New Rs200,000 advance tax on visa payments for foreign domestic workers

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MG News | August 02, 2023 at 01:19 PM GMT+05:00

August 02, 2023 (MLN): The Finance Act, 2023, has introduced a new section 231C, which mandates the collection of advance tax amounting to Rs200,000 on payments made to foreign domestic helpers employed in Pakistan.

According to the circular issued by the Revenue Division on July 26, under this new provision, any Pakistan authority responsible for issuing or renewing domestic aide visas for foreign domestic workers will be required to collect and deposit the advance tax.

The tax amount will be collected from the employer, sponsor, or agency, as applicable, at the time of visa issuance or renewal.

It is important to note that this advance tax is adjustable. The individual or entity from whom the tax is collected can adjust this amount against their assessed tax liability for a given tax year.

However, if the person's name from whom the tax is collectible under this section is not appearing in the Active Taxpayer List, the provision of rule (1) of the Tenth Schedule to the Income Tax Ordinance will apply.

This new section aims to streamline tax collection and ensure that foreign domestic workers employed in Pakistan are included in the tax system.

It also encourages individuals and entities to maintain active taxpayer status to take advantage of tax adjustments and benefits.

Copyright Mettis Link News

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