Income Tax Ordinance, 2001 — Section 46: Profit on debt

46. Profit on debt.— Any profit received by a non-resident person on a security issued by a resident person shall be exempt from tax under this Ordinance where

(a)the persons are not associates;

(b)the security was widely issued by the resident person outside Pakistan for the purposes of raising a loan outside Pakistan for use in a business carried on by the person in Pakistan;

(c)the profit was paid outside Pakistan; and

(d)the security is approved by the 1[Board] for the purposes of this section. 1 The words “Central Board of Revenue” substituted by the Finance Act, 2007. 102 Chapter III – Tax on Taxable Income