FBR issues clarification on news item

ISLAMABAD: Federal Board of Revenue (FBR) has issued a clarification on the news item published in an English daily (not The Financial Daily) with a caption, “Authorities faces legal challenge on tax concession for Naya Pakistan Certificate”.
FBR has clarified that Naya Pakistan Certificate, a new instrument launched by the Government/State Bank of Pakistan, qualifies as debt instrument in terms of Clause (5AA) of Part-II of the Second Schedule of the Income Tax Ordinance, 2001. Therefore, profit on debt on the Naya Pakistan Certificate is subject to tax @ 10% which is final tax.
Moreover, such non-residents are not required to file tax return solely for the declaration of tax deduction on profit on debt. It may be added that the aforesaid concessionary tax regime is applicable to non-residents only.

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