ISLAMABAD: Federal Board of Revenue (FBR) has said that around 71 percent return filing corporate entities have declared income less than Rs500,000.
According to director for tax year 2018 issued by the FBR on September 18, 2020 revealed that only 44,609 companies had filed their returns for the year.
As per Income Tax Ordinance, 2001 companies registered with the Securities and Exchange Commission of Pakistan (SECP) are required to file income tax return. The SECP registered over 87,000 entities by end June 2018, which means around half of the total companies were remained non-compliant.
The break-up of the tax contribution as per income slab revealed that around 31,561 or 71 percent companies, which filed their return for tax year 2018, had declared income below Rs500,000.
The companies declared income between Rs500,000 and Rs1 million were only 1,167 or 2.62 percent. The companies declared income between Rs1 million and Rs1.5 million were 907 or 2.03 percent. The companies declared income between Rs1.5 million and Rs3 million were 1,357 or 3.04 percent. The companies declared income between Rs3 million and Rs5 million were 876 or 1.96 percent. The companies declared income Rs5 million and Rs7 million were 552 or 1.24 percent. The companies which declared income above Rs7 million were 3,380 or 7.58 percent.
Around 4,890 are those companies which were declared returns under final or fixed tax regime.