Rental income originated from Dubai-based properties is declarable but not chargeable in Pakistan, said commissioner FBR. Speaking at an awareness seminar on Assets Declaration Ordinance (ADO), 2019, Maqsood Jahangir commissioner IR Zone VI, Corporate Regional Tax Office (CRTO), Karachi said that double taxation treaty overwrote the domestic law and the treaty between Pakistan and the UAE clearly stated that tax on rental income is charged by the country where income is originated hence rental income from Dubai-based properties are declarable but not chargeable in Pakistan.
Commissioner said that amnesty scheme is aimed at increasing direct tax and give final opportunity to the individuals to declare all undisclosed assets, expenditures and sales and added that the date would not be extended beyond June 30, 2019. He said that all immoveable properties, which were transferred on power of attorney, would be declared as Benami property under the ADO, 2019; adding that the objective for promulgation of the Ordinance was to allow inclusion of non-documented economy in taxation system and to promote economic revival and growth by encouraging tax compliance.
The awareness seminar was attended by chief commissioner Shafqat Ali Keher, chief commissioner IR CRTO, senior vice president FPCCI Mirza Ikhtiar Baig, Arshad Jamal, vice president FPCCI and others.
Needless to mention, this was the first time when the field formation of FBR is actively holding meetings with the individuals and representatives of different trade associations in order to encourage them to avail this opportunity besides offering free of cost consultancy through volunteers especially in Karachi to facilitate them declaring assets under ADO, 2019.
Tax experts were of the view that the amnesty scheme announced by the incumbent government was the most comprehensive scheme as compared to past schemes and FBR was making all preparations to initiate crackdown against non-filers, who remain unable to avail an opportunity to disclose benami assets on or before June 30, 2019 to avoid confiscation and imprisonment up to seven years.
Comments
Comments are closed.