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Investment Incentives
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No minimum/maximum requirement for Foreign Equity
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100% repatriation of capital gains, dividends and profit
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Foreign controlled companies are allowed domestic borrowing
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Facility for contracting foreign private loans is available (agreement to be cleared by State Bank of Pakistan)
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Royalty & Technical fees are allowed up to 5% of net sales
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Custom Duty on imported plant, machinery and equipment (not manufactured locally) is only 0-5% (previously up to 25%)
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Corporate Tax Rates for companies within the service sector have been fixed @35% (previously the rate was 45%)
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Initial Depreciation Allowance @50% is permissible on an “eligible depreciable asset” placed into service in Pakistan for the first time in a tax year
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