05-26-2006, 03:10 AM
Dear Mr. Abdur Rahman,
Thank you for your reply to my queries. I think i have some clarification but not a 100%. I have some more questions, hopefully you can answer them for me. So here goes.
1) How do you define gross turnover? (is it the gross revenue or something else)
2) How do you define taxable income? (i am trying to differentiate between "gross turnover" and "taxable income")
3) How do i find out if having an IT/ITES business like a call center will be subject (or not subject) to pay the minimum tax? I think another way to ask this question may be, where do i find the "second schedule of the Income Tax Ordinance, 2001"?
4) I understand that the 30% depreciation may not be of much use until 2016. In the scenarios that we are discussing specifically, would it be possible to take a slower depreciation than 30% per year? or would this depreciation add up over the years and i will "Still" be able to use it after 2016? Pardon my lack of knowledge regarding this issue.
5) Finally about the issue of double taxation. I have been told that there is some trade treaty between the US and Pakistan that will stop double taxation. Am i correct in saying this? either way, can you advise me on the tax implications of the treaty between the US and Pakistan if possible. I am trying to understand all of this so i can leverage to take the most advantage for my organization.
Again, i thank you for your help. And yes i probably will have many more questions and will be very happy if you could clarify things for me.
Salam,
Momin Durrani.
Thank you for your reply to my queries. I think i have some clarification but not a 100%. I have some more questions, hopefully you can answer them for me. So here goes.
1) How do you define gross turnover? (is it the gross revenue or something else)
2) How do you define taxable income? (i am trying to differentiate between "gross turnover" and "taxable income")
3) How do i find out if having an IT/ITES business like a call center will be subject (or not subject) to pay the minimum tax? I think another way to ask this question may be, where do i find the "second schedule of the Income Tax Ordinance, 2001"?
4) I understand that the 30% depreciation may not be of much use until 2016. In the scenarios that we are discussing specifically, would it be possible to take a slower depreciation than 30% per year? or would this depreciation add up over the years and i will "Still" be able to use it after 2016? Pardon my lack of knowledge regarding this issue.
5) Finally about the issue of double taxation. I have been told that there is some trade treaty between the US and Pakistan that will stop double taxation. Am i correct in saying this? either way, can you advise me on the tax implications of the treaty between the US and Pakistan if possible. I am trying to understand all of this so i can leverage to take the most advantage for my organization.
Again, i thank you for your help. And yes i probably will have many more questions and will be very happy if you could clarify things for me.
Salam,
Momin Durrani.