Corporate sector particularly big companies have acknowledged seven major benefits of filing of income tax returns by their employees. These benefits include lower rates of tax deduction on banking transactions, reduced rates of withholding taxes on registration/transfer of motor-vehicles, sale/purchase of property transactions and reduced rate of withholding tax on prize bond winnings.
Sources told Business Recorder Monday that the employees in the big corporate entities and other companies are encouraged to file income tax returns taking into account seven major benefits. In this regard, the companies are fully cooperating with the tax authorities of the FBR. FBR Member FATE Nausheen Javid Amjad has played a key role in interacting with the corporate sector and encouraging them to ensure filing of returns by their employees.
The FBR said that the companies are contributing to the success of the country by underlining the benefits of filing tax returns to their employees, which are as follows: lower rates of tax deduction at source by banks (on profits) and on banking transactions; savings on withholding tax when it comes to registration and transfer of motor-vehicles; rate of tax on sale/purchase of property transactions will be cut down; withholding tax slashed on capital gains accrued on sale of securities; reduced rates of tax on payment of goods, services and contracts; charges for tax on dividend will be lower for filers; curtailed rate of withholding tax on prize bond winnings and decreased rate of collection under commission and brokerage.
Meanwhile, the FBR has written letters to the corporate entities to encourage their employees for filing of income tax returns. According to the FBR, the tax authorities appreciate institutions/companies for going the extra mile to serve the national cause by guiding their employees to find out about all the benefits accrued by being a filer through FBR helpline: "Alone, we can do so little; together we can do so much," the FBR said.
The FBR said that the continued success of company's team over the years bears testament to the ethos of working for the greater good of the society rather than being immersed in the pursuit of individual success. The FBR is cognizant of the fact that employers are duly fulfilling their responsibility in reporting salary paid and taxes withheld from their employees. "Kindly join hands with the FBR in laying the foundations for a self-reliant country that can reach new heights by fully utilising all its available resources. The FBR would like to request employers support in helping to emphasize the importance of filing tax return to their employees and assure necessary facilitation in this regard."
Employers have to advocate to their employees the significance of their contribution through filing tax returns. In order to inculcate the spirit of contributing towards growth of the country, the employers are requested to create awareness and provide all necessary help to the employees in ensuring that they do duly file their prescribed tax returns, the FBR added.