TaxationPk
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Empowering You with Taxation Knowledge and Services in Pakistan.
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Do you know EVERY service provider in Pakistan needs to file taxes? 🚕 🧑⚕️ 👩⚖️ From taxi drivers to doctors, understand your tax obligations! This article is your practical guide to navigating the FBR system. Learn about business expenses, wealth statements, and declaring assets. File your tax return accurately and avoid penalties. Click to master Pakistani tax returns today! Read More: https://taxationpk.com/how-to-file-tax-return-for-service-providers/
Do you know that property transaction BANS are CANCELLED? 🎉 HUGE Relief! The controversial bill is STOPPED! Non-filers, breathe easy! Your property deals are SAFE (for now!). National Assembly just BLOCKED strict new FBR rules. Find out WHY the ban failed and what it means for YOU! Click now for the URGENT property market update! Read More: https://blog.taxationpk.com/national-assembly-puts-brakes-on-tax-laws-amendment-bill-2024-property-restrictions-on-hold/
The Federal Board of Revenue (FBR) has introduced an updated mechanism for collecting additional sales tax from electricity and gas consumers not listed in the Active Taxpayers List (ATL). This move aims to enhance tax compliance and ensure a fair contribution from commercial and industrial users. Scope of Additional Sales Tax As per Rule 158I of the Sales Tax Rules, 2006, this extra tax is applicable to industrial and commercial consumers whose utility bills exceed Pak Rs. 15,000 per month. If a consumer’s name does not appear on the ATL, the Federal Government's prescribed extra tax rate will be levied. Tax Collection Mechanism Under Rule 158J, the FBR has outlined the procedure for implementing this tax: 1. Electricity and gas providers must collect the additional tax from non-ATL industrial and commercial users. 2. The extra tax must be displayed as a distinct line item on bills or invoices issued to consumers. 3. Suppliers are responsible for depositing the collected tax under Section 6 of the Sales Tax Act. Regulations and Conditions Under Rule 158K To streamline the collection and adjustment of this tax, the FBR has set specific conditions: 1. The collected tax cannot be adjusted in the tax returns of either the supplier or consumer and must be fully deposited in the national treasury. 2. Utility suppliers must obtain and verify the Sales Tax Registration Number (STRN) of consumers via the FBR’s official database. 3. The name, address, and registration details of the consumer must align with the records in the Active Taxpayers List. 4. Businesses with multiple locations must ensure all addresses are accurately recorded in their tax registration. 5. Upon verification of a consumer's registration status, suppliers must update their billing systems to exclude the additional tax for registered taxpayers. 6. If a consumer is later removed from the ATL, suppliers must reinstate the extra tax charge in the subsequent billing cycle. Encouraging Compliance With these updated regulations, the FBR seeks to curb tax evasion and incentivize businesses to register and file their taxes. The linkage of utility taxation to ATL status is expected to improve tax compliance and broaden the tax base, benefiting national revenue collection. #TaxationPk
Do You Know? Digital banking in Pakistan isn't just about convenience—it comes with tax obligations too! 📊 The FBR now monitors all transactions via the IRIS portal. 💰 Your business may owe 18% sales tax on certain transactions! 🚨 Ignoring these rules can lead to penalties. Stay compliant and secure your finances! 🔐 Read More: https://taxationpk.com/digital-banking-tax-compliance-in-pakistan/
Over the past year, high property taxes have made it difficult for investors and homeowners. New restrictions on non-filers and various tax burdens have slowed the market. To address this, the Prime Minister has formed a task force to propose reforms and boost the housing sector. Key Tax Reforms • Abolition of 7E Tax: This tax, based on wealth statements rather than income, has faced legal challenges. The government plans to abolish it, providing relief to property owners. • Non-Filer Property Transactions: Non-filers were barred from purchasing property, but they can now buy up to Rs. 1 crore without scrutiny. • Uniform Tax Rates: Currently, late filers pay higher taxes. A flat 3% tax on transactions up to Rs. 5 crore is being considered for all filers. • Easier Process for NRPs: Overseas Pakistanis will soon be able to verify their status online via NADRA, removing the need for commissioner approval. • CVT & Stamp Duty Changes: The government plans to remove Capital Value Tax (CVT) in Islamabad and standardize stamp duty across provinces. • Property Valuation Stability: Instead of unpredictable annual increases, property values will be reassessed every three years, ensuring certainty for investors. • Lower Interest Rates: The government aims to reduce the policy rate below 10% to make mortgages more affordable and encourage investment. Implementation Timeline These reforms are expected to be implemented within one to two months through the National Tax Council, ensuring a uniform tax structure nationwide. The changes aim to revive real estate by reducing tax burdens, easing processes for non-filers and NRPs, and stabilizing valuations.
The Federal Board of Revenue (FBR) has issued a critical security update on its IRIS portal, urging users to take immediate action to ensure their data remains secure. As part of its efforts to enhance cybersecurity, the FBR will disable older TLS 1.0 and TLS 1.1 protocols and transition exclusively to TLS 1.2 and TLS 1.3 within 15 days. What Users Need to Know: Why This Update is Necessary Outdated security protocols, such as TLS 1.0 and TLS 1.1, are more vulnerable to cyber threats. Disabling these protocols is part of the FBR's commitment to protecting user data and ensuring secure communication on its systems. Steps for Users To maintain uninterrupted access to IRIS services, users must update their browsers to versions that support TLS 1.2 or TLS 1.3. Browsers that meet these requirements include: • Google Chrome: Version 30 and above • Mozilla Firefox: Version 27 and above • Microsoft Edge: Any version • Internet Explorer: Version 11 and above • Safari: Version 7 and above • Opera: Version 17 and above For Windows XP Users Users still operating on Windows XP, which does not support modern browsers, are advised to switch to Opera 36. This version supports TLS 1.2 and ensures basic compatibility. However, the FBR strongly recommends upgrading to a modern operating system for enhanced security. Verify Compatibility To check if your browser supports TLS 1.2 or TLS 1.3, visit tools like SSL Labs or similar online services. Verifying compatibility ensures you meet the updated security requirements. Important Advisory The FBR emphasizes that users must exercise caution when updating browsers or systems. Any updates or changes should be performed responsibly, as the FBR and its IT partner PRAL cannot take responsibility for third-party tools or external websites used during this process.
On January 29, 2025, the Federal Board of Revenue (FBR) issued SRO No. 69(I)/2025, introducing mandatory electronic invoicing (e-invoicing) for a wide range of businesses, including retailers (both Tier-1 and non-Tier-1), traders, distributors, commercial importers, and manufacturers. This directive aims to integrate these businesses' invoicing systems directly with the FBR to ensure real-time sales data reporting. Key Requirements: Invoice Details: Each electronic invoice must include a unique FBR invoice number, a verifiable QR code, software registration number, FBR's official logo, seller and recipient details, item descriptions, quantities, tax rates, and amounts. System Integration: Businesses are required to link their invoicing systems with the FBR's computerized system. This integration ensures that all sales data is automatically reported to the FBR in real-time, reducing manual interventions and potential discrepancies. CCTV Monitoring: The FBR mandates the installation of CCTV cameras at points where invoices are generated. Recordings must be retained for at least one month and provided to the FBR upon request. Record Retention: Businesses must maintain electronic sales records for six years, ensuring availability for any future audits or verifications. Penalties for Non-Compliance: Failure to integrate with the FBR's system can result in penalties starting from PKR 100,000. If non-compliance continues beyond two months, fines can escalate up to PKR 1,000,000, and the business premises may be sealed by Inland Revenue officers. Impact: This move by the FBR aims to enhance tax compliance and transparency within Pakistan's business community. Affected entities should promptly integrate their systems to avoid penalties and contribute to a more transparent tax ecosystem.
Do You Know? 🤔 Salaried employees in Pakistan are getting unexpected tax notices! Should they really be held accountable for employer tax filings? Get the facts now! 🔍📢 Read More: https://taxationpk.com/fbrs-tax-recovery-notices-to-salaried-individuals-under-scrutiny/
The Sindh cabinet has taken a significant step in taxation by approving the Agricultural Income Tax Bill 2025. This move, however, comes with evident reluctance as the provincial government navigates economic reforms under external pressures. The bill is set to take effect in January 2025, as announced by Chief Minister Syed Murad Ali Shah. He emphasized that the decision to impose an agricultural tax aligns with national interests, even though concerns persist within the provincial government. A major exclusion in the bill is the livestock sector, which remains untaxed. CM Murad clarified that the Sindh Revenue Board (SRB) will oversee the collection of agricultural income tax, taking over from the Board of Revenue (BOR). This shift is expected to streamline tax collection and enforcement. To address potential financial burdens on farmers, the government has announced that tax adjustments will be made in cases of natural disasters. Additionally, fines will be imposed for concealing cultivated land to ensure compliance and transparency. Despite this landmark decision, tensions remain between the Sindh government and the federal authorities. The provincial cabinet expressed its dissatisfaction over not being consulted during negotiations with the International Monetary Fund (IMF). CM Murad has vowed to raise this issue once again with the federal government. The IMF has consistently advocated for an agricultural income tax as part of its broader economic reform agenda. Last year, Finance Minister Muhammad Aurangzeb indicated that the necessary legislation would be completed by January 2025, with tax collection beginning from July 1, 2025. Economic analysts estimate that the government, with provincial cooperation, could generate up to Pak Rs. 300 billion annually from agricultural income tax. However, concerns persist regarding the economic impact of this taxation. CM Murad has cautioned that imposing this tax could lead to increased prices for essential commodities, including vegetables, wheat, rice, and other grains. The price hike could place an additional burden on consumers, particularly in urban areas where food inflation is already a significant concern. As the implementation date approaches, stakeholders from the agricultural sector are likely to demand further clarity on tax rates, exemptions, and enforcement mechanisms. While the bill represents a major policy shift, its execution and economic implications will determine its long-term viability and impact on Sindh’s agrarian economy.
Do You Know? 🌟Easy Paisa is no longer a microfinance bank! The State Bank has issued a digital retail banking license, transforming it into a full-fledged scheduled bank. Now, your Easy Paisa account will function like a traditional bank with cheque books, fund transfers, and loans. But with this change, FBR will now track high-value transactions. Are you ready for these new tax implications? Stay informed! Read More: https://taxationpk.com/fbr-will-now-check-transactions-of-easy-paisa-account/
