Syed Bilal & Co.

The new Royal line of Succession

We can see India and Bangladesh as well, but Pakistan is no where to be even depicted in world of economies. The obvious reason is our dismal state of economic affairs. The other reason is undocumented economy.

8th to 12th July would be Eid-Ul-Azha Official public holidays

Income Tax and Stamp Duty rates in respect of Immovable property. Tax year 2023

Income Tax rates for Non-salaried and AOPs - Tax Yesr 2023

We are not the only ones who are humiliated at Pakistani airports...
No words... 🤦🏻‍♂️😏

Finally has announced that Pakistan is in full compliance for the reviewed compliance period from Oct'21-Mar'22.
Therefore Pakistan has high hopes for coming out of Grey list once they visit the country and the announcement may arrive during October 2022 meeting of Executive council of members.
Thank you former PM Imran Khan.

Advance tax sections 236-G and 236-H: FBR may waive off CNIC condition

The Federal Board of Revenue is examining a proposal to waive off the condition of submitting computerised national identity card (CNICs) numbers on payment of advance tax on sales to distributors, dealers, wholesalers and retailers under sections 236-G and 236-H of the Income Tax Ordinance, 2001. Sources told Business Recorder here on Thursday that the taxation measure under 236-G and 236-H requires CNIC or other particulars for deposit of tax payment.

The section 236-G is related to the advance tax on sales made to distributors, dealers and wholesalers and section 236-H deals with the advance tax on sales to retailers. Recently, business community has explained the FBR that as it is simply not possible for them to collect particulars of their buyers therefore this exercise had remained non practicable in the past.

Business and trade suggested that people are ready to pay tax hence if a provision of free tax number be provided, they will discharge their tax liability without going into the requirement of CNIC and NTN or otherwise government would not able to even collect tax on this account.

The FBR is of the view that the idea was basically introduced two years back through notification 821(i)/2011 and 191(I)/2011 than amendment was brought in through section 153-A of the Income Tax Ordinance 2001. The whole idea behind the scheme was to build up a database of unregistered persons and then use this information for broadening of tax base. The increasing number of taxpayers would eventually reduce the tax burden of existing persons and hence the traders should extend their assistance for the achievement of this objective.

Sources said that the business and trade is not against the broadening of tax base but practically it''s not possible for them to secure required information from their customers. The unregistered segment of the society is far bigger than registered segment hence the registered segment cannot dictate their terms. The penalty of 1 percent further tax along with 5 percent extra tax on utility bills of unregistered person were introduced and supported by trade with the ideology to make the unregistered person uncompetitive so that they will be forced into the tax net. It is neither practicable nor justifiable that at one end extra penalty of tax be collected from unregistered person and at the other end they would be required to provide their detail of particulars, they added.

Keeping in view the observations of the business community, the FBR is reviewing proposal to take away the condition of submitting CNICs on payment of advance tax on sales to distributors, dealers and wholesalers under sections 236-G and 236-H of the Income Tax Ordinance 2001.

Exemption from Capital Gains:
*Apartments - After 2 Years*
*Constructed Property - After 4 Years*
*Open Plot - After 6 Years*

IT SECTOR TAX ALERT: freelancers, individuals, AOPs, companies may end up paying tax in the range of 20% to 35% of their profits instead of 0.25% of export proceeds if following 4 conditions are not met:
1. PSEB registration
2. Annual tax return filing
3. withholding statement filing even if its NIL
4. sales tax return filing
Brace urself for more tax notices.

IT Sector Tax Budget Alert:
a. Tax credit regime replaced by final tax regime. 0.25% tax on all export proceeds subject to registration with PSEB, return filing, WHT statement filing, sales tax return filing. Option of NTR is also available.
b. 5% sales tax in Islamabad increased to 15% for IT & IT enabled services.
c. Advance tax on credit card etc. payments re-introduced.
d. Tax on fee for offshore digital services increased from 5% to 10% while on some payment gateway related servcies, reduced from 15% to 10%.
e. Call centers in islamabad sales tax reduced from 17% to 15%.

A favourable federal budget for the Salaried Individuals.

There wasn’t any. I wonder why they did that!

Good news in upcoming budget for IT industry, says FBR chief Special Technology Zones Authority launches one-window portal.

Salient Features
Federal Budget 2022-23

Adjustments of Previous Years Tax Refunds.

Rate of Taxation for Salaried Individuals and Companies.

Budget FY23: Custom duty on agriculture machinery abolished to promote growth and investment in the sector.

Budget FY23: PKR 10 billion has been allocated for the improvement of climate projects.

Budget FY23: Sales tax on solar panels imposed by the last govt has been removed.

Budget FY23: PKR 202 billion has been allocated for Transport & Communications sector.

FY23 Budget: GDP target set at 5%.

FY23 Budget: Inflation target at 11.5%.

Budget FY23: Fiscal deficit to be targeted at 4.9% of GDP in FY23.

Budget FY23: Exports & Imports target at USD 35bn, & imports at USD 70bn, respectively.

Budget FY23: Current account deficit targeted at 2.2% of GDP as compared to 4.1% deficit of FY22.

Budget FY23: Remittances expected at USD 33.2bn in FY23 as compared to USD 31.1bn in the last year.

Budget FY23: PKR 3,950bn for debt servicing has been allocated as compared to PKR 3,144bn in FY22.

Budget FY23:Targeted subsidies at PKR 699bn.

Budget FY23: Total tax collection target at PKR 7,004 bn as compared to Tax collection of PKR 6,000 bn in FY22.

Budget FY23: Allocation for Benazir Income Support programme has been increased to PKR 364bn as compared to 250bn in the last year.

Budget FY23: PSDP allocation set at PKR 800bn.

Budget FY23: PKR 65 billion has been allocated to Higher Education Commission.

Budget FY23: PKR 21 billion has been allocated for increase in the production of crops and livestock.

Budget FY23: Youth employment policy program will be started for the fresh graduates of Pakistan with 25% women quota.

Budget FY23: Free laptops to be distributed on merit among students.

Budget FY23: PKR 40.5 billion DLTL claims to be released immediately by the FBR along with sales tax pending refunds.

Budget FY23: Industrial feeders have been exempted from load shedding.

Budget FY23: Nine Special Economic Zones to be established on CPEC route.

Budget FY23: Film makers to be given tax holidays for the next five years. Exports rebate will be provided on movies and dramas exports for the next 10 years.

Budget FY23: Distributors & film producers to be exempted from the imposition of 8% with holding tax. Along with this, Custom duty on import of machinery for the entertainment industry will be abolished.

Budget FY23: Sales tax on import of media and entertainment industry slashed to zero to promote media & entertainment industry.

Budget FY23: PKR 800bn has been set for PSDP in FY23 which has been PKR 1,000bn in 2018.

Budget FY23: PKR 136 billion has been allocated under PSDP for provinces, Azad Kashmir and Gilgit Baltistan.

Budget FY23: PKR 73 billion has been allocated for the Energy sector for the improvement in transmission, distribution & production of electricity. Under this allocation, PKR 12bn would be spent on Muhamand Dam.

Budget FY23: PKR 183 billion has been allocated for water and energy projects.

Budget FY23: PKR 202 billion has been allocated for Transport and Communication sector.

Budget FY23: To ease common man life under Sustainable Development Goals, PKR 70 billion has been allocated.

Budget FY23: PKR 51 billion has been allocated for Higher Education projects.

Budget FY23: To improve country's health system, availability of treatment, PKR 24bn has been allocated.

Budget FY23: PKR 10 billion allocated to combat climate changes.

Budget FY23: PKR 17 billion allocated for Information and Technology sector.

Budget FY23: PKR 11 billion has been allocated to improve agriculture productivity.

Budget FY23: PKR 20 billion has been allocated for the K-IV project.

Budget FY23: Minimum salary eligible for income tax has been increased to PKR 1.2 million as compared to PKR 0.6mn to facilitate salaried class.

Budget FY23: Income exempted for AOP, Business Individuals has been increased to PKR 0.6 million from PKR 0.4 million.

Budget FY23: Income tax on Behbood certificates, Pensioners account has been decreased to 5% from 10%.

Budget FY23: Fixed income and sales tax to be charged from small retailers. This tax will be collected through electricity bills. Amount PKR 3-10K.

Budget FY23: Initial 100% depreciation allowed for Industrial units as compared to 50%.

Budget FY23: Properties having value of PKR 25 million will have to pay 1% income tax on rental income which will be equal to 5% of the fair amount of the property. This tax will not be applicable for personal residence.

Budget FY23: 15% capital gain tax to be charged on immovable properties sold under one year holding period.

Budget FY23: Advance tax for filers for property transactions has been increased to 2% from 1%. And same has been increased to 5% for the non filers.

Budget FY23: Banking sector to be taxed at 42% from current taxation of 39%.

Budget FY23: Payments made through Debit, Credit, and Pre Paid cards to foreign country would be charged with 1% & 2% advance WHT for filers and non filers.

Budget FY23: Banks will provide cheap financing for the purchase of solar panels for households using less than 200 units of monthly electricity.

Budget FY23: 5% sales tax on tractors abolished to zero.

Budget FY23: Sales tax on import of Sun flower, Cannola, wheat, seeds has been abolished.

Budget FY23: 50 beds Not for Profit hospitals would not be charged with local utilities (free electricity, water & other facilities).

Budget FY23: Custom duty on agriculture machinery has been abolished.

Budget FY23: Custom and additional custom duties along 400 tariff lines have been rationalized.

Budget FY23: More than 30 pharmaceuticals API have been exempted from Customs duty.

Budget FY23: Tax evasion in the country is estimated to be PKR 3,000 billion.

Budget FY23: Salaries of Govt employees to be increased by 15%.

Question of maintaining beyond 6 years now settled by The of (SC):

SC has held that the taxpayer cannot be compelled to produce the record for a tax year beyond the period of six years under the Income Tax Ordinance 2001.

In an order in the matter of Civil Petition No 1691-L of 2018 filed against the orders of by , the apex court has held that a taxpayer is obliged to maintain the record under section 174(3) of the Income Tax Ordinance for a period of six years and the taxpayer cannot be compelled to produce the record for a tax year beyond that period.

Hence, notices issued under section 165(2B) or 161(1A) of the Ordinance, being ineffective and unenforceable, were rightly set aside by the LHC.

It is also settled now that Section 214A “ of time limit” cannot be invoked to deprive the of the under section 174(3) of the .

Smart decisions today, lasting value tomorrow.

Don't just business, accurate it!

Finally the much awaited extension.

Profile updation gets extention upto 30th June 2021.

Wise or otherwise, it's your choice.
Let us handle the FBR for you!