Saturday, 20 July 2024
Trending
corporate-taxes-Pakistan
TAXATION

Significant progresses in corporate taxes

Currently, the Government of Pakistan has introduced amendments in the following areas, taking into account the extraordinary economic conditions caused by the Covid 19 epidemic.

Developments in Tax Laws |

Fixed tax regime introduced for builders and developers. Also, reduction made in tax rates applicable on immovable property capital gains. 

For Capital gains on disposal of immovable property distinction with reference to ‘open plots’ and ‘constructed properties’ removed.

Presumptive tax regime for resident shipping businesses (on tonnage basis), extended up to June 30, 2030. 

Reduced rate facility of 3% for withholding of tax on certain specified services currently available to resident companies also now available to Permanent Establishment of a non-resident person. Minimum tax also made applicable to PEs of non-resident persons.

Restriction introduced viz. deduction of foreign profit on debts of certain foreign controlled resident companies in Pakistan during a tax year.

Payments to non-resident persons in respect of dividend, royalty, fee for technical services, insurance, re-insurance & profit & debt now excluded from requirement of 100% enhanced withholding (with conditions), even if they are non filers.

Restrictions introduced on claim of various deductions/tax credits (e.g lease rentals, sales to unregistered persons, depreciation, tax credit on enlistments).

Reduced rate of withholding tax facility @ 3% previously available for specific services now also available to other categories [warehousing services, services rendered by asset management companies, data services provided under license issued by the Pakistan Telecommunication Authority, Telecommunication infrastructure (tower) services]. 

Rates of advance tax on import of goods rebuilt, with rates of 1% & 2% made applicable for raw materials & capital goods imported for own use, and rate of 5.5% introduced for finished goods. 

Developments in Tax Laws |

Automation of certain operations |

centralized income tax refund office.

automated scrutiny of tax returns.

automated computation of ‘turnover’.

electronic access to records by Commissioner.

Audit proceedings electronically.

real time integration of taxpayers’ records.

Automation of certain operations |
Top-Tax-Consultants-Lahore-Pakistan-Global-Tax-Consultants
A d v e r t i s e m e n t

Concept of taxpayers profile introduced |

Concept of ‘taxpayers profile’ introduced. Non compliance may leads to penalties and inactive status of taxpayer. 

Concept of taxpayers profile introduced |

Concept of Agreed assessments |

‘Agreed assessments’ introduced. FBR also empowered to calculate taxable income on the basis of ‘ratios’. Where a taxpayer, in response to a notice, intends to settle his case, he may file offer of settlement in the prescribed form before the assessment before committee, in addition to filing reply to the Commissioner.

Concept of Agreed assessments |
tax-accounting-services-top-tax-consultants-lahore-pakistan
Ads:

Other developments by FBR |

From January 1, 2021 electronic filing of appeal with Commissioner Inland Revenue (Appeals) has been launched.

Requirements regarding furnishing of information by banking companies to FBR, further amended. Banking companies are now required to provide bank account holders statement, credit card payments statement, cash withdrawal statement, etc.

Taxpayers can now apply to obtain status of “Green Field Industrial Undertaking”, to take exemptions on account of tax ability of profits earned, with certain conditions.

Amendments made for taking exemption/ reduce rate certificate regarding tax deduction from payments made to non-residents. The requirement to attach certain documents (i.e. affidavit, certificate of residence, copy of contract, copy of invoice, any other document/information) is now compulsory to apply for exemption.

Specific business sectors are now required to install electronic real time invoicing systems. And software for online real time integration of their businesses units with tax authorities.

Other developments by FBR |

LATEST POSTS

  • Tax Advice for 2024: Do not File Incomplete Tax Returns
    Tax Advice for 2024: Do not File Incomplete Tax Returns Tax Advice for 2024: Do not File Incomplete Tax Returns. Whenever tax season approaches tax filer is busy in collecting and discussing his tax returns working with tax consultant and…
  • Extension of Date in Submission of Sales Tax and Federal Excise Return
    Extension of Date in Submission of Sales Tax and Federal Excise Return Extension of Date in Submission of Sales Tax and Federal Excise Return. Recently the Federal Board of Revenue (FBR) has extended the last date for submission of Sales…
  • Tax Concept: Meaning & Types of Taxes in Pakistan
    Tax Concept: Meaning & Types of Taxes in Pakistan Tax Concept: Meaning & Types of Taxes in Pakistan. In Pakistan, tax concepts refer to the principles of taxes that control the taxation system in the country. Here is the list…
  • Rs 750 Prize Bond Draw List 15 April 2024
    Rs 750 Prize Bond Draw List 15 April 2024 Rs 750 Prize Bond Draw List 15 April 2024. The 98th draw for the Rs. 750 prize bond is scheduled to take place in Hyderabad on April 15, 2024. Here are the details: Prizes of Rs 750 Prize…
  • Active Tax Payer List 15 April 2024
    Active Tax Payer List 15 April 2024 Active Tax Payer List 15 April 2024. Following is the active tax payer list issued by the Federal Board of Revenue (FBR) on 15th April 2024. This list contains the taxpayers details who…
  • Withholding Tax on Cash Withdrawal in Pakistan 2024 for Filer
    Tax on cash withdrawals from bank

See also  FBR formed committee to improve Income Tax Return forms
Newsletter
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: