Tax Year 2014: Company tax rate to be 34 percent under Finance Act

The rate of tax imposed on the taxable income of a company other than a banking company, shall be 34 percent for the Tax Year 2014 under Finance Act 2013. The income tax circular issued on Friday said that through Finance Act, 2013 a proviso has been added to Division II of Part-I in the First Schedule to the Income Tax Ordinance, 2001 providing that the rate of tax imposed on the taxable income of a company other than a banking company, shall be 34 percent for the tax year 2014.

This means that the rate of Income Tax for the Tax Year 2013 shall be 35 percent and for the Tax Year 2014 the rate of income tax shall be 34 percent on the taxable income of a company other than a banking company. Explaining the Cash Withdrawal from a bank (Section 231A], the FBR said that the rate of deduction of income tax by every banking company has been increased to 0.3 percent.