Incentive Data

Tax holiday for 23 years for businesses related to the Gwadar Free Trade Zone.

  1. As per clause 126A of Part I of the Second Schedule to the Income Tax Ordinance 2001.

“Income derived by China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gawadar International Terminal Limited, Gawadar Marine Services Limited and Gawadar Free Zone Company Limited from Gawadar Port and Gawadar Free Zone operations for a period of twenty-three years, with effect from the sixth day of February, 2007.”

  1. As per clause 126AA of Part I of the Second Schedule to the Income Tax Ordinance 2001:

“Profit and gains derived by a taxpayer from businesses set up in the Gwadar Free Zone Area for a period of twenty three years with effect from the first day of July, 2016.

  1. As per clause 126AB of Part I of the Second Schedule to the Income Tax Ordinance 2001

“Profit on debt derived by-

(a) any foreign lender; or

(b) any local bank having more than 75 per cent shareholding of the Government or the State Bank of Pakistan, under a Financing Agreement with the China Overseas Ports Holding Company Limited, China Overseas Port Holding Company Pakistan (Private) Limited, Gwadar International Terminals Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty three years with effect from the first day of July, 2016;

  1. As per clause 126AC of Part I of the Second Schedule to the Income Tax Ordinance 2001:

“Income derived by contractors and sub-contractors of China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited from Gwadar Port and Gwadar Free Zone operations for a period of twenty years, with effect from the first day of July, 2016.

  1. As per clause 126AD of Part I of the Second Schedule to the Income Tax Ordinance 2001:

“(1) Any income derived by China Overseas Ports Holding Company Limited being dividend received from China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty-three years with effect from the first day of July, 2016.

(2) Any income derived by China Overseas Ports Holding Company Pakistan (Private) Limited being dividend received from, Gwadar International Terminal Limited Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty-three years with effect from the first day of July, 2016. “

  1. As per clause 11A(xxvi), of Part-IV of the Second Schedule to Income Tax Ordinance 2001:

(xxvi) China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty three years, with effect from the sixth day of February, 2007.

  1. As per clause 38AA, of Part-IV of the Second Schedule to Income Tax Ordinance 2001:

“The provisions of section 150 shall not apply to China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of twenty-three years. “

Sources:

  1. Clause 126A of Part I of the Second Schedule to the Income Tax Ordinance 2001.
  2. Clause 126AA of Part I of the Second Schedule to the Income Tax Ordinance 2001.
  3. Clause 126AB of Part I of the Second Schedule to the Income Tax Ordinance 2001.
  4. Clause 126AC of Part I of the Second Schedule to the Income Tax Ordinance 2001.
  5. Clause 126AD of Part I of the Second Schedule to the Income Tax Ordinance 2001.
  6. Clause 11A, of Part-IV of the Second Schedule to Income Tax Ordinance 2001.
  7. Section 38AA, of Part-IV of the Second Schedule to Income Tax Ordinance 2001.