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.
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The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.
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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.
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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
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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.
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Disclosure of beneficial ownership made mandatory for companies
The Federal Board of Revenue (FBR) has made it mandatory for companies and Associations of Persons (AOPs) to make disclosure of their beneficial ownership.
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KTBA highlights pharmaceutical industry’s reporting issues
Karachi Tax Bar Association (KTBA) on Friday highlighted difficulties faced by pharmaceutical industry in reporting of sales after implementation of Finance Act, 2022.
KTBA President Syed Rehan Hasan Jafri in a letter to Asim Ahmad, Chairman of Federal Board of Revenue (FBR) apprised about the implications faced by the bar members after amendments introduced in the Sales Tax Act, 1990 through Finance Act, 2022, in respect with pharmaceutical industry.
READ MORE: FBR directs speedy clearance of flood relief goods
The KTBA pointed that through the Finance Act, 2022 the Serial No.19 of the Fifth Schedule to the Act containing “substances registered as drugs” was omitted and new serial Nos. 81 and 82 were introduced in Table-1 of the Eighth Schedule to the Act.
The whole text of the new entries is being reproduced hereunder to facilitate a quick reference:
81. Manufacture or import of substances registered as drugs under the Drugs Act, 1976 shall charge one per cent sales tax subject to the conditions that:
(i) Tax charged and deposited by the manufacturer or importer, as the case may be, shall be final discharge of tax in the supply chain.
READ MORE: FBR directs 81 retailers to integrate with POS system
(ii) No input tax shall be adjusted by the manufacturer or importer.
82. Active Pharmaceutical ingredients, excluding excipients, for manufacture of drugs registered under the Drugs Act, 1976 or raw materials for the basic manufacture of pharmaceutical active ingredients. The sales tax shall be charged at one per cent subject to the conditions that:
(i) DRAP shall certify item-wise requirement of manufacturers of drugs and APIs and in case of import shall furnish all relevant information to Pakistan Customs Computerized System; and
(ii) No input tax shall be adjusted by the manufacturer or importer.
The KTBA interpreted the amendments as the manufacturer/importer of drugs shall charge and pay 1 per cent sales tax, which would be final discharge of their sales tax liability in the entire supply chain of pharma products.
“This clearly implies that if a manufacturer or an importer has paid the above 1 per cent sales tax on supply or import of finished goods (drugs), respectively, then no sales tax would be applicable on the subsequent supply of such pharma goods,” it added.
READ MORE: KTBA recommends changes in IRIS for calculating deemed income on properties
The tax bar highlighted the issue, which are being faced by the pharmaceutical industry due to the recent amendments.
Reference of serial No.19 of Fifth Schedule to the Act is not being appeared at the time of declaring sales returns/cancellation through credit/debit notes at Annexure-C (uploaded through invoice management system). Consequently, sales returns pertaining to January 2022 to June 2022 made at zero per cent, are not being declared in the tax periods of July 2022 and August 2022.
Option for reporting exempt sales made by pharmaceutical distributors is not available at Annexure-C (uploaded through invoice management system) for the tax period of July 2022 due to which, pharmaceutical distributors are unable to file their monthly sales tax return.
The tax bar also complained that multiple queries have already been raised vide emails at FBR helpline by the bar members but till to date no solution or a guideline has been provided or explained.
READ MORE: KTBA demands suspending further tax due to practical issues
In view of the above, the FBR chairman has been requested to make necessary amendments in IRIS so that the pharmaceutical distributors are enabled to file their monthly sales tax returns in timely manner.
Meanwhile, till the issue highlighted above remains unresolved, your office is requested to intervene and condone the due date for filing monthly sales returns for the industry.
The KTBA urged the FBR chairman to provide redressal to the taxpayers connected with Pharma Industry and their distributors as these taxpayers are contributing their due share into the government exchequer as their moral and legal obligation.
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FBR directs speedy clearance of flood relief goods
The Federal Board of Revenue (FBR) has issued directives to customs authorities, emphasizing the need for expeditious clearance of goods related to flood relief operations.
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FBR directs 81 retailers to integrate with POS system
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday directed 81 retailers to integrate with the online system by September 10, 2022 otherwise action will be taken as per law.
The FBR issued Sales Tax General Order (STGO) No. 3 of 2023 related to Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.
READ MORE: 101 retailers given July 10 as deadline for integration
The Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailers who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.
READ MORE: FBR issues list of 113 retailers for mandatory integration
In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 Retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No/ 1 of 2022 issued on August 3, 2021.
READ MORE: RTO-II Karachi seals electronics shop for integration failure
Vide the instant Sales Tax General Order, a list of 101 identified Tier-1 Retailers has been placed on FBR’s web portal allowing them to integrate with FBR’s system by July 10, 2022 an the procedure of exclusion from this list of 101 identified Tier-1 Retailers shall apply as laid down in STGO 17 of 2022 dated May 13, 2022.
READ MORE: RTO-II Karachi seals Baklava Palace for integration failure
Upon filing of Sales Tax Return for the month of June, 2022 for all hereby notified Tier-1 Retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.
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How to change personal details for filing income tax return
Many taxpayers are worried about changing their personal details in the registration information with Federal Board of Revenue (FBR).
The information is key to file income tax return. Any wrong information may lead to serious problem in future.
READ MORE: KTBA recommends changes in IRIS for calculating deemed income on properties
However, those taxpayers who are registered with the FBR and want to change their personal details they must read the entire article.
According to the FBR, a person can change registration information recorded for filing Income Tax Return in three (3) possible ways.
Changing information through Iris, a person can change/update information by logging into Iris.
READ MORE: KTBA demands suspending further tax due to practical issues
Following information can be updated by the person through Registration Form 181 (filed for modification) Income Tax: Mobile number; Email; Personal/Residential Address; Business Address; Addition of Business Branches; Legal Representative u/s 87 of Income Tax Ordinance 2001; Bank Account.
Changing information through FBR helpline, a person can also change or update information through FBR helpline via phone or email.
READ MORE: FBR gets 3.38 million active taxpayers by August 28, 2022
Following information can be updated through the helpline: Name; Date of Birth; Gender; Disability Status; Senior Citizen Status; Changing Information by visiting Regional Tax Office (RTO).
For changes in registration regarding the following issues, the person will have to visit their relevant RTO: Discontinuance of business; Jurisdiction for Income Tax Return assessment; Deregistration; Updating CNIC number; Updating Pakistan Origin Card (POC).
A person will have to take relevant documents to RTO in order to successfully change details regarding Income Tax Registration.
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KTBA recommends changes in IRIS for calculating deemed income on properties
KARACHI: Karachi Tax Bar Association (KTBA) has recommended the tax authorities to make changes in IRIS – return filing portal – to determine the fair market value of immovable properties to pay tax on deemed income.
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