FBR imposes restriction on deduction of profit on debt payable to associated enterprise

Jul 7

Taxation

FBR imposes restriction on deduction of profit on debt payable to associated enterprise

ISLAMABAD: Federal Board of Revenue (FBR) has imposed restriction on deduction of profit on debt payable to associated enterprise in order to comply with OECD action on profit shifting. The restriction has been imposed through introduction of Section 106A of Income Tax Ordinance, 2001 through Finance Act, 2020, recently passed by the National Assembly of […]

by Mrs. Anjum Shahnawaz

Banks to provide information of all recipients of profit on debt

Jun 24

Budget 2020-2021, Taxation

Banks to provide information of all recipients of profit on debt

KARACHI: The Federal Board of Revenue (FBR) to ask banks to provide information of all persons receiving profit on debt from July 01, 2020. To implement this an amendment has been introduced through Finance Bill 2020. According to explanation of the Finance Bill 2020 by EY Ford Rhodes Chartered Accountants, the Finance Act, 2013, introduced […]

by Mrs. Anjum Shahnawaz

Reviewing withholding tax on profit on debt suggested

May 8

Budget 2020-2021

Reviewing withholding tax on profit on debt suggested

KARACHI: The tax authorities have been suggested to review withholding tax rates on profit on debt in forthcoming budget. Overseas Investors Chamber of Commerce and Industry (OICC) in proposals for budget 2020/2021 said that through Finance Act, 2019, multiple withholding tax rates of profit on debt were introduced which are based on the profit threshold […]

by Mrs. Anjum Shahnawaz

Tax collection from profit on banking deposits jumps up by 185%

Mar 10

Taxation

Tax collection from profit on banking deposits jumps up by 185%

KARACHI: The collection of withholding tax from profit on banking deposits surged by 185 percent during first eight months (July – February) 2019/2020 owing to higher interest rates maintained by the central bank. The withholding tax collection from profit on debt (banking deposits) increased to Rs43.75 billion during first eight months of current fiscal year […]

by Mrs. Anjum Shahnawaz

Profit on debt above Rs36 million to be treated as normal tax

Jan 14

Taxation

Profit on debt above Rs36 million to be treated as normal tax

KARACHI: The rate of tax on profit on debt above Rs36 million shall be treated as normal tax rate, tax officials said on Tuesday. Sources in Federal Board of Revenue (FBR) said that the tax rates were revised through Finance Act, 2019. The revised tax rates for profit on debt not exceeding Rs 5 million […]

by Mrs. Anjum Shahnawaz

Banks to provide details of persons receiving profit on debt

Dec 9

Taxation

Banks to provide details of persons receiving profit on debt

ISLAMABAD: Banks will provide certain information of persons receiving profits on their deposits to the Federal Board of Revenue (FBR) after amendment in the tax rules, sources said on Monday. The sources said that the banks will provide details of depositors receiving profit on debt, including name, CNIC, most recent particulars including address, amount of […]

by Mrs. Anjum Shahnawaz

Withholding tax collection on profit from bank deposits surges by 194pc

Oct 24

Exclusive, Taxation

Withholding tax collection on profit from bank deposits surges by 194pc

KARACHI: The collection of withholding tax from profit on bank deposits registered unprecedented growth of 194 percent during first quarter of first fiscal year as the tax rates increased by 100 percent for persons not on the Active Taxpayers List (ATL). Sources in Regional Tax Office (RTO) –II Karachi said that the withholding tax collection […]

by Mrs. Anjum Shahnawaz

Tax rate on interest income for Tax Year 2020

Oct 9

Taxation

Tax rate on interest income for Tax Year 2020

KARACHI: Federal Board of Revenue (FBR) issued tax rate to be imposed on interest income during Tax Year 2020. The FBR issued Income Tax Ordinance, 2001 updated up to June 30, 2019 incorporating changes brought through Finance Act, 2019. The Section 7B of the Income Tax Ordinance, 2001 explained the application of income tax on […]

by Mrs. Anjum Shahnawaz

2019/2020: FBR explains withholding tax on profit on debt

Aug 7

Taxation

2019/2020: FBR explains withholding tax on profit on debt

ISLAMABAD: Federal Board of Revenue (FBR) has explained levy of withholding tax on profit on debt for tax year 2019/2020 applicable from July 01, 2019. The FBR said that every person, other than a company, receiving profit on debt from persons mentioned in clause (a) to (d) of sub-section (1) of Section 151 are separately […]

by Mrs. Anjum Shahnawaz

Withholding Tax Card: Non-ATL to pay up to 30pc tax on profit from bank deposits, saving schemes

Jul 19

Exclusive, Taxation

Withholding Tax Card: Non-ATL to pay up to 30pc tax on profit from bank deposits, saving schemes

ISLAMABAD: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which persons receiving profit from bank deposits or investment in national saving schemes shall pay up to 30 percent, if not on the Active Taxpayers List (ATL).

by Mrs. Anjum Shahnawaz