Finance Bill 2020 has made an amendment according to which Pakistan Stock Exchange (PSX) is required to deduct/collect a reduced rate of three percent on payment to non-residents.
As per the Federal Board of Revenue Pakistan, after Finance Act, 2020, various service providers are required to collect three percent income tax on payment to non-residents.
These services include:
- Inspection, certification, testing and training services,
- Building maintenance services,
- Share registrar services,
- Tracking services,
- Software development services,
- Hotel services,
- Courier services,
- Freight forwarding services,
- Transport services,
- Air cargo services,
- Manpower outsourcing services,
- Security guard services,
- IT services and IT-enabled services as defined in clause (133) of Part I of Second Schedule,
- Advertising services (other than by print or electronic media),
- Car rental services,
- Services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited.