In a bid to ensure clarity and precision in the taxation of banking companies, Section 100A of the Income Tax Ordinance, 2001 has been introduced, providing special provisions related to banking business.
(more…)Tag: Federal Board of Revenue
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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Special tax provisions for exploration, production
The Federal Board of Revenue (FBR) has outlined critical provisions related to the exploration and production of oil, natural gas, and other minerals under Section 100 of the Income Tax Ordinance, 2001. This section, updated through the Finance Act, 2021, provides a framework for taxation specific to the energy and mining sectors, reflecting their importance to Pakistan’s economy.
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FBR rebuffs report of using pirated software
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday strongly rejected the claims of news report about using pirated software for tax system.
The FBR issued a clarification on the news aired by a leading news channel regarding use of pirated software by FBR for its systems.
The revenue body clarified that IT services for Federal and Provincial tax authorities such as FBR, SRB, PRA etc are being provided by PRAL which also includes maintaining the data centers.
In the data centers there are numerous software products which are being used to perform different functions such as cyber security, virtualization, firewall, etc.
Key companies whose products are being utilized include Oracle, Microsoft, VMware, Kaspersky etc.
FBR has clarified that the licensed versions of these softwares have been procured. FBR has added that the original license of the product remains intact, if the support to the software expires.
However, at times support for these services may not get renewed in a timely fashion due to unavoidable circumstances.
FBR has clarified that in year 2019, issue of VMware licensing was raised by US Government, which was addressed by procuring the requisite licenses after following relevant procedures as laid down in PPRA rules.
For over a year no such issue regarding VMware has cropped up, FBR added.
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Withholding tax rates on transfer of motor car ownership
The Federal Board of Revenue (FBR) in Pakistan has announced the revised rates of withholding tax applicable to the transfer of registration or ownership of motor vehicles for the fiscal year 2021/2022.
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Special tax provisions relating to various businesses
Section 99 of Income Tax Ordinance, 2001 discussed special tax provisions related to various businesses including profits and gains of any insurance business shall be computed in accordance with the rules in the Fourth Schedule.
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Treatment of deduction in change of entity control
Treatment of deduction in change of entity control has been explained under Section 98 of the Income Tax Ordinance, 2001 as it plays a significant role in addressing changes in ownership and business continuity, ensuring that the tax implications are appropriately managed.
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Self assessment scheme to facilitate taxpayers: Tarin
KARACHI: Finance Minister Shaukat Tarin on Friday said that the Universal Self Assessment Scheme (USAS) has been reintroduced. This scheme will facilitate taxpayers in declaring income and assets.
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Asset disposal under scheme of arrangement
Asset disposal under scheme of arrangement has been explained under Section 97A of the Income Tax Ordinance, 2001.
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Gain on asset disposal between companies
Gain on asset disposal between companies has been explained by the Federal Board of Revenue (FBR) through an updated the Income Tax Ordinance, 2001, incorporating amendments introduced through the Finance Act, 2021.
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Gain on AOP assets disposal between companies
Gain on assets disposal of Association of Persons (AOP) between companies has been highlighted by the Federal Board of Revenue (FBR).
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