FBR for filing IT returns in normal tax regime

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has given an option to the commercial importers, traders and exporters to file income tax returns in the normal tax regime with payment of minimum tax.

In this connection, the FBR has issued an income tax circular here on Saturday.

According to the FBR, prior to the Finance Act, 2012 commercial imports, export of goods, indenting commission, sale of goods to an exporter or to an indirect exporter and trading of goods are subject to Presumptive Tax Regime and taxes collected or deducted at source are treated as a final tax liability. Persons under this regime are not allowed to be taxed on net income basis i.e. under normal law. Through, Finance Act 2012, clauses (41A), (41AA) and (41AAA) have been inserted in Part IV of the Second Schedule, and now such persons have been provided an option to be taxed on net income basis. However, the option will be subject to a condition that minimum tax liability in respect of such income shall not be less than 60 percent of tax collected at the import stage; 70 percent of tax deducted at source on sale of goods and 50 percent of the tax collected at the time of realisation of export proceeds and indenting commission.