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FBR notifies rules to launch authorized economic operator program

  ISLAMABAD: Federal Board of Revenue (FBR) has notified rules to launch Authorized Economic Operator (AEO) program to improve trade and business environment in the country. The AEO was launched by inserting Section 212A was inserted in the Customs Act, 1969 through the Finance Act, 2018. The FBR now issued AEO rules vide SRO 798 (I) /2020 dated August 28, 2020. FBR has also constituted AEO Approval Committee in this regard which is finalizing the request of applicants. Software for business process and WeBOC modules for AEO programme has already been developed and is ready for launch at present. The FBR intend to start Pilot project of the AEO programme at MCC Port Qasim (Exports) Karachi in October, 2020, which will be later on extended to import sector as well. The World Customs Organization’s (WCO) Authorized Economic Operator (AEO) Programme is one of the pillars of WCO’s Framework of Standards to secure and facilitate trade (SAFE). The programme is widely acknowledged as a key dr
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FBR to reward for identifying fake, flying invoices

 ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday announced that it would issue a reward for those who point out objections involving tax evasion using false and airline invoices. A statement from the finance agency said it had urged people to come forward and disclose the identity of the people involved in tax evasion through false and airline invoices. "FBR will reward those who whistle under its Reward Rules," he said. The caller's name will be kept private. Details may be provided to the Director of Intelligence and Inland Revenue at office number 0519260167 and fax number 0519260156. The FBR announced that drastic measures were taken against the kidnappers involved in the fraudulent and flying business. In this regard the FBR chairman provided guidance to all FBR camp offices to expedite tax-free operations and play a significant role in stopping the threat of false and air invoices. At the same time, using indications, the Karachi Field Office of the FBR t
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FBR decides action against retailers for avoiding mandatory integration

 In this regard FBR on Tuesday directed retailers, who are required to combine their sales and purchases under the Sales Tax Act, 1990, in order to link their invoice plan by August 31, 2020. FBR explained that all retailers with a network of chain stores throughout Pakistan, work in supermarkets or pockets and additional electricity bills for twelve consecutive months exceeding twelve hundred rupees and engaging in bulk import and supply of good value to retailers and in the sale of buyers and the size of their store calculated thousands of square meters in area or more must cover their sales areas through the FBR commission reporting system for real-time sales. The FBR has warned that the last date for consolidation is August 31, 2020, after which those who fail to consolidate will be fined one million rand and if the case continues, the business premises of the sellers will be sealed. Orignal Source:  https://pkrevenue.com/fbr-decides-action-against-retailers-for-avoiding-mandatory-
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FBR updates withholding tax rates on sale, purchase of immovable properties

 FBR has issued a withholding tax card 2020-2021 (renewed until June 30, 2020) including an amendment to the Income tax Ordinance, 2001 by the Finance Act, 2020. Under section 236C of the Income tax Ordinance, the 2001 reserve tax must be collected from the seller of immovable property. Everyone who registers, records or certifies or transfers including property managers, real estate managers, community co-operatives and registrars or properties must collect taxes from the seller of immovable property at the time of registration, recording or proof of transport. The tax rate will be one percent of the total value of the consideration received. If a person does not appear in the active taxpayer list (ATL) the tax rate will be two percent of the total value of the consideration received. Withholding tax will be lower when the property is acquired and disposed of within the same year; otherwise the tax will be changed. Advance Taxes, under this section, are not collected if immovable prop
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Withholding tax rates updated for telephone subscribers

 FBR has issued a withholding tax card 2020-2021 (renewed until June 30, 2020) incorporating an amendment to the Income tax Ordinance, 2001 of the Finance Act, 2020. Under section 236 of the Income tax Ordinance, a 2001 person who repairs telecommunications / internet or issues / sells a prepaid mobile phone / Internet card will issue / collect a deductible tax on call registrars, Internet subscribers, Payment Cards buyers Internet, telecommunications and buyer of prepaid and prepaid phone cards or during the issuance or sale of prepaid cards. The reserve tax rates must be: (a) Telephone and Internet subscribers The monthly fee is up to Rs, 1000: Nil More than a thousand bills: Ten percent (b) in the case of an internet, mobile and prepaid internet subscriber or prepaid debit card will be 12,5 percent the price or sale price of the prepaid internet card or prepaid phone card or units sale using any electronic form or in any other form. Taxes collected / deducted will be adjusted by cha
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FBR asks taxpayers to update profile to avoid penalty

The FBR in a statement on Thursday said the complexity of return forms is a complex form of tax laws. “However, there is a critical need to simplify return forms without compromising on the details required to ensure the accuracy of the standard translation,” he added. Instead of trying to get all the information necessary for a tax return, a new section has been added where the taxpayer profile can be set up to capture relevant taxpayer data. Individuals who are already registered before September 30, 2020 and receive business income or taxable income, trusts, welfare organizations, non-profit organizations and other persons appointed by the board are required to submit an updated profit by December 31, 2020. Persons who receive their registration after September 30, 2020 will be required to submit that profile within 90 days of registration. In the event of any change in the information, such persons must review their details within 90 days of the change of details. The profile conta
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FBR issues SOPs for over-ruling objections on refund claims

 FBR has released Sales tax Circular No 01 of 2020 / IR-Operation to introduce the Standard Procedure for over-Roll the STARR to challenge tax refund claims. The FBR said bringing about uniformity in the system, and avoiding misunderstandings and delays in the process of reimbursement is necessary to issue policy rules at the national level. Therefore, in the pressure of all previous directives, SOPs and guidelines on this matter, a new procedure has been put in place. Under the procedure a police officer under the rank of additional commissioner-IR will oversee complaints raised by the technical system after finalizing all official details and reviewing the opposition record. The FBR has released details of the protest which is usually displayed electronically where the police officer can rule. FBR, however, said the investor would provide soft copies of all conflicting scanned documents that required a decision. The financial institution also stated that where, as a result of the aut
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