The Income Tax Ordinance, 2001, is a comprehensive law in Pakistan that governs the taxation of income earned by individuals and businesses. It extends to the whole of Pakistan and came into force on a date specified by the government.

The ordinance covers various aspects of income taxation, including:

– Geographical Source of Income: Defines how income earned within and outside Pakistan is taxed.
– Taxation of Foreign Income: Specifies how foreign income is taxed in Pakistan, including gains on disposal of assets outside the country.
– Taxation of Non-Residents: Outlines how non-resident individuals and businesses are taxed in Pakistan, including taxation of permanent establishments.
– Tax Credits and Foreign Losses: Provides rules for claiming tax credits and deducting foreign losses.

The Income Tax Ordinance, 2001, is amended periodically to reflect changes in tax policies and laws. The Federal Board of Revenue (FBR) is responsible for administering and enforcing this ordinance. Download