As per Lawkidunya, Pakistan’s income tax amendments have undergone significant changes in recent years. The Income Tax Ordinance, 2001, is the primary legislation governing income tax in Pakistan, and it has been amended several times.

Recent Amendments in Pakistan Income Tax

– The Tax Laws (Amendment) Act, 2024: This act proposes changes to the Income Tax Ordinance, 2001, the Sales Tax Act, 1990, and the Federal Excise Act, 2005, to curb certain economic transactions by unregistered taxpayers.
– The Income Tax (Amendment) Ordinance, 2024: This ordinance has been approved by the President of Pakistan and comes into effect immediately, resulting in substantial changes to tax rates for the banking sector for the Tax Year 2025 onwards.
– The Tax Laws (Second Amendment) Ordinance, 2022: This ordinance amended various tax laws, including the Income Tax Ordinance, 2001.

Key Changes of Pakistan Income Tax

– Pakistan-source business income of non-resident persons: Amendments have been made to consider business income of non-resident persons as Pakistan-sourced income to the extent it is derived from Pakistan.
– Tax rates for the banking sector: The Income Tax (Amendment) Ordinance, 2024, has introduced substantial changes to tax rates for the banking sector.

It’s essential to stay updated on these amendments to ensure compliance with Pakistan’s income tax laws. For more information, you can visit the Federal Board of Revenue (FBR) website or consult with a tax professional.