Tax Changes in Pakistan's 2014/2015 Budget

On 3 June 2014, Pakistan's budget 2014/2015 was presented. The budget includes the following main tax changes:

• Corporate tax rate (CTR) will be reduced from 34% to 33%
• Reduced CTR of 20% for income derived from investments in new industrial, construction or housing projects with at least 50% foreign direct investment
• Increase in capital gains tax to 12.5% on securities held up to 12 month, and 10% when held between 12 and 24 months - exempt if held over 24 months
• Introduction of an alternate…