RECORDER REPORT

ISLAMABAD: The profits of resident individuals, Association of Persons (AOPs) or companies engaged in technology-driven products or services falling under the category of ‘Startup Business’ would be exempted from taxes including withholding tax.

Explaining Finance Bill 2017, a tax expert said that under Finance Bill 2017, “startup” means a business of resident individual, AOP or a company incorporated or registered in Pakistan on or after July 1, 2012 and the person is engaged in or intends to offer technology-driven products or services to any sector of the economy provided that the person is registered with and duly certified by the Pakistan Software Export Board (PESB) and having turnover of less than Rs 100 million in each of the last five tax years.

The government has introduced concept of ‘Startup Business’ for persons (being a resident individual, Association of Persons or Company having annual turnover of less than Rs 100 million in last five tax years) engaged in ‘technology-driven products or services certified by Pakistan Software Export Board (PSEB)’.