The Federal Board of Revenue has empowered the FBR Member Inland Revenue to issue 'certificate for tax sparing credit' and 'certificate of payment of tax in Pakistan' to the non-resident persons in Pakistan under the convention of Avoidance of Double Taxation and Fiscal Evasion.
In this connection, the FBR has amended the Income Tax Rules 2002 through an SRO.725(I)/2011 here on Wednesday. The FBR has also empowered the FBR Member Inland Revenue to issue 'certificate of residence' where any person, resident in Pakistan, seeks to obtain a certificate of residence from the competent authority of Pakistan for its presentation before the tax authorities of another country with which Pakistan has signed an agreement for the Avoidance of Double Taxation and Fiscal Evasion, for the purposes of obtaining tax credit or fiscal relief.
Through amended SRO, the FBR Member IR would have the legal authority to issue the 'certificate of payment of tax in Pakistan' where any person, non-resident in Pakistan, seeks to obtain a certificate of payment of tax in Pakistan by way of deduction, collection or otherwise, which attains finality or which is a final tax under agreement for the Avoidance of Double Taxation and Fiscal Evasion between Pakistan and the country of residence of the applicant taxpayer for presentation before the tax authorities of the country of his residence.
The FBR Member IR would be empowered to issue the 'certificate for tax sparing credit' in cases where any person, non-resident in Pakistan, seeks to obtain a certificate for tax sparing credit in respect of income earned through a permanent establishment situated in Pakistan, under a provision, if any contained therein, of the agreement for the Avoidance of Double Taxation and Fiscal Evasion between Pakistan and the country of residence of such taxpayer. According to the amended notification, the FBR has given the authority to the FBR Member Inland Revenue to issue such certificates to the non-resident persons in the country.