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Tax on payments to Non-Residents
03-21-2015, 01:22 AM
Post: #2
RE: Tax on payments to Non-Residents
The software and lience fee is a royalty under section 152 of the Income Tax Ordinance, 2001 and the applicable rate of tax is 15% of the gross amount. However, Pakistan have agreement for avoidance of double tax treaty with difference countries, you should also review the tax treaty of Pakistan with the vendor's country to re-check if there is any reduce rate of tax.

Further, the rate of 6% as stated in your question is for perminent establishment of a Non-resident while the rate of 15% is for non-resident person not having perminent establishment in Pakistan.

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Tax on payments to Non-Residents - mhasan - 08-27-2014, 01:16 PM
RE: Tax on payments to Non-Residents - Taxman - 03-21-2015 01:22 AM

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