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Finance Act 2019

Finance Act, 2019 Summary & Tax rate card

This document contains amendments made in relevant laws through Finance Act, 2019 (i.e. Tax year starting from 1 July 2019 to 30 June 2020) in Income Tax, Sales Tax, FED and Customs law.

We at Sharjeel Ayub & Co (Sayub) made an effort to present above mentioned amendments in simplest possible form so that readers get an understanding for proper tax planning.

Sayub comments contained in the documents represent our views / interpretations of the amendments therefore should not be taken conclusive on legal ground without our prior advice.

We sincerely believe that this document is simple and as precise as possible nevertheless, you may ask for further details by contacting us.

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2nd Reminder by FBR to file Income Tax Returns

This is May 2019 which is the second last month of the tax year 2019, and FBR is doing much needed action which is to REMIND the tax filers who missed to file their Tax returns to FILE all previous returns so as to avoid avoidable penalty for late filing. Please note that there is a minimum penalty of Rs 20,000/- ( Rupees Twenty Thousand Only) in case return is filed late thats not complete here there is an additional per day penalty @0.1% tax due. Therefore each passing day has its consequence of increasing penalty amount. However this additional penalty can be avoided.

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Who are Tax filers in Pakistan

This video explains about confusion that many have about who is tax filer. Generally taxpayers believe themselves as filers being taxpayer which is not the case. In order to become tax filer one need to file returns of income regularly once in a year.

Recently FBR has extended the deadline for filing Income Tax Return 2018 till 30th April 2019. Which is believed to be last chance given by FBR to become filer.

In order to have insights about how tax filing works we can start short video series to better demonstrate key message.

In case you want to file your Income Tax returns to become filer but unsure about where to start or what is required for filing please leave a message in Contact us section. Our team of professionals will reply your message without any cost.

We believe most the taxpayers in Pakistan do not know about the process how to file and become filer.

It is important to mention here that tax return filing does not necessarily requires tax payment. Your income may be exempt but the fact would be known to FBR once you start filing and declare this fact to FBR.

Why to pay more taxes when you are already paying lot of taxes already. Return filing saves you from undue unnecessary taxes.

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FBR crackdown against non filers

Govt. is All Set to launch Crackdown against non-filers

The year 2018 was been different from the previous years’ in terms of increase in number of taxpayers in Pakistan. This increase is due to numerous restrictions and taxes imposed on Non-Filers by the Govt. of Pakistan. The Federal Board of Revenue has already crossed the mark of 1.8 million taxpayers in the tax year 2018, but this isn’t enough.

Crackdown against Non-filers

Recently, state minister for revenue Mr. Hammad Azhar has stated the Government has planned a cracked down against non-tax filers in May 2019. As per his statement, there are still forty to fifty hundred thousand non-filers in our country, who are liable to file their tax return but haven’t filed yet. This crack down would badly affect those people who have their National Tax Number (NTN) and haven’t filed their tax return for the year 2018 or earning an income more than 400,000 rupees and haven’t formed their National Tax number (NTN) in order to file their tax return for the year 2018.

Government has already provided ample time

Recently, the Govt. of Pakistan announced to extend the date for filing of income tax return for the year 2018 till 31st March 2019 and it was further extended by the Federal Board of Revenue (FBR) till 30th April 2019. This is a big opportunity for those who were left out to be added in the Active tax payer list and as well as to those who are liable to file their income tax return and haven’t formed their NTN yet.

Can you become filer?

Don’t get busted and avail the opportunity before 30th April 2019 to become filer. All you need to do is follow the four simple step and add yourself in the Active Filer List (ATL)

  1. Get your National Tax Number. Share with us some of your personal information such as your CNIC, your Cell number and your email address.
  2. Update your Personal and/or your business information in Form 181.
  3. File your Income Tax Return. Share your salary or business income details with us and we can do the job for you
  4. Your Wealth details. Share with us details of asset you own and liabilities you owe and consider the job done.

Act now before the time ran out. Remember tax evader will have to face strict legal actions taken by federal board of revenue. So don’t be a tax evader, be a tax filer.

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Filers and non filers

Another Chance by FBR for non-filers to become Filers

Another chance to become filer.

The Federal Board of Revenue (FBR) has extended the date for submission of Income Tax Return for the year 2018.  It is very important to note that FBR has also announced that in order to be in the filer List, taxpayer has to submit their Income Tax Return within due date. Submitting your income tax return after the specified due date would not include you in the Filer list. Previously the due date for submission was 17 December 2018. But Govt. of Pakistan had decided to give some time to taxpayer who filed late or were unable to file their annual return and extended the due date to 31st March 2019. Now the FBR has decided to further extend the due date till 30th April 2019.

You may access circular from FBR website Click here for Circular extending due date of Income Tax Returns Click here

Become filer in four simple steps

After the Govt. of Pakistan decided to extend the due date for submission of Income Tax return till 31st March 2019, the Federal Board of revenue has announced to further extend the due date till 30th April 2019. So this is the best time for new filers to get on board. Here are some simple four steps through which you can get yourself in the filer list.

  1. Get your National Tax Number. You need to provide your CNIC number, your Cell number (Active in Pakistan) and your email address.
  2. Based on your income i.e. Salary or business we can file your Income Tax Return.
  3. Based on the information you provide, we can prepare your Wealth statement.
  4. You will become filer within 12 Business hours.

Good News for Non-resident Pakistanis

The Federal Board of Revenue has decided to extend the due date for submission of income tax return till 30th June 2019. This is a big opportunity for all the Pakistanis residing abroad and are non-resident for tax purpose in Pakistan. After the initiative taken by the current government regarding filers that whoever filed the Income Tax return for the year 2018 in due date will be added to Active Taxpayer filer list, this has impacted hugely to those Pakistani who are Non-resident (still non-filer) and because of some strict initiatives taken by the Government for non-filers. So, worry no more, and become filer before 30th April 2019 and enjoy the benefits as a filer provided by the Govt. of Pakistan. Some key comparison between being filer Vs being non-filer

Filer                                                                                                          Non-Filer

Tax on Cash withdrawal over Rs.50,000 NO Tax on Cash withdrawal over Rs.50,000 YES
Tax on Transfer of funds over Rs.25,000 NO Tax on Transfer of funds over Rs.25,000 YES
Purchase of Car over 1300 cc Possible YES Purchase of Car over 1300 cc Possible NO
Purchase of Property over Rs.40 million possible YES Purchase of Property over Rs.40 million possible NO

The Pros and Cons for filer and non-filer list is longer than you think. So, don’t waste time and become filer in four simple Steps.

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