All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
RELEASE
OF FOREIGN EXCHANGE FOR TRAVEL
ABROAD LEVY OF 5% TAX
Attention
of Authorized Dealers is invited to F.E.
Circular No.51 dated the 28th June, 1993
read with F.E. Circular No.60 dated the
26th July, 1993 in terms of which 5% withholding
tax is required to be collected at the time of release of
foreign exchange for travel abroad except for Hajj, Umrah,
Official tour and medical treatment of Government officials.
2.
It has been further clarified by the Revenue Division that
the exemption from withholding tax under Section 50(5B)
of the Income Tax Ordinance, 1979 granted vide Clause (I)
of Central Board of Revenue’s SRO 566(1)/93 dated the
3rd July, 1993 is available to only those individuals
who are visiting Saudi Arabia exclusively for performance
of Hajj or Umrah. The said exemption is not available on
release of foreign exchange to persons who intend to visit
many countries including Saudi Arabia.
3.
Please bring the above to the notice of your constituents
concerned.
