A new concept referred to as the Alternative Corporate Tax (ACT) has been announced in an income tax circular through the Finance Act of 2014. This tax will only be applicable to companies and not to taxpayers liable to pay tax according to the provisions of Fourth Schedule - Insurance Business, Fifth Schedule - Exploration and Production of Petroleum and Seventh Schedule - Banking.
The FBR or the Federal Board of Revenue released an explanation to Finance Act of 2014 on the amendments to the ACT under Section 113C, through an income tax circular 2 of 2014.
According to the provision, a company is liable to pay Corporate Tax or Alternative Corporate Tax, whichever is higher. Corporate Tax is the total tax required to be paid by a company that includes minimum tax payable as well as final taxes, based on the provisions of Income Tax Ordinance of 2001. The tax, however will not include the provisions that come under Section 8, 161 and 162 and any penalty or amount as default surcharge.
The following features highlight the Alternative Corporate Tax:
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
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