What is the Last Date to File Corporate Tax Return
What is the Last Date to File Corporate Tax Return. Corporate sector business means an entity that is registered as a private/public limited company in a country. Like in Pakistan, companies are registered with the Securities and Exchange Commission (SECP) of Pakistan under the Companies Act 2017.
Types of Businesses
There are mainly three types of businesses based on their legal framework:
- Sole Proprietorship / Individual Business: Where business is owned and controlled by a single person and is not a partnership business or a Public/Private limited company.
- Partnership Business / Association of Persons (AOPs): This type of business is registered with the registrar of firms and is owned by a minimum of two partners. Such a partnership business is a separate legal entity.
- Private / Public Limited Company: This type of business is registered with the SECP and is a separate legal entity. It has minimum two directors. If there is only one director then in this case also a company can be registered. However, it will be called ‘Single Member Company’ or SMC.
Tax Calendar
In Pakistan, the following is the schedule for tax return filing for all three types of businesses.
- For Individual / Sole Proprietor and Salaried person, where financial year ending is June 30th: the last date to file tax return in these cases is September 30th, after the end of financial year.
- For Private/Public and Single Member Company, where financial year ending is June 30th: the last date to file tax return in these cases is December 31st, after the end of financial year.
- Company having a special tax year: in this case the last date to file tax return is on or before September 30th.
Penalty for Late filing of Tax Return
If any taxpayer becomes late to file a tax return then he can also become a filer after submitting of tax return after the due date. But, in this case, a penalty/default surcharge for ATL is paid to the Federal Board of Revenue (FBR). After payment of such penalty, the status of the taxpayer is immediately changed to the active tax filer.
Following is the list of penalties for ATL:
- In Case of Individual / Sole Proprietor / Salaried Person: Penalty to become filer is Rupees: 1,000
- In Case of Partnership/ Association of Persons: Penalty to become filer is Rupees: 10,000
- In Case of Public/Private/Single Member Company: Penalty to become filer is Rupees: 20,000
