The accepted demands also include the abolition of the tax on the undistributed profits
levied at five per cent on corporations that do not distribute 20pc of their earnings in dividends from 2019-20.
Amidst a divisive macro outlook and heady budgetary imbalances, the PTI-led government introduced its second finance bill to a revengeful opposition, while alluding to approaching the IMF for the 'final time', something Finance Minister, Asad Umar and Prime Minister Imran Khan have vowed to uphold market dynamics are expected to get a lift from 1) abolishment of 0.02% WHT on share transactions, 2) capital loss carryover to be available for three years, 3) abolishment of tax on undistributed profits
and 4) abolishment of super tax in FY20 on non-banking companies.
Similarly, to promote capital formation, the tax on undistributed profits
is being abolished.
To promote reinvestment of profits by companies, the government removed taxes on undistributed profits
. The government has also granted a five-year exemption to industries for establishing plants to manufacture equipment used in generation of renewable energy if it is set up between 1, March 2019 and 30 June 2023.
He vehemently opposed the FBR's proposal to tax the undistributed profits
of companies, which he said was discouraging capital formulation.
Tax on undistributed profits
is charged @ 7.5% on accounting profit if at least 40% of after-tax profits are not distributed within 6 months of the end of the year.
Immediate remedial measures include abolishing taxes like alternative corporate tax, tax on undistributed profits
and super tax.
The core capital reserves and undistributed profits
of conventional banks as at the end of December 2017 stood at RO4.6 billion.
To be able to make the fast-track, projects must meet certain criteria, including a minimum amount of AaAaAeA AaAaAeAo5 million, 75 per cent being from f capital directly linked to the project, undistributed profits
, loan capital, or from the issue of shares.
In the period 2009-2015 in the midst of the global and European crisis, the government exempted companies from paying undistributed profits
The study has been done with a view to analyze the performance of the Primary Agricultural Development Banks in Punjab in terms of growth of number of PADBs, Membership, Share capital, Undistributed Profits
, Recovery and Non performing Assets (NPA).
The minister said that the amount subject to compensation was allocated from the undistributed profits
of the government companies in