Need some assistance

[zubair]

I need some assistance in tax.
If a person is employed in Pakistan and his salary is Rs. 25000 PER MONTH. What is the most appropriate structure between salry and any other allowances that would maximise the tax saving. In such a structure how much would be his net salary and how much tax is payable and when it is payable and who it should be payable to?

Thanks in advance for your kind assistance.

Zubair

[atq1972]

Mr Zubair
The best structure will be annualy there will be as under

Basic Salary 200000
House Rent Allowance 80000
Utility Allowance 20000
__________
Total Salary 300000
Taxabel will be basic salary i.e 200000
and tax payable will be
8050 i.e 671 per month an dthis tad will be deducted by the employer at the time of making payment and will be deposited in the government treasury through tax payment challan simaltaneously

Hope the above will solve your purpose

attiq

[zubair]

Thanks for your kind assistance.
Ok here is my understanding, please let me know if i am correct. i employ someone at 25000 per month,... i pay 671 to Govt. and the rest to the person. This will effectively discharge all liabliities.... is there no contribution from employers or 671 is the final figure for me as an employer.

thanks
zubair

[atq1972]

Yes if the employee has no other source of income say profit on PLS or other business income

attiq

[zubair]

I need help with sales tax

If a company resident in pakistan develope and market a software package in Europe, do the proceeds gets charged to Sales tax. OR how can we best utilise the situaiton to extinguish any sales tax.... can someone suggest a good local tax expert.

What about if the company is not a resident company but a branch of foreign controlled company?

Thanks

zubair

[webmoxter]

As far as my understanding is concerned it will be an export and it will be zero rated

Webmaster
www.practiseislam.com

[Sarfaraz]

AOA
according to my info abt income tax ordinance 2001 amended upto finance act 2003
it will be as follow

basic salary 200000
house rent allowance (200000*45%)= 90000
utilities allowance 10000

and
that tax which the employer pays on behalf on emplyee it is benefit to employee and it should be taxed and final taxed liablity of employee should be determined

abhi aap sirf itna samajh lain ke aap apne emplyee ko 300000 anually
pay karte hain aur 200000 taxable income par gross tax 11500 banta hai then special rebate for salaried persons ke liye 40% tax reduce ho jata hai aur woh annual tax 6900 pay karta hai.
ok take care ALLAH hafiz


There is a will there is a way.

Edited by - sarfaraz on Jan 30 2004 110930 AM

[aamersikandar]

AOA
A local company exporting software will enjoy tax holiday from Income Tax and a zer rated supply exemption from Sales Tax. For branch of a company incorporated outside Pakistan, it depends where the revenue earned is being taxed and spent. Contact me for your exact deatils at [email protected] or www.asbc.com.pk

Aamer Sikandar

[Sarfaraz]

hi dear aamer sikandar

sawal gandum jawab channa


There is a will there is a way.

[Sarfaraz]

sawal wheat jawab channa
pehle wala sensor ho gaya tha (

There is a will there is a way.