Thursday , December 13 2018
Breaking News
Home / Business / SBP issues rules for payment, deposit of tax under amnesty scheme
SBP issues rules for payment, deposit of tax under amnesty scheme

SBP issues rules for payment, deposit of tax under amnesty scheme

KARACHI: State Bank of Pakistan (SBP) has issued procedure for payment and deposit of tax in US dollars and repatriation of liquid assets in Pakistan under tax amnesty scheme for offshore undisclosed assets.

According to the procedure, a taxpayer would file ‘Form A’ given in the Foreign Asset (Declaration & Repatriation) Ordinance, 2018 at the official portal of the Federal Board of Revenue to generate Payment Slip ID (PSID) for payment of tax due on the foreign assets declared in the return.

To general the PSID, the taxpayer will go to FBR payment portal and enter the tax liability in Pak Rupee as determined declaration; the system will convert the Pak Rupee into US Dollar and give the amount of tax liability in both US Dollars and Pak Rupee as per the daily exchange rate notified by the SBP to FBR.

The SBP said that after declaration of assets and generation of PSID, the taxpayer shall arrange to remit the US Dollar funds against the tax liability as reflected in the PSID to SBP by wire transfer in the SBP account in New York USA.

The central bank said that after remitting the funds to SBP Account, the taxpayer shall electronically send following information and documents to SBP, Karachi.

– A copy of wire transfer, or swift message, bearing necessary instructions including specification of the CNIC/NTN of the taxpayer;

– Scanned copy of duly signed Form A and PSID

The central bank said it shall, after verifying receipt of the money in its account, covert the USD funds into PKR and credit the same to the federal government account against the tax receipt.

For collecting the tax receipt in the ‘Federal Government Account No. 01’, SBP will generate Computerized Payment Receipt (CPR) against the PSID received from the taxpayer; the CPR is the formal evidence of payment of tax both for the taxpayer and the FBR.

The SBP shall electronically transmit a scanned copy of the CPR so generated to the taxpayer for its record. The SBP further said that the taxpayer shall then link CPR No. received from SBP with the Form A at the FBR portal as the tax payment evidence to complete the assets declaration process.

Regarding, repatriation of liquid assets in Pakistan, the SBP said the liquid assets declared to be repatriated into Pakistan in Form A for investment in federal government bonds and/or for credit to the taxpayer’s Pak Rupee account, shall also be remitted to the SBP account by wire transfer.

The SBP said that after remitting the funds to SBP account, the taxpayer shall electronically send following information and documents to SBP, Karachi at the given email ID.

– A copy of wire transfer, or swift message, bearing necessary instructions including specification of the CNIC/NTN of the taxpayer;

– Scanned copy of a duly signed statement of application of funds remitted to SBP i.e. the amount of funds to be invested in government bonds and the amount to be credited to Pak Rupee account of the taxpayer;

– A copy of the CNIC;

– the detail of Pak Rupee account (Bank and Branch Name, account title, IBAN) in which the taxpayer would like to have credit of periodic profit payment on government securities to be purchased under the scheme; and / or Pak Rupee equivalent of liquid assets repatriated to Pakistan.

The SBP shall, after verifying receipt of the money in its account, convert the US Dollar funds into Pak Rupee at rate applicable on government receipt and give credit; i) to the Federal Government Account No. I for the amount to be invested in government securities, and ii) to the Pak Rupee account of the taxpayer for the amount of remittance to be converted into Pak Rupee.

The SBP said it would maintain a register of taxpayers embodying details contained in Form A which will be shared with FBR periodically.