FBR Tax Extension date up to 31st March 2021

tax extension

The Federal Board of Revenue announces the new date for tax extension last Wednesday for taxpayers to update their profiling up to 31st March 2021.

A new section 114A has been added into the Income-tax ordinance 2001 for taxpayers to update their profiles. As per Section 114A, it states:

Section 114A: Taxpayer’s profile.

(1) Subject to this Ordinance, the following persons shall furnish a profile, namely:-

(a) every person applying for registration under section 181;

(b) every person deriving income chargeable to tax under the head, “Income from business”;

(c) every person whose income is subject to final taxation;

(d) any non-profit organization as defined in clause (36) of section 2;

(e) any trust or welfare institution; or

(f) any other person prescribed by the Board.

(2) A taxpayer’s profile-

(a) shall be in the prescribed form and shall be accompanied by such annexures, statements, or documents as may be prescribed;

(b) shall fully state, in the specified form and manner, the relevant particulars of –

(i) bank accounts;

(ii) utility connections;

(iii) business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;

(iv) types of businesses; and

(v) such other information as may be prescribed;

(c) shall be signed by the person being an individual, or the person’s representative where section 172 applies; and

(d) shall be filed electronically on the web prescribed by the Board.

(3) A taxpayer’s profile shall be furnished,-

(a) on or before the 31st day of December, 2020 in case of a person registered under section 181 before the 30th day of September, 2020; and

(b) within ninety days registration in case of a person not registered under section 181 before the 30th day of September, 2020.

(4) A taxpayer’s profile shall be updated within ninety days of change in any of the relevant particulars of information as mentioned in clause (b) of sub-section (2).

As per PkRevenue, this is the final date for tax extension, and after the deadline, the tax penalty will be imposed for late submission of tax.

Tax Deadline 2020

tax deadline 2020

There are many Pakistani citizens who are looking for tax deadline 2020 to be exceeded. FBR gave the last opportunity to citizen of Pakistan by extending last date of submission of tax return on 8, December 2020 according to notification issued by federal board of revenue.

tax deadline 2020
tax deadline 2020 notification

This is the final deadline issued by FBR and the persons who haven’t file their tax are imposed with a tax penalty of 0.1% of tax everyday after the deadline so the persons who are waiting for deadline to be exceeded must pay their tax as soon as possible in order to not imposed with higher penalty.

Tax Penalty on Late filing 2020

tax penalty

The federal board of revenue has implemented a increase in tax penalty on late filing of tax for year 2020. FBR has introduces total of 8 penalties which will become the part of law as well after parliamentary approval.

For all financial institutions which did not provide their all information regarding their non-resident timely, FBR has introduced four new sections to impose penalty on these institutions as required under section 165B on income tax ordinance 2001. Also, Pakistan is required to share all the information of non-residents with member countries.

To get the requited information on time, government proposed four penalties for non-compliant entities. In case of non-compliance, institution will have to pay a penalty of Rs. 10000 on each default and also addition of Rs. 10000 each month until the default is addressed

Moreover, a penalty of Rs. 50000 will be imposed on false-self certification under common reporting standard rules and the addition of Rs. 50000 once it is not get addressed.

The last date of submission of tax was 8 December 2020 and after that, tax deadline doesn’t exceed. The person not able to submit their tax are imposed a tax penalty of 0.1% of the tax everyday after the tax deadline.

FBR INVOICE MANAGEMENT SYSTEM

FBR INVOICE MANAGEMENT SYSTEM

Offline Technologies is a Providing vast amount of IT services from development of a product too integration of different system that’s why FBR has introduced FBR invoice management system.

Invoice Management System/POS
FBR Invoice management system is the method by which companies track and pay invoices. At its most simple, the process involves receiving an invoice from a third party, validating it as legitimate, paying the supplier, and noting the payment in company records.

FBR IMS SOFTWARE
The purpose of the IMS is to facilitate tier 01 retailer to Understand methods for invoice data sharing with FBR. The software fiscal component will be installed on the same computer on which POS is installed. The fiscal component will be integrated with POS system to generate invoice and returns Fiscal invoice number.

Benefits
• Real-Time Integration with FBR System
• Automatic uploading of invoice data in FBR System
• Prepopulated into Annex- C of Sales Tax Return

WHY DO YOU NEED THIS?
• It’s fast and simple.
• Everything is stored so you don’t lose your record.
• Its secure
• Cost saving
• Reduces error and disputes
• 24/7 excess to your record

LAW
ALL Tier-1 retailer required to integrate their POS with FBR system for submission of sale invoice on real-time basis.

*AS IT IS THE LAW YOU NEED THIS FOR YOUR OWN BUSNIESS SECURITY AND STABILITY.

For the benefits of consumers, Offline Technologies is offering following services in POS

• Integration (Installation) of FBR software with Existing POS

• FBR IMS integrated System

Contact Us Now

Withholding tax rates for income from property

Withholding tax rates for income from property

The withholding tax rates on rental income from the immovable property for the tax year 2021 has been updated by the Federal Board of Revenue (FBR).


After incorporating amendments to the Income Tax Ordinance 2001 enacted by the Finance Act 2020, the FBR updated the Withholding Tax rates for 2020-2021.

The FBR said that under Section 155 of the Income Tax Ordinance 2001, every designated person would gather/deduct withholding tax from the real estate of immovable property on payment of rent at that time.

According to Section 155: Income from property

A): Following are withholding tax for individuals or AOP


  • If the total amount of rent does not exceed Rs. 200,000: Tax rate will be zero.

  • If the total amount of rent is more than Rs. 200,000 but does not exceed Rs. 600,000 then withholding tax would be 5% of the total amount exceeding Rs. 200,000

  • If the total amount of rent exceeds Rs, 600,000 but does not exceed Rs, 1,000,000 then Rs, 20,000 plus 10 percent withholding tax of the total amount exceeding Rs, 600,000.

  • If the total amount of rent exceeds Rs, 1,000,000 but does not exceed Rs, 2,000,000 then Rs,60,000 plus 15 percent withholding tax of the total amount exceeding Rs, 1,000,000

  • If the total amount of rent exceeds Rs, 2,000,000 but does not exceed Rs. 4,000,000 then Rs, 210,000 plus 20 percent withholding tax of the total amount exceeding Rs, 2,000,000

  • If the total amount of rent exceeds Rs.4,000,000 but does not exceed Rs. 6,000,000 then Rs.610,000 plus 25 percent withholding tax of the total amount exceeding Rs.4,000,000

  • If the total amount of rent exceeds Rs.6,000,000 but does not exceed Rs. 8,000,000 then Rs.1,110,000 plus 30 percent withholding tax of the total amount exceeding Rs.6,000,000

  • If the total amount of rent exceeds Rs.8,000,000 then Rs.1,710,000 plus 35 percent withholding tax of the total amount exceeding Rs.8,000,000

B): Withholding tax for companies is 15 percent. The tax will be as per the requirement as compared to the total tax liability.






Withholding Tax on Vehicle Registration and Transfer

withholding tax on vehicle registration

Federal  Board of Revenue (FBR) has recently updated the Withholding tax rates on any vehicle registration and for transfer of vehicles for the year 2020-21 from 30th of june, 2020.

Withholding tax under Section 231B:

The withholding tax rate under  section 231B for private vehicles is that withholding tax shall be collected by vehicle registration authority when purchasing newly manufactured vehicle at that time when vehicle is transferred to the person  who is purchasing the vehicle.

For the person not appearing on Active Taxpayer  List (ATL) , the withholding tax shall be increased to 100% for that person.

Here is the list of Withholding tax rates under the Section 231B:

Engine Capacity For ATL For Non-ATL
Up to 850CC Rs7,500 Rs15,000
851CC to 1000CC Rs15,000 Rs30,000
1001CC to 1300CC Rs25,000 Rs50,000
1301CC to 1600CC Rs50,000 Rs100,000
1601CC to 1800CC Rs75,000 Rs150,000
1801CC to 2000CC Rs100,000 Rs200,000
2001CC to 2500CC Rs150,000 Rs300,000
2501CC to 3000CC Rs200,000 Rs400,000
Above 3000CC Rs250,000 Rs500,000

Also Check: Vehicle Verification in Pakistan

Withholding tax rates under Section 231B (2):

According to Section 231B(2), Vehicle Registration Authority will collect withholding tax from the person who is transferring his ownership/registration when vehicle is being transferred.

The withholding tax rate under this section shall be as:

Engine Capacity For ATL For Non-ATL
Up to 850CC Rs0 Rs0
851CC to 1000CC Rs5,000 Rs10,000
1001CC to 1300CC Rs7,500 Rs15,000
1301CC to 1600CC Rs12,500 Rs25,000
1601CC to 1800CC Rs18,750 Rs37,500
1801CC to 2000CC Rs25,000 Rs50,000
2001CC to 2500CC Rs37,500 Rs75,000
2501CC to 3000CC Rs50,000 Rs100,000
Above 3000CC Rs62,500 Rs125,000

Withholding tax rates under Section 231B (3):

When a person is purchasing vehicle, withholding tax shall be collected by manufacturer of vehicle at the time of sale of vehicle. Withholding tax shall be adjustable to tax liability.

Under Division VII, Part IV of First Schedule of the Income Tax Ordinance, 200, withholding tax rates are as:

Engine Capacity For ATL For Non-ATL
Up to 850CC Rs7,500 Rs15,000
851CC to 1000CC Rs15,000 Rs30,000
1001CC to 1300CC Rs25,000 Rs50,000
1301CC to 1600CC Rs50,000 Rs100,000
1601CC to 1800CC Rs75,000 Rs150,000
1801CC to 2000CC Rs100,000 Rs200,000
2001CC to 2500CC Rs150,000 Rs300,000
2501CC to 3000CC Rs200,000 Rs400,000
Above 3000CC Rs250,000 Rs500,000

Vehicle Verification in Pakistan

vehicle verification in Pakistan

The Government of Pakistan has provided citizens an online system for vehicle verification in Pakistan for all type of vehicles (cars/motors) with computerized registration plates. If a person wants to purchase a new vehicle, he can check all details of that vehicle through this online vehicle verification system. This system is introduced because if you are looking to buy or purchase a new vehicle, you need to verify all vehicles details first.

In order to check vehicle verification, follow these steps:

  1. First, go to MTMIS.
  2. Here you will see the page of Vehicle Verification. All you need to do is enter the registration number of your desired vehicle, click on Search and you will see all information of that vehicle like make model of vehicle, color of that vehicle chassis number, type of vehicle and name of the owner of that vehicle.

Also Check: Income Tax Rates in Pakistan

The government of Pakistan also warned not to get into buying a stolen, non-costumed paid or tampered vehicle as it might result ending into court or jail.

Vehicle verification for KPK: http://balochistan.gov.pk/departments/excise-and-taxation/

Vehicle verification for Sindh: http://www.excise.gos.pk/vehicle/vehicle_search

Vehicle verification for Balochistan: http://balochistan.gov.pk/departments/excise-and-taxation/

You can get more details related to vehicle verification in Pakistan by visiting: https://cpomul.punjabpolice.gov.pk/

PROPOSAL FOR FORMATION OF DEDICATED DIVISION AT FBR

1- Purpose of Dedicated Division Formation

Existing Structure:
FBR has a complex mechanism for exporters/business/trader facilitation, which is difficult for average user with limited technical capacity. Following systems are in place in FBR: IRIS, E-File Taxpayer Facilitation Portal, IRIS-ADX Application, Centralized Sales Tax & FED Assessment & Processing (CSTAP), Pay-Sys, Risk Management System (RMS), Sales Tax Return Automation System, WEBOC, One Customs Software.

Proposed Solution:
In addition to the existing structure which is not only confusing but non user-friendly as well, there are numerous issues faced by trader/business from initial registration to becoming a taxpayer with FBR. There is a need to establish a dedicated division to:

a) Facilitate the existing taxpayers largely paying 70% of the taxes per annum;
b) Support the foreign prospect companies to be registered in Pakistan to initiate new projects either through joint ventures or establishing their own existence

The proposed division will be reporting to Chairman FBR with user-friendly software and direct & easy communication for clients. The division will have:

a) Competent & suitable HR to be hired from the Market
b) Dedicated and user-friendly web portal having limited to no human interface
c) Digital walk-through for international companies for easy registration process in Pakistan d) Simplifications of procedures and forms
e) Random auditing mechanism through automated system.
f) FBR existing divisions of ‘Integrity Management Cell’ (IMC) for facilitation of taxpayers and unit named ‘Tax Information Processing Unit’ (TIPU) will also be integrated within this division.

2- Operating and maintenance cost

This division will be operating as an integral part of FBR for facilitation of large taxpayers/business. Since a certain percentage of FBR work will be undertaken by this division so FBR needs to allocate annual operating budget for this division, covering salaries of HR, maintenance, hosting and upgrading of software, connectivity, training and facilitation budget, communication and other operational expenses. The same audit requirements would be applicable on this division which is applicable for FBR.

With this new division having HR from the private sector, the employee retention may be an issue for FBR, keeping in view limited vertical growth and restricted remuneration packages under Finance Division for contractual employees. FBR may need to look into this issue and undertake legal amendments in its Act in order to establish this division as a sustainable model.

Income Tax Rates in Pakistan 2020-21

Income Tax Rates pakistan

Here are the income tax rates in Pakistan for year 2022-21

Also Read: What is withholding tax

Important Note:

Please note as for these income tax rates in Pakistan where a persons is not appearing in the active taxpayers’ list, the rate of tax required to be deducted or collected, as the case may be, shall be increased by hundred percent of the rate specified to be deducted or collected. However, these provisions shall not apply on tax collectible or deductible in case of the following sections.

  • Tax deducted under section 149
  • Tax deducted under section 152 other than sub-section (1), (1AA), (2), (2A)(b) and (2A)(c) of section 152
  • Tax collected or deducted under section 154
  • Tax deducted under section 156B
  • Tax deducted under section 155
  • Tax deducted under section 231A
  • Tax deducted under section 231AA
  • Tax collected under section 233AA
  • Tax deducted under section 235
  • Tax deducted under section 235A
  • Tax collected under section 235B
  • Tax collected under section 236
  • Tax collected under section 236B
  • Tax collected under section 236D
  • Tax collected under section 236F
  • Tax collected under section 236I
  • Tax collected under section 236J
  • Tax collected under section 236L
  • Tax collected under section 236P
  • Tax collected under section 236Q
  • Tax collected under section 236R
  • Tax collected under section 236U
  • Tax collected under section 236V
  • Tax collected under section 236X

Pakistan Customs Computerized System (PACCS)

Pakistan Customs Computerized System

Pakistan Customs Computerized System (PACCS) is one composed system covering all procedures, activities, and techniques relating to customs and custom tax.

A need for a computerized system was felt to redo and change the entire framework utilizing data Technology and business process reengineering after facing many issues by the Pakistan Customs Administration.


The purpose of the Customs Reform Process was to enhance the organizational performance of Pakistan Customs, transforming it into a modern organization that is performing its duties in the best possible manner and in accordance with international standards. Since international cargo clearance is the core of basic customs, the best way to measure the performance of a customs organization is to measure its dwell time.

KEY HIGHLIGHTS OF THE SYSTEM:

  1. It covers the entire field of customs activities.
  2. PACCS is ONE WINDOW OPERATION according to which declarants do not have to leave the comfort of their office for cargo Clearance from the port over the web anywhere inside or outside Pakistan.
  3. A concept of a completely paperless environment as all documents except in outer correspondences with specific foundations like the courts are generated by the system without any manual need.
  4. All information is organized and is redesigned distinctly through specific and committed input points. At the customer end, the information input is through drop-down menus and codes which helps to eliminate input mistakes.
  5. The exchange of all trade with customary partners is electronic
  6. Rapid clearance of cargo within 24/7 hours within hours of arrival.
  7. Self-assess duties and taxes and exclude customs before filing a declaration.
  8. Online Cargo Clearance Status Report.
  9. Online and instant duty drop approval
  10. Electronic filing and refund approval.
  11. Trouble-free and selective examination based on risk management
  12. Manifest data online.
  13. Secure assessment and evaluation condition.
  14. It is perfect with CSI and ISPS.
  15. No un-receipted costs.

The above impacts are being accomplished by the ideal utilization of data innovation. In IT phrasing, PACCS has an expert decision-making system.

For more information related to Customs, please visit Customs Basics.