Income Tax exemption on income of Ships and all floating crafts including tugs, dredgers, survey vessels and other specialized craft purchased or bareboat chartered by a Pakistan entity and flying Pakistani flag shall be exempt upto 2030 from payment of income tax, but in lieu pay:
- PNSC will continue to pay tonnage tax of US$ 1.00 per GRT annually on its shipping income.
- New Pakistan Resident Ship Owning companies will be incentivized and pay tonnage tax of US $ 0.75 per GRT annually for the first five years of the shipping operations of each individual vessel inducted by them subject to the cut-off period i.e. till 2030. After five years the Pakistan Resident Ship Owning companies shall pay US$ 1.00 per GRT annually on the said vessels shipping operations income.
Sources:
- Chapter II - Section 7a of Income Tax Ordinance 2001