Understanding the ever-evolving world of telecommunication taxes can be confusing. If you operate in Khyber Pakhtunkhwa, this article breaks down the key details you need to know about the services taxed and the current 19.50% rate applicable under the KPRA.
What Services are Taxed?
The list encompasses a wide range of telecommunication and related services:
- Telephone Services: Fixed line, wireless, prepaid, postpaid, video calls, and more.
- Messaging Services: SMS, MMS, and digital app messaging.
- Connection Management: Installation, shifting, conversion, and restoration of phone lines.
- Bandwidth Services: Copper, fiber optic, cable, satellite, IP, teleconferencing, and advanced mobile network services.
- Data and Internet: Traditional internet, email, dial-up, broadband, and mobile data access.
- Data Communication Networks: Value-added data services, VPNs, and digital signatures.
- International Calls: Long-distance international services.
- Other Services: Audiotext, voice paging, vehicle tracking, tower space rentals, internet-based cable TV, and similar offerings.
Important Note:
For incoming international calls, the tax applies only to the portion shared or received by domestic service providers in Khyber Pakhtunkhwa.
Remember:
- This information is for general awareness only and does not constitute professional tax advice.
- Consult a qualified tax advisor for specific guidance based on your business operations and legal structure.
- Stay updated on any changes or clarifications issued by the KPRA.
By understanding the scope of taxable services and the current tax rate, you can ensure compliance and manage your tax obligations effectively.
