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Information
Investor Specification
The following plans and tax incentives are available to both investors and listed companies.
Foreign Investor - specific:
- The foreign investors are freely allowed to operate in the capital market without any retention period.
- There are no restrictions on the extent of foreign ownership stake and also no limit for holding the shares for trading purposes.
- Funds invested in the capital market are freely transferable along with dividend income.
- Foreign investors are treated at par with local investors in tax treatment.
- Capital gains on sale of listed securities are exempt from income tax up to the year 2010. This exemption is available since 1974.
- The dividend is subject to withholding tax at 10%.
- Dividend income is taxed as a separate block of income in the hands of individual shareholders.
- Any income derived from TFC's is subject to income tax with effect from income year 2001 – 2002.
- Listed companies are taxed at 35%.
- Provident funds can now invest in approved listed securities. They are also allowed to invest in open end mutual funds established under the Asset Management Companies Rules 1996.
- No turnover tax is payable by companies on their turnover representing transactions in securities listed on stock exchanges.