Karachi, December 18, 2023 – In a significant development for tax practitioners, the Federal Board of Revenue (FBR) has unveiled the detailed procedure for the registration of income tax practitioners for the tax year 2024.
The updated Income Tax Rules, 2002, now incorporate Rule 85, which outlines the application process for individuals seeking registration as income tax practitioners.
Application Process: Rule 85
According to Rule 85, individuals who wish to be registered as income tax practitioners must submit an application to the Chief Commissioner, Regional Tax Office. The application form is specified in Part X of the First Schedule to the Income Tax Rules, 2002. The following key steps are outlined in Rule 85:
1. Submission of Application:
• Applicants, who meet the requirements specified in Rule 86, are required to submit their applications to the Chief Commissioner, Regional Tax Office.
2. Accompanying Documents:
• Every application must be accompanied by:
• A treasury receipt for a non-refundable application fee of five hundred rupees, deposited in any Government Treasury.
• Documents, statements, and certificates as specified in the application form.
Qualifications for Registration: Rule 86
Rule 86 defines the qualifications necessary for individuals applying for registration as income tax practitioners. The qualifications are designed to ensure a certain level of expertise and experience in the field. The key requirements are as follows:
1. Educational Qualifications:
• Applicants must possess one of the following qualifications:
• A degree in Law (at least in the second division).
• A degree in Commerce (with Income Tax Law and Accounting or Higher Auditing as subjects).
• A degree in Business Administration or Business Management (with Accounting and Income Tax Law as subjects).
• A pass in a prescribed accounting examination.
2. Work Experience:
• Applicants must have worked for a continuous period of one year as an apprentice under the supervision of:
• A chartered accountant.
• Cost and management accountant.
• Legal practitioners entitled to practice in a civil court in Pakistan.
• A registered income tax practitioner.
• Additionally, the supervisor must have been registered for at least ten years.
3. Recognition of Foreign Degrees:
• Degrees conferred by foreign institutions qualify if they are equivalent to degrees conferred by Pakistani universities and are recognized as such by Pakistani universities.
4. Definition Clarifications:
• The rule provides definitions for key terms such as “Institute of Chartered Accountants of Pakistan,” “foreign institution,” “foreign university,” “prescribed accounting examination,” and “prescribed institution.”
The incorporation of Rule 85 and Rule 86 into the updated Income Tax Rules, 2002, is aimed at streamlining the process of registration for tax practitioners and ensuring that those engaged in tax-related services meet specified educational and experiential standards.
This initiative by the FBR is expected to enhance the quality of tax-related services, strengthen compliance, and contribute to a more robust and transparent tax system in Pakistan. Individuals aspiring to become income tax practitioners will need to adhere to the outlined procedures and qualifications to secure registration for the upcoming tax year.
