Tax Credit for Investment in Plant and Machinery
Name of Incentive
Tax Credit for Investment in Plant and Machinery
Type of Incentive
Tax Incentive
Ministry
Agency
Sector
Machinery other than Electrical
Sub Sector
Product/Activity
Incentive Details
Description
A tax credit at the rate of ten percent of the amount invested in plant and machinery is allowed to companies operating industrial undertaking in Pakistan provided the investment is made between 1 July 2010 and 30 June 2019 for the purposes of extension, expansion, balancing, modernization and replacement of the plant and machinery.
The provisions of this section shall apply to a company setup in Pakistan before the first day of July, 2011, which makes investment, through hundred per cent new equity, during first day of July, 2011 and 30th day of June, 2016, for the purposes of balancing, modernization and replacement of the plant and
machinery already installed in an industrial undertaking owned by the company. However, credit equal to twenty per cent of the amount so invested shall be allowed against the tax payable, including on account of minimum tax and final taxes payable
under any of the provisions of this Ordinance. The credit shall be allowed in the year in which the plant and machinery in the purchase of which the investment as aforesaid is made, is installed therein
