Income Tax Ordinance, 2001 — Section 89: Authors

89. Authors. — Where the time taken by an author of a literary or artistic work to complete the work exceeds twenty-four months, the author may elect to treat any lump sum amount received by the author in a tax year on account of royalties in respect of the work as having been received in that tax year and the preceding two tax years in equal proportions. 1 Section 88A omitted by Finance Act, 2014. The omitted section read as follows: “88A. Share profits of company to be added to taxable income.—(1) Notwithstanding the provisions of sub-section (1) of section 92, the share of profits derived by a company from an association of persons shall be added to the taxable income of the company.

(2)The company shall be allowed a tax credit in accordance with the following formula, namely: (A/B) x C Where A is the amount of share of profits received by the company from the association; B is the taxable income of the association; and C is the amount of tax assessed on the association.

(3)The tax credit allowed under this section shall be applied in accordance with sub-section

(3)of section 4.” 155 Chapter V – Provisions Governing Persons Division III Income Splitting