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09 March, 2022

How does Balance of Trade differ from Balance of Payments?

 1. Tax

Exemptions :


Generally 5 to 7 years. However, for power generation exemption is allowed for 15 years.


2. Duty :          No import duty for export oriented industry. For other industry it is

@ 5% ad valorem.

i. Double taxation can be avoided in case of foreign investors on the basis of bilateral agreements.


3. Tax Law :


ii. Exemption of income tax upto 3 years for the expatriate employees in industries specified in the relevant schedule of Income Tax ordinance.


4. Remittance : Facilities for full repatriation of invested capital, profit and divided.

An investor can wind up on investment either through a decision of


5. Exit :


the AGM or EGM. Once a foreign investor completes the formalities to exit the country, he or she can repatriate the sales proceeds after securing proper authorization from the Central Bank.


 

6. Ownership :  Foreign investor can set up ventures either wholly owned on in joint collaboration with local partner.