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Tax credit for certain persons
(1) Following persons or incomes shall be allowed a tax credit equal to one hundred per cent of the tax payable under any provisions of this Ordinance including minimum, alternate corporate tax and final taxes for the period, to the extent, upon fulfillment of conditions and subject to limitations detailed as under:-
(a) persons engaged in coal mining projects in Sindh, to the extent, the income is derived from supplying coal to power generation projects.
(b) a startup as defined in clause (62A) of section 2 for the tax year in which the startup is certified by the Pakistan Software Export Board and the next following two tax years . Explanation. – For the removal of doubt it is clarified that tax credit under clause (a) shall only be available to the income derived from the operations of coal mining projects in Sindh supplying coal to power generation projects.
(2) The tax credit under sub-section (1) shall be available subject to fulfillment of the following conditions, where applicable, namely:-
(a) return has been filed;
(b) withholding tax statements for the relevant tax year have been filed in respect of those provisions of the Ordinance, where the person is a withholding agent; and (c) sales tax returns for the tax periods corresponding to relevant tax year have been filed if the person is required to file Sales Tax Return under any of the Federal or Provincial sales tax laws.
(a) persons engaged in coal mining projects in Sindh, to the extent, the income is derived from supplying coal to power generation projects.
(b) a startup as defined in clause (62A) of section 2 for the tax year in which the startup is certified by the Pakistan Software Export Board and the next following two tax years . Explanation. – For the removal of doubt it is clarified that tax credit under clause (a) shall only be available to the income derived from the operations of coal mining projects in Sindh supplying coal to power generation projects.
(2) The tax credit under sub-section (1) shall be available subject to fulfillment of the following conditions, where applicable, namely:-
(a) return has been filed;
(b) withholding tax statements for the relevant tax year have been filed in respect of those provisions of the Ordinance, where the person is a withholding agent; and (c) sales tax returns for the tax periods corresponding to relevant tax year have been filed if the person is required to file Sales Tax Return under any of the Federal or Provincial sales tax laws.
Amendment history (5)
- Sections 65F and 65G inserted by the Finance Act, 2021. Earlier this insertion was made through
- Clause (a) substituted by the Finance Act, 2025. The substituted clause (a)
- Expression “; and” substituted by the Finance Act, 2024.
- Explanation inserted by the Finance Act, 2024.
- Clause (c) omitted by the Finance Act, 2022. The omitted clause
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 135
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.