Fifteen Year Information Technology (IT) relief to software exporters -Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

Fifteen Year Information Technology (IT) relief to software exporters

ISLAMABAD- The Central Board of Revenue (CBR) has announced exemption of income tax on the profits and gains of software exporting companies till June 30,2016.

These companies are engaged in the development of the software to be exported.

The exemption of income tax would also be available on the income of software-related services provided by the software exporting companies.

The CBR made an amendment to the Income Tax Ordinance, 1979 through SRO. 301 (1)/2Ool.

Official sources that the decision would not only promote software industry, but would also bring valuable foreign exchange into the country.

The software export companies, sources said, could avail exemption of income tax for the next 15 years, which would also attract foreign software private companies in Pakistan.

The Chief Executive, General Pervez Musharraf, recently announced that the government would provide maximum facilities to the software companies, operating in the country.

Presently, over 200 registered software companies would be the beneficiaries of the notification. However, the number would increase considerably in near future.

The exemption of income tax and other facilities, sources said, would create an enabling environment for the private sector to set up new software houses and companies in the country.

The notification, says: “In exercise of the powers, conferred by Sub-section (2) of Section 14 of the Income Tax Ordinance, 1979 (XXXI of 1979), the Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance, namely: – “In the afore said schedule, in Part-I, in clause (179), for the full stop at the end a colon shall be substituted and thereafter the following provision shall be added, namely: – “Provided that the exemption under this clause shall not be available after the 30th day of June, 2016”.

Source: Business Recorder