TAX CREDIT FOR INVESTMENT
Fale If a company invests any amount in the purchase of plant and machinery for the purpose of extension, expansion, balancing, modernization or replacement of the plant and machinery already installed in the industrial undertaking it will get a tax credit for such an investment. This tax credit will be deducted out of the tax payable by the company.
1. The tax credit will be equal to 10 of the amount of investment.
2. The plant and machinery should be purchased and installed between 01.07.2010 and 30.06.2015.
3. Any amount of credit, if cannot be adjusted against the tax of same year, shall be carried forward for the next two tax years.
TAX CREDIT FOR ENLISTMENT
If a company gets itself enlisted in any registered stock exchange in Pakistan a tax credit equal to 15 percent of the tax payable shall be allowed This tax credit will be deducted from the tax payable of the tax year in which the company is enlisted. The concession has been provided through Finance Act, 2010, to encourage the companies to get themselves enlisted in stock exchanges
TAX CREDIT FOR NEWLY ESTABLISHED INDUSTRIAL UNDERTAKINGS
This tax exemption in the form of a tax credit of 100% of tax payable for a period of five years if a company sets up an industrial undertaking for manufacturing or dairy farming with hundred percent equity owned by the company. The company should Dfa Ho be incorporated between 1.7.2011 and 30.6.2016, and the tax credit shall be for a period of five years. Such companies may obtain short-term loans and finances from banking companies or non-banking financial institutions.
