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NEW TAX IMPOSITION ON RETAILERS.

1. *TAX RATE*:
- Non-filer retailers: 2.5% advance income tax under Section 236H of the Income Tax Ordinance
- Filer retailers: 0.5% advance income tax.

2. *EFFECTIVE DATE*:
- The new tax imposition will come into effect on July 1.

3. *ACTION REQUIRED*:
- Retailers are advised to file their tax returns for 2023 immediately.

- Pay Rs. 1,000 to avoid additional tax.

4. *UPDATE NATIONAL IDENTITY CARD NUMBER*:
- Retailers should update their national identity card numbers with their distributors before July 1.

5. *CONTACT FOR GUIDANCE*

𝗔𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗡𝗼𝗻-𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝘁 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀! 🚨

The Securities and Exchange Commission of Pakistan (SECP) is offering a golden opportunity to regularize your company with the 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗥𝗲𝗴𝘂𝗹𝗮𝗿𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗦𝗰𝗵𝗲𝗺𝗲. 📑

✅ There are no penalties, and you can complete your filings with just a one-time fee.
📅 Scheme Duration: 15th June 2024 to 15th September 2024.

🔗 For detailed guidelines, please contact 0335-0522-833

Key Changes in Sindh Sales Tax on Services,Standard has been enhanced from 13% to 15%.

Percentage increase in tax on Income From Salary.Middle class is suffering more.

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TikTok · Abid Ali. Licensed Tax Filer Check out Abid Ali. Licensed Tax Filer’s post.

ایف بی آر
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پریس ریلیز
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ایف بی آر کی جانب سے تاجر دوست سکیم سے متعلق متفرق سوالات اور ان کے جوابات

سوال نمبر 1: تاجر دوست اسکیم کس کے لیے ہے؟
جواب: تمام ہول سیلرز، ،ریٹیلرز، ڈیلرز مثلاً جنرل اسٹورز، میڈیکل اسٹورز، فرنیچر اور تزئین وآرائش کی دُکانیں اور تمام دُکانیں اس اسکیم میں شامل ہیں۔

سوال نمبر2: تاجر دوست اسکیم کس کے لیے نہیں ہے؟
جواب: یہ اسکیم تمام تاجر افراد کے لئے ہے جن کاسوال نمبر1میں ذکر ہے۔ ماسوائے ان کیٹگری کے
۱۔ کمپنی
۲۔نیشنل اور انٹرنیشنل چین اسٹورز جو ایک سے زیادہ شہرمیں واقع ہوں۔

سوال نمبر 3: کیا انکم ٹیکس میں پہلے سے رجسٹرڈ دُکاندار کو تاجر دوست اسکیم 2024 میں بھی اپنے آپ کو رجسٹرڈ کروانا ہوگا؟
جواب: اگر آپ پہلے سے رجسٹرڈ ہیں تو دوبارہ رجسٹریشن کی ضرورت نہیں۔ آپ اسکیم میں رجسٹرڈ شمار کئے جائیں گے۔ البتہ یکم جولائی 2024سے ماہانہ ایڈوانس انکم ٹیکس اسی تاجر دوست اسکیم کے تحت جمع کروانا ہوگا۔

سوال نمبر4: میں پہلے سے ایک دُکاندار کی حیثیت سے انکم ٹیکس میں رجسٹرڈ ہوں اور اپنا مجوزہ ٹیکس ادا کرکے انکم ٹیکس ریٹرن بھی جمع کرواتا ہوں تو کیا مجھے بھی اب اس نئی تاجر دوست اسکیم میں رجسٹریشن کروانا ہوگی؟
جواب: اگر آپ پہلے سے رجسٹرڈ ہیں اور اپنا ٹیکس ریٹرن بھی جمع کرواتے ہیں تو دوبارہ رجسٹریشن کی ضرورت نہیں۔ آپ اسکیم میں رجسٹرڈ شمار کیئے جائیں گے۔ البتہ یکم جولائی 2024 سے ماہانہ ایڈوانس انکم ٹیکس اسی تاجر دوست اسکیم کے تحت جمع کروائیں گے۔

سوال نمبر 5: اگر میں اپنے آپ کو نئی تاجر دوست اسکیم میں رجسٹریشن کروالوں تو پہلے سے انکم ٹیکس رجسٹریشن کینسل تصور ہوگی اور مجھے ریٹرن جمع نہیں کروانی ہوگی۔
جواب: جی نہیں! آپ کی پہلی رجسٹریشن ختم نہیں ہوگی۔ تاجر دوست اسکیم تمام تاجروں کے لیے ہے۔ اگر کوئی تاجر پہلے سے رجسٹرڈہے اور اپنا گوشوارہ (ریٹرن)بھی جمع کرواتا ہے تو دوبارہ رجسٹریشن کی ضرورت نہیں۔ آپ اسکیم میں رجسٹرڈ شمار کئے جائیں گے۔ البتہ یکم جولائی 2024سے ماہانہ ایڈوانس انکم ٹیکس اسی تاجر دوست اسکیم کے تحت جمع کروانا ہوگا اور سال 2024 کا ریٹرن معمول کے مطابق جمع کروائیں گے، جیسے پہلے جمع کرواتے رہے ہیں۔

سوال نمبر 6: کیا انکم ٹیکس اور تاجر دوست اسکیم 2024کے تحت ایک دُکاندار کو علیحدہ علیحدہ انکم ٹیکس اور ایڈوانس ٹیکس دینا ہوگا یعنی بیک وقت دونوں ٹیکس 25-2024 میں دینا ہوں گے؟
جواب: تاجر دوست اسکیم میں ٹیکس جمع کرانے کا طریقہ کار دیا گیا ہے، دُکاندار یا تاجر کو اِس اسکیم کے تحت ماہانہ ایڈوانس ٹیکس دینا ہوگا۔ جو تاجر سہ ماہی ایڈوانس انکم ٹیکس دینے کے پابند ہیں وہ اپنا سہ ماہی انکم ٹیکس جمع کرواتے وقت تاجر دوست اسکیم میں دیا گیا ٹیکس ایڈجسٹ کرواسکتے ہیں۔

بقیہ سوالات اور ان کے جواب اگلی پوسٹ میں دیئے گئے ہیں۔
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The Pakistan Tax Bar Association (PTBA) has formally urged the Chairman of the Federal Board of Revenue (FBR) to revise SRO No.350(I)/2024, particularly concerning the corporate sector. They argue that the current SRO could potentially disrupt economic activity and have adverse effects on tax collection.

In a letter addressed to the FBR Chairman on Thursday, the PTBA expressed its recognition of the importance of digitalizing the taxation system and commended the FBR’s efforts in this regard. However, upon reviewing SRO No. 350(I)/2024 issued on March 07, 2024, the association identified certain fundamental issues that need attention.

The PTBA highlighted several concerns and observations for consideration. Firstly, they pointed out the requirement for filing a balance sheet within 30 days for individuals, associations of persons, and companies with only one shareholder or member, excluding the manufacturer. They argued that this provision could be streamlined with existing practices to avoid unnecessary duplication.

Secondly, the PTBA suggested an amendment to Rule 18, which currently mandates permission from the Commissioner for taxpayers with turnovers exceeding five times their capital. They emphasized the need to consider various modes of business activities and external factors that may influence turnover, proposing a more flexible approach in assessing compliance.

Lastly, the association proposed a revision to the new proviso added in Rule (30), which requires prior approval from the Commissioner for issuing credit notes. They recommended a shorter timeframe for obtaining approval to align with existing deadlines for sales tax filing returns.

In conclusion, the PTBA called upon the FBR Chairman to make necessary amendments to SRO No.350(I)/2024. They emphasized the importance of facilitating compliant taxpayers and ensuring a smooth implementation process without unnecessary complications. For the latest Real Estate News , visit Realtorspk blogs.

FBR INTRODUCES SWAPS SYSTEM FOR TRANSPARENT TAX COLLECTION ON GOODS AND SERVICES.

The Federal Board of Revenue (FBR) has announced a significant change in the way businesses process payments for goods and services with the introduction of the SWAPS system. This article explains what SWAPS is, its implications for businesses, and its potential benefits for the tax system.

WHAT IS SWAPS?

SWAPS stands for "System for Web-based Automated Payment System". It's a new system implemented by the FBR that aims to create transparency and streamline tax collection on transactions involving goods and services. Here's a breakdown of its key aspects:

Web Based Portal: SWAPS can be a dedicated FBR web portal or a computerized system designed by notified SWAPS Agents (defined later) that integrates seamlessly with the FBR for processing payments.

Focus on Withholding Taxes: The initial focus of SWAPS seems to be on transactions where withholding tax is applicable. This includes payments made to suppliers, contractors, or vendors.

WHO ARE SWAPS AGENTS?

The notification defines SWAPS Agents as entities defined in section 2 of the Income Tax Ordinance, 2001.

“Synchronized Withholding Administration and Payment System agent” or “SWAPS agent” means any person or class of persons notified by Board to collect or deduct withholding taxes through Synchronized Withholding Administration and Payment System

WHAT ARE THE KEY CHANGES FOR BUSINESSES?

The notification outlines several key obligations for notified SWAPS Agents:

Registration and Integration: Upon notification by the FBR, SWAPS Agents will need to update their profiles on the Integrated Revenue Information System (IRIS) and integrate their systems with the FBR's SWAPS platform.

Fiscal Device and Software: Businesses will need to install and utilize FBR-approved fiscal electronic devices and software to process transactions subject to withholding tax. This software will likely communicate with the SWAPS platform for real-time data exchange.

Digital Invoices:

From a specific date (to be notified), SWAPS Agents will only be able to process transactions where a digital invoice is generated through the FBR's web portal or a SWAPS Agent's integrated system.

Data Verification:

SWAPS Agents are required to verify the CNIC (Computerized National Identity Card), NTN (National Tax Number), and IBAN (International Bank Account Number) of the withholdee (supplier/vendor) to ensure they match. This helps ensure accurate tax deductions and prevents potential misuse.

BENEFITS OF THE SWAPS SYSTEM:

Enhanced Transparency:

With real-time data exchange and digital invoicing, the FBR can gain greater visibility into business transactions and identify potential tax evasion attempts.

Improved Tax Collection:
The system ensures proper withholding tax is deducted at the source, leading to more efficient tax collection.

Reduced Compliance Burden:
For businesses, the SWAPS system might simplify tax compliance by streamlining withholding tax deduction and reporting processes.

Standardized Receipts:
Standardized SWAPS Payment Receipts (SPR) serve as proof of tax payment for businesses and simplify claiming tax refunds or credits.

IMPORTANT CONSIDERATIONS:

Implementation Timeline:

The notification doesn't specify the exact date for mandatory SWAPS integration for all businesses. Businesses should keep an eye on FBR updates for specific implementation dates.

Penalties for Non-Compliance: Businesses failing to comply with SWAPS regulations could face penalties as outlined in the Income Tax Ordinance, 2001.

CONCLUSION:

The FBR's SWAPS system represents a significant step towards modernizing tax administration in Pakistan. It's crucial for businesses to stay updated on the implementation timeline and ensure compliance with the SWAPS regulations to avoid any potential issues.

This article was published at FBR Introduces SWAPS System for Withholding Agents

FBR MANDATES TRADER & SHOPKEEPER REGISTRATION APRIL 30TH DEADLINE

*A New Era for Business Registration in Pakistan.

(FBR) has introduced a significant change in business registration through S.R.O. 420(I)/2024. This article delves into the key aspects of this notification, focusing on mandatory registration for traders and shopkeepers.

EFFECTIVE DATE:

The registration requirement becomes effective on April 1st, 2024. This means all eligible businesses must complete the registration process by the deadline.

WHO NEEDS TO REGISTER?

The notification mandates registration for all traders and shopkeepers operating in Pakistan. This encompasses a broad range of businesses, including those dealing in:

*Retail goods

*Wholesale goods

*Services (may vary based on further FBR clarifications)

REGISTRATION METHODS:

The FBR offers multiple convenient options for business registration:

National Business Registry (Tajir Dost): Businesses can register online through the Tajir Dost portal.

TAX ASAAN APP:
The FBR's mobile application, Tax Asaan, provides another user-friendly platform for registration.

FBR PORTAL:
The FBR website offers an online registration facility for businesses.

FBR TAX FACILITATION CENTERS:
Businesses can visit their nearest FBR Tax Facilitation Center for in-person registration assistance.

DEADLINE FOR REGISTRATION:

All eligible businesses are required to initiate the registration process by April 30th, 2024. This provides a one-month window for businesses to comply with the new regulation.

CONSEQUENCES OF NON-COMPLIANCE:

If a trader or shopkeeper fails to register by the deadline, the Commissioner of Inland Revenue has the authority to register the business automatically.

ADDITIONALLY, Section 182 of the Income Tax Ordinance, 2001 (ITO 2001), may apply to non-compliant businesses, potentially leading to penalties and other consequences.

WHAT TO EXPECT AFTER REGISTRATION:

Once registered, businesses will receive a unique registration number. This number will be crucial for various tax-related activities, such as filing tax returns and claiming exemptions.

CONCLUSION:

The mandatory business registration requirement under S.R.O. 420(I)/2024 is a significant step towards promoting a more organized and transparent business environment in Pakistan. By registering with the FBR, businesses can ensure compliance with tax regulations and gain access to potential benefits offered by the government.

This article was published at How to Register Business Under Tajir Dost Rule with FBR?

The SECP has issued a circular No. 7/2024 clarifying power of the Commission to call or direct the calling of general meetings of the companies.

📅𝗞𝗲𝗲𝗽 𝗬𝗼𝘂𝗿 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗼𝗻 𝗧𝗿𝗮𝗰𝗸: 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗗𝗮𝘁𝗲𝘀 𝗳𝗼𝗿 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗢𝘄𝗻𝗲𝗿𝘀📅

As a business owner, staying on top of crucial deadlines is paramount to ensuring smooth operations and compliance with regulations. Here are three key dates to mark on your calendar each month:

1️⃣ 𝟭𝟬𝘁𝗵 𝗼𝗳 𝗘𝘃𝗲𝗿𝘆 𝗠𝗼𝗻𝘁𝗵: 𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗦𝗮𝗹𝗲𝘀 𝗧𝗮𝘅 𝗙𝗶𝗹𝗶𝗻𝗴 (𝗔𝗻𝗻𝗲𝘅-𝗖)
Filing your monthly sales tax returns on time is essential to fulfill your tax obligations and avoid penalties. Annex-C specifically deals with sales tax on goods, and timely filing ensures accurate reporting of your sales figures.

2️⃣ 𝟭𝟱𝘁𝗵 𝗼𝗳 𝗘𝘃𝗲𝗿𝘆 𝗠𝗼𝗻𝘁𝗵: 𝗘𝗢𝗕𝗜 𝗖𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 & 𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗦𝗮𝗹𝗲𝘀 𝗧𝗮𝘅 𝗣𝗮𝘆𝗺𝗲𝗻𝘁
Don't forget to contribute to the Employees' Old-Age Benefits Institution (EOBI) and make your monthly sales tax payments. EOBI contributions support your employees' financial security post-retirement, while timely sales tax payments demonstrate your commitment to fiscal responsibility.

3️⃣ 𝟭𝟴𝘁𝗵 𝗼𝗳 𝗘𝘃𝗲𝗿𝘆 𝗠𝗼𝗻𝘁𝗵: 𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗦𝗮𝗹𝗲 𝗧𝗮𝘅 𝗥𝗲𝘁𝘂𝗿𝗻 𝗙𝗶𝗹𝗶𝗻𝗴
Filing your sales tax return by the 18th of each month is crucial for providing comprehensive records of your taxable sales and purchases. Compliance with this deadline ensures transparency in your financial dealings and helps prevent potential audits or legal issues.

Remembering these dates is vital for maintaining regulatory compliance, avoiding penalties, and fostering trust with stakeholders. Stay organized, stay informed, and keep your business thriving!

سیکشن 7E سے متعلق نئی اپ ڈیٹس۔

ایف بی آر نے پنجاب کی فیلڈ فارمیشنز کو ہدایت کر دی کہ معزز لاہور ہائی کورٹ نے ICA نمبر 35908 آف 2023 مورخہ 15.02.2024 کے ذریعے سنگل بنچ کے سابقہ ​​فیصلے کو کالعدم قرار دے دیا ہے اور آرڈیننس کے سیکشن 7E کی دفعات اب معزز لاہور ہائی کورٹ کے دائرہ اختیار میں آنے والے ٹیکس دہندگان پر لاگو ہیں۔ .

لہٰذا اب پنجاب میں جائیداد کی منتقلی پر 7e سرٹیفکیٹ درکار ہوں گے۔

The Asia Internet Coalition (AIC) comprising global digital media giants has expressed serious concern over the implications of Pakistan domestic tax law definition of permanent establishment (‘PE’) while saying it is not aligned with international best practices and could do more harm than good to the country’s economy.
Jeff Paine Managing Director AIC in a letter addressed to Malik Amjed Zubair Tiwana Chairman, Federal Board of Revenue (FBR) said, “In our view, the amendments made to the PE definition are not aligned with international best practices and could do more harm than good to the Pakistan economy. We are generally concerned about the wider impacts the Pakistan virtual PE amendment may have on foreign investment and the risk of retaliatory measures from other countries, including the United States, which could result in long-term negative consequences for the growth of the country’s technology sector”.

“Moreover, research shows that these types of taxes are typically passed onto consumers which can arguably perpetuate production inefficiencies by targeting business input (e.g. advertising expenses) that are important for small businesses”, the letter stated.The Sindh Revenue Board (SRB) in December 2023 made it mandatory for all banks to deduct 13 percent of provincial sales tax on advertisement services of non-resident service providers like Facebook, Google, etc. This became a bigger problem when banks started charging 16 percent additional provisional sales tax on ad spending through credit cards (Facebook ads etc.)

Paine raised concerns over the definition of PE by removing the word ‘fixed’ and introducing a clause regarding ‘virtual PE’. This amendment means that any business conducting transactions through the Internet or any other electronic medium, regardless of whether a physical presence exists, could be considered to have a virtual PE.

The Association further stated that “In the event the removal of the amendment to the PE definition is not viable, we put forth for your kind consideration certain suggestions in relation to the PE provisions, to ensure they are aligned with international practices.”

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The letter stated that “Directions to be issued to tax officers to apply treaty benefits. We request that guidance is provided by FBR to tax officials concerning tax treaty benefits. While the Supreme Court of Pakistan has consistently held that double tax treaties override the Income Tax Ordinance, Pakistan’s tax department persists in applying the Tax Ordinance’s definition of nexus over the definitions provided in treaties. Accordingly, in practice, even for companies which are tax treaty protected, the tax officers do not often provide benefit of no taxability, going against agreed treaty positions with contracting jurisdictions.”

The tax treaties between Pakistan and over 60 other countries, including the United States and the United Kingdom, define “permanent establishment” as requiring a fixed place of business in Pakistan for nonresident enterprises to be subject to taxation. A fixed place of business typically refers to physical locations like management offices, branches, or factories.

In both treaties, a nonresident enterprise will not have a permanent establishment unless it operates through a “fixed place of business” established in Pakistan.

Given that nonresident entities providing digital services to Pakistani users usually lack a physical presence in Pakistan, they generally aren’t subject to Pakistani taxation on profits from these services, provided they don’t maintain a fixed place of business in the country.

This arrangement reflects the principle that taxation is typically applied where physical presence or significant business activities occur, and it addresses the unique challenges of taxing digital services provided remotely across borders.

AIC suggested that directions or guidance are issued to Pakistan tax officers to apply for tax treaty benefits, in line with the position held by the Supreme Court of Pakistan and in line with agreed double tax treaties in force.

This guidance will make it easier for businesses to have certainty over the tax implications of their Pakistan business activities and will lower the costs of doing business by reducing filing positions challenged by local Pakistan tax officers.

Sufficient lead time for application of the updated PE definition We express our concerns about the implementation of the new tax regulations, specifically regarding the Permanent Establishment (PE) definition and its impact on businesses operating in Pakistan, especially those based outside the country.

AIC requested the government to allow businesses sufficient time to effectively implement these new tax provisions. The changes to the PE definition have significant implications for non-resident businesses looking to operate in Pakistan, whether through virtual means or temporary physical presence.

E-commerce platforms and digital businesses, in particular, require adequate time to thoroughly understand the new laws and regulations and assess their implications for their services. They need to identify necessary modifications and ensure compliance with the regulations outlined in the notification. Implementing these changes requires businesses to restructure their operations to accommodate the new laws.

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The coalition said this involves adjusting internal systems to comply with the new obligations, updating processes for submitting revised tax returns, and accurately calculating any tax liabilities resulting from the revised PE rules.

“We stress that these adjustments cannot be rushed and require careful planning and consideration. Therefore, we urge the government to provide a reasonable transition period for businesses to adapt to the new tax provisions effectively,” the letter added.

“Both treaties also provide that a dependent person which has and habitually exercises the authority to conclude contracts in the name of the nonresident creates a deemed permanent establishment of that nonresident. We will refer only to the “fixed place of business” permanent establishment in this letter, on the assumption that the “dependent agent permanent establishment” PE does not exist in the particular case,” it said.

It is recommended to provide at least 6 to 12 months to non-resident suppliers to comply. This will allow non-resident taxpayers to make the appropriate legal, operational and technical changes. The amendment went into effect immediately which is not a good practice.

“We strongly suggest that the enforcement date of the updated PE definition is deferred to the next financial year (i.e. Financial Year 2024-25). Providing sufficient lead time will minimize the risk of non-compliance and maximize revenue for the government. We also recommend that interest and penalty consequences are waived during this time,” it added.

“We recommend establishing a registration threshold. We note that currently no de-minimis threshold applies to the PE definition under Pakistan law, for either applicability or compliance with the rules. This means that for businesses with a temporary or low virtual presence in Pakistan, including small businesses, business start-ups, or businesses testing the Pakistan market, will have to comply with onerous compliance obligations,” it further stated.

These businesses will be required to register for income tax in Pakistan, file income tax returns, advancing taxes – even if the quantum of revenue and tax due is minimal. This imposes a huge compliance burden on taxpayers as well as a large administration burden on FBR. These businesses and FBR will end up spending more on the compliance of those entities, than the revenue that is received.

ALSO READ
Sindh High Court Orders Full Restoration of Social Media Platforms
AIC recommended a minimum revenue threshold be introduced into the Pakistan PE law to ensure that small businesses are not within scope. In this regard, we recommend an annual minimum threshold exemption of PKR 1M to be the minimally appropriate threshold which is the same level as the simplified business regime under the Sales Tax law.

This would not only ensure compliance costs are balanced with the revenue to be collected but also ensure Pakistan aligns with international standards. Other countries that have introduced similar taxes over recent years included a minimum revenue threshold. For example, India’s Equalisation Levy provides for an INR 20M (approx. USD 250,000) annual turnover threshold before the levy is applied. In Nepal, the DST is only applicable if the annual transactions pertaining to the electronic services do not exceed NPR 2 million (approx. USD 16,500).

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پریشانی سے آزاد ذہن، نقصان سے آزاد کاروبار-

ایف-بی-آر میں کم پیسوں سے صرف فائلر بن کر فائدے حاصل کرنا عام طور پر عوام الناس کو مشکل میں ڈال دیتا ہے، اس لئے اپنے گوشوارے یا ریٹنرز بہترین اور ہنر مند پروفیشنل کمپنیوں سے بنوائیں؛ مناسب ٹیکس ادا کریں اور مستقبل کی ممکنہ پریشانیوں سے ابھی رہائی حاصل کریں۔
ہم اپنے نئے آنے والے کلائنٹس کو مناسب ریٹس پر بہترین ٹیکس فائلنگ کی سہولت پیش کرتے ہیں۔

Becoming filler in lieu of low professional charges has possibility of high risk in audit and notices from the Federal Board of Revenue, and many times it becomes a headache for the public to avoid the tax litigation. Thus, it is suggested that instead you must hire good professionals and skilled advisors, and tax consultants to avoid the future audits and headaches.

We are offering reasonable service fee for the new clients.

💡 2nd Episode

4 Essential Tax-Saving Tips

Stop letting tens of thousands of Rupees 💸 slip through your fingers each year. Instead, ethically reduce your tax payments and free up capital for reinvestment, driving business growth.

Here are four pivotal strategies to conserve money on taxes:

1. Grasp Tax Laws and Regulations: 📚

The key to claiming all your eligible business expenses lies in understanding relevant tax laws and regulations. If personal research is not feasible, delegate this vital task or consider expertise from a proficient individual.

2. Utilize Available Incentives: 🌟
Several tax credits are tailored for businesses, like:

Research and Development Tax Credit:

Encourages innovative endeavors.

Work Opportunity Tax Credit:
Motivates hiring from specific target groups.

Energy-Efficient Commercial Buildings Deduction: Rewards energy-efficient improvements.

3. Minimize Tax Liability: 📉

Effectively structure business transactions for minimized tax liabilities. Considerations like asset purchases and entity selection (e.g., forming an LLC or company status) are paramount. Engaging with a seasoned accountant can streamline this process.

4. Proactive Tax Planning: 📅

Staying ahead of the curve enables you to seize all available deductions, credits, and incentives. It aids in forecasting tax liabilities and preparing financially, keeping you clear of last-minute strains and potential penalties.

If you don't have a team to support you with cost-reduction techniques, please feel free to reach out to us so we can see how we might be able to help.

تمام زمینداران کو مطلع کیاجاتا ہے کہ وہ اپنی آمدن کے گوشوارہ جات 30 ستمبر2023 تک اسسٹنٹ کمشنر آفس میں جمع کروائیں۔ عدم ادخال گوشوارہ کی صورت میں اسسٹنٹ کمشنر / کلکٹر صوابیدیدی اختیارات کے تحت زرعی آمدن تشخیص کر کے ٹیکس عائد کریں گئے۔

Year-End Tax Planning: Essential Strategies Every Bookkeeper and Business Owner Should Know!



September signals the beginning of the final stretch for the year, and it's the ideal time to think about year-end tax strategies.



Implementing these now can save you headaches, time, and potentially a lot of money come tax season.



Here are crucial tips you should consider:



1. Maximize Deductions - Year-End Purchases: If you have been holding off on purchasing new equipment or software they need in their business, now might be the right time. Buying and placing assets in service before the end of the year can allow you to take advantage of Bonus Depreciation. Just be sure these things are really needed an money is available to purchase.



2. Charitable Contributions - charitable donations are tax deductible. Ensure charitable contributions are made to recognized non-profits and receipts are kept on record.



3. Retirement Contributions - This is the time to think about setting aside money for retirement. Business owners benefit from a wide range of retirement options.

-Employee Retirement Benefits - If your client has employees, consider beefing up or starting retirement benefits. Not only does it help in employee retention, but contributions can often be deducted from business income.
Starting up a retirement plan may qualify your for additional tax credits and savings!

4. Check Payroll Withholdings and Estimated Payments - review payroll withholding amounts. If there have been had significant changes in your income this year, it is advised to adjust their withholdings to avoid surprises.



5. Estimated Tax Payments - If your income varies, make sure they are paying enough estimated advance taxes to align with what they have earned.





Being proactive with year-end tax planning can be the difference between a chaotic tax season and a smooth one. As always, it's wise to consult with a tax professional when implementing these strategies.



What's your go-to year-end strategy? Found this deep dive helpful? Comment “Yes” below!