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Tax at source from payment to foreigners
05-26-2006, 08:40 PM,
Tax at source from payment to foreigners
Hello Dear Members

There's a problem I want to share with you. When we pay some amount to a foreigner consultant you have to deduct tax @15 under secion 6 of Income Tax Ordinance 2001. Am I right ?

Is there any other way of paying to a foreigner so that there may be a relaxtion in tax rate.
05-27-2006, 10:22 PM,
Dear rates are specified in Deivision IV of Part I of first schedula or Income Tax ordinance 2001. i.e. 15%

u r right.
05-28-2006, 06:20 AM,
Well if u r a resident person and making a payment to a foreinger then u must deduct tax at the rate specified. i.e. 15%.
The only relaxation is if ur office is situated outside Pakistan and the payment is made to foreign consultant for service rendered for ur office abroad then u can make payment without deduction of tax.

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