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Tag: NCCPL

  • NCCPL directs verification of stock investors through biometric

    NCCPL directs verification of stock investors through biometric

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) has issued guidelines to register / verify all investors of stock market through biometric system.

    The NCCPL on Monday issued communication to Pakistan Stock Exchange (PSX) to direct all authorized intermediaries (AI) and clearing members to register existing customers in Centralized Know Your Customer (CKO).

    The NCCPL said that in pursuance of provisions stipulated under clause 9.1 (x) of CKO Regulations 2017 and NCCPL Regulations clause 5.11, Authorized Intermediaries (AI) are required to register their existing Customers, in the KYC Database to obtain Unique KYC Number (UKN) and tagging of such UKNs with the relevant Authorized Intermediary within the time period notified by the CKO.

    In view of above, all Authorized Intermediaries are hereby notified to register their existing Customers (i.e existing customers registered through NCSS UIN database before June 17, 2019) in the KYC Database and obtain UKN latest by May 31 2020.

    Further, Clearing Members still not yet admitted as AI shall be required to get them registered as AI and also required to register their customers in CKO by May 31, 2020.

    For the purpose of facilitating the Authorized Intermediaries, step wise key elements of the existing Customer registration process under CKO have been briefly explained below;

    1. AI shall be required to carry out Biometric Verification of the Customer (Applicable on individual customer only).

    2. AI is required to submit online KYC form of the existing customer via KYC Information System. Moreover, hard copy of KYC Form as prescribed under Annexure II, III and IV of the CKO Regulations, 2017 in signed form shall be required for all Types of Customers.

    3. In case of joint account holder(s), the AI shall be required to carry out Biometric Verification and proceed with KYC Application Form for each account holder separately.

    4. After submission of KYC Application Form electronically in KIS, AI will be required to submit hard copy of original KYC Application Form and Supporting Documents to CKO within 5 working days as per existing practice. The supporting documents may also be submitted through the upload functionality made available in the KIS.

    5. CKO will initiate necessary processing and complete its verification within 10 working days from the date of receipt of KYC Application Form along with all the required supporting documents.

    6. Upon such verification, CKO will approve KYC Application Form in KIS and Unique KYC Number (UKN) will automatically be generated for such Customer in KIS.

    7. After issuance of UKN, CKO will obtain confirmation from corporate Customer, foreign individuals and foreign corporate Customers for the issuance of UKN within 15 working days in accordance with the Regulations.

    8. In case of any discrepancy found in KYC form, AI will be required to remove it within 10 working days.

    9. Customers registered with multiple AIs will be required to complete their KYC process with all AIs one by one. If their KYC process is not completed with the AI through whom the process was first initiated, such customers shall not be allowed to initiate their KYC process with the other AIs.

    The NCCPL warned that failure to comply the above mentioned clause within stipulated time shall lead to necessary action in accordance with clause 9.1 (v) of CKO Regulations, 2017 and clause 5.11 of NCCPL Regulations whereby UIN tagging of the Customer with such Authorized Intermediary/Clearing Member shall be blocked and trading through such client code shall be restricted.

    However, pending transactions of such customers will be settled through respective Securities Broker in NCSS. Moreover, squaring-up of open positions in all Markets including Leveraged Markets and selling of Securities held in the sub-account(s) will be allowed.

    For complete details please refer clause 5.11 of NCCPL Regulations and clause 9.1 of CKO Regulations, 2017.

    For any further queries or concerns, please feel free to contact the Customer Support Services of your respective locations.

  • NCCPL says CGT December payment due on January 29

    NCCPL says CGT December payment due on January 29

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Tuesday announced date for payment of capital gain tax (CGT) for the month of December 2019.

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  • NCCPL to collect CGT for Oct-Nov on Jan 03

    NCCPL to collect CGT for Oct-Nov on Jan 03

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Monday announced to collection capital gain tax (CGT) for the months of October – November 2019 on January 03, 2020.

    In a communication sent to Pakistan Stock Exchange (PSX), the NCCPL said that the aggregate amount of CGT arising on disposal of shares at PSX for the period October 01, 2019 to November 30, 2019, would be collected on Friday January 3, 2020 through respective settling banks of the Clearing Members.

    The NCCPL advised all clearing members to ensure requisite amount in their respective settling bank’s account. Necessary details and reports for the said period have already been made available in the CGT System.

    Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period October 01, 2019 to November 30, 2019, would also be collected from the Pakistan Mercantile Exchange on Friday January 3, 2020.

    Necessary details and reports for the said period have already been made available.

    Moreover, the aggregate amount of CGT arising on redemption of units of open end mutual funds have also been finalized for the period July 01, 2019 to November 30, 2019. Necessary details and reports have already been made available in the CGT System.

    Clearing Members and Pakistan Mercantile Exchange are hereby requested to verify the investor wise details of capital gain or loss and tax thereon, if any, through reports/downloads.

    The NCCPL warned that in case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations.

  • NCCPL delays CGT collection due to computation process

    NCCPL delays CGT collection due to computation process

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday said that it has delayed the collection of capital gain tax (CGT) for the month of October 2019 due to computation procedures.

    In a notice to Pakistan Stock Exchange (PSX), the NCCPL said that the CGT was to be collected on November 19, 2019 for the month of October 2019.

    However, the NCCPL said that it was in process of finalizing the CGT computation, therefore, revised CGT collection date would be notified to the market participants in due course.

    The NCCPL collects CGT on behalf of Federal Board of Revenue (FBR) on sale and purchase of shares.

    The NCCPL also collected the CGT of previous months of this fiscal year after the scheduled timelines for CGT collection. The delay in collection of CGT was due computation process after the measures announced in the budget 2019/2020.

  • NCCPL to collect capital gain tax on October 09

    NCCPL to collect capital gain tax on October 09

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) has announced that it will collect Capital Gain Tax (CGT) on disposal of shares on October 09, 2019 for the period July and August.

    Informing the Pakistan Stock Exchange (PSX), the NCCPL said that the aggregate amount of CGT arising on disposal of shares at PSX for the period July01, 2019 to August31, 2019, would be collected on Wednesday October 9, 2019 through respective settling banks of the Clearing Members.

    All Clearing Members are hereby requested to ensure requisite amount in the irrespective settling bank’s account.

    Necessary details and reports for the said period have already been made available in the CGT System.

    Clearing Members have been asked to verify the investor wise details of capital gain or loss and tax thereon, if any, through reports/downloads.
    In case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations, the NCCPL said.

    NCCPL collects advance tax from the members of Stock Exchange registered in Pakistan, margin financiers, trading financiers and lenders],in respect of margin financing in share business or providing of any margin financing, margin trading or securities lending under Securities (Leveraged Markets and Pledging) Rules, 2011 in share business] at the rate specified in Division IIB of Part IV of First Schedule.

  • NCCPL announces 100 percent higher tax collection from investors not on ATL

    NCCPL announces 100 percent higher tax collection from investors not on ATL

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday informed investors of Pakistan Stock Exchange (PSX) that tax rate on capital gain will be 100 percent higher for those not appearing in Active Taxpayers List (ATL).

    In a letter communicated to Pakistan Stock Exchange (PSX), the NCCPL said that through Finance Supplementary (Second Amendment) Act, 2019 amendments had been made to Income Tax Ordinance, 2001 under which 100 percent tax rate would be collected from those investors who were either not filed their income tax returns or late filers.

    The NCCPL has been authorized withholding agent to collect Capital Gain Tax (CGT) on behalf of Federal Board of Revenue (FBR) from investors of the PSX.

    The NCCPL said that 100 percent increased CGT rate will be applied to all the categories of investors not appearing in the ATL provided by the FBR.

    In Case of PSX the CGT rates for year 2019/2020 is as follow:

    — Where the security was acquired before July 01, 2013: zero percent will be for both investors in ATL and non-ATL.

    — Securities Acquired before July 1, 2016. Where holding period of a security is twenty-four months or more but the security was acquired on or after 1st July, 2013: the CGT rate will be 7.5 percent for ATL and 15 percent for not appearing in ATL.

    — Securities Acquired on or after July 1, 2016: the tax rate will be 15 percent for ATL and 30 percent for those not appearing in ATL.

    — Cash settled derivatives traded on Stock Exchange: the tax rate will be 5 percent and 10 percent for those not appearing in ATL.

    In case of MUFAP

    — Where the holding period of securities more than Four years: The tax rate will be zero percent for both investors having ATL or non-ATL status.

    — Stock Funds: For individuals and corporate if Dividend receipts of the fund are more than capital gains: the tax rate will be 10 percent for ATL and 20 percent for those investors not appearing in ATL.

    — Stock Funds: For individuals and corporate if dividend receipts of the fund are less than capital gains: the tax rate will be 12.50 percent and 25 percent for investors not appearing in ATL.

    — Other than Stock Funds – For individuals: the tax rate will be 10 percent for ATL and 20 percent for non-ATL.

    — Other than Stock Funds – For Corporate: the tax rate will be 25 percent for ATL and 50 percent for investors not appearing on ATL.

    In case PMEX

    — Future Commodity Contracts executed at Pakistan Mercantile Exchange: The tax rate will be 5 percent for ATL and 10 percent for investors not appearing on ATL.

    The NCCPL explained Section 37A of Income Tax Ordinance, 2001, as:

    Loss sustained on disposal of listed securities in tax year 2019 and onwards that has not been set off against the gain of the person from disposal of securities chargeable to tax under section 37A shall be carried forward to the following tax year and set off only against the gain of the person from disposal of securities chargeable to tax under section 37A, but no such loss shall be carried forward to more than three tax years immediately succeeding the tax year for which the loss was first computed.

  • NCCPL to collect capital gain tax on disposal of securities on June 28

    NCCPL to collect capital gain tax on disposal of securities on June 28

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Friday announced that it will collect Capital Gain Tax (CGT) on disposal of securities for the month of May on June 28, 2019.

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  • NCCPL to collect capital gain tax on March 29

    NCCPL to collect capital gain tax on March 29

    KARACHI: The National Clearing Company of Pakistan Limited (NCCPL) on Tuesday said that it will collect Capital Gain Tax (CGT) on disposal of shares for February 2019 on March 29, 2019.

    The aggregate amount of CGT arising on disposal of shares at Pakistan Stock Exchange for the period February 01, 2019 to February 28, 2019, would be collected on Friday, March 29, 2019 through respective settling banks of the clearing members, along with refund or adjustments on the basis of amount collected up to previous month, the NCCPL said.

    All clearing members have been directed to ensure requisite amount in their respective settling bank’s account.

    Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period February 01, 2019 to February 28, 2019, would also be collected from the Pakistan Mercantile Exchange on Friday, March 29, 2019.

    Necessary details and reports for the period have already been made available.

    Moreover, the aggregate amount of CGT arising on redemption of units of open end mutual funds have also been finalized for the period February 01, 2019 to February 28, 2019. Necessary details and reports have already been made available in the CGT System.

    Clearing Members, Pakistan Mercantile Exchange and Mutual Funds are hereby requested to verify the investor wise details of capital gain or loss and tax thereon, if any, through reports/downloads.

    The NCCPL warned that in case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations.

  • NCCPL to collect capital gain tax on February 27

    NCCPL to collect capital gain tax on February 27

    The National Clearing Company of Pakistan Limited (NCCPL) has announced its plan to collect Capital Gain Tax (CGT) for the month of January 2019 from stock brokers on February 27, 2019.

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  • NCCPL asks PSX members to pay CGT by Jan 30

    NCCPL asks PSX members to pay CGT by Jan 30

    The National Clearing Company of Pakistan Limited (NCCPL) has issued a notification to all members of the Pakistan Stock Exchange (PSX) and participants in the commodity market, including the Pakistan Mercantile Exchange and Mutual Funds, urging them to fulfill their Capital Gain Tax (CGT) obligations for the month of December 2018 by January 30, 2019.

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