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Get the latest FBR news, tax updates, income tax, sales tax, customs, notifications, and policies from the Federal Board of Revenue.

  • FBR launches sales tax invoice verification system

    FBR launches sales tax invoice verification system

    ISLAMABAD: Federal Board of Revenue (FBR) has launched online system for verification of invoices, which issued against purchases from retail outlets.

    The FBR launched the integration of sales and purchases by Tier-1 retailers with aim to encourage 100 percent invoice submission to the revenue body.

    The FBR has given deadline of December 15, 2019 to all Tier-1 retailers, who are required to integrate their Point of Sale (POS) with the FBR system for submission of sale invoice on real-time basis.

    The FBR issued following procedure for reduced sales tax on invoices issued through online system:

    • Customers visit the counter to pay for his/her shopping

    • Customer visit the counter to pay for his/her shopping

    • Counter Boy Prepare the Invoice

    • Invoice is forwarded to FBR system for invoice number

    • Fiscal Invoice is generated, encrypted and stored in FBR Sale Data Controller and returns a fiscal invoice number to POS.

    • FBR Sale Data Controller Synch. the data with FBR central server on periodic basis.

    • POS generate the QR Code for fiscal invoice.

    • The receipt is printed out from the POS and physically delivered to the customer

    • Customer receive the printed fiscal invoice and verify it from FBR System using any of proposed mode.

    • On verification of invoice, FBR system mark this invoice for 6 percent tax collection. In case of non-verification of invoice, Bill will be changed as 9 percent tax collection.

    • Customer pay the bill according to the applied tax.

  • IR commissioners empowered to issue trial registration number

    IR commissioners empowered to issue trial registration number

    KARACHI: Commissioners of Inland Revenue have been empowered to issue trial registration number to taxpayers, who failed to comply with notices issued in this regard.

    Officials in Federal Board of Revenue (FBR) said that tax laws empowered IR commissioners to enforce income tax registration.

    They said that a commissioner having jurisdiction over a case may register a person as a taxpayer where he is satisfied that the income of the person is taxable and is required to file a return of income under section 114 of Income Tax Ordinance, 2001.

    The Commissioner shall issue to the taxpayer a letter under sub-section(2) of section 181 to submit an application for registration prescribed under rule 80 along with documents specified therein within a reasonable time given in the said letter.

    In case of compliance NTN certificate shall be issued accordingly.

    “In case of failure of the taxpayer to comply with the letter issued under sub-section (2) of section 181, the Commissioner shall register the taxpayer on a Trial Registration Number (TRN) for which a serially numbered Trial Register shall be maintained by the Commissioner.”

    The Trial Register shall contain the basic information of the taxpayer like name of the person or business, available address, CNIC “if provided”, nature of income generating activity and any other information regarded useful by the Commissioner. In such case, statutory notices shall be issued for assessment of income or other legal obligation of the taxpayer under the Ordinance on TR Number:

    Provided that before allotment of Trial Registration Number the Commissioner shall verify and match the particulars of the taxpayer from the NTN Master Index to avoid duplication of registration.

    In case any assessment is made or any liability is created by the Commissioner under the Income Tax Ordinance, 2001 against the taxpayer, the Commissioner on the basis of information as contained in Trial Register, allot an NTN to the taxpayer within fifteen days of the date of completion of assessment or creation of a liability under the Ordinance.

  • Informers to get 20% reward money in recovery against tax evasion

    Informers to get 20% reward money in recovery against tax evasion

    KARACHI: A person, who provides definite information of tax evasion and subsequent recovery, will get 20 percent of the recovered amount as reward.

    Officials of Federal Board of Revenue (FBR) told that the tax laws had defined the payment of reward.

    The amount of reward, in cases of exhibiting meritorious conduct to recovery of tax evaded or refund unlawfully paid, would be apportioned.

    The officials said that where an informer is involved in recovery of evaded tax then the informer will get 20 percent of the total recovery. The breakup of the reward amount would be 30 percent for employees involved in recovery. Further 10 percent will be given to supervising officers who write performance evaluation reports (PERs)

    The supporting staff of officers will get 15 percent, while 25 percent will be disbursed amongst Inland Revenue Welfare Fund.

    The officials said that where no informer is involved, the apportionment of the reward would be:

    Employees will get 50 percent; supervising officers who write performance evaluation reports (PERs) at 10 percent; supporting staff will get 15 percent; and Inland Revenue Welfare Fund will get 25 percent.

    The officials said that the amount of reward relating to officers and officials in the case where more than one individual is involved shall be distributed in proportion of their basic pay.

  • Lawyers, doctors require to keep payment receipt record for tax purpose

    Lawyers, doctors require to keep payment receipt record for tax purpose

    In a move to enhance transparency and accountability, the Federal Board of Revenue (FBR) has implemented stringent regulations requiring professionals such as doctors, lawyers, and accountants to maintain meticulous records of payments received from clients or patients for income tax purposes.

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  • Amnesty declarants can pay tax at 20pc default surcharge by Dec 31

    Amnesty declarants can pay tax at 20pc default surcharge by Dec 31

    KARACHI: Persons / companies can avail amnesty scheme 2019 by paying 20 percent default surcharge by December 31, 2019 subject to declaration filed by due date.

    Officials at Federal Board of Revenue (FBR) said that the scheme was promulgated through presidential ordinance on May 14, 2019 to allow the non-documented economy’s inclusion in the taxation system and serve the purpose of economic revival and growth by encouraging a tax compliant economy.

    The amnesty was granted till on or before June 30, 2019 for a declaration only in respect of any –

    (a) undisclosed assets, held in Pakistan and abroad, acquired up to June 30, 2018;

    (b) undisclosed sales made up to June 30, 2018;

    (c) undisclosed expenditure incurred up to June 30, 2018; or

    (d) benami assets acquired or held on or before the date of declaration.

    As per the time of payment, the scheme allowed the due date for payment of tax on or before June 30, 2019. However after the due date, the tax shall be paid on or before June 30, 2020 along with default surcharges.

    If person fails to pay tax and default surcharge, the declaration made would be void and would be deemed to have never been made under the scheme.

    The rate of tax for the amnesty scheme was:

    01. All assets except domestic immovable properties at 4 percent

    02. Domestic immovable properties at 1.5 percent

    03. Foreign liquid assets not repatriated at 6 percent

    04. Unexplained expenditure at 4 percent

    05. Undisclosed sales at 2 percent.

    The rate of default surcharge under the scheme has been set to increase by a default surcharge by amount percentage as specified following:

    01. If the tax is paid after the June 30, 2019 and on or before September 30, 2019, the rate of default surcharge shall be 10 percent of the tax amount.

    02. If the tax is paid after September 30, 2019 and on or before December 31, 2019, the rate of default surcharge shall be 20 percent of the tax amount.

    03. If the tax is paid after December 31, 2019 and on or before March 31, 2020, the rate of default surcharge shall be 30 percent of the tax amount.

    04. If the tax is paid after March 31, 2020 and on or before June 30, 2020, the rate of default surcharge shall be 40 percent of the tax amount.

  • Procedure to get registered as informer with tax authority

    Procedure to get registered as informer with tax authority

    ISLAMABAD: The income tax rules has described the procedure for a person to get registered as an informer with Federal Board of Revenue (FBR) in order to provide information of tax evasion and get reward as per law.

    The tax officials said that Income Tax Rules, 2002 has explained the criteria for a person to become informer.

    According to the rules, a person, other than a lunatic or idiot, may be registered as informer, if he fulfills the criteria of whistleblower as defined in the tax laws.

    A registered informer shall be liable to de-registration on such condition to be recorded in writing and as may be deemed fit by Chief Commissioner, member or Director General, as the case may be.

    Registration of informer

    (1) Subject to section 227B of the Income Tax Ordinance 2001 (XLIX of 2001), section 72D of the Sales Tax Act, 1990 and section 42D of the Federal Excise Act, 2005, as the case may be, any person desirous of getting himself registered as an informer may make an application to the Chief Commissioner for registration under this rule.

    (2) The application under sun-rule (1) shall be in the prescribed form and shall be verified in the prescribed manner.

    (3) The application shall be accompanied by the following documents, namely.-

    (a) copy of the Computerized National Identity Card of the applicant;

    (b) copy of national tax number (NTN) certificate; and

    (c) a duly sworn in affidavit stating therein that the information being provided is correct and nothing has been concealed there from and that in case any incorrect information is provided or any information is concealed he shall be liable to penal action under the laws for the time being in force.

    Submission of information and further action thereupon

    (1) An informer shall submit any information regarding concealment or evasion of tax leading to detection or collection of taxes, fraud, corruption or misconduct that is in his possession to the Chief Commissioner giving precise details of the alleged act along with all supporting evidences that are in his possession:

    Provided that no information shall be entertained unless it gives precise details of the alleged act and is accompanied with the supporting evidences.

    (2) On receipt of the information, the Chief Commissioner shall scrutinize the information and forward it to the concerned Commissioner.

    (3) On receipt of the information from the Chief Commissioner, the concerned Commissioner shall conduct such further enquiry as he may deem fit and submit his report to the Chief Commissioner.

    (4) On completion of the enquiry, the concerned Commissioner shall take such further action as may be required under the tax laws or any other law for the time being in force, as may be necessary on the basis of the facts of the case, and furnish his report to the Chief Commissioner.

    (5) Notwithstanding anything contained in these rules, an informer, who −

    (a) has knowingly provided false information under these rules; or

    (b) has provided the information under these rules with the intention to intimidate or blackmail a person, or to bring him into disrepute, or to otherwise cause him financial loss, shall be liable to punishment and fine under the tax laws and other laws for the time being in force.

  • FBR grants fourth extension to file returns for tax year 2019

    FBR grants fourth extension to file returns for tax year 2019

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday granted fourth extension for filing annual income tax returns for tax year 2019 up to December 31, 2019.

    The FBR issued Income Tax Circular No. 17/2019, to extend the date of filing of income tax returns/statements for tax year 2019.

    The date of filing of total income/statements of final taxation for individuals and associations of persons for the tax year 2019 which were due on September 30, 2019 and extended up to December 16, 2019 has been further extended up to December 31, 2019.

    The FBR further said that the date of filing of total income / statements of final taxation for companies for the tax year 2019, which were due on September 30, 2019 and extended up to December 16, 2019, in respect of those companies who have paid ninety five percent of the admitted tax liability on or before September 30, 2019, extended up to December 31, 2019.

  • Another date extension expected for filing returns tax year 2019

    Another date extension expected for filing returns tax year 2019

    ISLAMABAD: Tax managers and experts are expecting that the Federal Board of Revenue (FBR) likely to further extend the date for filing annual tax returns for tax year 2019.

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  • Cash payment above Rs15,000 as salary not to be treated as income

    Cash payment above Rs15,000 as salary not to be treated as income

    KARACHI: An amount above Rs15,000 paid in cash as salary will not be treated as income and employers will not be allowed adjustment.

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  • Individuals falling under final tax not required to file annual returns

    Individuals falling under final tax not required to file annual returns

    KARACHI: Individuals or companies falling under final tax are not required to file annual income tax returns and their statement will be treated as assessment.

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