The Federal Board of Revenue (FBR) explained the news of tax breaks on social media. The FBR made the statement regarding the news circulating on social media that return of tax exemption on income from exports of computer software, IT services or related services.
FBR Said there was no proposal under consideration to withdraw exemption available to income from exports of computer software or IT services.
This clear statement states that under existing law and section 2 of Schedule 1 of the Income Tax Ordinance 2001 , computer software, IT services and related export services are exempt from quotas. In case 80% of the exported income is remitted to Pakistan through banks. However, those claiming this exemption are subject to minimum tax on their turnover.
Elaborating further, FBR explain that a proposal was being considered to expand the scope of tax incentives on revenue earned from exports of software, IT and related services. It is proposed that such income be given a sophisticated tax credit against the tax liabilities, including the minimum tax liability on turnover. The proposal came in the face of news circulating on social media. This will be a prelude to the expansion of the scope of concessions and incentives offered in the field of IT .