Tax Incentives to IT& Telecommunication Sector

Ministry of Information Technology and Telecommunication, Islamabad announced that Government of Pakistan continues to provide 100 percent tax credit on export income from IT and IT-enabled services till June, 2025.Government realizes that it has an important role in terms of providing a conducive environment to IT industry through infrastructure and HR development incentives for IT industry, therefore, further 100 percent tax credit on profits and gains derived by the IT start-ups for the tax year in which a start-up is certified by Pakistan Software Export Board (PSEB) and for the next two years has been allowed.Moreover, Government allowed 100 percent equity ownership to foreign investors, 100 percent repatriation of capital and dividends allowed, and tax holiday for venture capital funds till 2024.For the purpose of promoting and encouraging IT services export remittances through formal banking channels under IT codes assigned by the State Bank of Pakistan, the government has allocated Rs.4 billion to PSEB for the first ever financial incentive on IT & ITeS export remittances to be disbursed on the basis of export remittance receipts in FY2021.

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