Profit on a debt *[whether payable or receivable, means]
- any profit, yield, interest, discount, premium or other amount **[,] owing under a debt, other than a return of capital; or
- any service fee or other charge in respect of a debt, including any fee or charge incurred in respect of a credit facility which has not been utilized
Profit on debt shall be Pakistan-source income if it is
a. paid by a resident person, except where the profit is payable in respect of any debt used for the purposes of a business carried on by the resident outside Pakistan through a permanent establishment;
b. borne by a permanent establishment in Pakistan of a non-resident person.
*The word “means”substituted by the Finance Act, 2003.
**Comma inserted by the Finance Act, 2002.