NSS - Sep 25

The State Administration Council has enacted the Law Amending the Union Tax Law 2023 as per Section 419 of the Constitution. 

According to the announcement, the law shall be effective from 1 October 2023 to 31 March 2024. 

It stated that Section 22 of the law shall be substituted with Section 22 (a) as follows: Without subtracting the tax exemption under Section 6 and Section 6-a, a ten per cent tax shall be levied over the total foreign exchange incomes obtained abroad except salaries of the citizens residing in foreign countries. 

Moreover, whatever provisions are mentioned in the income tax rules, the lesser amount of tax out of two ways in earning foreign exchange shall be levied over the total foreign exchange salaries of citizens residing abroad. 

Tax shall be levied under the provision of rule 8 of the income tax rules.

Without subtracting the amount of exemption, a two per cent tax shall be levied over the incomes under Section 6 and Section 6-a of the law. 

Moreover, the taxpayer shall have the right to subtract the amount paid as tax abroad from the calculated amount of tax under this law.