Each modern country has a special tax code aimed to incentivize or encourage any particular economic activity in the country. Two common types of tax incentives are individual incentives and corporate tax incentives. Individual incentives are special incentives dedicated for individuals and include exemptions, deductions, and tax credits. These can be in the shape of individual retirement account, mortgage interest deduction, and hybrid tax credit. On the other hand, corporate tax incentives cam be raised at local, state and federal government levels.
The objective of this article is to provide information concerning tax incentive and other regulatory exemptions available to investors in Pakistan under various schemes. This article by no means can substitute detailed analysis.
1. Exemptions to Export Processing Zone
- Reduced Rate of Income Tax For Exporter In Export Processing Zone
- Exemption of Income Tax to Industrial Undertaking in Gawadar
- Exemption of Custom Duty on Import of Capital Assets & Other Material
- Exemption of Custome Duty & Other Taxes on Export Good from Zone
- Zero Rated States to Supplies of Raw Material
- Zero Rated Statues to Supply of Locally Manufactured Plant & Machinery
- Exemption from Foreign Exchange Regulations Act, 1947
- Exemption from Insurance Act, 1938
- Exemption From Capital Gain Tax to Industrial Undertaking
- Exemption from Labor Laws
2. Exemption to Special Economic Zone
- Exemption from Custom Duty on Import of Plant & Machinery
- Exemption from Income Tax
3. Exemption from Income Tax to Industrial Undertakings
- Exemption to Electric Power Generation Project
- Exemption to0 Industrial Undertaking in KPK & Balochsitan Province
- Exemption to Industrial Undertaking Engaged in Halal Meat Production unit
- Exemption to Cellular Companies
- Exemption to LNG Terminal Operator
- Exemption to Coal Mining Project
- Exemption to Transformation Line Project
- Exemption to Manufacturer of Capital Asset for Generation of Renewable Energy
4. Exemption Through 100% Tax Credit From Tax Liability
- Income Tax Credit for Newly Established Industrial Undertakings
- Tax Credit for Industrial Undertaking Investing in Capital Asset Through Equity Financing
For further information, read:
Existing Tax Regime is Facilitating Investments in Pakistan
Tax Reductions, Rebates and Credits by Federal Board of Revenue
