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KARACHI: Following is the rate of capital gains tax on disposal of securities after the amendment made through Finance Act, 2020. Officials at the Federal Board of Revenue (FBR) said that the rate of capital gains tax had been kept unchanged for tax year 2021 and subsequent years. Provided that the rate of tax on cash settled derivatives traded on the stock exchange shall be 5 percent for the tax years 2018 to 2020. Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respective of debt securities; Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely:— Category Rate Individual and association of persons 10 percent for stock funds 10 percent for other funds Company 10 percent for stock funds 25 percent for other funds Provided further that in case of a stock fund if dividen...

KARACHI: The Board of Revenue, Sindh has launched an application for calculation of agriculture income tax and issuance of sales certificate. A statement on Tuesday said that the BOR Sindh launched revenue applications for facilitating general public for issuance of sales certificate and calculation of agricultural income tax. The applications are available of the website www.sindhzameen.gos.pk and are available from July 11,2020, in addition to the manual system of issuance of sale certificates and assessment of AIT. Source:  https://pkrevenue.com/sindh-launches-application-for-agriculture-income-tax-calculation/ Recommended: How to become filer How to check FBR filer status Income Tax Rates Tax Calculator 2020

KARACHI: The minimum tax on turnover has been proposed to impose on non-resident companies having permanent establishment (PE) in Pakistan. The amendment in Section 113 of the Income Tax Ordinance, 2001 has been proposed through Finance Bill, 2020. According to EY Ford Rhodes Chartered Accountants the Section 113 of the Ordinance levies minimum tax on a person based on his turnover where such person is not liable to pay tax due to various reasons listed therein. However, the levy of minimum tax in case of corporate taxpayers, is only applicable on resident companies. This means that foreign companies having a permanent establishment in Pakistan (including a branch) are not subject to minimum tax. The Finance Bill 2020 has now proposed to include non-resident companies having a permanent establishment in Pakistan under the domain of minimum tax on turnover. Consequently, such companies would be required to compute minimum tax under Section 113 of the Ordinance for determina...

Presently, expenses incurred to the extent of 6 percent of rent chargeable wholly and exclusively for deriving rent are admissible as deduction against rental income. The Bill proposed to reduce the limit from 6 percent to 2 percent. The experts said that further reducing such limit would deprive a taxpayer for claiming a legitimate expense incurred solely for deriving taxable income and would ultimately lead to higher tax payable by the taxpayer. “It may encourage taxpayers to under-report their taxable income on the grounds that their legitimate expenses are disallowed,” experts at Deloitte Yousuf Adil Chartered Accountants said. Presently, income from property derived by an individual or an Association of Persons is subject to tax at the specified slab rates and treated as a separate block of income. However, individuals or AOPs whose income from property exceeds Rs 4 million per annum can opt to claim deductions under section 15A of the Ordinance and pay tax at normal rate...

ISLAMABAD: Federal Board of Revenue (FBR) has re-constituted committee for grant of license for tracking transit and transshipment cargo. The FBR on Wednesday issued SRO 542(I)/2020 dated June 08, 2020 to amend Tracking and Monitoring of Cargo Rules, 2012 The reconstitution of committee shall comprise of Director General of Transit Trade (Chairman), Director Transit Trade (I-IQs), Karachi, Director Transit Trade (Peshawar), Director Transit Trade (Quetta), Director Reforms and Automation (Karachi), Collectors of Customs (Enforcement and Compliance, Karachi), (Appraisement and Facilitation, Port Muhammad Bin Qasim, Karachi), (Appraisement and Facilitation-East, Karachi), (Appraisement and Facilitation-West), Karachi, and Director of Intelligence and Investigation, FBR, Karachi or any other authority designated by the FBR Headquarter. As per amendment the project director shall be Director (HQs), Directorate General of Transit Trade. Previously, the project director was Collector,...

KARACHI: Federal Board of Revenue (FBR) has been suggested to reduce customs duty to five percent on import of steel products in order to reduce cost of doing business for industries. Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2020/2021 submitted to the FBR, urged to reduce the customs duty to five percent under various HS codes on import of steel products. The chamber said that these steels are basic raw materials for any developing or under developed countries, since Pakistan is not self sufficient in steel productions and relies on imports, it is imperative for the government to lower the rate of duty so the country’s industry can flourish as these steels are required in all industries i.e. in machines, manufacturing, infrastructure or any other industrial works. The KCCI further said that all of the steels imported goes into industry for further processing, if the duty / tariff is reduced, the industry’s cost will lower down, thus benefiting ...

Every person in the above-mentioned categories and who does tax-exempt activities in Pakistan is legally obliged to obtain sales tax registration. However, for tax assets granted in any tax during the last 12 months ending any tax does not exceed 10 million rupees or those used annually (telephones, gas and electricity) in the last 12 months ending any tax. do not exceed Rs. 800,000. How Can You Pay Your Tax Return ? According to the law every subscriber must submit a no later than 15 monthly installment in respect of sales made in the previous month. Every registered person is obliged to submit the forms electronically; in such case the complaint should be made by the 15th and the return may be filed on the e-portal conducted by the Federal Board of Revenue (FBR) on the 18th. Recommended Blogs How to become filer How to check NTN number How to check FBR filer status

We look at recent changes made to the Income tax Ordinance, 2001 (by the Finance Act, 2014 (law), effective from July 1, 2014. By law, filing a filer and non-filer opinion to improve tax culture, prevent non-compliance tax and considered concerns the right of citizens to pay taxes, in respect of the high cost of business kunabahlaziyi taxpayers. 'Filer 'as defined in the Ordinance means that the taxpayer whose name appears on the list of taxpayers released by the Federal Board of Revenue from time to time or charge card to taxpayers. 'E-Filer' is a non-file person. The list of taxpayers working and available on the website of the FBR and can be accessed by the following link: www.fbr.gov.pk Home> e-Services> Active taxpayers (income tax) With this book we will get you different tax rates withheld from the withdrawals and return to the accounts, which are set for 'file' and not for files Read More Check FBR filer status How to check NTN number How to b...

Tax experts from Lahore recommend a custom wing to scan and X-ray each and every container; to recoup the loss following the invovis limit with available information and information. "Once this is done the IRS should recover the sales tax and income tax and then the operations center will be affected," their response said. The review is not very optimistic, with the best possible scenario for a one-to-one discount. A few difficult propositions in place are ignored. Will the PTI government be able to achieve the revised target of Rs5.2 trillion by June 2020? It looks awkward, but Dr. Ikramul Haq and Huzaima Bukhari's project aimed at reaching the target may be a good shot. Right now, there is just worry. Recommended: How to become filer Penalties of being non-filer What is Withholding tax

Pakistan has one of the lowest rates of tax-on GDP in the world. For the uninitiated, the tax-to-GDP ratio is used to assess country development year after year. They claim that the higher the Gross Domestic Product (GDP) of a country, the higher the amount of tax revenues the government can get by the same as the number of goods and services exported has increased. With those exciting numbers and information out of the way, that's why employed / paid people should care about filling their income tax now more than ever. You should have heard about bank transactions being very drawn to non-filers. As it happens, even the actual interbank transfers are charged a new excise tax (WHT) under Section 236P of the Income tax Ordinance 2001 to non-filers. All bank operations will be taxed at 0.3% WHT unless they file their income tax returns by November 30th 2016. You are also charged more when you buy cars or other property. And if your WHT amount is greater than your applicable taxes, ...

As per the 2018-19 financial law approved by the Government of Pakistan, this web-based tax calculator uses Pakistani tax rates on taxable personal income and taxable category. Class class slabs are effective when the income earned exceeds 50% of the income. An old Pakistani citizen, being a taxpayer, age 60 or older on the first day of the relevant tax year, is allowed a discount of 50% of taxable income if his taxable income for that tax year is Rs. 1,000,000 / - or less. Recommended: Penalties of being non-filer Consequences of missing tax deadline How to become filer

The number of taxpayers in Pakistan increased by 700,000 over the year, according to figures from the Federal Board of Revenue (FBR) . According to the FBR figures, All the people who file their tax forms increased by 700,000 completing two million.154. Of these, about 700,000 are paid people. The FBR has suggested proposals for a tax hike being considered - to bring small and medium-sized business owners into the tax network. Last month, the govt. presented the theme of the plus Declaration, which has benefited thousands of people. the appearance of the name in ATL is very important in obtaining discounted rates for making money transactions. FBR sources have described the instrument of inventiveness and money-laundering techniques to create a huge increase in the variety of returning filers. The FBR has so far released about four million tax numbers and everyone with NTN number is required to file tax returns. Also Read: How to become Filer Check FBR Filer Status