Federal Board of Revenue (FBR) has said that 20 percent tax will charged on people who will be paying an amount against production of commercial or advertisement to a foreign entity.
Federal Board Of Revenue recently issued and Income Tax Ordinance, 2001 in which this tax has been imposed under Section 152A.
The section that has been imposed on public says that every person will be liable to 20 percent tax, for paying for production or advertisement of foreign entity. Every person will be responsible for making payments direct or through an agent or to any non resident for advertisement of foreign entity on Television Channel or Social Media will have to pay 20 percent Tax for gross amount.
The tax that will be deducted will be the final tax on the income of non resident rising out from such payments.
According to the Tax Card for the Tax year 2019, FBR said that the 20 percent tax will be collected from every person who is responsbile for making payments to a non-resident at that time. FBR also stated that the tax will also be deducted from Non-resident while making payments for foreign produced commercial for advertisements on Television Channels and Social Media .