Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Houses rented to foreign missions: owners to be brought into tax net
02-03-2010, 09:25 AM
Post: #1
Houses rented to foreign missions: owners to be brought into tax net
RECORDER REPORT
ISLAMABAD (February 03 2010): The owners of luxurious houses and bungalows, earning rental income in US dollars from foreign missions and embassies, would be registered with the income tax department in the second half of 2009-10 (January-June). The Federal Board of Revenue (FBR) has decided to bring potential owners of big houses into the tax net where properties have been given on rent to foreign missions and embassies.

In this connection, Finance Minister Shaukat Tarin has issued instructions to FBR to bring potential owners of properties into the tax net. The FBR will give top priority to those owners of big houses who are earning rental income in US dollars from foreign embassies.

According to the directive of the Finance Minister, "the FBR should immediately contact all the foreign missions and embassies and ask for details of properties rented by them in order to ascertain the landlords, who receive rent in US dollars so they can be brought into the tax net. The FBR should co-ordinate with the National and Database Registration Authority (NADRA) to identify owners of property earning huge amount in US dollars from diplomats in Pakistan".

Sources told Business Recorder here on Tuesday that the FBR would approach all foreign missions, particularly located in the Diplomatic Enclave area and other posh areas of the federal capital. In many cases, the owners of these houses are getting rents in dollars, but are still not filing income tax returns.

The purpose of the whole exercise is to bring such rich owners of houses used by diplomats into the tax net. Another aspect of the exercise is to check whether the foreign missions in Pakistan are dully deducting withholding tax on rental income under Income Tax Ordinance 2001.

A number of hospitals, schools, AOPs, trusts and non-profit organisations frequently hire the buildings but reportedly do not deduct the tax. The institutions like foreign missions are also not reminded to deduct and deposit the tax, despite the fact that they have hired a large number of houses in the federal capital.

The foreign missions in Pakistan, who have hired buildings, have to deduct the withholding tax from the total rent, and deposit the same in the State Bank of Pakistan (SBP). Contrary to this, there is a need to educate the foreign missions and other listed categories to deduct the tax and deposit in the national kitty. The foreign embassies in Pakistan have to operate as withholding agents for deduction of tax on renal income, sources added.

http://www.brecorder.com/index.php?id=10...=&supDate=
Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  RDA Issues Notices to Owners of 13 Illegal Housing Schemes, Including Well-Known Name LRE-Azan 0 271 10-26-2023 12:50 PM
Last Post: LRE-Azan
  CDA demolishes 48 houses in Park Enclave-I LRE-Azan 0 555 05-20-2023 04:28 PM
Last Post: LRE-Azan
  Initiatives taken to attract foreign investment: PM Salman 0 3,571 02-27-2014 06:47 PM
Last Post: Salman
  Owners of 5-marla houses served notices to pay revised property tax Salman 0 4,371 01-27-2014 05:17 PM
Last Post: Salman
  Houses For Sale In Defence Lahore Salman 0 73,006 07-03-2013 06:46 PM
Last Post: Salman
  Owners To Ensure Fire Safety Measures In High-Rise Buildings In Lahore Salman 0 5,225 06-08-2013 06:18 PM
Last Post: Salman
  Constructions on Islamabad farm houses Salman 0 4,091 05-20-2013 12:23 PM
Last Post: Salman
  SC directs CDA to act against farmhouse owners Salman 0 4,275 05-15-2013 04:42 PM
Last Post: Salman
  SC directs CDA to act against farm owners Salman 0 4,600 03-27-2013 02:16 PM
Last Post: Salman
  CDA plans a new operation against owners of farmlands in Chak Shahzad Salman 0 3,362 02-08-2013 01:31 PM
Last Post: Salman
  LDA to recover demolition charges of Rs90m from 13 plaza owners Salman 0 5,205 11-08-2012 12:09 PM
Last Post: Salman
  CDA to seal houses being used for commercial purposes Salman 0 3,593 10-20-2012 01:04 PM
Last Post: Salman
  Lahore Property News : Plaza owners directed to keep premises clean Salman 0 5,669 09-24-2012 04:15 PM
Last Post: Salman
  Allotments in cantonment: Senate body wakes up to plot owners woes Salman 0 4,197 07-17-2012 01:23 PM
Last Post: Salman
  Five-marla houses given tax exemption Salman 0 8,996 06-15-2012 01:50 PM
Last Post: Salman
  High-rise owners told to submit building details Salman 0 4,389 04-09-2012 05:55 PM
Last Post: Salman
  Shahbaz gives away keys of AHS houses Salman 0 4,411 02-11-2012 12:35 PM
Last Post: Salman
  Ban on building houses along Ravi Salman 0 5,112 01-13-2012 12:46 PM
Last Post: Salman
  Land owners still wait for compensation Salman 0 3,280 01-09-2012 11:32 AM
Last Post: Salman
  Huge potential for marble products export: Trade missions can fetch billions of dolla Salman 0 4,561 01-05-2012 04:43 PM
Last Post: Salman

Forum Jump:


User(s) browsing this thread: 1 Guest(s)