The State Bank of Pakistan on Monday announced the procedure for payment and deposit of tax in US dollars and repatriation of liquid assets to Pakistan under the amnesty scheme - the Foreign Assets Declaration and Repatriation Ordinance 2018. SBP has issued this procedure in exercise of powers conferred by the section 10 of the Foreign Assets Declaration and Repatriation Ordinance, 2018 and it will be deemed to have come into force from 10th day of April 2018.
According to procedure, for declaration and generation of payment Slip ID (PSID) the taxpayer will electronically fill the Form ''A'', set out in the schedule to the Ordinance, at the Federal Board of Revenue (FBR) portal and generate PSID for payment of tax due on the declared foreign assets.
To generate the PSID, the taxpayer will enter the tax liability in PKR as determined in Form ''A'' and the system will convert the PKR into USD and give the amount of tax liability in both US dollar and PKR as per the daily PKR/USD exchange rate notified by the SBP to FBR through a dedicated e-mail. The PSID will be generated on the same day on which the tax payment is to be made.
After declaration of assets and generation of PSID, the taxpayer will arrange to remit the USD funds against the tax liability as reflected in the PSID and form "A" by wire transfer into the SBP account.
After remitting the funds to SBP Account, the taxpayer will be required to electronically send a copy of wire transfer, or swift message, bearing necessary instructions including specification of the CNIC/NTN of the taxpayer and scanned copy of duly signed Form A and PSID to SBP, Karachi.
SBP will, after verifying receipt of the money in its account, convert the USD funds into PKR and credit the same to the "Federal Government Account No. I" against the tax receipt.
For collecting the tax receipt in the "Federal Government Account No. I", SBP will generate (computerized payment receipt) CPR against the PSID received from the tax payer; the CPR is the formal evidence of payment of tax both for the tax payer and FBR. SBP will electronically transmit a scanned copy of the CPR so generated to the taxpayer for its record.
The taxpayer will then link CPR no. received from SBP with the Form A at the FBR portal as the tax payment evidence to complete the assets declaration process. For repatriation of liquid Assets to Pakistan, SBP has mentioned that the liquid assets declared to be repatriated into Pakistan in Form ''A'' for investment in Federal Government bonds and/or for credit to the taxpayer''s PKR account, will also be remitted to the SBP account by wire transfer.
After remitting the funds to SBP Account, the taxpayer will electronically send a copy of wire transfer, or swift message, scanned copy of a duly signed statement of application of funds remitted to SBP, i.e., the amount of funds to be invested in government bonds and the amount to be credited to PKR account of the taxpayer, CNIC Copy and the details of PKR account (bank and branch name, account title, IBAN) in which the taxpayer would like to have credit of periodic profit payments on government securities to be purchased under the scheme; and/or PKR equivalent of liquid assets repatriated to Pakistan.
SBP will, after verifying the receipt of the money in its account, convert the USD funds into PKR at rate applicable on government receipts and give credit to Federal Government Account for the amount to be invested in government Securities, and to the PKR account of the taxpayer for the amount of remittance to be converted into PKR.
For the amount to be invested in Government Security, SBP will create scrip less Government Security in its SGLA.
For the taxpayers'' information and record, SBP will electronically send the confirmation of investment of the funds in government securities. Similarly, the taxpayer will get confirmation for the amount, if any, credited to his/her PKR account. SBP will maintain a register of taxpayers embodying details contained in Form A which will be shared with FBR periodically.