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Pakistan reverses 5% tax on foreign tech firms to boost trade, especially with the US.
Pakistan has reversed a recently implemented 5% tax on foreign tech companies and digital services, effective July 1, 2025.
The Federal Board of Revenue made this decision amid Pakistan's efforts to improve trade relations, particularly with the US, and to maintain investor confidence and access to digital services.
The tax, introduced under the Digital Presence Proceeds Tax Act, was aimed at foreign vendors with significant digital presence in Pakistan but minimal physical presence.
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Pakistán revoca el impuesto del 5% a las empresas tecnológicas extranjeras para impulsar el comercio, especialmente con los Estados Unidos.