AGL 5.95 Decreased By ▼ -0.13 (-2.14%)
ANL 9.26 Decreased By ▼ -0.14 (-1.49%)
AVN 80.82 Decreased By ▼ -0.64 (-0.79%)
BOP 5.20 Decreased By ▼ -0.07 (-1.33%)
CNERGY 4.86 Decreased By ▼ -0.04 (-0.82%)
EFERT 81.82 Increased By ▲ 0.27 (0.33%)
EPCL 53.94 Decreased By ▼ -0.06 (-0.11%)
FCCL 14.29 Decreased By ▼ -0.11 (-0.76%)
FFL 5.93 Decreased By ▼ -0.12 (-1.98%)
FLYNG 7.44 Decreased By ▼ -0.12 (-1.59%)
FNEL 4.95 Decreased By ▼ -0.05 (-1%)
GGGL 9.18 Decreased By ▼ -0.14 (-1.5%)
GGL 16.51 Decreased By ▼ -0.19 (-1.14%)
HUMNL 6.14 Increased By ▲ 0.45 (7.91%)
KEL 2.77 Decreased By ▼ -0.02 (-0.72%)
LOTCHEM 30.81 Increased By ▲ 0.26 (0.85%)
MLCF 27.45 Decreased By ▼ -0.34 (-1.22%)
OGDC 74.27 Increased By ▲ 0.27 (0.36%)
PAEL 15.98 Decreased By ▼ -0.21 (-1.3%)
PIBTL 5.21 Decreased By ▼ -0.02 (-0.38%)
PRL 17.01 Decreased By ▼ -0.28 (-1.62%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
TELE 10.00 Decreased By ▼ -0.04 (-0.4%)
TPL 7.65 Decreased By ▼ -0.05 (-0.65%)
TPLP 19.41 Decreased By ▼ -0.36 (-1.82%)
TREET 22.72 Decreased By ▼ -0.47 (-2.03%)
TRG 146.80 Decreased By ▼ -0.55 (-0.37%)
UNITY 17.09 Decreased By ▼ -0.10 (-0.58%)
WAVES 10.33 Decreased By ▼ -0.05 (-0.48%)
WTL 1.42 Decreased By ▼ -0.04 (-2.74%)
BR100 4,330 Increased By 3.4 (0.08%)
BR30 16,296 Increased By 46.9 (0.29%)
KSE100 42,904 Increased By 23.3 (0.05%)
KSE30 15,805 Decreased By -4.6 (-0.03%)
Follow us

ISLAMABAD: The value of foreign assets shall be converted into rupees for the calculation of the Capital Value Tax (CVT) on foreign assets of resident individuals.

The Federal Board of Revenue (FBR) has issued Capital Value Tax Rules, 2022 through an SRO1797(I)/2022, here on Thursday.

Through these rules, the FBR has laid down the procedure for the payment of CVT on foreign assets and motor vehicles.

The FBR has also issued the CVT recovery and refund rules.

In this regard, the FBR has issued three different computerised payment receipts (CPRs) for the owners of the foreign assets (movable), foreign assets (immovable), and the CPR for CVT on motor vehicles.

The one percent CVT is applicable on the value of the foreign assets of a resident individual where the value of such assets on the last day of the tax year in the aggregate exceeds Rs100 million.

Recovery of CVT on foreign assets: SHC asks tax authorities to comply with relevant laws

Under the rules, every person who is liable to pay capital value tax on assets mentioned in clauses (b) and (c) of sub-section (2) of section 8 of the Finance Act, 2022 shall file the electronic declaration in Iris as set out in the Form-A attached to these rules.

The value of foreign assets shall be converted in rupees as per ready transactions exchange rates for mark to market revaluation notified by the State Bank of Pakistan (SBP) applicable for the last day of the tax year, the rules said

As per rules, every motor vehicle registration authority or a manufacturer or a person selling motor vehicle through auction liable to collect CVT in respect of motor vehicle in Pakistan shall furnish to the Commissioner a quarterly electronic statement in Iris as per schedule mentioned in sub-section (2) of section 165 of the Income Tax Ordinance.

Every person liable to collect CVT in respect of motor vehicle in Pakistan shall also furnish to the Commissioner an annual electronic statement in Iris for the relevant tax year within thirty days of the end of the tax year, in addition to the statement to be filed, rules said.

The tax required to be collected by a registration authority, manufacturer or a person selling motor vehicle through auction shall be paid by way of credit to the Federal Government through a computerized payment receipt (CPR) or SWAPS payment receipt (SPR) as set out in the Form ‘B’ attached to these rules.

The person required to pay tax in respect of foreign assets or assets specified by the Federal Government shall pay tax by way of credit to the federal government through a computerized payment receipt (CPR) at time the income tax return for the tax year is due for payment of tax on foreign movable assets, as set out in the Form “C-l” and for payment of tax on foreign immovable assets, as set out in the Form ‘C-2’ appended to these rules.

All sums being capital value tax collected under section 8 of the Finance Act, 2022, shall be paid by way of credit to the federal government by remittance into the government treasury or in the authorised branches of the SBP or the National Bank of Pakistan. The rules revealed that the Income Tax Rules, 2002, shall apply to the recovery of arrears of the capital value tax as they apply to the recovery of the arrears of income tax.

The rules added that a person may apply to the Commissioner having jurisdiction over the person for revision of any order passed by officer of Inland Revenue in the manner provided in Iris. Any person dissatisfied with any order passed by the Commissioner or an officer of Inland Revenue under this section may prefer an appeal before the Commissioner (Appeals) against the order as provided in section 127 of the Ordinance and all provisions of Part III of Chapter X of the Ordinance shall apply accordingly, it added.

Copyright Business Recorder, 2022

Comments

Comments are closed.

CVT calculation: Value of foreign assets to be converted into PKR: FBR

'We stand by our promise': Moonis Elahi says will dissolve Punjab assembly on Imran's call

PM Shehbaz urges Turkiye to invest in Pakistan's mega solar project

Ishaq Dar says Pakistani delegation to leave for Russia for potential oil deal

Pakistan secures €150mn in aid from ECO Trade and Development Bank: Marriyum

Saudi Arabia blocks Qatari beIN’s World Cup streaming platform

Lewandowski breaks World Cup duck as Poland beat Saudi Arabia

Nine terrorists killed in gun battle with security forces in Balochistan: ISPR

Ronaldo’s ‘total genius’ won World Cup penalty, says FIFA group

Relations with India, gender equality stressed at ‘talks by engro’ event in IBA

Owned by resident Pakistanis: FBR starts taxing hundreds of foreign properties