Sep 12

Resident shipping companies granted final tax regime

ISLAMABAD: The income tax law has allowed final tax regime for Pakistani resident shipping company, which is registered after November 15, 2019. According to explanation to changes made to Income Tax Ordinance, 2001 through Finance Act, 2020, the FBR said that clause (c) has been added to sub-section (1) of section 7A to provide for […]

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FBR explains holding period, tax rates on disposal of immovable properties

Sep 5

Taxation

FBR explains holding period, tax rates on disposal of immovable properties

ISLAMABAD: Federal Board of Revenue (FBR) has explained holding period and tax rates for the computation of capital gains on disposal of immovable properties, which were amended through Finance Act, 2020. The FBR issued Income Tax Circular No. 03 to explain the changes made to Income Tax Ordinance, 2001 through Finance Act, 2020. The FBR […]

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FBR enhances threshold to designate withholding agent

Sep 4

Taxation

FBR enhances threshold to designate withholding agent

ISLAMABAD: Federal Board of Revenue (FBR) has excluded taxpayers having turnover below Rs100 million from mandatory collection and deduction of withholding tax. The FBR issued Income Tax Circular No. 03 of 2020 a day earlier to explain changes made to Income Tax Ordinance, 2001 through Finance Act, 2020. The FBR said that in order to […]

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FBR allows monthly salary up to Rs25,000 paid in cash as business expense

Sep 3

Taxation

FBR allows monthly salary up to Rs25,000 paid in cash as business expense

ISLAMABAD: Federal Board of Revenue (FBR) has allowed monthly salary up to Rs25,000 per employee paid in cash as business expense after amendment made to Income Tax Ordinance, 2001. The FBR on Thursday issued Income Tax Circular No. 03 to explain changes made to Income Tax Ordinance, 2001 through Finance Act, 2020. The FBR said […]

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Filing income tax return mandatory for FTR taxpayers: FBR

Sep 3

Taxation

Filing income tax return mandatory for FTR taxpayers: FBR

ISLAMABAD: Federal Board of Revenue (FBR) has said that filing annual income tax return is mandatory for taxpayers falling under final tax regime (FTR). The FBR on Thursday issued Income Tax Circular No. 03 of 2020 to explain major changes to Income Tax Ordinance, 2001 through Finance Act, 2020. The FBR said that prior to […]

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Withholding sales tax regime streamlined

Aug 12

Taxation

Withholding sales tax regime streamlined

ISLAMABAD: Federal Board of Revenue (FBR) has streamlined sales tax withholding regime for compelling sales tax return filing and realizing full revenue on sale/purchase. The FBR issued Circular No. 01 dated August 06, 2020 to explain changes made to Sales Tax Act, 1990 through Finance Act, 2020. The FBR said that Eleventh Schedule provides for […]

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CNIC condition on sales up to Rs100,000 relaxed to facilitate retailers: FBR

Aug 9

Taxation

CNIC condition on sales up to Rs100,000 relaxed to facilitate retailers: FBR

ISLAMABAD: Federal Board of Revenue (FBR) has said that the retailers are not required to maintain information of Computerized National Identity Card (CNIC) of a consumer on sales not exceeding above Rs100,000. The FBR issued Sales Tax Circular No. 01 dated August 06, 2020 to explain changes brought to main statute through Finance Act, 2020. […]

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Inland Revenue officers empowered to recover non-tax revenue

Aug 1

Taxation

Inland Revenue officers empowered to recover non-tax revenue

ISLAMABAD: The officers of Inland Revenue have been empowered to recover non-tax revenue by invoking provisions of Income Tax Ordinance, 2001. The finance ministry has issued Public Finance Management Act, 2019, which was amended up to June 30, 2020 through Finance Act, 2020. According to Section 40E of the Act, a commissioner of Inland Revenue […]

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Reduced rate of withholding sales tax withdrawn for registered persons

Jul 29

Taxation

Reduced rate of withholding sales tax withdrawn for registered persons

ISLAMABAD: A registered person, who is not an active taxpayer, may not avail benefit of reduced rate of withholding sales tax after amendment made through Finance Act, 2020. Sources in Federal Board of Revenue (FBR) said that amendments have been made to Eleventh Schedule of Sales Tax Act, 1990 through Finance Act, 2020 under which […]

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FBR empowered to send electronic notice, decisions to all sales tax registered persons

Jul 26

Taxation

FBR empowered to send electronic notice, decisions to all sales tax registered persons

KARACHI: Federal Board of Revenue (FBR) has been authorized to serve electronic notice and decision as legal document to sales tax registered persons. In this regard an amendment has been made to Section 56 of Sales Tax Act, 1990 through Finance Act, 2020. Prior to amendment the FBR was empowered to send electronically through email […]

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