S. No. |
Description |
[Classification, if applicable] |
Rate of Tax |
(1) |
(2) |
(3) |
(4) |
15 |
Digital or IT-based services in whatever form or manner or under whatever arrangement including but not limited to: ---web design and development, ---mobile app development, ---server management, ---page-speed optimization, UX/UI optimization, ---PPC marketing, blogging, ---Google AdWords, Facebook advertising, Instagram advertising, ---custom software development, assessment and roadmap development, software maintenance and support services, supply or sale of any other software or software product or products through any medium, ---online digital marking services such as search engine optimization (SEO),· ---social media marketing, content marketing, affiliate marketing, influencer marketing, email marketing, viral marketing services, etc.
Explanation: This entry does not cover such persons who are engaged in providing or rendering services 'relating to software or IT-based system development or management or similar other such fields in their individual capacity and are eligible to pay tax at reduced rate under item (g) of entry No. 19 |
9850.0000 |
Two Percent (2%) without any input tax adjustment
|
19 |
Services provided or rendered by practitioners, professionals consultants and advisers (by whatever name called) in their respective fields or disciplines
g) Software or IT-based system development or management or similar other such fields. |
9826.0000 |
(i) Fifteen Percent (15%) m case of entities operating in collaboration or as subsidiary or branch of foreign service providing entities and
(ii) Five Percent (5%) without any input tax adjustment m case of entities other than operating in collaboration or as |
Source:
- S. No. 15 and 19(g) of Working Tariff 2021-22, Second Schedule to the Finance Act, 2013 KPK
http://kpra.gov.pk/pages-files/second_schedule_2021-22.pdf
- Section 8, (t), (xi), (a) and (b) of the KP Finance Act 2021
http://kpra.gov.pk/pages-files/kp-finance-act-2021.pdf
- Para (h) of the notification No. BO(Res-III) FD/2-2/2019-20/Vol-I by Finance Department, Government of Khyber Pakhtunkhwa, dated 05.08.2020