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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.

  • PRAL issues cyber security advisory for FBR officials working from home

    PRAL issues cyber security advisory for FBR officials working from home

    ISLAMABAD: Pakistan Revenue Automation (Pvt) Limited (PRAL) has issued cyber security advisory for officials of Federal Board of Revenue (FBR), who are working from home in the wake of resurgence of coronavirus.

    In its advisory issued on Thursday, the PRAL said that switching to remote working because of the ongoing coronavirus pandemic can create cyber security problems for an organization like FBR and its employees.

    Attackers are exploiting the situation, so look out for phishing emails, scams and other hacking attempts.

    “A new type of phishing attack is rising which is focusing on coronavirus (COVID-19). Adversaries’ sends phishing & spam emails to users to open the infected word document claiming an update report from World Health Organization (WHO) of Pakistani Health Authorities.”

    Therefore, all FBR resources who are authorized by the competent authority to Work From Home are directed to adhere to the following strategy points:

    01. Avoid public Wi-Fi networks and use PRAL recommended VPN for secure communications.

    02. Use of remote desktop software such as Teamviewer, Anydesk, etc. are strictly prohibited.

    03. Make sure you are using a secure connection for your work from home environment.

    04. Keep password strong and change it regularly. Always memorize the password, never write it.

    05. Enable two factor (2FA) or multi-factor authentication, wherever possible.

    06. Encrypt your home PC hard drive and USB sticks to safe data in case of theft.

    07. Keep your home PC operating system patched. Install & update your home PC with top-rated antivirus, anti-malware and firewalls. You may also get latest freeware antivirus and other security software from PRAL technical support team.

    08. Check all security software is up to date in your home PC. Privacy tools, add-ons for browsers and other patches need to be checked regularly.

    09. All work from home resources are advised to communicate using official FBR email only.

    10. All FBR remote workers are advised to be suspicious of any emails asking them to check or renew their password and login credentials, even if they seem to come from a trusted source.

  • FBR needs to collect Rs3,275 billion in seven months to achieve annual target

    FBR needs to collect Rs3,275 billion in seven months to achieve annual target

    ISLAMABAD: Federal Board of Revenue (FBR) is required to collect Rs3,275 billion in remaining seven months to meet the revenue collection target for the current fiscal year.

    The FBR has been assigned to collect Rs4,963 billion as revenue collection target for the fiscal year 2020/2021.

    The FBR provisionally collected Rs1,688 billion during first five months (July – November) 2020/2021, according to details made available on Tuesday.

    The collection during the first five months of the current fiscal year however above the target of Rs Rs1,669 billion for the period.

    The revenue collection during July-November (2020-2021) also witnessed an increase of over 4 percent as compared to the collection of Rs1,623 billion in the corresponding period of the last fiscal year.

    According to the breakup figures, the Income Tax collection during the period under review was recorded at Rs 577 billion.

    Similarly, collection of Sales Tax, Federal Excise Duty, Customs Duty remained at Rs 743 billion, Rs 104 billion and Rs 264.4 billion, respectively.

    The FBR collected gross revenue of Rs 1,773 billion during the first five months compared to the collection of Rs1,664 billion last year, showing an increase of Rs109 billion in the current year.

    Meanwhile, during the month of November 2020, the FBR collected revenues Rs 347 billion against the target of Rs 348 billion.

    Meanwhile, during the first five months of current fiscal year, refunds to the tune of Rs 80 billion were issued against Rs41 billion last year. The refunds helped in boost economic activity in the country.

    The refunds issued during the month of November this year were recorded at over Rs17 billion which were Rs4 billion in the corresponding month last year.

    Despite increase in refunds, FBR still managed to cross the revenue collection of November last year.

    During the first five months of current Fiscal Year, smuggled goods worth Rs27 billion were seized as compared to seizures of Rs18 billion during the corresponding months of 2019.

    According to an FBR press statement, the board’s appreciable performance was despite the fact that the economy had been sluggish in the wake of on-going COVID-19 pandemic.

    Moreover, the government had extended significant tax relief measures to the public in the Finance Act, 2020.

    The statement added that the board was fully geared towards automation, e-audit, and simplification of procedures, e-payment of duty draw back so as to add to Ease of Doing Business (EoDB).

    The board launched a single page simplified Income Tax Return for SME manufacturers and also upgraded IRIS system for issuing SMS and e-mails whenever any notice was issued or any assignment is created by Tax Officer.

    The FBR launched a system Maloomat-TaxRay wherein taxpayers’ can access all information available with the FBR by logging through a secure mechanism.

    This feature has been launched in mobile app, Tax Assan, so that taxpayers’ can easily access all such information.

    They had appealed the taxpayers to avail these facilitative measures and ensure filing Annual Income Tax Returns by the last date i.e. December 8, 2020.

  • Tax bar opposes making phone SMS as mode of service

    Tax bar opposes making phone SMS as mode of service

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday opposed making mobile phone SMS as a legal mode for serving notices.

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  • Updated ATL: FBR receives record 2.96 million returns

    Updated ATL: FBR receives record 2.96 million returns

    ISLAMABAD: The filing of income tax return has reached a new peak of 2.96 million, according to the updated Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR) on Monday.

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  • ITO-2001 defines resident, non-resident persons

    ITO-2001 defines resident, non-resident persons

    ISLAMABAD: Income Tax Ordinance, 2001 has defined resident and non-resident Pakistan for the purpose of apply rate of income tax on domestic source of income.

    The Federal Board of Revenue (FBR) issued ITO 2001 (updated June 30, 2020) and differentiated residents and non-resident Pakistanis.

    Various sections of Income Tax Ordinance, 2001 explains the definition:

    Section 81. Resident and non-resident persons

    Sub-section (1): A person shall be a resident person for a tax year if the person is —

    (a) a resident individual, resident company or resident association of persons for the year; or

    (b) the Federal Government.

    Sub-section (2): A person shall be a non-resident person for a tax year if the person is not a resident person for that year.

    Section 82 – Resident individual: — An individual shall be a resident individual for a tax year if the individual —

    (a) is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and eighty-three days or more in the tax year;

    (ab) is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and twenty days or more in the tax year and, in the four years preceding the tax year, has been in Pakistan for a period of, or periods amounting in aggregate to, three hundred and sixty-five days or more; or

    (c) is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year.

    Section 83 – Resident company: A company shall be a resident company for a tax year if —

    (a) it is incorporated or formed by or under any law in force in Pakistan;

    (b) the control and management of the affairs of the company is situated wholly in Pakistan at any time in the year; or

    (c) it is a Provincial Government or Local Government in Pakistan.

    Section 84 – Resident association of persons: — An association of persons shall be a resident association of persons for a tax year if the control and management of the affairs of the association is situated wholly or partly in Pakistan at any time in the year.

  • KTBA identifies flaws in online tax return filing

    KTBA identifies flaws in online tax return filing

    KARACHI: Karachi Tax Bar Association (KTBA) on Saturday said that it has detected calculation errors on the online return filing portal of the Federal Board of Revenue (FBR).

    In this regard the tax bar sent a letter to Dr. Muhammad Ashfaq, Member Inland Revenue (Operations), Federal Board of Revenue (FBR) apprising him that the issues were discussed with o November 17, 2020 but the problems were same unresolved till to date.

    It is pertinent to mention that the last date for filing income tax return is December 08, 2020. Such problems may adversely affect the total number of return filing.

    The tax bar in its latest letter to the Member IR Operations highlighted the same issues for early resolution for smooth return filing.

    The tax bar said that IRIS Portal was not correctly calculating the tax on Behbood Saving Certificate and others. It said that till today working of tax on yield from Behbood Saving Certificate or Pensioners Benefit Account and Shuhada Welfare Account is still incorrect where average rate of tax exceeds 10 percent of total income.

    The tax bar suggested that to show the yield as a separate block of income in order to avoid the calculation issues.

    The KTBA said that minimum tax calculation was also showing incorrect working. The tax bar suggested that for tax year 2020, there has been a paradigm shift in taxation of incomes previously taxed under final tax regime and now are being taxed at minimum.

    “Although, the law had been amended yet there are not instructions given by the FBR as to how to cater to these situations.”

    Working under these situations is showing incorrect tax amount which renders the return defective and there is need to correct the working, the tax bar added.

    The tax bar highlighted issue in tax deducted/paid under Section 233A by a stock exchange registered in Pakistan, and said they were unable to claim tax deducted/paid in case of sale/purchase of shares under section 233A of the ordinance as the same is not available in adjustable tax regime. The tax bar suggested to provide the column for the tax year 2020.

    Similarly, in case of tax deducted/paid under section 236W on purchase of immovable property, it said that they were unable to claim tax deducted/paid in respect of property purchased before June 30, 2019 and tax under section 236W of the Ordinance is paid subsequently i.e. during the tax year 2020; as the same is not available in description/heads of Final Tax Regime (FTR)/Minimum Tax Regime (MTR).

    Therefore, it is suggested to provide the column for the tax year 2020.

    The KTBA pointed out that through Finance Act, 2019, tax regime for various income entities was changed from FTR to Minimum Tax. Accordingly, entities following special tax year are required to file January-June under FTR and July – December under minimum tax. However, IRIS portal does not cater for such situation.

    “For the income stream having special tax year where taxation regime is changed from final tax to minimum tax, the IRIS portal should cater both regimes,” the KTBA suggested.

  • FBR obtains information of motor vehicle buyers

    FBR obtains information of motor vehicle buyers

    The Federal Board of Revenue (FBR) is taking significant steps to obtain detailed information about motor vehicle buyers from manufacturers.

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  • FBR notifies transfer, postings of customs officers

    FBR notifies transfer, postings of customs officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified transfer and posting of officers of Pakistan Customs Service (PCS) in BS-17 to BS-19 with immediate effect and until further orders.

    The FBR notified transfers and postings of following officers:

    01. Shoukat Ali (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate General of Input Output Coefficient Organization, Karachi from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    02. Syed Fazal Samad (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Collector, Model Customs Collectorate of Appraisement and Facilitation (West), Karachi from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    03. Amanullah (Pakistan Customs Service/BS-18) has been transferred and posted as Secretary, (OPS) (Customs Wing) Federal Board of Revenue (Hq), Islamabad from the post of Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation (East), Karachi

    04. Shams-ur-Rehman (Pakistan Customs Service/BS-18) has been transferred and posted as Additional Director (OPS), Strategic Exports Control, Ministry of Foreign Affairs, Islamabad, on Deputation from the post of Deputy Collector, Model Customs Collectorate of Appraisement and Facilitation, Quetta.

    05. Muhammad Omer Latif (Pakistan Customs Service/BS-17) has been transferred and posted as Second Secretary, (Customs Wing) Federal Board of Revenue (Hq), Islamabad from the post of Assistant Collector, Model Customs Collectorate of Port Muhammad Bin Qasim, Karachi.

    06. Muhammad Zahid Khan (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Appraisement and Facilitation, Peshawar from the post of Assistant Director, Directorate of Transit Trade, Peshawar.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • Resident Pakistanis not allowed investing in Naya Pakistan Certificates: FBR

    Resident Pakistanis not allowed investing in Naya Pakistan Certificates: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday clarified that resident Pakistanis are not allowed to invest in Naya Pakistan Certificates (NPCs).

    The FBR issued clarification to a news appeared in a national daily. The FBR said that the only non-resident individuals can purchase Naya Pakistan Certificate, who maintain bank account abroad or foreign currency account maintained in Pakistan. “It is also clarified that such individuals are not required to file returns of income,” according to a statement issued by the FBR.

    However, the FBR clarification is contrary to the explanation of the ministry of finance and State Bank of Pakistan (SBP). In a joint press release issued by the ministry of finance and the SBP on November 12, 2020 clearly mentioned: “Resident Pakistanis who have declared their assets abroad can also invest in US denominated NPCs.”

    The FBR explained in details the legal provisions of Income Tax Ordinance, 2001 about the treatment of tax for non-resident.

    The FBR said that Naya Pakistan Certificate, a new instrument launched by the Government/ State Bank of Pakistan, qualifies as debt instrument in terms of Clause (5AA) of Part-II of the Second Schedule of the Income Tax Ordinance, 2001.

    Therefore, profit on debt on the Naya Pakistan Certificate is subject to tax at the rate of 10 percent which is final tax.

  • Rising coronavirus cases may impact revenue collection in second quarter

    Rising coronavirus cases may impact revenue collection in second quarter

    ISLAMABAD: The ministry of finance has said that the rising cases of coronavirus may slowdown economic activities and adversely impact revenue collection in second quarter (October – December) of the current fiscal year.

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