SRB Unveils 2024 Tax Rates for Professional Services in Sindh

SRB Unveils 2024 Tax Rates for Professional Services in Sindh

Karachi, February 7, 2024 – The Sindh Revenue Board (SRB) has released the tax rates applicable to services provided by professionals and consultants for the tax year 2024.

The board confirmed that the existing tax rate of 13 percent, as per the updated Sales Tax on Services Act, 2011, will continue to be in effect throughout the year.

Under the outlined guidelines, the SRB has identified various professions falling under the purview of this tax regulation. Services provided or rendered by professionals and consultants include:

1. Legal practitioners and consultants

2. Accountants and auditors

3. Management consultants

4. Technical, scientific, and engineering consultants

5. Software or IT-based system development consultants

6. Other consultants, encompassing tax consultants, human resources, and personnel development consultants

Additionally, the SRB has included services provided or rendered by laboratories in the list. It’s worth noting that these services do not cover those related to pathological, radiological, or diagnostic tests of patients.

The continuation of the 13 percent tax rate aims to ensure a stable fiscal environment for professionals and consultants in the region. This decision by the SRB is part of its commitment to maintaining transparency and consistency in tax regulations, providing clarity to taxpayers regarding their obligations for the year 2024.

The Sales Tax on Services Act, 2011, has been a cornerstone in regulating tax practices in the province, and its updated provisions are being enforced to streamline taxation for various service-oriented professions. The outlined tax rates play a crucial role in facilitating compliance and financial planning for professionals and consultants, offering them a clear understanding of their tax liabilities.

Businesses and individuals affected by these tax regulations are encouraged to stay informed and consult with tax advisors to ensure accurate compliance. The SRB remains dedicated to effective tax administration and aims to support the growth of professional services while contributing to the overall economic development of Sindh.

This announcement by the SRB underscores the importance of aligning tax policies with the evolving needs of the service industry, fostering an environment that encourages compliance and economic growth in the region.