ISLAMABAD: The Federal Board of Revenue (FBR) has revised the rates of fines and penalties for individuals who fail to file their annual income returns despite having taxable income or being required to file under the law.
(more…)Category: Taxation
Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.
-
Tax rates on payments to non-residents on services, contract execution
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…) -
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.
-
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.
-
Customs announces auction of confiscated diesel oil
The Customs Intelligence and Investigation (I&I), Regional Office, Multan, has officially announced the auction of seized high-speed diesel scheduled to take place on October 28, 2020.
(more…) -
Customs official awarded ‘dismissal from service’ for misconduct
ISLAMABAD: Federal Board of Revenue (FBR) on Thursday awarded major penalty of ‘dismissal from service’ upon a customs official on the charges of misconduct.
An office order issued by the FBR stated that disciplinary proceedings under Government Servants
(Efficiency & Discipline) Rules, 1973 were initiated against Riaz-ul-Haq, Inspector (BS-16), Model Customs Collectorate (Enforcement & Compliance), Lahore on October 28, 2014 on account of his unauthorized absence from duty since April 02, 2014.
Ms. Ammara Durrani, the then Deputy Collector (PCS/BS-18), MCC (Appraisement), Lahore was appointed as Inquiry Officer to conduct inquiry on various acts of gross “Misconduct” as prescribed in Rule 3(b) of the Government Service (E&D) Rules, 1973.
The Inquiry Officer submitted her inquiry report April 15, 2015, according to which the charge leveled against the accused officer has been established.
A show cause notice was issued on August 01, 2016 to the accused officer and he was also called for personal hearing by the Authorized Officer on September 10, 2020.
After considering the charge framed in the charge sheet, inquiry report and other documentary evidences, the Authorized Officer is of the considered opinion that the accused officer has been found guilty of “Misconduct” under rules 3(b) of the Government Servants (Efficiency and Discipline) Rules, 1973 and recommended to the Member (Admn)/ Authority to impose upon the accused officer the major penalty of “Dismissal from Service” under Rule 4(1)(b)(iv) of the Government Servants (Efficiency and Discipline) Rules, 1973.
The Member (Admn) FBR being Authority in this case, after having considered all aspects of the case and the recommendations of the Authorized Officer has therefore, imposed the major penalty of “Dismissal from Service” upon Riaz-ul-Haq, Inspector 3 with immediate effect.
The period of his unauthorized absence from duty from 02.04.2014 onwards is treated as Extra Ordinary Leave (EOL) without pay as admissible under the rules.
He shall have the right of Appeal as admissible in the Civil Servants (Appeal) Rules, 1977.
-
TAX YEAR 2021: tax rate on profit on bank deposits
KARACHI: Federal Board of Revenue (FBR) has updated rate of tax on profit on debt applicable during tax year 2021 (July 01, 2020 to June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) after incorporating amendments introduced through Finance Act, 2020. The FBR updated the rate of tax to be deducted under section 151 shall be 15 percent of the yield or profit:
Provided that the rate shall be 10 percent in cases where the taxpayer furnishes a certificate to the payer of profit that during the tax year yield or profit paid is rupees five hundred thousand rupees or less.
According to the Section 151 of the Ordinance, 2001, the Profit on debt. — (1) Where –
(a) a person pays yield on an account, deposit or a certificate under the National Savings Scheme or Post Office Savings Account;
(b) a banking company or financial institution pays any profit on a debt, being an account or deposit maintained with the company or institution;
(c) the Federal Government, a Provincial Government or a Local Government pays to any person profit on any security other than that referred to in clause (a) issued by such Government or authority; or
(d) a banking company, a financial institution, a company referred to in sub-clauses (i) and (ii) of clause (b) of sub-section (2) of section 80, or a finance society pays any profit on any bond, certificate, debenture, security or instrument of any kind (other than a loan agreement between a borrower and a banking company or a development finance institution) to any person other than financial institution.
the payer of the profit shall deduct tax at the rate specified in Division IA of Part III of the First Schedule from the gross amount of the yield or profit paid as reduced by the amount of Zakat, if any, paid by the recipient under the Zakat and Ushr Ordinance, 1980 (XVII of 1980), at the time the profit is paid to the recipient.
(2) This section shall not apply to any profit on debt that is subject to sub-section (2) of section 152.
“(3) Tax deductible under this section shall be a minimum tax on the profit on debt arising to a taxpayer, except where —
(a) taxpayer is a company; or
(b) profit on debt is taxable under section 7B.
-
TAX YEAR 2021: rate of advance tax on dividends
ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of advance tax on dividends for tax year 2021 (July 01, 2020 to June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (updated up to June 30, 2020) after incorporating amendment brought through Finance Act, 2020.
The FBR updated the rate of tax to be deducted under section 150 and 236S:
(a) 7.5 percent in case of dividend paid by Independent Power Producers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity.
(b) 15 percent in mutual funds and cases other than those mentioned in clauses (a) and (ba); and
(ba) 25 percent in case of a person receiving dividend from a company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part VIII Chapter III or claim of tax credits under Part X of Chapter III.
According to Section 150: Dividends — Every person paying a dividend shall deduct tax from the gross amount of the dividend paid at the rate specified in Division I of Part III of the First Schedule.
According to 236S: Dividend in specie — Every person making payment of dividend-in-specie shall collect tax from the gross amount of the dividend in specie paid at the rate specified in Division I of Part III of the First Schedule.
-
FBR registers 127 projects under construction industry incentive scheme
ISLAMABAD: Federal Board of Revenue (FBR) has registered around 127 projects worth Rs63 billion under Prime Minister’s construction industry incentive scheme, a spokesman said on Tuesday.
The Prime Minister’s incentive scheme for builders and developers is now picking-up showing definite signs of success and great amount of interest by the construction industry.
Till October 19, 2020, a total of 127 projects have been registered with a total projected cost of Rs63 billion.
In addition, a total of 108 persons are also in the process of registering 114 projects at a projected cost of Rs109 billion.
The registered projects from major cities include 61 projects from Karachi, Lahore 44, Islamabad 30, Rawalpindi 19, Faisalabad 10 and rest from other cities.
The last date for registering projects under the scheme is December 31, 2020.
-
FBR invites applications for 322 vacant posts in Pakistan Customs
ISLAMABAD: Federal Board of Revenue (FBR) has invited job applications for vacant posts (BPS-01 to BPS-14) at various collectorates/directorates of Pakistan Customs. The last date for submission of applications is October 27, 2020.
(more…)