PROFIT ON DEBT
The following incomes are exempt from tax subject to the limits (if any) mentioned.
(a) Profit on debt received by a non-resident for a loan given to be utilized on a project in Pakistan approved by the government.
(b) Profit on debt payable to a non-resident person on a loan in foreign exchange against export letter of credit which is used exclusively for export of goods manufactured in Pakistan.
(c) Profit on debt derived by Hub Power Company Limited after 1″ July 1991 on its bank deposits or accounts with financial institutions.
(d) Profit on debt paid to an agency of a foreign government, aforeign national or any other non-resident person approved by the government under a loan agreement or in respect of foreign country instrument. This exemption will not be available on debt received after 30.06.2008.
(e) Any profit on debt derived from foreign Dfa Ho currency account held
with authorized bank in Pakistan. Profit on debt derived from a rupee account held with a scheduled bank by a citizen of Pakistan residing abroad where the deposits are made through foreign exchange remittance.
