In Pakistan, e-commerce businesses are taxed under the Income Tax Ordinance, 2001, and Sales Tax Act, 1990. These laws apply to all types of e-commerce businesses, including those selling products or services online. Income Tax for E-Commerce Businesses: An e-commerce business is required to register with the Federal Board of Revenue (FBR) and obtain a […]
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Taxation of Digital Businesses in Pakistan The digital economy has rapidly grown in Pakistan over the past decade. It has created new opportunities for businesses to connect with customers, reduce costs, and expand their reach. However, this growth also presents challenges for the country’s tax system. Digital businesses have unique characteristics that make it difficult
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In Pakistan, the taxation of Permanent Establishments (PEs) is governed by the Income Tax Ordinance, 2001. A Permanent Establishment is a fixed place of business through which an enterprise carries on business in Pakistan. The term “permanent establishment” is defined under Section 80 of the Income Tax Ordinance, 2001 as follows: “A permanent establishment means
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Stock options are a form of employee compensation that gives an employee the right to buy or sell a certain number of shares of a company’s stock at a set price within a specific time period. The taxation of stock options in Pakistan is governed by the Income Tax Ordinance, 2001, and the rules made
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A holding company is a type of company that does not engage in active business operations but instead owns and controls other companies. Holding companies are often used for the purposes of investment, to manage and consolidate assets, and to facilitate mergers and acquisitions. In Pakistan, holding companies are subject to taxation under the Income
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A joint venture (JV) is a business agreement in which two or more parties combine their resources to undertake a specific business venture. In Pakistan, joint ventures are common in various sectors such as infrastructure, construction, energy, and technology. The taxation of joint venture companies in Pakistan is governed by the Income Tax Ordinance, 2001
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Introduction: A Limited Liability Company (LLC) is a business structure that combines the liability protection of a corporation with the tax benefits of a partnership. In Pakistan, LLCs are registered under the Companies Act, 2017. The taxation of LLCs in Pakistan is governed by the Income Tax Ordinance, 2001. Definition of Limited Liability Company: A
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In Pakistan, the taxation of inheritance and estate is governed by the Income Tax Ordinance, 2001, and the rules made thereunder. Inheritance is the transfer of property, money, or assets from a deceased person to his/her heirs, while estate refers to the total assets of a deceased person, including property, cash, investments, and other assets.
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In Pakistan, taxation of gifts and donations is governed by the Income Tax Ordinance, 2001, and the rules made thereunder. A gift is a transfer of property from one person to another without any consideration or compensation, while a donation is a voluntary contribution of money or property made to a charitable organization or a
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In Pakistan, taxation of insurance premiums is governed by the Income Tax Ordinance, 2001, and the rules made thereunder. Insurance premiums are payments made by individuals or businesses to insurance companies to obtain coverage against various types of risks, such as loss or damage to property, illness, or death. Under the Income Tax Ordinance, 2001,
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