Rule 19 C - Federal Board Of Revenue Government Of Pakistan

Rule 19C: Certificate for tax sparing credit

(1) Where any person, non-resident in Pakistan, seeks to obtain a certificate for tax sparing credit in respect of income earned through a permanent establishment situated in Pakistan, under a provision, if any contained therein, of the Agreement for the Avoidance of Double Taxation and Fiscal Evasion between Pakistan and the country of residence of such taxpayer, may submit an application to the Competent Authority of Pakistan in the Form prescribed below namely:-

Form of Application for Obtaining Certificate

for Tax Sparing Credit

The Competent Authority of Pakistan, ¹Federal Board of Revenue, Constitution Avenue,

Islamabad.

Sir,

Whereas the applicant was resident in INSERT: Name of the country……………………………………,

by reason of [INSERT: Nationality, Incorporation, Situs of Management.......................................................................................................................................................................... .,

and thus non-resident in Pakistan in respect of the Tax year ending on …………………….; and that Pakistan and INSERT: Name of the country of residence ……….…………………. have signed an Agreement for the Avoidance of Double Taxation and Fiscal Evasion dated…….…………., which entitles the applicant to a tax credit / fiscal relief in respect of the tax paid in Pakistan, in the country of his residence upon issuance of a Certificate of Payment of Tax Paid by the Competent Authority of Pakistan. The relevant details in this regard are as under, namely:-

1.	Name / Nomenclature of the Applicant
2.	Country of Residence
3.	Personal Status [Individual, AOP, Company]
4.	Tax Year
5.	Particulars/ details of Pakistan	income earned	in
6.	Admitted tax liability Pakistan	paid / payable	in
	Total tax payable in Pakistan in case tax incentives / fiscal benefits would not have been allowed Has any appeal been filed against any order of any tax authority in Pakistan?
7.	Amount qualifying for normal tax credit
8.	Amount qualifying for tax sparing credit

Copies of the following documents in support of our claim are enclosed, namely:-

(i) Proof of income earned in Pakistan

(ii) Proof of tax paid in Pakistan

(iii) Proof of residence in the other country

Verification

I son/daughter/wife of Mr. solemnly declare that to the best of my knowledge and belief, the information given in this application and the annexures and statements accompanying it is correct.

2. I also declare that to the best of my knowledge, I have not concealed any fact or information which could be relevant for deciding my application.

3. I further declare that I am making this application in my capacity as (designation) and that I am competent to make this application and verify it.

Date	Signatures:
Place	Name:

(2) The Competent Authority of Pakistan, if required, shall cause to call for a report from the Commissioner concerned.

(3) The Commissioner after verifying all the relevant facts as stated by the taxpayer in the application shall submit his report ¹ [within sixty days of the receipt of the application by him from the Federal Board of Revenue].

(4) The Competent Authority of Pakistan shall decide upon the request of the taxpayer, and issue a certificate for tax sparing credit, as per the Form prescribed below within ninety days of the submitting of the application, namely:-

Form of Certificate for Tax Sparing

Credit issued by the Competent Authority

[CERTIFICATE FOR TAX SPARING CREDIT FOR PRESENTATION BEFORE THE TAX AUTHORITIES OF…………………IN RESPECT OF THE TAX YEAR......................................

I certify that Mr/Ms/M/s.............................................................................. being non-resident in Pakistan has paid income tax in Pakistan in respect of the Tax Year ending on as per the following details:-

(a)	Name:
(b)	Address:
	(i) Residence:
	(ii) Office:
(c)	Telephone:	(Res) (Off) (Fax)
(d)	National Tax No. (if any)
(e)	Personal Status
(f)	Main Source(s) of Income:
(g)	Other Source(s) of Income:
(h)	Total Income Declared/Assessed: ______________________________________

(i)	Total tax paid during the year:
(j)	Total amount of tax spared:
(k)	Tax Office : LTU/ RTO:

Note: Average exchange rate prevalent during the year was US$ 1 = PKR

THE COMPETENTAUTHORITY

Member (Inland Revenue) or his

Authorized Officer

(5) In case the Competent Authority of Pakistan decides not to issue a certificate for tax sparing credit, it shall communicate its decision along with the reasons of rejection thereof to the applicant taxpayer within sixty days of the submitting of the application at the available address in Pakistan.