Tax Savvy

13/03/2024

The Federal Board of Revenue (FBR) has introduced a digital invoicing system and a dedicated online portal to manage it.

Key Points:

Digital Initiatives Portal:

FBR launched a new tab named “Digital Initiatives Portal” on its website.
Purpose:

This portal streamlines the licensing process for IT companies involved in Point-of-Sale (POS) and e-invoicing systems.

Who Needs a License:

IT companies installing and integrating POS or e-invoicing systems within Pakistan require a license.

This applies to companies working on behalf of businesses operating in Pakistan.
Previously:

Companies had to manually apply and submit documents to FBR for permission to install POS or e-invoicing systems.
New Process:

IT companies can now submit online applications through the Digital Initiatives Portal.

The portal offers three tabs:

Application: Submit a new application with supporting documents.

Dashboard:

Track the application status and view any objections from FBR.

Case Management:

Respond to queries or clarifications from FBR regarding the application.

Benefits:

This new portal simplifies the licensing process for IT companies.

It allows for online application submission, tracking, and communication with FBR.

Conclusion:

The FBR Digital Initiatives Portal is a welcome change for IT companies working on POS and e-invoicing systems in Pakistan. It promotes a more efficient and transparent licensing process.

Call now to connect with business.

25/01/2024

The Federal Board of Revenue (FBR) has decided to introduce a new scheme to collect taxes from the retailers ahead of the elections. The sources said the FBR developed the ‘Trader Friend’ mobile app for trader registration, allowing them to register outside the tax net through the app.

The app would also record the income of shopkeepers, which would be received by the FBR through the app. The sources said that taxes would be imposed on shopkeepers based on their annual income, collected on a monthly basis.

The sources said that Islamabad, Karachi, Lahore, Peshawar, and Quetta are expected to generate around 100 billion rupees in taxes from retailers through this scheme. In the next phase, registration of traders in other cities would commence, and with taxes imposed on retailers nationwide, over 300 billion rupees in revenue are anticipated.

16/01/2024

سوال: فائلر کیسے بنتے ہیں اور اس کی کیا چیزیں چاہئیں ہوتی ہیں۔
جواب:
اسلام و علیکم
ٹیکس معاملات کو پاکستان کا ادارہ فیڈرل بورڈ آف ریونیو (FBR) ڈیل کرتا ہے۔
فائلر بننے کے لیے سب سے پہلے نیشنل ٹیکس نمبر (NTN) بنتا ہے۔
این ۔ٹی۔ این (NTN)بنانے کے لیے درج ذیل چیزیں درکار ہیں .
1: قومی شناختی کارڈ
2: فون نمبر
3: ای میل ایڈریس (E.Mail)

این۔ ٹی۔این بنانے کے بعد آپ کو ٹیکس ریٹرنز جمع کروانی ہوتی ہیں ۔ ٹیکس ریٹرنز جمع کروانے کے لیے درج ذیل معلومات درکار ہیں۔

نوٹ: خالی این۔ٹی۔این (NTN) بنانے سے فائلر نہیں بنتا۔

سیلری پرسن (salary person)
1: سیلری سلپس 1 جولائی تا 30 جون ۔
2: اثاثہ جات کی تفصیل مثلاً گھر، گاڑی، زیور،وغیرہ
3: بینک اکاؤنٹ سٹیٹمنٹ 1 جولائی تا 30 جون۔

بزنس پرسن (Buisness person)
1: بزنس انکم 1 جولائی تا 30 جون
2: اثاثہ جات کی تفصیل مثلاً گھر، گاڑی، زیور، وغیرہ
3: بینک اکاؤنٹ سٹیٹمنٹ 1 جولائی تا 30 جون۔

ریڑنز فائل کرنے کے بعد سٹیٹس ایکٹو کروانے کے لیے 1000 کا ATL چالان بنتا ہے اسے ادا کرنے کے بعد سٹیٹس ایکٹو ہوتا ہے۔

نوٹ: اس کے علاوہ اگر آپکا کوئی سورس آف انکم ہیں مثلا زراعت، فارن انکم، فارن ریمیٹنس، انشورنس پالیسی وغیرہ بھی بتانا ضروری ہیں۔

نوٹ: اپنی ٹیکس ریٹرنز جمع کرواتے وقت اس چیز کا خاص خیال رکھیں کہ آپکا تمام ڈیٹا صحیح درج کیا گیا ہیں یا نہیں اور پروفیشنلز کو ہائیر کریں تاکہ مستقبل میں FBR کے نوٹسز سے بچیں۔

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11/12/2023

Pakistan has reportedly provided assurances to the International Monetary Fund (IMF) regarding an augmentation of the petroleum levy in the fiscal year 2024–25, aligning with its intentions to embark on a new loan programme.

08/12/2023

FBR has sent notifications to 8 Lack non-filers. In first step mobile Sims of non-filers will be blocked.

FBR has declared that Utility connections of non-filers will no longer be entertained.

Although deadline for filing Income Tax Return for Salaried, Sole Proprietors, Practitioners, Freelancers and Partnership Firms was extended till 31st October, 2023. But many individuals and businesses remained unable to file their returns.

For those who have not filed their Income Tax Returns may not be able to enjoy their Utility and Mobile SIM connections.

We are helping businesses and individuals to maintain their utility connections.

07/12/2023

آئی ایم ایف کے غلام عوام دشمن نگران حکومت نے بجلی کی قیمتوں میں 3 روپے فی یونٹ سے زائد اضافہ کیا اور دوسری طرف تقسیم کار کمپنیاں دونوں ہاتھوں سے عوام کو لوٹ رہے ہیں۔سینیٹ آف پاکستان میں اس ایشو کو اٹھاونگا،ان شاء اللہ۔
نپرا کی انکوائری نے پاکستان کے تمام ڈسکوز کا بجلی کے بلوں میں عوام کے ساتھ روارکھے جانے والے ظلم کو بے نقاب کردیا۔ انکوئری رپورٹ میں کہا گیا ہے کہ پاکستان کے تمام تقسیم کار کمپنیاں(DISCOS) کی طرف سے ارسال کیے گئے سو فیصد بلوں میں عوام کے ساتھ گڑبڑ کی گئی ہے۔
انکوائری کے مطابق صرف MEPCO نے جولائی اگست میں 80لاکھ صارفین کو اضافی بل بھیجے ہیں۔ جبکہ GEPCO نے 15لاکھ، FESCO نے 1لاکھ20ہزار، LESCO نے 1لاکھ17 ہزار ، HESCO نے 7 لاکھ 30ہزار ، SEPCO نے 3 لاکھ 26 ہزار، PESCO نے 3 لاکھ 13ہزار، KESCO نے 1لاکھ 64ہزار اور IESCO نے 45ہزار سے زائد کے صارفین کو بجلی کے اضافی بل ارسال کیے۔
انکوئری رپورٹ میں کہا گیا ہے کہ بجلی کی تقسیم کار کمپنیاں بلنگ دورانیہ 30دنوں سے بڑھا کر سلیب میں گڑبڑ سمیت بہت سے دیگر طریقوں سے عوام کو لوٹ رہے ہیں۔
انکوئری رپورٹ میں یہ بھی کہا گیا ہے کہ 5لاکھ سے زائد میٹر خراب ہیں اور اس کو تقسیم کار کمپنیوں نے ذمہ داری کے باوجود درست نہیں کیا۔جس کا نقصان عوام کو اووربلنگ کی صورت میں ہورہاہے.

06/12/2023

In a startling revelation, official documents have unveiled that a substantial number of Federal Board of Revenue (FBR) employees are chronic non-filers, putting themselves at risk of severe penalties and testing the tax administration's commitment to expanding the national tax base.

Tax authorities revealed that many FBR employees have neglected to file their tax returns for the years 2021, 2022, and 2023. Some have filed returns for one year but omitted their annual statutory income tax and wealth statements for two consecutive years, while others missed the extended deadline for the current tax year, which ended on October 30th.

Chairman FBR, Amjad Zubair Tiwana, has responded swiftly, stating that non-filing officers will receive notices by Saturday. He emphasized that despite extensions, a majority of non-filers failed to meet the Thursday deadline, placing them at risk of administrative measures, including utility connection disconnection.

While over 2,600 officers in pay scales 17 to 22 have submitted their tax statements, the revelation highlights a compliance gap among non-gazetted FBR employees, with implications for low-ranking officers and concerns about potential corrupt practices.

05/12/2023

ایف بی آر نے تمام کمشنرز کو ہدایت جاری کی ہیں کہ وہ اپنے ماتحت گریڈ 17 اور اس سے زیادہ کے افسران سے انکم ٹیکس ریٹرن 2023 مورخہ 6 دسمبر 2023 تک جمع کروائیں.

01/12/2023

Tax Alert: Islamabad High Court has suspended the SRO 1588 (1)/ 2023 issued by FBR imposing 40 percent additional tax on windfall income of banks i.e Forex trading and ordering to pay before November 30 2023.

Court has further ordered FBR to demonstrate not only a prima-facie case but also that the ingredients of balance of convenience and irreparable loss operate in favour of the petitioner bank. The SRO shall remain suspended till the next date of hearing.

29/11/2023

The Islamabad High Court stayed windfall tax on banks today.

Banks across Pakistan took advantage of credit card users (charging them crazy exchange rates) and those opening LCs by charging extremely high margins on dollar rates. They made a profit of 110 Billion Rupees!!! 110 Billion! - highest ever due to speculative practices. The government imposed a 40% windfall tax on them - and rightly so!

Italy and Spain also imposed 40% windfall tax on banks and energy companies this year. No judge stayed that.

Our judiciary has been a consistent bane in economic reforms. From Reko Diq, to staying cases of non performing bureaucrates to issues of privatization etc.

God Help Us!

As a tax advisor, I'm committed to helping my clients save money and achieve their financial goals.

23/11/2023

The SRO. 1588 of 2023 has outlined a formula to determine the windfall income, profit and gains of banks. This formula uses the declared profits from the years 2015 to 2020 to calculate an average profit. This average profit is then subtracted from the bank profits for the years 2021 and 2022.
Any profits exceeding this average for the years 2021 and 2022 are deemed as windfall income, profit and gains.
The federal cabinet’s endorsement of the windfall tax was a response to intense criticism of banks, which reportedly made substantial profits of Rs110 billion in 2021 and 2022 through speculative rupee-dollar trading.

18/11/2023

The Federal Board of Revenue (FBR) has announced disconnecting utility connections including electricity and gas connections and blocking of mobile sims, if tax return is not filed in response to notices issued.

The top tax authority in a statement that recently introduced section 114B in the Income Tax Ordinance, 2001, authorises it to take such action against those who fail to submit their returns.

As part of restructuring measures, FBR has established 145 District Tax Offices which will focus on bringing 1.5 to 2 million new taxpayers into the tax net till June, 2024. The Prime Minister has stressed the importance of revenue and increasing the existing number of tax filers during recent meetings.

It has notified the establishment of these offices, a new initiative that will help broadening the tax base and ultimately raising tax-to-GDP ratio to a desired level.​These offices would be headed by District Tax Officers entrusted with the responsibility of enforcing Income Tax Returns from non-filers and stop filers.