- Google is exempt from Pakistan’s new Digital Presence Proceeds Tax due to its branch office in the country.
- The Digital Presence Proceeds Tax targets offshore vendors with a digital presence but no physical presence in Pakistan.
- The tax is part of a broader initiative to capture revenue from multinational digital companies.
- Google is considered a tax resident under domestic tax laws and is not subject to the new tax.
- Previously taxed at 10% under Section 152, Google’s rate was revised to 15%.
- Google may pay a lower effective rate of 5% for certain transactions under the digital tax framework.
- The reduced rate applies only to specific operations managed from outside Pakistan.
- Authorities assured no overlap between the new tax and Section 152 to prevent double taxation.
- Google is a major contributor to Pakistan’s digital services tax, unlike other tech giants.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
