Islamabad, June 29, 2024 – The government has imposed a capital value tax (CVT) on farmhouses and residential houses within the territorial limits of Islamabad Capital Territory, as outlined in the Finance Act, 2024.
(more…)Tag: Capital Value Tax
-
FBR Collects Rs2.23 Billion as Capital Value Tax on Foreign Assets
The Federal Board of Revenue (FBR) has successfully collected Rs2.23 billion as Capital Value Tax (CVT) on foreign assets owned by resident individuals.
(more…) -
FBR issues procedure, collection of capital value tax
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday issued procedure and collection of capital value tax (CVT).
The government through Finance Act, 2022 imposed capital value tax on sale of immovable properties and motor vehicles.
Following are the procedure and collection of the CVT.
READ MORE: FBR may extend date for return filing tax year 2022
Declaration of assets. – (1) Every person who is liable to pay capital value tax on assets mentioned in clauses (b) and (c) of sub-section (2) of section 8 of Finance Act, 2022 shall file the electronic declaration in Iris as set out in the Form- A attached to these rules.
(2) The value of foreign assets shall be converted in rupees as per ready transactions exchange rates for mark to market revaluation notified by the State Bank of Pakistan applicable for the last day of the tax year.
Statements to be filed by persons collecting capital value tax on motor vehicle. – (l) Every motor vehicle registration authority or a manufacturer or a person selling motor vehicle through auction liable to collect CVT in respect of motor vehicle in Pakistan shall furnish to the Commissioner a quarterly electronic statement in Iris as per schedule mentioned in sub-section (2) of section 165 of the Ordinance.
(2) Every person liable to collect CVT in respect of motor vehicle in Pakistan shall also furnish to the Commissioner an annual electronic statement in Iris for the relevant tax year within thirty days of the end of tax year, in addition to statement to be filed under sub-rule (1) of this rule.
READ MORE: FBR allows refund adjustment to facilitate return filing
(3) The provisions of sub-sections (2A), (2B) and (4) of section 165 of the Ordinance shall, in so far as relevant, apply to statements filed under this rule.
(4) The statement shall be filed in the manner as provided in Iris.
Collection of capital value tax. (1) The tax required to be collected by a registration authority, manufacturer or a person selling motor vehicle through auction shall be paid by way of credit to the Federal Government through a computerized payment receipt (CPR) or SWAPS payment receipt (SPR) as set out in the Form ‘B’ attached to these rules.
READ MORE: FPCCI seeks statutory time for return filing after error removals
(2) The person required to pay tax in respect of foreign assets or assets specified by the Federal Government shall pay tax by way of credit to the Federal Government through a computerized payment receipt (CPR) at time the income tax return for the tax year is due for payment of tax on foreign movable assets, as set out in the Form ‘C-l’ and for payment of tax on foreign immovable assets, as set out in the Form ‘C-2’ appended to these rules.
(3) All sums being capital value tax collected under section 8 of the Finance Act, 2022, shall be paid by way of credit to the Federal Government by remittance into the government treasury or in the authorized branches of the State Bank of Pakistan or the National Bank of Pakistan, –
READ MORE: FBR advised to extend tax return filing date for three months
(i) on the same day in case these have been collected by or on behalf of government;
(ii) in other cases, such amount shall be paid within one week from the date of such collection.
-
Pakistan reintroduces capital value tax on motor vehicles
KARACHI: The federal government of Pakistan has reinstated the Capital Value Tax (CVT) at a rate of one percent on the value of both locally manufactured and imported motor vehicles. This move marks the revival of a tax that was previously withdrawn in phases and ultimately abolished in 2020.
(more…) -
Correction in computerized CVT payment receipt allowed
ISLAMABAD: Federal Board of Revenue (FBR) has allowed correction in computerized payment receipt (CPR) for capital value tax (CVT). In this regard, the FBR amended the procedure.
The FBR issued an addendum on Thursday to the e-procedure that was notified on December 30, 2019. Previously, the FBR granted correction in CPR for income tax, sales tax and federal excise duty.
However, through the addendum the FBR said correction of CVT CPR shall only be allowed in respect of CVT paid on immovable property situated within territorial limits of Islamabad Capital Territory.
Further, the FBR said that heads of account (NAM) shall not be changed in the CPR except for CVT paid on immovable property situated within territorial limits of Islamabad Capital Territory.
-
Capital value tax on share purchase abolished
KARACHI: The government has abolished Capital Value Tax (CVT) on purchase value of any instrument of redeemable capital, Pakistan Stock Exchange (PSX) informed to all members of the exchange.
The PSX informed all TREC Holders and shareholders that the Tax Laws (Amendment) Ordinance, 2020 has been published through which the said amendment ordinance, sub-section (1) of Section 7 of the Finance Act, 1989 has been ceased to apply from the date of commencement of the said Amendment Ordinance i.e. April 19, 2020.
“Therefore, no capital value tax (CVT) is payable to federal government on purchase value of modaraba certificates or any instrument of redeemable capital as defined in the Companies Ordinance, 1984 (no Companies Act, 2017) or a shares of a public company, listed on a registered stock exchange in Pakistan with effect from April 19, 2020.”