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

ISLAMABAD: Every company and association of person (AOP) on its initial registration with Federal Board of Revenue (FBR) shall electronically furnish the particulars of its beneficial owners to the Board.

The FBR has issued S.R.O. 229(l) 1 2023 to propose amendments in the Income Tax Rules, 2002 on Tuesday.

Under the new rules, every company or AOP shall retain the records of all beneficial owners for a period of ten years from the date when the beneficial owners of that company or AOP, as the case may be, cease to be the beneficial owner of that company or AOP.

Board shall retain the records of beneficial owners of all companies and AOPs registered with the Board for a period of fifteen years from the date when that company or AOP ceases to be registered with FBR.

The rules said that every company and AOP already registered with FBR shall electronically furnish the particulars of its beneficial owners to the Board on or before December 31, 2023, as prescribed in Form (BOF-01) of Part IXA of the First Schedule to these rules through Board’s online system.

The record of the beneficial owners shall be updated whenever there is a change in any of the particulars of the beneficial owner as stipulated in Form within 30 days from the date when the change occurs.

In case of non-profit organization, 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 this rule.

In case there is no change in the beneficial owners of the Company or AOP throughout a particular tax year, the Company or AOP as the case may, shall furnish a “Certificate of Confirmation for Beneficial Owner” to this effect as prescribed through Board’s online system along with the Income Tax return to be filed for that tax year, FBR added.

Copyright Business Recorder, 2023