Income Tax Ordinance, 2001 — Section 27: Employee training and facilities

27. Employee training and facilities.— A person shall be allowed a deduction for any expenditure (other than capital expenditure) incurred in a tax year in respect of

(a)any educational institution or hospital in Pakistan established for the benefit of the person’s employees and their dependents;

(b)any institute in Pakistan established for the training of industrial workers recognized, aided, or run by the Federal Government 5[or a Provincial Government] or a 6[Local Government]; or 1 The word “activities” substituted by the Finance Act, 2002 2 Inserted by the Finance Act, 2003. 3 Inserted by the Finance Act, 2003. 4 The words “Central Board of Revenue” substituted by the Finance Act, 2007. 5 Inserted by the Finance Act, 2003. 6 The words “local authority” substituted by the Finance Act, 2008. 78 Chapter III – Tax on Taxable Income

(c)the training of any person, being a citizen of Pakistan, in connection with a scheme approved by the 1[Board] for the purposes of this section.