The Federal Board of Revenue (FBR) has provided clarity on the tax rates applicable to exports for the tax year 2022, as outlined in the First Schedule of the Income Tax Ordinance, 2001.
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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.
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Tax rates on payments for goods or services during TY22
The Federal Board of Revenue (FBR) has released the advance tax rates on payments for goods or services to non-residents for the tax year 2022.
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Tax rates on Profit on Debt during TY22
The advance tax rates on on profit on debt during tax year 2022 are under the First Schedule of the Income Tax Ordinance, 2001.
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Tax rates on payments to non-residents during TY22
In a move to streamline tax regulations and provide clarity to businesses, the Federal Board of Revenue (FBR) has released the advance tax rates on payments to non-residents for the tax year 2022.
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Tax rates on return on investment in sukuk for TY22
The Federal Board of Revenue (FBR) has established the advance tax rates on returns from investment in sukuk for the tax year 2022.
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Advance tax rates on dividend for Tax Year 2022
The advance tax rates on dividends for the tax year 2022 are under the First Schedule of the Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
The rate of tax to be deducted under section 150 shall be-
(a) 7.5 per cent 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 re-imbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity.
(b) 15 per cent in mutual funds, Real Estate Investment Trusts and cases other than those mentioned in clauses (a) and (ba); and
(ba) 25 per cent 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.
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Rates of tax on imports for Tax Year 2022
The advance tax rates for the tax year 2022 are under the First Schedule of the Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
The rate of advance tax to be collected by the Collector of Customs under section 148 shall be-
- The tax rate on persons importing goods classified in Part I of the Twelfth Schedule shall be one per cent of the import value as increased by customs-duty, sales tax and federal excise duty.
- The tax rate on persons importing goods classified in Part II of the Twelfth Schedule shall be two per cent of the import value as increased by customs-duty, sales tax and federal excise duty.
- The tax rate on persons importing goods classified in Part III of the Twelfth Schedule shall be 5.5 per cent of the import value as increased by customs-duty, sales tax and federal excise duty;
Provided that the rate specified in column (3),—
(a) in the case of manufacturers covered under rescinded Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 as it stood on the 28th June, 2019 on import of items covered under the aforementioned S.R.O shall be 1%;
(b) in case of persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan shall be 4%:
(c) in case of importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs with 150 kwh battery or below shall be one percent:] Provided further that the rate of tax on value of import of mobile phone by any person shall be as set out in the following table, namely:-
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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FBR suspends credit notes against unregistered supplies
The Federal Board of Revenue (FBR) has stirred controversy with its recent decision to suspend credit notes against supplies made to unregistered persons, a move that has drawn strong protests from the Karachi Tax Bar Association (KTBA).
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FBR vows to curb money laundering in real estate
ISLAMABAD: The Federal Board of Revenue (FBR) has vowed to continue its efforts to stop money laundering through real estate and precious metals and stones, including gold and jewellery.
FBR Chairman Dr. Muhammad Ashfaq Ahmed that FBR will continue implementing the AML/CFT regulations in order to curb the menace of money laundering through real estate and precious metals and stones, including gold and jewellery.
The chairman issued the statement on the major achievement of completing actions on Designated Non-Financial Businesses and Professions (DNFBS) in the FATF action plan I just one reporting cycle and one year ahead of the deadline in September 2022.
The Chairman FBR Dr. Muhammad Ashfaq Ahmed congratulated DG DNFBPs, Mr. Mohammad Iqbal, and his team for the tireless efforts to complete the actions on DNFBPs in a short span of three months and one year ahead of the deadlines.
The FATF plenary in its public statement has noted that Pakistan has now satisfied the requirements of most of its action items under the 2021 action plan, ahead of deadlines and in its first reporting cycle.
In June 2021, the FATF plenary had approved a seven actions new action plan for Pakistan, focusing on combating money laundering. This action plan contained two actions specific to DNFBPs, in particular, the real estate agents and Dealers in Precious Metals and Stones (DMPS). FBR was already designated as AML/CFT regulatory authority for real estate agents, DPMS and accountants other than those registered with ICAP and ICMAP under the Anti-Money Laundering Act, 2010, through amendments made in September 2020.
Since the designation of FBR as the AML/CFT regulatory authority, FBR issued AML/CFT regulations for its regulated entities and also embarked upon an extensive outreach to educate and facilitate the DNFBPs on implementation of the new AML/CFT regime. A dedicated portal was made available on FBR website, which contains comprehensive guidance documents and other information for the DNFBPs. FBR also launched a customized mobile App for the registration by DNFBPs, screening the lists of proscribed /designated persons and generating Suspicious Transaction Reports (SRTs). A detailed supervisory plan was chalked out for offsite and onsite supervision of the DNFBPs.
Since June 2021, FBR has carried out onsite inspections of a large number of DNFBPs and imposed a wide range of penalties on the delinquent entities. The real estate associations were also taken on board for the implementation of the AML/CFT obligations.
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Minimum tax rates for tax year 2022
The minimum tax rates for the tax year 2022 are under the First Schedule of the Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following are the minimum tax rates under Section 113 of Income Tax Ordinance, 2001:
01. The tax rate shall be 0.75 per cent on the following:
(a) Oil marketing companies, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited (for the cases where annual turnover exceeds rupees one billion.)
(b) Pakistani International Airlines Corporation; and
(c) Poultry industry including poultry breeding, broiler production, egg production and poultry feed production;
02. The tax rate shall be 0.5 per cent on the following:
(a) Oil refineries
(b) Motorcycle dealers registered under the Sales Tax Act, 1990
03. The tax rate shall be 0.25 per cent on the following:
(a) Distributors of pharmaceutical products, fast moving consumer goods and cigarettes;
(b) Petroleum agents and distributors who are registered under the Sales Tax Act, 1990;
(c) Rice mills and dealers;
(d) Tier-1 retailers of fast moving consumer goods who are integrated with Board or its computerized system for real time reporting of sales and receipts;
(e) Person’s turnover from supplies through e-commerce including from running an online marketplace as defined in clause (38B) of section 2.
(f) Persons engaged in the sale and purchase of used vehicles; and
(g) Flour mills
04. The tax rate shall be 1.25 per cent in all other cases
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)