Taxation Need Not be Taxing

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Tax is one of our areas of technical excellence, however it’s our expansive corporate viewpoint, the strength of our professional relationships and our down-to-earth hands-on

Advice that delivers the real difference to Push Digit’s clients.

Internationally tax laws and procedures are in a constant state of change. Companies want to expand their markets and grow their businesses, so they need a reliable, knowledgeable consultant to guide them to their goals with minimal tax impact.

Push Digits emphasis is on tax, but our focus is on forming long-term business relationships, no matter whether you are a large private or public corporation, or a small, owner-run commercial business, Push Digit’s purpose is to support you and focus on your company’s success.

Our tax advisors can help develop and safeguard your business in rapidly changing world markets. Businesses across the world need to be agile and responsive to take full advantage of the prospects, challenges and threats that abound.

Business today is a roller coaster, it’s a rapidly and continuously changing landscape. Companies endeavor to find and predict openings and challenges, at the same time as mitigating risk. It’s a tough business world. Push Digits is there alongside you, to support and guide you by accelerating your business advantages to assist you to develop and prosper.

Significant Developments

Recently, an ample amount of changes have been administered in the Pakistan Corporate Taxing laws in order to account for the different economic sectors that were previously unaccounted for and to expand the excise base by carrying out the taxation authority operations digitally. Considering the widespread impact of COVID-19 on all economies across the worlds, the Pakistani government has added these changes in the subsequent areas: 

• Multiple changes were made in the law to encourage and accommodate the construction business; many other tax inducements were also introduced. A secure tax regime for developers and builders was added. A notable reduction of tax rates was made regarding the tax on fixed property capital gains was also introduced.
• The divide between ‘open plots’ and ‘constructed properties’ was removed and these two things will no longer be differentiated between. This was done in order to determine the capital gains on the distribution of immovable property as well as the relevant holding periods.
• The currently active notional tax regime for local shipping businesses has been extended as far as 30th of June, 2030.
• The rating facility of 3 percent which was applicable on tax that was withheld on specific services was reduced. The tax was available to local enterprises previously but now it has also been made accessible to the permanent institution of a non-residential individual. The lowest tax was also added to permanent establishments of non-residential individuals.
• A Restriction was introduced, namely the reduction of foreign income on debts of specified foreign-controlled resident corporations working in Pakistan throughout a tax year.
• The payments due to non-residential individuals regarding royalty, dividend, the payment for technical services, reinsurance, insurance, profit, and debt have now been removed from the requirement of having a full enhanced withholding, regardless of whether their titles are not showing up in the active taxpayers’ list.
• Restrictions were added to claims of numerous tax credits like lease rentals, depreciation, sales to unregistered people, tax recognition on enlistment, etc.
• The rate suppression tax facility was reduced from the previous rate of 3%. Previously, it was available for specific services but it has been expanded to other categories such as facilities rendered by management companies, warehousing services, information services provided under the license allotted by the Pakistan Telecommunication Authority, and telecommunications infrastructure services.
• The percentages of advance tax liable on the import of goods were altered, with a rate of 5.5% applicable on finished goods as the minimum tax and rates of 1 percent and 2% introduced for raw material and capital properties imported for personal use. Additionally, the FBR chose to classify any goods from raw material to finished goods for which different detailed procedures will be prescribed. These are subject to change under certain conditions.
• For the automation of specific operations and for providing the required legal cover, certain enabling provisions were introduced, as follows:
  • Automated scrutiny of returns.
  • A centralized income tax refund office has been recognized for computerized payment of refunds/processing.
  • Automated calculation of ‘turnover’.
  • Conduct audit proceedings electronically.
  • Electronic entry to records by the Commissioner.
  • Real-time incorporation of taxpayers’ records with different organizations/agencies.
• The idea of tax profile was redefined with multiple negative consequences such as penalties also being specified or the type of taxpayers who do not update or file their tax profiles.
• A notion of ‘agreed valuations’ was added in law along with the ‘best judgment assessment’. Tax authorities are also commissioned to establish taxable revenue on the basis of ‘sectoral ratios’ in selective cases.
• From the 1st of January 2021, the electronic registration of appeals with the commissioner inland Revenue has been announced under the law.
• An electronically filed application can now be submitted by taxpayers to the Commissioner Inland Revenue to get the status of “GreenField Industrial Undertaking” to get exemptions regarding their account of taxability of gains and profits received by the industrial undertakings. This is subject to change under certain conditions.
• The laws regarding the obtainment of exemption or redacted rate certificates related to suppression tax from expenditures made to non-residents have been revised. The attachment of specified documents such as the documentation of residence, copy of the invoice, copy of the contract, affidavit, as well as any other required document, has now been made obligatory before being able to register for an exemption from the Commissioner Inland Revenue.
• Some specific industries are required to place fiscal software and electronic devices for the accommodation of the online incorporation of their companies.

Delivering You the Best Strategy

The chartered accountants and tax specialists at Push Digits will handle your tax questions and deliver the most beneficial strategy for your business. They will advise on what is and isn’t deductible or where a deduction could be better utilized elsewhere in the overall scheme of your returns.

They will handle Director’s and senior executive’s emoluments, which can be complex depending on their individually negotiated packages. It all needs to be accounted for and tax paid if appropriate, to keep you within the law. The taxation gurus at Push Digits will ensure you are employing the correct tax treatment, appropriate to your situation.

They will ensure accurate deductions for your regular employees so there are no nasty surprises if mistakes are made. Push Digit’s taxation team have the answers you need for your business to run smoothly and zero issues with the taxation authorities.

Legacy Planning & Provision

Perhaps you are planning to hand your business over to your family when you retire, Push Digit’s tax consultants can help you plan an advantageous well-ordered transition. This may be best achieved over a number of years to maximize available tax savings. Talk it over with Push Digits today.

Lack of Cash?

If a lack of liquid cash is an issue for your company, Push Digits will assist you with restructuring your business to introduce new investment capital. Our financial experts will carry out an in-depth analysis of your current business and make recommendations to alleviate the stress, strip away financial drains, help with tax reduction or work with you to improve and raise profits.

Due Diligence

In the event that you are considering a company takeover for growth and expansion, the financial experts at Push Digits will carry out the necessary Due Diligence before you commit your hard cash.

Business purchases can be fraught with pitfalls and dangers unless uncovered before you finalize the deal. It is essential to find out the truth otherwise you could be left with an expensive bill for unpaid company taxes, sales taxes as well as VAT and other hidden expenses.

Undeclared litigation, unpaid taxation or business issues could sink your plans and cost you large amounts of cash later, when these things surface as they surely will.

It is best to be ahead of everything and Push Digit’s team of professional accountants and tax experts will clear the way for you, so you are fully informed of everything before you make the final decision to buy.

Development & Expansion

If you have plans to take your products or services to the international marketplace, now could be the right time. Push Digits has a large team of professional accountants and financial specialists with training and expertise from around the world waiting to help you achieve your goals successfully.

The team understands international as well as local taxation breaks and barriers in any country you may choose to do business with. We will help you boost your profits and reduce your tax liability.

The three-letter word ‘tax’ covers so many different things in different places. The common thread is they can cost you money if you don’t know how to deal with them which is where Push Digits comes in. Our team is expert and skilled in dealing with all aspects of taxation and works hard to minimize your taxation burden whenever and wherever we can do it.

Conclusion

If tax matters keep you awake at night, don’t hesitate to make one call to Push Digits who will immediately respond. With their large professional team of chartered accountants and financial specialists, standing by to assist in any way they can to relieve you of your worries. take those worries away with

Push Digit’s tax team and specialist accountants will guide you expertly through the taxation jungle and with their specialist and expert knowledge, deliver a successful conclusion every time.

Call Push Digits today, you will be so glad you did.