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Tag: FBR

FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.

  • Tax rates on profit from bank deposits during year 2022/2023

    Tax rates on profit from bank deposits during year 2022/2023

    Federal Board of Revenue (FBR) has issued latest tax rates on profit from bank deposits derived during the year 2022/2023.

    The FBR issued the withholding tax card for tax year 2023 (July 01, 2022 to June 30, 2023) after amending the Income Tax Ordinance, 2001 through changes brought through Finance Act, 2022.

    The FBR collects tax on profit on debt under section 151 of the Income Tax Ordinance, 2001. It issued the rates applicable for both persons on the Active Taxpayers List (ATL) and those who are not on the ATL.

    According the latest rates, 15 per cent of the tax is applicable on the persons who are on the ATL and 30 per cent is to be paid by persons not on the ATL while receiving profit on debt falling under clause (a), (b), (c) or (d) of Sub-Section 1 of the Section 151.

    The clauses a, b, c and d of the sub-section 1 of section 151 are:

    (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 FBR further noted that profit on debt on Sukuk by SPV or a company under sub-section (1A) of Section 151 of Income Tax Ordinance, 2001, the withholding tax rates shall be as follow:

    — Company in case of ATL 25 per cent and non-ATL 50 per cent.

    — Individual, Association of Person (AOP) return above Rs 1 million the tax rate for ATL shall be 12.5 per cent and in case of non-ATL the tax rate shall be 25 per cent.

    — Individual, AOP return below one million rupees the tax rate shall be 10 per cent for ATL and in case of non-ATL the tax rate shall be 20 per cent.

    The Sub-Section (1A) of Section 151 of the Income Tax Ordinance, 2001, is:

    (1A) 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.

    READ MORE: Up to 70% income tax imposed on dividends for year 2022-2023

    READ MORE: FBR updates salary tax card for year 2022-2023

    READ MORE: FBR issues withholding tax rates on imports for tax year 2022-2023

  • Last date for return filing will not be extended: FBR

    Last date for return filing will not be extended: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday said it will not extend the last date for filing income tax returns beyond September 30, 2022.

    The FBR sent SMS to taxpayers advising them to file their return of income for the tax year 2022 at the earliest. “The last date to file return is September 30, 2022, which will not be extended,” it added.

    READ MORE: Last date for filing tax return is September 30, FBR reminds

    The revenue body recently launched a campaign to motivate people for filing income tax returns. 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 September 30, 2022.”

    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.

    READ MORE: Disclosure of beneficial ownership made mandatory for companies

    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.

    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.

    READ MORE: KTBA highlights pharmaceutical industry’s reporting issues

    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.

    “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 speedy clearance of flood relief goods

    — 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.

  • Pakistan tax agency invites job applications for audit department

    Pakistan tax agency invites job applications for audit department

    Pakistan tax agency has invited job applications to fill around 57 vacant posts at its internal audit department.

    Federal Board of Revenue (FBR), the premier tax agency of Pakistan, said that the vacant posts would be filled in BS-1 to BS-16. It said that the job applications must be submitted by October 02, 2022. Further details can be obtained HERE.

    The FBR said that the eligible candidates are advised to apply online through National Job Portal Link https://njp.gov.pk. No manual or hard copy of application will be accepted by any office. Candidates applying for more than one post should apply online for each post separately.

    READ MORE: Up to 70% income tax imposed on dividends for year 2022-2023

    Vacancies for BS-01 to 05 shall ordinarily be filled on local basis in terms of Rule 16 of Civil Servants (Appointment, Promotion & Transfer) Rules, 1973, whereas vacancies for BS-06 to 15 shall be filled by appointment of persons domiciled in the respective province or region of each office strictly under Rule 15 of the aforesaid rules and instructions issued by the Establishment Division from time to time.

    Candidates will be required to bring original documents (Educational, domicile and Experience Certificate etc) alongwith one set of all attested copies of documents at the time of test/interview.

    Screening tests and skills tests (where required) will be conducted as per recruitment policy of the Federal Government.

    READ MORE: FBR updates salary tax card for year 2022-2023

    The contract employees (BS-01 to 15), who were appointed under the Family Assistance Package for the families of Government employees, who died while in service, may also apply online for any of the above post, if they desire so, subject to their eligibility.

    10% quota for women, 5% quota for minorities (non-Muslims) and 2% quota for disabled persons shall also be strictly observed as per Government instructions. Disabled persons will have to submit a Certificate as proof of disability, duly issued by recognized Social Welfare Board/office or other authorized Government organization, at the time of test/interview.

    The Directorate General, Internal Audit (IR) reserves the right not to fill any vacancy or to reduce/increase the number of vacancies, if the circumstances so warrant at the time of final selection.

    The candidates working in Public Sector Departments/Organizations shall have to submit Departmental Permission Certificates from the respective employers at the time of test/interview, failing which they will not be allowed to participate in test/interview process.

    In addition to 05 years general upper age relaxation by the Government, further upper age relaxation shall be restricted upto the following categories

    READ MORE: FBR issues withholding tax rates on imports for tax year 2022-2023

    Minimum and Maximum age shall be calculated on the closing date of receipt of applications.

    Information provided in the online Application Form will be verified. In case of any false or forged information, the Directorate General, Internal Audit (IR) reserves the right to cancel candidature of any candidate at any stage (even after employment, if so revealed later) and to initiate legal action against the applicant.

    Only short-listed candidates will be called for test/interview. All the candidates will be allowed to appear in the test/interview on provisional basis, subject to detailed scrutiny of their eligibility as per relevant criteria.

    No TA/ DA will be admissible for the Test/ Interview.

    The candidates may apply online on or before 02-10-2022. Applications received after 02-10-2022 will not be entertained.

  • Up to 70% income tax imposed on dividends for year 2022-2023

    Up to 70% income tax imposed on dividends for year 2022-2023

    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.

    (more…)
  • FBR suggested fixed tax regime for women entrepreneurs

    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

  • FBR announces prize winners of 9th POS balloting

    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.

  • FBR updates salary tax card for year 2022-2023

    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.

    (more…)
  • FBR issues withholding tax rates on imports for tax year 2022-2023

    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.

    (more…)
  • Pakistan implemented currency declaration decade ago: FBR

    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

  • Last date for filing tax return is September 30, FBR reminds

    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.