Govt to Withdraw Income Tax Exemption on IT and IT-Enabled Services

The government has decided to withdraw income tax exemption available to IT services and IT-enabled services through the Income Tax Amendment Bill, 2021.

Under the draft bill, the IT services and IT-enabled services will be allowed to avail 100 percent tax credit at the time of filing of income tax returns. The withdrawal of income tax exemption would be done through the Income Tax Amendment Bill, 2021.

As a replacement, the Federal Board of Revenue (FBR) will give 100 percent tax credit to the “IT Services” include software development, software maintenance, system integration, web design, web development, web hosting, and network design, and “IT-enabled services” include inbound or outbound call centers, medical transcription, remote monitoring, graphics design, accounting services, HR services, telemedicine centers, data entry operations, locally produced television programs and insurance claims processing.

Courtesy: Pro Pakistani

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