Income tax imposed on foreign produced commercials

ByMashhud Aslam

Jun 3, 2016 #budget 2016-2017, #commercial for advertisement, #commercials, #deduct tax 20 percent, #Finance Bill 2016 proposes, #foreign produced, #Income tax imposed, #non-resident person, #other media, #television channel

KARACHI: All payments made to non-resident person for foreign produced commercials has been subjected to income tax at the rate of 20 percent in the budget FY 2016-17.

The Finance Bill 2016 proposes that every person making payment directly or through an intermediary to a non resident person for foreign produced commercial for advertisement on any television channel or any other media will deduct tax at the rate of 20 percent from the gross amount paid.

This tax will be the final tax on the income of non-resident person arising out of such payment.