ISLAMABAD: The Federal Board of Revenue (FBR) of Pakistan has been asked to levy a 15 percent withholding tax on Pakistani educational institutions having branches abroad, it was learnt yesterday.
The Securities and Exchange Commission of Pakistan (SECP) has proposed to the FBR that the rate of tax imposed under section 152A on payments to educational institutions established outside Pakistan shall be 15 percent of the gross amount of the amount of fee or registration etc.
According to official working, currently there are a number of foreign educational institutions providing different types of certifications, degrees or courses in the field of accountancy, law, and business management and information technology.
There are number of renowned schools operating their branches outside Pakistan and getting hefty fees from students but paying peanuts into the national kitty.
“It’s a workable tax proposal for next budget and now the government is going to take a final decision on this subject,” said an FBR official. Internews
