September 25, 2020

ECC Approves Simple Tax Regime For Non-Resident Companies

The ECC, in a meeting on Wednesday, approved a simplified tax regime for non-resident companies, in a bid to attract more foreign investment in the debt market of the country. Finance Minister Dr. Abdul Hafeez Sheikh, while chairing the meeting, said that this step could reduce the cost of debt for the country and increase inflows and reserves.

By implementing the Simple tax regime the government has simplified the for non-residents companies to invest big amounts in Pakistan. The current double taxation treaty with other countries discourages big investment in Pakistan, however, under the simple tax regime, the government has 10% capital gains and 10% interest rates for foreign investors who invest in local markets. Officials said that we have given foreign investors a guarantee that no additional taxes would be charged.

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