TAX AMNESTY SCHEME 2019
Government of Pakistan has announced a new Tax Amnesty Scheme for 2019. According to this new scheme, individuals are allowed to declare & whiten their unannounced expenditures, sales & assets up till June 30th. This scheme is approved by the federal cabinet in effect by Presidential Ordinance on May 14, 2019.
WHO CAN AVAIL THIS SCHEME
All the companies, associations of persons & individuals can avail this scheme to whiten their undeclared assets including foreign as well, on minimal tax rate. The main points on this scheme includes:
- Declared Cash must be kept in bank accounts at rate of 4%.
- On declaration of Real Estate, it will be 150% of the FBR assigned value.
- For keeping your money abroad, 6% of tax will be applied.
- 2% tax for declared sales & supplies.
- For local immovable property, 1.5% tax will be applied.
- For foreign immovable property, fair market value would be determined at an exchange rate on the declared date.
The tax can be paid in quarterly basis till June 30, 2020. In case of late payment it will be increased by 20 to 40% till the deadline.
WHO CANNOT TAKE PART IN THE TAX AMNESTY SCHEME
It must be noted that this scheme cannot be availed by any government employee including President, Prime Minister, Chief Minister, Ministers, Chief Justices of Pakistan, Judges, their spouses or children. Any government or public Limited company along with gold, stones, bonds or shares are also not part of this scheme. Furthermore, domestic or foreign earned income is also not part of this scheme.
The proposal for this scheme was submitted on April 16th, 2019. After several modifications it was approved on May 14th 2019. The scheme envisions to boost up the economy by documenting the dead & hidden assets.
source : Dawn