KARACHI: The government through the Tax Laws (Second Amendment) Ordinance, 2019, notified the rate of minimum tax under Section 113 of Income tax Ordinance for tax year 2020 will be 0.5 percent in the case of traded having turnover up to Rs100 million.
Trader shall mean an individual engaged in business of buying and selling of goods in the same state including a retailer and a wholesaler. However, a distributor shall not be considered a trader.
Moreover, the rate of minimum tax under section 113 of Income Tax Ordinance for tax year 2020 shall be 0.5 percent in case of a trader of tarn being an individual.
Further, the rate of deduction of withholding tax under clauses (a) and (b) of sub-section (1) of section 153 of Income Tax Ordinance will be 0.5 percent on local sales, supplies and services made by traders of yarn.