FINANCE ACT, 2021- EXPLANATION OF IMPORTANT AMENDMENT

The bill proposed a new change for women enterprises that will bring a difference and awareness in Pakistan. Despite to significant increase in the number of women starting and developing a business. Now, a woman can initiate their business within easy reach to tax at a lower rate of 25 percent on its profit and gains chargeable to tax Income from an Enterprise.

In June 2021, The Federal Government has delivered Finance Bill to the National Assembly. The publication contains a review of changes made in Income Tax Ordinance 2001

Reduction In Tax For Women Enterprises

A new theory of ‘women enterprise’ has been established in Finance Act 2021. This change will be a better start for new entrepreneurs.

Women Enterprise means a startup by women which is initiated on or after July 1, 2021.

A company acknowledged by the women who are 100% shareholders shall be issue to tax at a lower rate of 25% on its profit and gains extract from business liable to be charged to tax under the head “Income from Business”

This clause will not be within easy reach to women enterprises that are obtained by the transfer, reconstitution, reconstruction, or splitting up of a currently existing business.

Despite a striking and steadily growing presence of women in business, a little support for women entrepreneurs can go a long way, a support that is given by the Government of Pakistan.