Advance tax on credit cards foreign transactions

ISLAMABAD: The FBR has inserted Section 236Y in the Income Tax Law and imposed an advance tax on persons remitting amounts abroad through credit or debit or prepaid cards. According to the Finance Bill 2022, advance tax on persons remitting amounts abroad through credit or debit or prepaid cards will be charged.

Every banking company shall collect advance tax at the time of transfer of any sum remitted outside Pakistan on behalf of any person who has completed a credit card or debit card or prepaid card transaction with a person outside Pakistan at the rate specified in Division XXVII of Part IV of the First Schedule.