Beneficial owners: Corporate sector asked to retain records for 10 years

ISLAMABAD: The Federal Board of Revenue (FBR) has directed the corporate sector to retain the records of all beneficial owners for a period of 10 years.

The FBR has amended Income Tax Rules, 2002, on Monday, to introduce a new “Chapter, i.e., Record of Beneficial Owners” through the issuance of a notification.

The board shall retain the records of beneficial owners of all companies and associations of persons (AOPs) registered with the board for a period of 10 years from the date when that company or AOP ceases to be registered with the FBR.

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

Under the new rules, every company and AOP, on its initial registration with the FBR, shall electronically furnish the particulars of its beneficial owners to the board as prescribed form through the board’s online system.

Every company and AOP, already registered with the FBR, shall electronically furnish the particulars of its beneficial owners to the board on or before December 31, 2023.

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, the FBR added.

In case of non-profit organisation, the settler, trustee, founder, promoter, beneficiary, class of beneficiary, as the case may be, will be the beneficial owners of the non profit organisation: Provided that where the beneficiary or class of beneficiary of the non-profit organisation is general public, the beneficiary or class of beneficiary of such non-profit organisation shall be exempted from the requirement of providing information of beneficial owners.

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 in Form through board’s online system along with the income tax return to be filed for that tax year, the new rules added.

Copyright Business Recorder, 2023