Ahmad Saeed & Company

Ahmad Saeed & Company Advocates Attorneys and Corporate Consultants

August 2017
04/05/2017

August 2017

28/04/2017

Import duty & taxes when importing into Pakistan

Import duty and taxes are due when importing goods into Pakistan whether by a private individual or a commercial entity. The valuation method is CIF (Cost, Insurance and Freight), which means that the import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance. However, import duty can also be charged per unit of measure. In addition to duty, imports are subject to sales tax (VAT), excise on some products, and import regulatory duty.

Duty Rates

Duty rates in Pakistan vary from 0% to 100%, with an average duty rate of 20.67%. Some goods can be imported free of duty.

Sales Tax

Imports into Pakistan are not subject to sales tax by default. Only certain products, like cosmetics or food supplements, are subject to GST when imported into Pakistan. When applicable, the standard GST rate is 17% and the reduced rate is 5%, calculated on the sum of the CIF value, duty, import regulatory duty, and excise.

Minimum thresholds

There is no minimum threshold for imports in Pakistan, i.e. import duty and taxes are always applicable on imports regardless of their value.
Other taxes and custom fees
Excise duty is applicable on some goods such as alcohol and to***co products. It can be applied ad valorem calculated on the sum of the CIF value and applicable duty, or it can be specific, i.e. charged per unit of measure.
Import regulatory duty is charged on some products at a rate between 5% and 50% calculated on the CIF.

More information on import declaration procedures and import restrictions can be found at the Pakistani Customs website.

18/04/2017

The government will scrap the controversial 457 visa and replace it with new "temporary visa" with additional provisions for English proficiency.

“We are abolishing the 457 visas – the visas that bring temporary foreign workers into our country," Prime Minister Malcolm Turnbull said in a video Facebook post.

The 457 visa allows businesses to bring skilled foreign workers into Australia to fill shortages in the labour force.

09/04/2017

Immigration Minister Peter Dutton said the government is looking at encouraging migrant workers to settle in regional cities and away from the property hot-spots of Sydney and Melbourne.

Treasurer Scott Morrison has made tackling housing affordability the centrepiece of the May 9 budget.

Mr Dutton said a lot of work has been done between his department, Treasury and Finance to have a look at the economic impact of people settling in Sydney or Melbourne in terms in terms of infrastructure and housing supply.

12/01/2017

Topic: Preparation of General Power of Attorney (GPA) or Special Power of Attorney (SPA) by overseas Pakistanis related to their legal matters back home.

For General Power of Attorney (GPA)

1. Full Name, Addresses and ID details of Executor/ Principal and Attorney.
2. Exact details of Property such as Plot Number, Khasra Numbers etc.
3. Correct reference of Title Document such as Transfer Letter, Sale Deed, Lease Deed, Mutation, Fard Jamabanadi etc.
4. GPA must contain clause of selling of the Property along with other general clauses.

For Special Power of Attorney (SPA)

1. Full Name, Addresses and ID details of Executor/ Principal and Attorney.
2. Exact details of Property such as Plot Number, Khasra Numbers etc.
3. Correct reference of Title Document such as Transfer Letter, Sale Deed, Lease Deed, Mutation, Fard Jamabanadi etc.
4. SPA must contain the specific clauses such as looking after the property, preparing building on open plot, look after agricultural land etc.
5. If the powers delegated to the attorney to follow up certain Court Case in Pakistan make sure the Court name, Case Title, Case number etc. must be incorporated in the SPA. Also delegate the powers for all connected matters of that particular case and all appeals required to be filed in the Higher Courts.

Procedure of Registration of Power of attorney in Pakistan

Every GPA must be registered under Section 17 of the Registration Act 1908 in Pakistan and there is no mandatory requirement for registration of SPA in some cases.

1. When you send power of attorney to Pakistan the first step needs to follow by the attorney is to present the GPA or SPA before the Ministry of Foreign Affairs or its sub offices called Foreign Office in major cities of Pakistan for its authentication / genuineness.
2. Second step to be followed by the attorney is to submit it to the Treasury Office for affixation of adhesive stamp.
3. Third step is to submit the GPA for its registration with the Sub Registrar concerned.

Apart from the requirements of Pakistan High Commission or Consulate General of Pakistan every overseas Pakistani needs to consider above issues while preparing GPA or SPA regarding their legal matters in Pakistan.

Revocation / Cancellation of GPA or SPA

GPA or SPA can be revoked / cancelled in the following manner:

1. The Principal / Executor can cancel all the powers delegated to the attorney at any time by executing deed of revocation/ cancellation of GPA or SPA.
2. At the death of Principal or the Attorney.
3. If the purpose of GPA or SPA has been done.

For further information please don’t hesitate to contact me via email i.e. [email protected] or visit our website www.asclawyers.com

20/12/2016

New Taxes on Property transactions in Pakistan

Withholding Tax for Buyers of Immovable Property
The Federal Board of Revenue has increased the WHT threshold. The new policy of withholding tax (WHT) will only be applicable on properties worth PKR 4 million or above.
WITHHOLDING TAX FOR PURCHASERS OF IMMOVABLE PROPERTY
For non-filers, 4% WHT on purchase of property
For filers, 2% WHT on purchase of property
WITHHOLDING TAX FOR SELLERS OF IMMOVABLE PROPERTY
For filers, 1% WHT on sale of property
0% WHT on sale of properties after 5 years of purchase
For non-filers, 2% WHT on sale of property
Capital Gain Tax (CGT)
Capital Gain Tax (CGT)
Capital Gain = Price of property at the time of sale – Price of property at the time of purchase
Profit on sale of immovable property = Capital Gain
Capital Gain on property purchased for 20 LAC sold for 100 Lac (Sold Value as per FBR or new rates & Purchase value as per DC Rates)
Tax on property profit = Capital Gain Tax = CGT
Capital Gain = 100-20 = 80 Lac Profit
On profit of 80 Lac- According to new CGT calculations
Within 3 years of purchase 5% CGT on sale of property = 4 Lac
Within 2 years of purchase 7.5% CGT on sale of property = 6 Lac
Within 1 year of purchase 10% CGT on sale of property = 8 Lac
After year of purchase 0% CGT on sale of property = 0
BEFORE 1st OF JULY 2016 – CGT PROPERTY TRANSACTIONS
5% CGT is applicable to past transactions and on all properties sold out within 3 years and purchased before 1 July 2016.
After 1 July 2016 – CGT on Property Transactions
After 3 years of holding period 0% CGT on sale of properties
Within 1 year of purchase 10% CGT on sale of properties
Within 3 years of purchase 5% CGT on sale of properties
Within 2 years of purchase 7.5% CGT on sale of properties
For the government employees 50% tax relaxation
No or 0% CGT to be paid by the relatives who have issued plots of the Martyrs.
Note that property price is not what the market value says but the prices fixated by FBR. According to 35-50% of the fair value of property, FBR will start taxing real estate transactions. But in future, all taxes will be collected according to the FAIR MARKET VALUE.
Tax on Rental Income
Annual rental above 20 Lac = 20% of the gross / amount PKR 210,000
Annual rental 10-20 Lac = 15% of the gross amount / PKR 60,000 plus
Annual rental 6-10 Lac = 10% of the gross amount / PKR 20,000
Annual rental income 2-6 Lac = 5% of the gross amount
There is no tax on Rental income less than PKR 2 Lac per year and the landlord has no income source other than the rental income.

26/09/2015

EID GREETINGS!!!!

Wishing all of u a very Happy Eid Greetings.

Regards
Team Ahmed Saeed & Co.

29/07/2014

HAPPY EID GREETINGS TO ALL OF U....

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