Submission of record: FBR issues names/categories of NPOs’ beneficial owners

ISLAMABAD: The Federal Board of Revenue (FBR) has issued names/ categories of the beneficial owners of the non-profit organization (NPOs) for submitting their records to the tax department by December 31, 2023.

Through the S.R.O. 229(l) 2023, the FBR has declared the settlor, trustee, founder, promoter and beneficiary as beneficial owners of the NPOs for the purpose of record keeping. Every company and association of person (AOP) already registered with FBR, shall electronically furnish the particulars of its beneficial owners to the Board on or before December 31, 2023 through Board’s online system.

Initial registration with FBR: Firms, AOPs to furnish details of beneficial owners

Under the Income Tax Ordinance 2001, the “non-profit organization” covers any person other than an individual, which is established for religious, educational, charitable, welfare purposes for general public, or for the promotion of an amateur sport; formed and registered under any law as a non-profit organization; approved by the Commissioner for specified period, on an application made by such person in the prescribed form and manner, accompanied by the prescribed documents and, on requisition, such other documents as may be required by the Commissioner; and none of the assets of such person confers, or may confer, a private benefit to any other person, it added.

According to the S.R.O. 229(l) 2023, in case of non-profit organization as defined under section 2(36) of the Income Tax Ordinance, 2001, the settlor, trustee, founder, promoter, beneficiary, class of beneficiary, as the case may be, will be the beneficial owners of the non-profit organization: Provided that where the beneficiary or class of beneficiary of the non-profit organization is general public, the beneficiary or class of beneficiary of such non-profit organization shall be exempted from the requirement of providing information of beneficial owners.

Under Income Tax Ordinance, every company and association of persons shall electronically furnish particulars of its beneficial owners in such form and manner as may be prescribed. Every company and association of persons shall update the particulars of its beneficial owners as and when there is a change in the particulars of the beneficial owners, it added.

Copyright Business Recorder, 2023