|
AMENDMENTS IN THE CUSTOMS ACT 1969 (IV of 1969)
Realization of Earnings against Export of Software by Software Companies
Tax Holiday for Export of Software
Export Finance/Refinance Scheme
Grant of Work Permits to Foreigners coming to Pakistan for Work/Employment with Private Companies/Organizations
REALIZATION OF EARNINGS AGAINST EXPORT OF SOFTWARE BY SOFTWARE COMPANIES
Pakistan Software Export Board (PSEB) had approached the State Bank of Pakistan (SBP) for evolving a procedure for realization for export earnings by the software houses/companies for export of software. Accordingly, the State Bank of Pakistan has evolved a procedure, and issued Circular No. 2/FEB.1(51)Software-96 in this regard.
A software house/company must be registered with PSEB and the State Bank of Pakistan, in order to realize its earnings and to avail Export Finance/Refinance Scheme.
TAX HOLIDAY FOR EXPORT OF SOFTWARE
Government of Pakistan has given tax exemption on the income from export of computer software and related services.
As per the 2nd schedule - exemptions and tax concessions of the Income Tax Ordinance Clause 133:
"Income from export of computer software and its related services developed in Pakistan: provided that the exemption under this clause shall not be available after the 30th day of June, 2016."
EXPORT FINANCE/REFINANCE SCHEME
The State Bank of Pakistan had allowed a financing facility under the Export Finance Scheme for export of computer software by the software houses / companies. Exports in such cases are required to be made according to the procedure laid down in Circular No.2/FEP.1(51)Software-96.
The State Bank of Pakistan has issued Circular No. 23 and laid down the rules and procedures for getting finance / refinance facility for export of software by the software houses/companies.
A meeting was held on May 29, 2000 between Minister for Science & Technology and Governor - SBP. The State Bank of Pakistan has issued a Circular No.13 allowing banks to accept the contract/export order as a collateral for bank borrowing under the Export Finance Scheme.
GRANT OF WORK PERMITS TO FOREIGNERS COMING TO PAKISTAN FOR WORK/EMPLOYMENT WITH PRIVATE COMPANIES/ORGANIZATIONS
The Government has decided to simplify procedure for grant of permission to expatriate foreign personnel to work in Pakistan. The main features of the revised procedure are the following:
- Uniform facility has been extended to exempt technical and managerial personnel from work permit for working in newly opened sectors of the economy, including personnel for working in manufacturing/industrial and infrastructure sectors. They are now only required to obtain work visa.
- No permission will be given to foreign expatriate personnel for jobs other than technical and managerial personnel to effectively implement the obligation of giving preference to Pakistanis. However, in cases requiring employment of foreign personnel for the purposes of transfer of particular skill and know-how, work visa will be allowed with the condition of creation of similar skill sets within Pakistani manpower over a specified period of time.
- A committee under the chairmanship of Secretary BOI will periodically consider and decide the cases of grant of work visa to the foreign expatriate personnel. The company requiring employment of foreign national(s) will submit the request in a prescribed manner to the Board of Investment FTP Wing, Islamabad. The prescribed form can be obtained from the offices of the Board of Investment Islamabad, Karachi or from the Ministry of Interior and its regional Immigration Passport Offices; Work visa will be authorized and issued by the Ministry of Interior within a month on the basis of the decision of the committee.
- The work visa will be allowed for a period of 3-5 years or till the validity of the Passport. The concerned Pakistani Mission abroad will grant work visa to the application on the basis of authorization by the Ministry of Interior.
- The modified procedure for grant of work permit to foreigners coming to Pakistan for work/employment with private companies/organization is effective from 1st January 2000. Click here
|
