Land and Taxation

Tax law:

Our approach combines a standard compliance process and tools with extensive knowledge of tax laws and authorities along with accounting experience, giving you the access, visibility and control you want. We draw from our tried-and-tested methodologies that allow you to manage your direct and indirect tax compliance and reporting obligations effectively. Our dedicated team, consistent methodologies and unwavering commitment enable you to build strong compliance, reporting foundations and sustainable tax strategies to help your business achieve its goals.

• Increase efficiency and accuracy of tax compliance and reporting

• Tax Planning
• Obtaining tax registrations
• Corporate Income Tax return and withholding statements —preparation and filing
• Advance tax
• Obtaining registrations required under Sales Tax Act
• Filing periodic sales tax returns
• Obtaining tax refunds
• Professional Tax
• Customs Act and Matters

We provide one stop solution with our core expertise in Tax Consultation, catering to various Business Individuals, Salaried Individuals, AOPs, Companies, Comprehensive range of services from the completion of tax returns under corporation tax, self-assessment to complex consultancy assignments & strategic tax planning. Our ability to focus on our clients & deliver innovative tax solutions is enhanced by our knowledge of specific business environments including financial services, leisure, retail, sport, high growth companies, manufacturing and automotive technology & communications, public sector, property and utilities.

We as a law firm, deals cases before Mediations, Arbitrations, Trial Courts, Appellate Tribunals, High Courts and Supreme Court. We also provide complete legal directions and pathways on the subject in accordance with applicable laws.  We are also providing complete consultancy to Pakistan and overseas clients.  Our lawyers are having exclusive expertise to register a public limited company in Pakistan and providing full support after registration a public limited.

INCOME TAX:

What is the Income Tax?

By name suggests, the income tax is the applicable tax on your income. Income earners pay it, which include self-employed persons, salaried individuals, and non-incorporated firms. It is among one of the significant sources of payroll generation for the government.

By section 4 under Income Tax Ordinance 2001, it is applicable to each person who has taxable income for every tax year upon the rates declared by government.

What is Tax Year?

The tax year is a twelve months period from 1st July to 30th June and shall be marked by Calendar year under which the said date arrives.

What is Taxable Income in Pakistan?

The taxable income is observed as the whole income of a person calculated within tax year after subtracting the whole of any allowances to deduct, e.g., Zakat, etc.

What is the Total Income?

The total Income is sum of a person’s yearly income upon each of the income head.

What are the Income Heads in Pakistan?

By Tax Ordinance 2001 , the income classified into different types which include Income from property, Salary, income from a business, income from any other sources or capital gains on investments.

The taxation structure of a country determines the strength of the economy. Under the law, it is a responsibility of the Pakistani citizens to declare their assets, document the annual tax returns and pay due taxes timely. The new tax reforms are announced while ago, to restructure the taxation system in Pakistan by making it easier, simpler and convenient in order to get people under tax net by encouraging them to document tax returns and pay the due taxes timely.

A common misconception is revolving among people that a tax paying is optional. However, tax evasion is the criminal offense and the tax evader may be penalized for the violation of the law.

The tax regulations in Pakistan are defined in the Income Tax Ordinance 2001. The Federal Board of Revenue (FBR) is responsible to regulate the taxation system in the country. For documenting tax returns, a person must have NTN registration.

ARE YOU LOOKING TOWARDS GETTING INCOME TAX RETURNS FILED?

Under the strict government policies regulations, it has become greatly necessary that you are fully compliant with the Pakistan’s taxation system. Taxocrate is a league of Professional tax consultants in Karachi and tax lawyers in Islamabad, who won’t just only give tax consultancy but also aid you in tax deduction and ensure about conditions in your favor. This will let you to focus your energy and time on the core business activities.

We have tax lawyers working in the following segments in the area of tax consultancy:

Individuals.
Salaried.
Associations.
Companies.
Non-Profit Organization (NGOs).

We work by making a complete analysis of your accounts books, make your Income Statement, do essential amendments (if required) and finalize the Income Statement. After process completion, we document the Return of Income after discussion and getting approval by the client.

TAXOCRATE SERVICES:

We provide you mentioned below high-quality tax consultancy services for your compliance with the tax regulations:

• The strategy development and planning of your tax filing.
• Documenting of your Tax returns.
• National Tax Number registration for tax correspondence with FBR.
• Deals with Taxation Authorities like taking clarifications, confirmations and approval from FBR.
• Wealth statement Preparation.
• Electronic Challan Payment and Preparation.
• Filing and Preparation of other tax statements (if required).
• Provide guidance in FBR audit and Conduct tax audit.
• Guidance and Advisory on day to day tax issues of the clients.
• Manage appeals and objections.
• Guidance on Tax Deduction.
• Refunds of Income tax from the tax authorities for clients.
• Manage Tax exemptions for educational institutions and NGOs.

Sales Tax:

The sales tax (GST) is applied to the sale and supply of services and goods and on the goods imported within Pakistan. The sales tax is fixed by the Federal Government of Pakistan under The Sales Tax Act, 1990. The Pakistan government has imposed a tax on the sales of selective services and goods. The business owner gets the fixed amount of tax by the purchaser of services/goods and it is therefore forwarded to the government. It is the responsibility of every business owner to pay the tax otherwise the government reserves the right to charge a penalty on the tax evader. In Accordance with the budget 2018 -2019, the tax on supplies imposed on unregistered people is currently applied at the rate of 2%, with addition to the standard tax rate of 17%. By the Finance Bill, the rate of further tax has been proposed to be jumped to 3%.

Sales Tax on the Goods

In Accordance with section 13 of the Sales Tax Act, 1990, the tax is applied on all the goods except those which are excluded from the tax by the government.

THE SALES TAX REGISTRATION

The registration of tax is compulsory for all of the following:

• All importers must get registered with the tax department
• Distributors, Goods dealers, and wholesalers
• Manufacturers of Product excluding the cottage industry (cottage industry is a sector whose annual turnover remains under Rs.5 million and whose annually utility bills are under rupees six hundred thousand.)
• Those retailers which have value in goods of exceeding 5 million rupees in the tax period over the last 1 year.
• Providers of Service (including hotels/restaurants, shipping, logistics, customs agencies etc.) Manufacturers of zero-rated supplies

FILING OF SALES TAX RETURNS:

The taxpayer submits details of financial transaction during a tax period including its Tax liability in a document of declaration, known as Sales Tax return. The Tax return form comprises of the taxpayer declaration for a specific tax period. Furthermore, the details of input and output tax at the prescribed Tax rate must be mentioned in the tax return. The refund claimed or additional input tax is also mentioned in the income tax return if the input tax exceeds the output tax.

Taxpayers can file Tax return in different time slots in form of monthly, annual or quarterly returns as prescribed below.

 Sales Tax Return Filing – Monthly

The monthly tax return is filed on the 15^th day of the month subsequent to the period when supplies were produced as per the standard procedure. The tax return can be paid to the branches of National Bank of Pakistan.

Sales Tax Return Filing – Yearly:

The tax of yearly sales return can be filed by any public (unlisted or listed) or private company. A company can document the tax return for a financial year by the 30^th September in the subsequent fiscal year.

Sales Tax Return Filing – Quarterly:

A commercial importer (who imports taxable goods purpose of trading and don’t use such goods for manufacturing of its own) can document tax return in quarterly basis

Are You Looking for Filing Tax Return or Tax Registration?

In its endeavor to reach your taxation needs, Taxocrate facilitates a set of complete tax services which include:

• Registration of Tax (obtaining Sales Tax Registration Number – STRN)
• Periodic sales tax returns preparation and filing
• Monthly Tax Statement Preparation
• Managing Tax records and bookkeeping
• Assistance and Advisory in the claim for adjustment of output and input taxes
• Tax exemptions
• Conducting tax audits
• Conducting tax audits
• Representing on client’s behalf before sales tax authorities
• Managing tax issues and dispute resolution
• Auditing existing corporate clients systems and facilitate advisory services for preventing penalties and tax assessments
• Assisting in Tax Refunds
• Strategy building for client’s tax cost reduction

At Taxocrate, our professional tax consultants in Karachi keep them up-to-date with the active developments and new regulations in the taxation scheme of the country. Nowadays, it is extremely difficult to be competent about tax laws and reforms to avoid any seriously penalty or business loss. Our professional tax consultants in Karachi will guide you about the taxation system, get yourself registered with the sales tax department and will take the responsibility to document your periodic tax returns.

In addition to tax registration and return filing, we specialize in National Tax Number Registration and Income tax return filing as well. So, Call us now and speak to our professional tax consultant in Karachi for further guidance and best tax consultancy services.