ISLAMABAD: Federal Board of Revenue (FBR) has updated tax rates on payments to non-residents as fee for technical services or execution of contracts during tax year 2021 (July 01, 2020 to June 30, 2021).
(more…)Author: Mrs. Anjum Shahnawaz
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TAX YEAR 2021: tax rate on Sukuks
ISLAMABAD: Federal Board of Revenue (FBR) has updated tax rate on return on investment in Sukuks for the tax year (July 01, 2020 to June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (updated till June 30, 2020) after incorporating amendments brought through Finance Act, 2020. The FBR updated the rate of tax on return on investment in Sukuks.
Section 150A of Income Tax Ordinance, 2001 deals with return on investment in Sukuks as:
150A. Return on investment in Sukuks—Every special purpose vehicle, or a company, at the time of making payment of a return on investment in sukuks to a sukuk holder shall deduct tax from the gross amount of return on investment at the rate specified in Division IB of Part III of the First Schedule.
The rate of tax to be deducted under section 150A shall be—
(a) 25 percent in case the sukuk-holder is a company;
(b) 12.5 percent in case the sukuk-holder is an individual or an association of person, if the return on investment is more than one million;
(c) 10 percent in case the sukuk-holder is an individual and an association of person, if the return on investment is less than one million.
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FBR notifies transfer, postings of senior auditors
ISLAMABAD: Federal Board of Revenue (FBR) has notified transfers and posting of senior auditors of the sales tax department with immediate effect and until further orders.
Following senior auditors (BS-16) have been transferred:
01. Muhammad Altaf (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
02. Shoukat Ali Bhatti (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
03. Bilal Afzal (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
04. Habib Khan (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
05. Umar Farooq (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
06. Syed Azam Raza (IRS Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
07. Muhammad Laique Qureshi (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Rawalpindi.
08. Akbar Nawaz Khattak (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Rawalpindi.
09. Tahir Amir (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Rawalpindi.
10. Kamran Feroz (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Rawalpindi.
11. Attiq Ahmad Abbasi (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Rawalpindi.
12. Muhammad Ilyas (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
13. Muhammad Shabbir (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Corporate Tax Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
14. Saeed Tahir (IT Cadre Department/BS-16) has been transferred and posted as MIS Officer, Corporate Tax Office, Islamabad from the post of MIS Officer, Regional Tax Office, Rawalpindi.
15. Gul Khan (IT Cadre Department/BS-16) has been transferred and posted as MIS Officer, Corporate Tax Office, Islamabad from the post of MIS Officer, Regional Tax Office, Rawalpindi.
16. Mahr Muhammad Aurangzeb (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Large Taxpayers Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
17. Muhammad Kamran (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Large Taxpayers Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Islamabad.
18. Zeeshan Zafar (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Large Taxpayers Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Rawalpindi.
19. Ch. Muhammad Sajid (Sales Tax Department/BS-16) has been transferred and posted as Senior Auditor, Large Taxpayers Office, Islamabad from the post of Senior Auditor, Regional Tax Office, Rawalpindi.
The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.
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Pakistan remains in FATF’s grey list; new deadline February 2021
KARACHI: The Financial Action Task Force (FATF) on Friday decided to keep Pakistan in ‘grey list with the announcement that the country needs to do more.
FATF President Dr Marcus Player, addressing a webinar to announce the decisions taken by the plenary in its three-day meeting period, said that the forum has decided that Pakistan “needs to do more” when it comes to fulfilling the requirements set out by the task force.
It was acknowledged that of the 27 conditions that were put forth to Pakistan, 21 have been fulfilled.
To a question, Dr Player said that once the remaining six conditions are fulfilled, an “on site visit” will be approved under which a team from the FATF will visit the country for the next review.
“Our discussions are confidential, and the members decided by consensus that Pakistan needs to complete these six items for an onsite visit to be granted.
“As soon as the plenary decides that Pakistan has completed all the 27 items, then an onsite visit will be made. After that, it will be decided whether the country will be allowed to exit the grey list or not.”
He said that the new deadline for Pakistan to fulfil the remaining conditions is February 2021.
Hammad Azhar, federal minister for Minister for Industries and Production in a twee said that Pakistan has achieved impressive progress on its FATF action plan. The country complied with 21 out of 27 action items now stand cleared. Remaining 6 rated as partially complete. Within a year, we progressed from 5/27 to 21/27 completed items. FATF acknowledged that any blacklisting is off the table now.
“Instead of current Action Plan, discussions remained focused on how Pak can be facilitated for our upcoming 2nd evaluation (MER), due mid next year. I congratulate our Federal and Provincial Teams who have worked day and night even during the pandemic to ensure this turn around,” he added.
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Stock market gains 67 points in range bound activity
KARACHI: The stock market gained 67 points on Friday in a range bound trading activity.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,266 points as against 41,199 points showing an increase of 67 points.
Analysts at Arif Habib Limited said that the market traded range bound today between -135 points and +184 points.
The Index was swayed by mixed expectations on FATF (due to be announced today 7 PM PST) as well as the result announcements that saw E&P companies declining on the bourse, although international crude oil prices were stable.
Financial results kept the interest alive from Investors, however, persistent selling in Banks and E&P kept the Index in check.
UBL was scheduled to be announced by close of session, but was deferred to Monday as the meeting was still in progress.
Among scrips, MLCF topped the volumes with 45.7 million shares, followed by PRL (27.9 million) and UNITY (24.2 million).
Sectors contributing to the performance include Cement (+92 points), Insurance (+20 points), Fertilizer (+13 points), Banks (-31 points), E&P (-18 points) and Power (-11 points).
Volumes declined further from 500 million shares to 354.4 million shares (-29 percent DoD). Average traded value also declined by 10 percent to reach US$ 96.8 million as against US$ 107.2 million.
Stocks that contributed significantly to the volumes include MLCF, PRL, UNITY, FCCL and PIBTL, which formed 39 percent of total volumes.
Stocks that contributed positively to the index include LUCK (+25 points), ENGRO (+19 points), CHCC (+19 points), MLCF (+13 points) and KOHC (+10 points). Stocks that contributed negatively include BAHL (-18 points), HUBC (-18 points), EPCL (-10 points), OGDC (-9 points) and PPL (-7 points).
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Rupee gains 45 paisas against dollar on foreign inflows
KARACHI: The Pak Rupee gained 45 paisas against the dollar on Friday owing to substantial inflows of export receipts and workers’ remittances.
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Credit card fraud by bank official unearthed
ISLAMABAD: The Banking Mohtasib (Ombudsman) has provided a relief to a person, who lost money through credit card transactions that were made fraudulently by a bank official.
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SBP issues procedure for Sharia based investment in Naya Pakistan Certificates
KARACHI: State Bank of Pakistan (SBP) on Friday issued procedure for Islamic mode of investments in Naya Pakistan Certificates (NPCs). The SBP said that the government had established a wholly-owned special purpose vehicle, namely Islamic NPC Company Limited (INPCCL), which shall be managed under the mandate of its Board of Directors. INPCCL shall be issuing INPCs denominated in USD and PKR to the agent banks and investors.
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Stock brokers seek tax adjustment against capital losses
KARACHI: Brokers at Pakistan Stock Exchange (PSX) have approached the Federal Board of Revenue (FBR) to allow tax adjustment against brought forward capital losses.
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Mohtasib receives 14,587 complaints against banks
ISLAMABAD: The Banking Mohtasib (Ombudsman) Pakistan has received 14,587 complaints against banks for the year ended December 31, 2019.
The annual report of Banking Mohtasib Pakistan revealed the number of complaints against each bank in the following table:
S. No. Bank Total 01 Albaraka Bank (Pakistan) Limited 56 02 Allied Bank Limited 586 03 Askari Bank Limited 227 04 Bank Al Habib Limited 118 05 Bank Alfalah Limited 764 06 Bank Islami Pakistan Limited 110 07 Citibank 3 08 Dubai Islamic Bank Pakistan Limited 101 09 Faysal Bank Limited 477 10 First Women Bank Limited 12 11 Habib Bank Limited 2511 12 Habib Metropolitan Bank Limited 68 13 JS Bank Limited 262 14 MCB Bank Limited 880 15 Meezan Bank Limited 319 16 National Bank of Pakistan 825 17 Samba Bank Limited 8 18 Silk Bank Limited 586 19 Sindh Bank 32 20 SME Bank Limited 5 21 Soneri Bank Limited 75 22 Standard Chartered Bank (Pakistan) Limited 267 23 Summit Bank Limited 60 24 The Bank of Khyber 20 25 The Bank of Punjab 267 26 The Punjab Provincial Cooperative Bank Limited 24 27 United Bank Limited 1587 28 Zarai Taraqiati Bank Limited 94 29 Institutions other than banks 313 30 Complaints received through Prime Minister’s Portal 3930 Relief claimed amounting to Rs 260,985,799/- has been granted to the complainants.
In the year under review, a total number of 1422 formal complaints were resolved against which 160 Representations were made to the President, Islamic Republic of Pakistan.
During the year ending December 31, 2019, one Review Petition was filed and the same was allowed.
The highest number of complaints received from the province of Punjab i.e. 10,074 followed by Sindh 3,094, Khyber Pukhtunkhwa 1,055, Balochistan 131, Azad Kashmir 212, Gilgit Baltistan 21.