trust;
    • a Collective Investment Scheme;
    • Approved Pension Fund;
    • an Approved Income Payment Plan;
    • a REIT Scheme;
    • a recognized provident fund; or
    • an approved superannuation fund or an approved gratuity fund.
  14. Term Finance Certificates
  15. Monthly income savings accounts for a resident individual
  16. International Finance Corporation
  17. Pakistan Domestic Sukuk Company Limited
  18. Asian Development Bank
  19. The ECO Trade and Development Bank
  20. The Second Pakistan International Sukuk Company Limited, the Third Pakistan International Sukuk Company Limited and The Pakistan Global Sukuk Programme Company Limited
  21. The Prime Minister's COVID-19 Pandemic Relief Fund-2020
  22. The persons mentioned in Table 1 of clause (66) of Part I of the Second Schedule as recipients of payment. Provided that such persons shall continue to perform functions as withholding and collecting agent under the aforesaid provisions
  23. Exemption from withholding tax on profit on debt under section 151 to Prime Minister's relief Fund, Earthquake and other calamities with effect on and from 5th August 2022 (clause 121)