November 30, 2020 (MLN): Pakistani Residents are not permitted to invest in Naya Pakistan Certificates (NPC), said Federal Board of Revenue (FBR) in a clarification issued on Friday.
According to a statement issued by the FBR, only non-resident individuals can purchase Naya Pakistan Certificate who maintain bank account abroad or foreign currency account maintained in Pakistan. FBR also clarified that such individuals are not required to file returns of income.
In its statement, FBR further stated that Naya Pakistan Certificate, a new instrument launched by the Government/ State Bank of Pakistan, qualifies as debt instrument in terms of Clause (5AA) of Part-II of the Second Schedule of the Income Tax Ordinance, 2001. Therefore, profit on debt on the Naya Pakistan Certificate is subject to tax @ 10% which is final tax.
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