Naya Pakistan Certificate Clarification by FBR

FBR has clarified that a new instrument launched by the Government/State Bank of Pakistan, Naya Pakistan Certificate, 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. Furthermore, only a non-resident individual can purchase Naya Pakistan Certificate who maintains a bank account abroad or foreign currency account maintained in Pakistan. It is also clarified that such individuals are not required to file returns of income.