KARACHI: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 and prescribed the rate of withholding income tax to be deducted/collected on transactions made through banking system either by cash or online transfers.
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FBR issues tax rates for income from immovable properties
ISLAMABAD: Federal Board of Revenue (FBR) has issued withholding tax rate on rental income of immovable properties, which are applicable from July 01, 2019.
The FBR issued withholding tax card for tax year starting July 01, 2019, and said that every prescribed persons (withholding agents) shall collect withholding tax under Section 155 of Income Tax Ordinance, 2001 at the time of receipt of rent of immovable property at the time the rent is actually paid.
The FBR said that the tax shall be adjustable. The withholding tax shall be deducted at the following rates:
A. In case of individual or Association of Persons (AOPs)
1. Where the gross amount of rent does not exceed Rs, 200,000: No tax shall be deducted.
2. Where the gross amount of rent exceeds Rs, 200,000 but does not exceed Rs, 600,000: 5% of the gross amount exceeding Rs, 200,000
3. Where the gross amount of rent exceeds Rs, 600,000 but does not exceed Rs, 1,000,000: Rs, 20,000+10% of the gross amount exceeding Rs, 600,000.
4. Where the gross amount of rent exceeds Rs, 1,000,000 but does not exceed Rs, 2,000,000: Rs,60,000+15% of the gross amount exceeding Rs, 1,000,000.
5. Where the gross amount of rent exceeds Rs, 2,000,000 but does not exceed Rs. 4,000,000: Rs, 210,000+20% of the gross amount exceeding Rs, 2,000,000.
6. Where the gross amount of rent exceeds Rs.4,000,000 but does not exceeds Rs. 6,000,000: Rs.610,000 plus 25 per cent of the gross amount exceeding Rs.4,000,000.
7. Where the gross amount of rent exceeds Rs.6,000,000 but does not exceeds Rs. 8,000,000: Rs.1,110,000 plus 30 percent of the gross amount exceeding Rs.6,000,000.
8. Where the gross amount of rent exceeds Rs.8,000,000: Rs.1,710,000 plus 35 percent of the gross amount exceeding Rs.8,000,000.
B. The FBR said that in case of company the tax rate shall be 15 percent.
The FBR further explained that as per Finance Act, 2019, the provisions of newly inserted 10th schedule of the Income Tax Ordinance, 2001 shall not apply on tax rental income deducted under section 155.
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Non-ATL person to pay 10pc withholding tax for offshore digital service
ISLAMABAD: Persons not appearing in the Active Taxpayers’ List (ATL) shall pay 10 percent as withholding tax on payment of fee for offshore digital service to non-resident person under Section 152(1C) of Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued withholding tax card for tax year 2020 effective from July 01, 2019. The FBR said that tax shall be deducted on remittance outside Pakistan, of fee for off-shore digital services , chargeable to tax u/s 6, to a non-resident person on behalf of any resident or a permanent establishment of a non-resident in Pakistan.
A banking company or financial institution shall collect withholding tax under this section from non-resident persons at the time the amount is actually paid at 5 percent of the gross amount.
The FBR said that persons not appearing in the Active Taxpayers’ List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 10 percent of the gross amount.
The FBR said that tax will be deducted from Non-resident on any payment of insurance premium or re-insurance to a non-resident person under Section 52(1AA) of Income Tax Ordinance, 2001 at 5 percent of gross amount by every person making the payments from non-resident person at the time the amount is actually paid.
The FBR further said that tax will be deducted under Section 152 (1AAA) on payments for advertisement services from non-resident person relaying from outside Pakistan.
The tax shall be collected by every person making payment non-resident at the time the amount is actually paid. The tax rate shall be 10 percent of the gross amount. Persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100% (Rule-1 of Tenth Schedule to the Ordinance), i.e. 20% of the gross amount.
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FBR issues withholding tax rates on commercial, industrial electricity consumers
KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates to be collected from electricity consumers of commercial and industrial.
According to Withholding Tax Card for tax year 2020 applicable from July 01, 2019, the power utility preparing electricity bills shall collect withholding tax under Section 235 of Income Tax Ordinance, 2001 from commercial and industrial consumers along with payment of electricity consumption on charges.
The FBR issued following withholding tax rates on electricity consumption by commercial and industrial consumers”
If monthly bill does not exceeds Rs400 the rate of withholding tax shall be zero.
Exceeds Rs. 400 but does not exceed Rs. 600 the rate of withholding tax shall be Rs80.
Exceeds Rs. 600 but does not exceed Rs. 800 the rate of withholding tax shall be Rs100.
Exceeds Rs. 800 but does not exceed Rs. 1000 the rate of withholding tax shall be Rs160.
Exceeds Rs. 1000 but does not exceed Rs. 1500 the rate of withholding tax shall be Rs300.
Exceeds Rs. 1500 but does not exceed Rs. 3000 the rate of withholding tax shall be Rs350.
Exceeds Rs. 3000 but does not exceed Rs. 4,500 the rate of withholding tax shall be Rs450.
Exceeds Rs. 4500 but does not exceed Rs. 6000 the rate of withholding tax shall be Rs500.
Exceeds Rs. 6000 but does not exceed Rs. 10000 the rate of withholding tax shall be Rs650.
Exceeds Rs. 10000 but does not exceed Rs. 15000 the rate of withholding tax shall be Rs1000.
Exceeds Rs. 15000 but does not exceed Rs. 20000 the rate of withholding tax shall be Rs1500.
Exceeds Rs20000:
(i) The tax shall be at the rate of 12 percent for commercial consumers;
(ii) The tax shall be at the rate of 5 percent for industrial consumers.
The FBR said that the tax shall:
(i) Adjustable In case of company.
(ii) In case of other than company tax collected on Rs, 360000 amount of annual bill will be minimum tax.
(iii) in case other than company tax collected on amount over and above Rs 30000/- of monthly bill will be adjustable
(i) Minimum Tax for CNG Stations.
The FBR said that power utilities are required to collect adjustable withholding tax under Section 235A from domestic consumers along with payment of electricity consumption on charges.
The tax shall be collected at 7.5 percent if the amount of monthly bill is Rs75,000 ore more. However, tax shall not be collected if the amount of monthly bill is less than Rs75,000.
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FBR issues withholding tax rates on registration of motor vehicles
ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax rates on registration of new motor vehicles effective from July 01, 2019.
The FBR said that motor vehicle registration authorities are required to collect/deduct advance tax on private motor vehicles under Section 231B of Income Tax Ordinance, 2001 at the time of registration of new motor vehicles from persons getting new locally manufactured motor vehicles in their name.
Following are the withholding tax rates for registration of new motor vehicles under Section 231B(1):
Engine capacity Tax Rate Persons not appearing on ATL* Up to 850CC Rs7,500 Rs15,000 851CC to 1000CC Rs15,000 Rs30,000 1001CC to 1300CC Rs25,000 Rs50,000 1301CC to 1600CC Rs50,000 Rs100,000 1601CC to 1800CC Rs75,000 Rs150,000 1801CC to 2000CC Rs100,000 Rs200,000 2001CC to 2500CC Rs150,000 Rs300,000 2501CC to 3000CC Rs200,000 Rs400,000 Above 3000CC Rs250,000 Rs500,000 ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.
The FBR said that under Section 231B(1A) every leasing company, scheduled bank, investment bank, development finance institution, Modarba (Sharia Compliant or under conventional mode) shall collect four percent of the value of motor vehicles at the time of lease from persons not appearing in the ATL.
The FBR said that under Section 231B(2) the motor vehicle registration authority shall collect withholding tax from person transferring the ownership/registration at the time of transfer:
Engine capacity Tax Rate Persons not appearing on ATL* Up to 850CC Rs0 Rs0 851CC to 1000CC Rs5,000 Rs10,000 1001CC to 1300CC Rs7,500 Rs15,000 1301CC to 1600CC Rs12,500 Rs25,000 1601CC to 1800CC Rs18,750 Rs37,500 1801CC to 2000CC Rs25,000 Rs50,000 2001CC to 2500CC Rs37,500 Rs75,000 2501CC to 3000CC Rs50,000 Rs100,000 Above 3000CC Rs62,500 Rs125,000 ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.
The FBR said that under Section 231B(3) every manufacturer of motor vehicle shall collect withholding tax from purchaser at the time of sale of vehicle at the following tax rates:
Engine capacity Tax Rate Persons not appearing on ATL* Up to 850CC Rs7,500 Rs15,000 851CC to 1000CC Rs15,000 Rs30,000 1001CC to 1300CC Rs25,000 Rs50,000 1301CC to 1600CC Rs50,000 Rs100,000 1601CC to 1800CC Rs75,000 Rs150,000 1801CC to 2000CC Rs100,000 Rs200,000 2001CC to 2500CC Rs150,000 Rs300,000 2501CC to 3000CC Rs200,000 Rs400,000 Above 3000CC Rs250,000 Rs500,000 ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.
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FBR issues withholding tax rates for winning prize bonds
KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates for winning prize bonds, cross word, raffle, lottery and quiz for tax year 2019/2020 as effective from July 01, 2019.
The FBR said that every person making payment shall collect withholding tax from persons on active taxpayers list (ATL) and double the amount of the tax from persons not appearing on the ATL at the time the prize or winning were actually paid.
The collection of withholding tax under Section 156 of Income Tax Ordinance, 2001 shall be final.
The withholding tax shall be collected at the following rates:
(I) Payments made for prize on quiz bond and cross word the tax rate shall be 15 percent of the gross amount.
Persons not appearing in the Active Taxpayers’ List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 30 percent of the gross amount.
(II) Payments on winning from a raffle, lottery, prize on winning a quiz, prize, offered by companies for promotion of sale crossword puzzles the tax rate shall be 20 percent of the gross amount.
Persons not appearing in the Active Taxpayers’ List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 40 percent of the gross amount.
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FBR issues withholding tax rates for sale, purchase of immovable properties
KARACHI: Federal Board of Revenue (FBR) has notified withholding tax rate for active and non-active taxpayers at the time of sale and purchase of immovable properties as amended through Finance Act, 2019 and applicable from July 01, 2019.
The FBR said that every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society cooperative society and registrar or properties shall collect withholding tax under Section 236C of Income Tax Ordinance, 2001 from seller of immovable
property at the time of registering, recording or attesting the transfer.The withholding tax rate shall be one percent of gross amount of the considering received in case of active taxpayer, who filed their income tax return within due date.
Persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the
Ordinance), i.e 2 percent of the gross amount of the consideration received.The tax shall be minimum tax if property is acquired and disposed off within the same tax year; Otherwise adjustable.
Advance tax, under this section, is not be collected if the immovable property is held for a period exceeding five25 years.
The FBR said that every person registering, recording or attesting or Transfer including local authorities, housing authorities, Housing Society, Co-operative Society and registrar or properties shall collect adjustable withholding tax from the purchaser of immovable properties at the time of registering, recording of immovable properties under Section 236K of Income Tax Ordinance, 2001.
Under Section 236K(1) the tax rate shall be one percent of the fair market value for active taxpayers.
Persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100% (Rule-1 of Tenth Schedule to the Ordinance), i.e 2 percent of the fair market value.
Advance Tax on payment of installment in respect of purchase of allotment of immovable property where transfer is to be effected after making payment of all installments Under Section 236K (3) the tax rate shall be one percent of the fair market value.
Persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e 2 percent of the fair market value.
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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).
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Withholding Tax Card: non-ATL persons to pay 30pc tax on dividend income
KARACHI: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which person not appearing on the Active Taxpayers List (ATL) shall pay up to 30 percent on dividend income.
According to documents made available to PkRevenue.com, the FBR said that every person paying dividend shall collect withholding tax under Section 150 of the Income Tax Ordinance, 2001 at the time the dividend is actually paid.
The following rates shall be applicable for tax year 2019/2020:
(a) In the case of dividend paid by Independent Power Purchasers (IPPs) whereas such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity:
The tax rate shall be 7.5 percent and in case persons not appearing in the ATL the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 15 percent.
(b) In cases other than mentioned at (a) above the tax rate shall be 15 percent and if persons not appearing in the Active Taxpayers’ List the rate of tax required to be deducted/collected, as the case may be, is to be increased by 100 percent of the above (as specified in the First Schedule to the Income Tax Ordinance, 2001 (updated as per Finance Act, 2019), i.e. 30 percent.
The FBR further said that special purpose vehicle, company shall collect withholding tax under Section 150A of Income Tax Ordinance, 2001 from Sukuk holders on payment of gross amount of return on investment.
On Payment of return on investment in Sukuks:
a) In case the Sukuk- holder is a company, the tax rate shall be 15 percent and if persons not appearing in the Active Taxpayers’ List the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 30 percent.
b) In case the Sukuk – holder is an individual or an association of person, if the return on investment is more than one million, the tax rate shall be 12.5 percent and if persons not appearing in the Active Taxpayers’ List then the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 25 percent.
c) In case the Sukuk – holder is an individual and an association of person, if the return on investment is less than one million, the tax rate shall be 10 percent and if persons not appearing in the Active Taxpayers’ List then the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 20 percent.
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Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons
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Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons
KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates on imports of goods for persons appearing on Active Taxpayers List (ATL) and for persons not on ATL under Section 148 of Income Tax Ordinance, 2001 for tax year 2019/2020 effective from July 01, 2019.
According to documents made available to PkRevenue.com the FBR said that the collector of customs shall collect the withholding tax rate at the prevailing rates from persons on the Active Taxpayers List (ATL) and double amount of tax from those persons, who are not on the ATL.
The FBR said that 1 percent of the import value increased by Custom duty, sales tax and federal excise duty shall be collected. And in case persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 2 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
Tax to be collected from every importer of goods on the value of goods.
1 (i) Industrial undertaking importing remeltable steel (PCT Heading 72.04) and directly reduced iron for its own use;
(ii) Persons importing potassic of Economic Coordination Committee of the Cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004
(iii) Persons importing Urea;
(iv) Manufactures covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated 31st December, 2011.
(v) Persons importing Gold; and
(vi) Persons importing Cotton
(vii) Persons importing LNG.
Minimum Tax [Section 148(7)]
The tax required to be collected under this section shall be minimum tax on the income of importer arising from the imports subject to sub-section (1) of this section and this sub-section shall not apply [i.e Adjustable] in the case of Import of:a. Raw material, plant, equipment & parts by an industrial undertaking for its own use;
b. [motor vehicle] in CBU condition by manufacturer of motor vehicle].
c. Large import houses as defined / explained in 148(7)(d)
d. A foreign produced film imported for the purposes of screening and viewing]
The tax collected under this section at the time of import of ships by ship-breakers shall be minimum tax. [Section 148(8A)]
Industrial undertaking importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use, the tax rate shall be
1.75 percent of the import value as increased by Custom-duty, sales tax and federal excise duty
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 3.5 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
2. Persons importing pulses shall pay 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 4 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
3. Commercial importers covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated the 31st December, 2011, shall pay 3 percent of the import value as increased by custom-duty sales tax and federal excise duty.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 6 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
Commercial Importer importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use shall pay 4.5 percent of the import value as increased by Custom-duty, sales tax and federal excise duty.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
4. Persons importing coal shall pay 4 percent.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
5. Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan as certified by the Drug Regulatory of Pakistan, shall pay 4 percent.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
6. Ship breakers on import of ship shall pay 4.5 percent.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
7. Industrial undertakings not covered under S.No 1 to 6 shall pay 5.5 percent.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
8. Companies not covered under S. Nos. 1 to 7 shall pay 5.5 percent.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
9. Persons not covered Under S.Nos1 to 8 shall pay 6 percent.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 12 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
On Import of Mobile Phones by any Person (individual, AOP, Company) :
C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)
1. Up to $30 the tax rate shall be Rs. 702. Exceeding $30 & up to $100 the tax rate shall be Rs. 730
3. Exceeding $100 & up to $200 the tax rate shall be Rs. 930
4.Exceeding $200 & up to $350 the tax rate shall be Rs. 970
5.Exceeding $350 & up to $500 the tax rate shall be Rs. 3,000
6.Exceeding $500 the tax rate shall be Rs. 5,200.
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e.C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)
1. Up to $30 the tax rate shall be Rs. 140
2. Exceeding $30 & up to $100 the tax rate shall be Rs. 1,460
3. Exceeding $100 & up to $200 the tax rate shall be Rs. 1,860
4.Exceeding $200 & up to $350 the tax rate shall be Rs. 1,940
5.Exceeding $350 & up to $500 the tax rate shall be Rs. 6,000
6.Exceeding $500 the tax rate shall be Rs. 10,400.