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  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/8/2012

Pakistan - Tax law amendments in Finance Act 2012 

August 8:   The Finance Act 2012 (enacted in late June 2012) includes provisions that:
  • Amend the rules for the depreciation of motor vehicles
  • Provide tax credits for investments of plant and machinery
  • Reduce the minimum tax rate for retailers and for taxpayers in certain industry sectors having “very low profit margins”
  • Amend the withholding tax rates on payments made to permanent establishments with respect to the purchase of goods, provision of services, and execution of contracts (including payments of royalties and technical fees)
  • Provide rules for the collection of tax on capital gains realized on the sale of immovable property
  • Establish new “slab rates” for determining individual income tax liability for salaries and wages
  • Reduce the rate for collection of advance tax by a manufacture on the sale of goods to a distributor, wholesaler, or dealer
  • Set forth new rules for the taxation of oil exploration and production companies
  • Amend the excise tax rules for international air travel

Read a July 2012 report [PDF 160 KB] prepared by the KPMG member firm in Pakistan:
Amendments made through Finance Act 2012




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