Income Tax Ordinance, 2001 — Section 231C: Advance tax on foreign domestic workers

2[231C. Advance tax on foreign domestic workers. – (1) Any authority issuing or renewing domestic aide visa to any foreign national as a domestic worker at the time of issuing or renewing such visa shall collect from the agency, sponsor or the person as the case may be, employing the services of such foreign national a tax of two hundred thousand rupees.

(2)The tax collected or collectible under this section shall be adjustable advance tax for the tax year to which it relates on the income of such agency, sponsor or a person, as the case may be, employing the services of such foreign national.] Chapter XII – Transitional Advance Tax Provisions 1 [233. Brokerage and commission. — (1) Where any payment on account of brokerage or commission is made by the Federal Government, a Provincial Government, a 2[Local Government], a company or an 3[association of person or individual having turnover of hundred million rupees or more] (hereinafter called the “principal”) to a 4[ ] person (hereinafter called the “agent”), the principal shall deduct advance tax at the rate specified in 5[Division II of] Part IV of the First Schedule from such payment.

(2)If the agent retains Commission or brokerage from any amount remitted by him to the principal, he shall be deemed to have been paid the commission or brokerage by the principal and the principal shall collect advance tax from the agent. 6[(2A) Notwithstanding the provisions of sub-section (1), where the principal is making payment on account of commission to an advertising agent, directly or through electronic or print media, the principal shall deduct tax (in addition to tax required to be deducted under clause (b) of sub-section (1) of section 153 on advertising services excluding commission), at the rate specified in Division II of Part IV of the First Schedule on the amount equal to A x 15 85

(e)a foreign diplomat or a foreign diplomatic mission in Pakistan;

(f)a branch or office of a company to another branch or office of such company;

(g)a person who holds National Tax Number and furnishes a statement to that bank in the prescribed form and manner.” 1 Section 233 substituted by the Finance Act, 2005. The substituted section 233 read as follows: “233. Brokerage and Commission.- (1) Where any payment on account of brokerage or commission is made by the Federal Government, a Provincial Government, a local authority, a company or an association of persons constituted by, or under, any law (hereinafter called the “principal”) to any person B[other than travel agents and insurance agents] (hereinafter called the “agent”), the principal shall deduct advance tax at the rate specified in Part IV of the First Schedule from such payment.

(2)If the agent retains commission or brokerage from any amount remitted by him to the principal, he shall be deemed to have been paid the commission or brokerage by the principal and the principal shall collect advance tax from the agent.

(3)Where any payment on account of brokerage or commission is made by the principal to a travel agent or an insurance agent, the principal shall deduct advance tax at the rate specified in Part IV of the First Schedule from such payment.

(4)Where any tax is collected from a person under sub-section (1) or sub-section (3), the tax so collected shall be the final tax on the income of such persons.” 2 The words “local authority” substituted by the Finance Act, 2008. 3 The expression “association of persons constituted by, or under any law” substituted by the Finance Act, 2021. 4 The word “resident” omitted by the Finance Act, 2006. 5 Inserted by the Finance Act, 2010. 6 Inserted by the Finance Act, 2017. 460 Chapter XII – Transitional Advance Tax Provisions Where A = amount paid or to be paid to electronic or print media for advertising services (excluding commission) on which tax is deductible under clause (b) of sub-section (I) of section 153. (2B) Tax deducted under sub-section (2A) shall be 1[minimum] tax on the income of the advertising agent.]

(3)Where any tax is 2[required to be] collected from a person under sub section (1), [such tax] shall be the 4[minimum] tax on the income of such persons.] 3 5[Explanation.— For the removal of doubt, it is explained that the income of person referred to in sub-sections (2B) and (3) means the amount on which tax is deductible under sub-sections (1) or (2A) of this section.] 6[ ] 7[ ] 8[ ] 9[ ] 1 The word “final” substituted through Finance Act, 2019. 2 Inserted by the Finance Act, 2012. 3 The words “the tax so collected” substituted by the Finance Act, 2012. 4 The word “final” substituted through Finance Act, 2019. 5 Explanation added by the Finance (Supplementary) Act, 2022 6 Inserted by the Finance Act, 2004. 7 Section 233A omitted by the Finance Act, 2021. The omitted section read as follows: “233A. Collection of tax by a stock exchange registered in Pakistan.— (1) A stock exchange registered in Pakistan shall collect advance tax,

(a)at the rates specified in Division IIA of Part IV of First Schedule from its Members on purchase of shares in lieu of 7[tax on] the commission earned by such Members; 7[and]

(b)at the rates specified in Division IIA of Part IV of First 7[Schedule] from its Members on sale of shares in lieu of 7[tax on] the commission earned by such Members7[.] 7 [ ] 7 [ ] 7 7 [ [(2) The tax collected under sub-section (1) shall be 7[adjustable].] 7 [(3) This section shall not apply from the first day of March. 2019.” 8 Inserted by the Finance Act, 2012. 9 Section 233AA omitted by the Finance Act, 2021. The omitted section read as follows: “233AA. Collection of tax by NCCPL.—NCCPL shall collect advance tax from the members of Stock Exchange registered in Pakistan 9[, margin financiers, trading financiers and lenders],in respect of margin financing in share business 9[or providing of any margin financing, margin trading or securities lending under Securities (Leveraged Markets and Pledging) Rules, 2011 in share business] at the rate specified in Division 9[IIB] of Part IV of First Schedule9[:] ] 461 Chapter XII – Transitional Advance Tax Provisions 234. 1[Tax on motor vehicles].— (1) Any person 2[at the time of] collecting motor vehicle tax shall also collect advance tax at the rates specified in 3[Division III of] Part IV of the First Schedule.

(2)If the motor vehicle tax is collected in instalments 4[or lump sum] the advance tax may also be collected in instalments 5[or lump sum] in like manner. 6[(2A) In respect of motor cars used for more than ten years in Pakistan, no advance tax shall be collected after a period of ten years.]

(3)In respect of a passenger transport vehicle with registered seating capacity of ten or more persons, advance tax shall not be collected after a period of ten years from the first day of July of the year of make of the vehicle.

(4)In respect of a goods transport vehicle with registered laden weight of 7[ ] less than 8120 kilograms, advance tax shall not be collected after a period of ten years from the date of first registration of vehicle in Pakistan. 8[(5) Advance tax collected under this section shall be adjustable.] 9[“(6) For the purpose of sub-sections (1) and (2) “motor vehicle” shall include the vehicles specified in sub-section (7) of section 231B.”] Chapter XII – Transitional Advance Tax Provisions 1[ ]