Following plan details and taxes are available for both investing people and enlist companies of Pakistan stock exchange.
LOCAL INVESTING INFORMATION OF PSX
- In Budget FY-16; Government of Pakistan increased Rate of Capital Gains Tax to 15% from 12.5% for securities held up to 1-yr and 12.5% for securities held for a period between 1-2years. Securities held for a period of 2-4 years be also taxed at 7.5%.
- Withholding Tax on dividend income to be taxed at 12.5% from 10% for tax filers and 17.5% for non-filers in PSX.
- Dividend income use to be taxed as a separate portion of the net income on the shoulders of each and every shareholder.
- Any incoming amount which has been derived from TFC’s is subjected to the income tax from the income year of 2001 – 2002.
GENERAL INVESTING INFORMATION
- Listed companies of PSX are used to tax at 32%.
- Provident funds can now be invested in the securities which are approved and listed at Pakistan stock exchange. They are also given an independency to invest in open end mutual funds which are established under the AMC rules in 1996.
- Turnover tax is not paid by companies on the turnover representing transactions of their company in securities enlist in Pakistan stock exchanges.
- Provisions of company ordinance will regulate the securities market and the corporate sector in Pakistan stock exchange.
- Rules of securities and exchange ordinance 1969 are framed in 1971.
- The Securities & Exchange Commission Act 1999.
- There are also some Federal legislations presented relating to specific sections such as;
- Monopolies and Restrictive Trade Practices Ordinance, 1970.
- Investment Companies and Investment Advisors Rules 1971.
- Modaraba Companies and Modaraba (Ordinance, 1980.
- Companies Rules 1996
- Leasing Companies Rules 1996
- Asset Management Companies Rules 1996.
- Insurance Companies Ordinance 2000.
- Guidelines for insiders trading.
- In addition to above, the listed companies are also subject to the Rules and Regulations of the PSX.