ISLAMABAD: A total of 50,000 companies are filing their annual income tax returns out of over 100,000 entities registered with the Securities and Exchange Commission of Pakistan (SECP).
The data has been disclosed in the FBR report (Stakeholder Engagement Plan) issued under the World Bank funded Pakistan Raises Revenue Project (PRRP).
A FBR’s report on reforms disclosed that the SECP and FBR share data through a one-window facility for company and national tax number (NTN) registration under the Virtual One Stop Shop (VOSS). This scheme has been launched to ease the registration process for companies under the ease of doing business agenda.
Although there is a memorandum of understanding (MoU) in place between the two entities, for sharing need-based data, the representatives felt that FBR should be more proactive about sharing data and information.
Only 50,000 of the 100,000 companies registered with the Securities and Exchange Commission of Pakistan (SECP) are filing their taxes and this issue needs to be jointly addressed by the FBR and SECP.
The SECP has various ideas on taxation regimes for different types of companies (limited liability, sole proprietorship, group companies, etc) that can help set up an enabling environment for improved taxation. The engagement between SECP and FBR can help establish taxation benefits for various types of companies, encouraging them to register with FBR and avail of such benefits, the FBR report stated.
Copyright Business Recorder, 2023