AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 130.50 Increased By ▲ 0.97 (0.75%)
BOP 6.68 No Change ▼ 0.00 (0%)
CNERGY 4.65 Increased By ▲ 0.02 (0.43%)
DCL 9.00 Increased By ▲ 0.06 (0.67%)
DFML 43.30 Increased By ▲ 1.61 (3.86%)
DGKC 83.81 Increased By ▲ 0.04 (0.05%)
FCCL 32.98 Increased By ▲ 0.21 (0.64%)
FFBL 78.31 Increased By ▲ 2.84 (3.76%)
FFL 11.59 Increased By ▲ 0.12 (1.05%)
HUBC 110.66 Increased By ▲ 0.11 (0.1%)
HUMNL 14.51 Decreased By ▼ -0.05 (-0.34%)
KEL 5.42 Increased By ▲ 0.03 (0.56%)
KOSM 8.42 Increased By ▲ 0.02 (0.24%)
MLCF 39.79 No Change ▼ 0.00 (0%)
NBP 60.80 Increased By ▲ 0.51 (0.85%)
OGDC 198.60 Decreased By ▼ -1.06 (-0.53%)
PAEL 26.66 Increased By ▲ 0.01 (0.04%)
PIBTL 7.77 Increased By ▲ 0.11 (1.44%)
PPL 159.20 Increased By ▲ 1.28 (0.81%)
PRL 26.54 Decreased By ▼ -0.19 (-0.71%)
PTC 18.75 Increased By ▲ 0.29 (1.57%)
SEARL 83.10 Increased By ▲ 0.66 (0.8%)
TELE 8.40 Increased By ▲ 0.09 (1.08%)
TOMCL 34.52 Increased By ▲ 0.01 (0.03%)
TPLP 9.10 Increased By ▲ 0.04 (0.44%)
TREET 17.30 Decreased By ▼ -0.17 (-0.97%)
TRG 61.90 Increased By ▲ 0.58 (0.95%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,407 No Change 0 (0%)
BR30 31,713 No Change 0 (0%)
KSE100 97,957 Increased By 629.1 (0.65%)
KSE30 30,384 Increased By 191.6 (0.63%)

The government has proposed a comprehensive procedure to bring disposal of assets located in Pakistan or abroad into tax regime. According to a budget commentary prepared by renowned tax expert Ashfaq Tola here on Saturday, the Finance Bill 2018 proposes to insert a comprehensive section 101A to bring disposal of assets located in Pakistan or disposed outside the country into tax regime. The bill proposes that any gain from disposal of assets located in Pakistan of a non-resident company shall be Pakistan source. Such gain shall be charged at higher of 20 percent of FMV less Cost or 10 percent of FMV, whichever is higher.
The bill proposes to add a new concept of a controlled foreign entity by adding a new section 109A. A controlled foreign entity has been proposed to be defined as a non-resident company if more than 50 percent of the capital or voting rights of the non-resident company are held, directly or indirectly, by one or more persons resident in Pakistan or more than 40 percent of the capital or voting rights of the non- resident company are held, directly or indirectly, by a single resident person in Pakistan.
The bill proposes to add an explanation in section 111(2). The bill proposes to explain where the investment, money, valuable article or expenditure in respect of assets or expenditure situated or incurred outside Pakistan liable to be included in the income of tax year 2018 and onwards on the basis of discover made by the commissioner during tax year 2019 and onwards and the person explains the acquisition of such assets or expenditure from sources relating to tax year in which such asset was acquired or expenditure was incurred, such explanation shall not be rejected on the basis that the source does not relate to the tax year immediately preceding tax year in which the asset or expenditure was discovered by the commissioner. The amendment shall be beneficial for the taxpayers who had genuine sources but did not declare the corresponding assets in their wealth statements due to error or omission, Ashfaq Tola added.

Copyright Business Recorder, 2018

Comments

Comments are closed.