ISLAMABAD: Federal Board of Revenue (FBR) has taken significant initiatives to facilitate taxpayers by making compliance easier in line with the vision of the Prime Minister and Special Assistant to PM on Revenue.
FBR in collaboration with PRAL, has launched a single-page simplified Income Tax Return for SME manufacturers having turnover up to Rs. 50 million which can be availed by individuals and AOPs. This return is available on Iris portal and requires input of basic data relating to business activities conducted by eligible taxpayers during the period relevant to tax year 2020.
Likewise, FBR has upgraded Iris system with the help of PRAL for issuing SMS and e-mails whenever any notice is issued or any assignment is created by Tax officer. Previously, taxpayer would know about such notices/ intimations only after logging onto Iris portal. With the objective of improving compliance with a facilitative environment, after Iris upgrade, taxpayers and intermediaries will receive notifications of such communications through SMS and e-mails making compliance easier and smarter.
FBR has launched a system Maloomaat-TaxRay wherein taxpayers can access all information available with the FBR by logging through a secure mechanism. For further facilitation, this feature has been launched in mobile app, Tax Assan, so that taxpayers can easily access all such information. FBR believes in high levels of tax facilitation and constantly using innovative technology for creating a faceless organization.
Meanwhile, Federal Board of Revenue (FBR) has issued a clarification on the news item published in daily “The News” with a caption, “Authorities faces legal challenge on tax concession for Naya Pakistan Certificate.”
FBR has clarified that Naya Pakistan Certificate, a new instrument launched by the Government/State Bank of Pakistan, qualifies as debt instrument in terms of Clause (5AA) of Part-II of the Second Schedule of the Income Tax Ordinance, 2001. Therefore, profit on debt on the Naya Pakistan Certificate is subject to tax @ 10% which is final tax. It may be added that only non-resident individuals can purchase Naya Pakistan Certificate who maintain bank account abroad or foreign currency account maintained in Pakistan. It is also clarified that such individuals are not required to file returns of income.