ISLAMABAD: Federal Board of Revenue (FBR) has recommended three phases for new tax amnesty scheme for undeclared assets.
The FBR recommended three phases for the amnesty scheme for period ended June 30, 2019, September 30, 2019 and December 31, 2019. The rate of tax for undeclared assets (other than domestic real estate/undisclosed income has been recommended at five percent, 10 percent and 20 percent for first, second and third phase, respectively,
The amnesty scheme has been proposed to cover real estate sector at one percent, two percent and four percent for three phases at fair market value (not less than value prescribed by the FBR under section 68 of Income Tax Ordinance, 2001), as declared by the declarant.
Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance, Revenue and Economic Affairs recently directed the FBR to review the proposed amnesty scheme and submit a new draft.
According to the draft the amnesty scheme would be launched through promulgation of presidential ordinance.
According to the draft the undisclosed sales shall be chargeable to tax at the rate of three percent (3 percent) of such sales in lieu of sales tax and federal excise duty.
It is proposed that any foreign asset declared under this Ordinance shall be required to be repatriated to Pakistan or invested in Pakistan Banao Certificate before filing of declaration in the manner prescribed by the State Bank of Pakistan. This condition shall not be applicable on such foreign asset which represents foreign real estate.