What are the income tax incentives according to Pakistan federal budget 2011?

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1. Guest6049
   

   For the wellbeing of listed company a Tax credit for BMR costs incurred by such a company is proposed to be provided @ 10% for the tax year of its incurrence. This concession has been proposed to be admissible for the tax years 2011 to 2015;2.  With  the purpose  to encourage enlistment of corporate  sector, a 5%  tax credit  is proposed to be allowed to a company in the tax year of its enlistment.3.  In  order  to  align  with  rest  of  the  scheme,  10%  withholding  tax  deductible  on Government Securities is proposed to be a FINAL tax.4.  Withholding tax deductible on debt instruments is proposed to be a FINAL tax, in order  to  relieve  the  non-resident  taxpayers  of  statutory  requirement  for  filing income tax return.5.  For  providing  incentive  to  foreign  lenders  for  tax-free  repatriation  of  profits earned on foreign industrial loans, Clause 72(iii) of Part-IV of Second Schedule to the Income Tax Ordinance 2001 is proposed to be re-instated.6.  The  maximum  rate  of  withholding  tax  deductible  on  payments  made  to  non-resident  taxpayers who are not subject  to Avoidance of Double Taxation Treaties (other than payments made on account of royalty and fee for technical services) is proposed to be @ 20% instead of 30%;7.  Honoring wide demand,  the  rate of withholding  tax deductible @ 20% on cross-word puzzles is proposed to be reduced to a rate of 10%;

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