The Federal Board of Revenue (FBR) has introduced the latest withholding tax rates for dividend income in the Income Tax Ordinance, 2001, applicable for the tax year 2022-2023.
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FBR suggested fixed tax regime for women entrepreneurs
ISLAMABAD: The Federal Board of Revenue (FBR) has been suggested to introduce fixed tax regime for women entrepreneurs in order to facilitate and encourage businesswomen.
The suggestion was made by women entrepreneurs at a meeting with the chairman of Federal Board of Revenue (FBR).
READ MORE: FBR announces prize winners of 9th POS balloting
FBR chairman Asim Ahmad held meeting with the office bearers of Islamabad Women Chamber of Commerce & Industry (IWCCI) on Friday to listen tax-related issues and concerns of women entrepreneurs.
The office bearers, Ms Naima Ansari, President, Ms Samina Fazil, Founder President and Ms Zaheema Eckbaull Khattak, Chief Executive Officer, informed the Chairman FBR that women entrepreneurs are facing hardships in tax compliance such as timely return filing and high cost of filing charged by tax practitioners, which is also discouraging new women entrepreneurs to register their businesses with the FBR. They suggested that fixed tax regime for small women entrepreneurs may be introduced. They also requested that awareness sessions on filing tax returns and tax compliance procedures may be arranged in Women Chamber of Commerce & Industry of major cities to encourage women entrepreneurs to make tax compliance with ease.
READ MORE: FBR updates salary tax card for year 2022-2023
The Chairman FBR appreciated the suggestions put forth by the office bearer of IWCCI representing more than 1,000 women entrepreneurs and assured them that their valued input would be duly considered for launching initiatives to facilitate women entrepreneurs especially belonging to remote and marginalized areas.
READ MORE: Sindh exempts tax on services provided for flood relief
The Chairman FBR has issued directions to establish special desk at Gwadar for addressing grievances and concerns of women entrepreneurs and to facilitate them in filing tax returns. Furthermore, the Chairman FBR has issued directions to field formations to hold awareness sessions in WCCI of major cities for facilitation of women entrepreneurs concerning tax compliance.
Member Policy along with Chief Income Tax Policy and Chief Sales Tax Policy were also present in the meeting.
READ MORE: SBP allows flood relief donations through home remittance channel
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FBR announces prize winners of 9th POS balloting
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday announced prize winners of 9th balloting of invoices issued through Point of Sales (POS) installed by big retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Asfar Imam on the invoice issued by Rehmat e Shereen.
READ MORE: FBR announces prize winners in eighth draw of POS invoices
The FBR announced winners of two second prizes of Rs500,000 each to Irum Abid on the invoice issued by PCC Express and Abdul Qadir on the invoice issued by Imtiaz Provision Store.
Similarly, the four winners of third prize amounting Rs250,000 each have been awarded to Muhammad Imtiaz, Muhammad Aman Ullah Khan, Aamir Hasib Malik and Nadeem Hassan Gohar.
The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was ninth draw as it was started in January 15, 2022.
READ MORE: FBR announces prize winners of 7th draw of POS invoices
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
The FBR previously issued a procedure for participating in the prize scheme.
The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.
The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
READ MORE: 101 retailers given July 10 as deadline for integration
The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.
In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.
Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.
In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.
The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.
READ MORE: Sindh integrates 56 restaurants for online tax monitoring
Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.
The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.
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FBR updates salary tax card for year 2022-2023
The Federal Board of Revenue (FBR) has unveiled the revised salary tax card for the tax year 2022-2023, incorporating the latest withholding income tax rates.
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FBR issues withholding tax rates on imports for tax year 2022-2023
The Federal Board of Revenue (FBR) has released the latest rates of withholding income tax applicable to the import of goods for the tax year 2022-2023.
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Sindh exempts tax on services provided for flood relief
KARACHI: Sindh government has allowed whole of sales tax on services provided or rendered for flood relief operations.
In this regard, Sindh Revenue Board (SRB) issued a notification dated September 13, 2022, stated that the government of Sindh exempted the whole of sales tax payable on such taxable services as are certified by the National Disaster Management Authority (NDMA) or Provincial Disaster Management Authority (PDMA), Sindh to be meant for flood relief operations carried out in Sindh Province.
READ MORE: SBP allows flood relief donations through home remittance channel
The province allowed sales tax exemption on the following services:
01. Services provided or rendered by restaurants for free distribution as donation or charity.
02. Services provided or rendered by caterers, suppliers of food and drinks for free distribution as donation or charity.
READ MORE: FBR directs speedy clearance of flood relief goods
03. Advertisements for charity and donations in the Prime Minister’s Flood Relief Fund or in the Chief Minister Sindh’s Flood Relief Fund.
04. Renting of machinery, equipment, appliances and other tangible goods acquired and used for rehabilitation and reconstruction.
READ MORE: USC to disburse ration bags worth Rs540 million to flood victims
05. Labor and manpower supply services provided in the course of flood relief operations.
06. Services provided or rendered by persons engaged in inter-city transportation or carriage of flood relief goods by road.
The SRB said that the notification, if not rescinded earlier, shall stand rescinded on and from January 01, 2023.
READ MORE: Pakistani fintech enables individuals to donate flood victims
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Pakistan implemented currency declaration decade ago: FBR
ISLAMABAD: Pakistan has implemented currency declaration for all international passengers a decade ago, the Federal Board of Revenue (FBR) clarified on Monday.
FBR, the apex tax collecting agency of Pakistan, stated that the currency declaration regime for all international passengers has been in field for more than a decade, rather than being recently introduced on account of any recent FATF review requirements.
READ MORE: Last date for filing tax return is September 30, FBR reminds
It said a misleading impression has been created in some section of the press that Pakistan has recently imposed currency declaration requirements for passengers coming into Pakistan, which is contrary to facts.
Unlike portrayed by some section of the press, the mandatory requirement for passengers coming into Pakistan and bringing currency and/or negotiable instruments was notified by the State Bank of Pakistan more than 10 years ago vide notification no. F.E.1/2012-SB dated 16th June 2012. This requirement came into force on July 01,2012.
READ MORE: Disclosure of beneficial ownership made mandatory for companies
Subsequently, in order to widen the scope of declaration to include gold jewelry, precious stones and other prohibited/ restricted goods, Pakistan Customs also introduced a comprehensive “Customs Declaration Form for Passengers” which was notified vide SRO 689(I)/2019 dated 29th June, 2019. These rules cover both the incoming and outgoing passengers.
READ MORE: KTBA highlights pharmaceutical industry’s reporting issues
These requirements for declaration are in line with international standards and the best practices adopted by most of the countries in the world. The passengers can make the declaration either manually at the Customs counter or electronically in the Customs System.
In order to increase awareness amongst the international passengers, Pakistan Customs has been collaborating with the Civil Aviation Authority, Airlines, and Immigration Authorities to improve its outreach for both departing and arriving passengers. As a result, the compliance has been steadily increasing.
READ MORE: FBR directs 81 retailers to integrate with POS system
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Last date for filing tax return is September 30, FBR reminds
ISLAMABAD: The Federal Board of Revenue (FBR) on Sunday reminded that the last date for filing income of return for tax year 2022 is September 30.
In order to ensure return filing by due date, the tax authority launched massive awareness campaign
The FBR said: “Like every year before, the FBR launched a comprehensive awareness campaign to maximize its outreach through electronic and print media, urging taxpayers both existing and new, to file Income Tax Returns on time. The last date to file returns is Sep 30, 2022.”
READ MORE: Disclosure of beneficial ownership made mandatory for companies
The FBR issued an alert about the last date stating that last date to file income tax returns will not be extended. “Last date to file income tax returns for individuals and association of persons (AOPs) is September 30, 2022,” the FBR added.
The revenue body said that income tax returns can be filed through: Tax Asaan APP and FBR website.
It further stated that tax payment is possible through: internet and mobile banking; credit card and ATMs; cash and bank account.
The FBR further urged the taxpayers to file tax returns and avail exemption from 100 per cent increased withholding tax rates.
READ MORE: KTBA highlights pharmaceutical industry’s reporting issues
The tax body highlighted mandatory income tax return filing for persons and corporate entities.
The FBR said that all resident persons registered with professional bodies, i.e. chamber of commerce, Pakistan Bar Council or Market Committee etc. are required to file income tax returns.
Association of persons and Individuals having more than Rs400,000 annual business income are also required to file their return of income on annual basis.
READ MORE: FBR directs speedy clearance of flood relief goods
“The income tax return filing is must for salaried persons if annual income exceeds Rs600,000,” the FBR added.
The revenue body said that the income tax return filing for tax year 2022 is also mandatory for persons who were charged to income tax in tax years 2020 and Tax Tear 2021.
Furthermore following persons are required to file income tax return:
— Persons having National Tax Number (NTN)
— Persons who own a motor vehicle having engine capacity more than 1,000CC
— Persons who own 500 sq. yards or more property / flat in urban areas.
READ MORE: FBR directs 81 retailers to integrate with POS system
— Owners of flat with 2,000 sq. feed covered area of 500 sq. yards or more land in FBR rating area.
— All Non for Profit Organizations (NPOs) or welfare organizations that fall under Income Tax Ordinance, 2001.
— Commercial and Industrial consumers paying more than Rs500,000 electricity bill annually.
— Resident persons required to file foreign income and assets statement.
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Disclosure of beneficial ownership made mandatory for companies
The Federal Board of Revenue (FBR) has made it mandatory for companies and Associations of Persons (AOPs) to make disclosure of their beneficial ownership.
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KTBA highlights pharmaceutical industry’s reporting issues
Karachi Tax Bar Association (KTBA) on Friday highlighted difficulties faced by pharmaceutical industry in reporting of sales after implementation of Finance Act, 2022.
KTBA President Syed Rehan Hasan Jafri in a letter to Asim Ahmad, Chairman of Federal Board of Revenue (FBR) apprised about the implications faced by the bar members after amendments introduced in the Sales Tax Act, 1990 through Finance Act, 2022, in respect with pharmaceutical industry.
READ MORE: FBR directs speedy clearance of flood relief goods
The KTBA pointed that through the Finance Act, 2022 the Serial No.19 of the Fifth Schedule to the Act containing “substances registered as drugs” was omitted and new serial Nos. 81 and 82 were introduced in Table-1 of the Eighth Schedule to the Act.
The whole text of the new entries is being reproduced hereunder to facilitate a quick reference:
81. Manufacture or import of substances registered as drugs under the Drugs Act, 1976 shall charge one per cent sales tax subject to the conditions that:
(i) Tax charged and deposited by the manufacturer or importer, as the case may be, shall be final discharge of tax in the supply chain.
READ MORE: FBR directs 81 retailers to integrate with POS system
(ii) No input tax shall be adjusted by the manufacturer or importer.
82. Active Pharmaceutical ingredients, excluding excipients, for manufacture of drugs registered under the Drugs Act, 1976 or raw materials for the basic manufacture of pharmaceutical active ingredients. The sales tax shall be charged at one per cent subject to the conditions that:
(i) DRAP shall certify item-wise requirement of manufacturers of drugs and APIs and in case of import shall furnish all relevant information to Pakistan Customs Computerized System; and
(ii) No input tax shall be adjusted by the manufacturer or importer.
The KTBA interpreted the amendments as the manufacturer/importer of drugs shall charge and pay 1 per cent sales tax, which would be final discharge of their sales tax liability in the entire supply chain of pharma products.
“This clearly implies that if a manufacturer or an importer has paid the above 1 per cent sales tax on supply or import of finished goods (drugs), respectively, then no sales tax would be applicable on the subsequent supply of such pharma goods,” it added.
READ MORE: KTBA recommends changes in IRIS for calculating deemed income on properties
The tax bar highlighted the issue, which are being faced by the pharmaceutical industry due to the recent amendments.
Reference of serial No.19 of Fifth Schedule to the Act is not being appeared at the time of declaring sales returns/cancellation through credit/debit notes at Annexure-C (uploaded through invoice management system). Consequently, sales returns pertaining to January 2022 to June 2022 made at zero per cent, are not being declared in the tax periods of July 2022 and August 2022.
Option for reporting exempt sales made by pharmaceutical distributors is not available at Annexure-C (uploaded through invoice management system) for the tax period of July 2022 due to which, pharmaceutical distributors are unable to file their monthly sales tax return.
The tax bar also complained that multiple queries have already been raised vide emails at FBR helpline by the bar members but till to date no solution or a guideline has been provided or explained.
READ MORE: KTBA demands suspending further tax due to practical issues
In view of the above, the FBR chairman has been requested to make necessary amendments in IRIS so that the pharmaceutical distributors are enabled to file their monthly sales tax returns in timely manner.
Meanwhile, till the issue highlighted above remains unresolved, your office is requested to intervene and condone the due date for filing monthly sales returns for the industry.
The KTBA urged the FBR chairman to provide redressal to the taxpayers connected with Pharma Industry and their distributors as these taxpayers are contributing their due share into the government exchequer as their moral and legal obligation.