Payoneer payment platform has issued a statement in response to tax proceedings initiated by the Federal Board of Revenue (FBR) against the company.
FBR reported transactions worth billions of rupees made through Payoneer to Pakistani citizens that were not reported, and the taxes on the payments were also not paid.
Since Payoneer does not have a physical presence in Pakistan, FBR initiated action based on the significant economic presence of Payoneer, and its services originated from outside Pakistan but terminated within the territorial jurisdiction of Pakistan. Tax proceedings against Payoneer have also been initiated under the Income Tax Ordinance, 2001 and Federal Excise Act, 2005.
The statement by Payoneer reads as follows:
Payoneer has been supporting freelancers and service exporters in Pakistan for more than a decade, empowering self-employed professionals to become successful entrepreneurs and exporters. We are very honored to serve thousands of freelancers in Pakistan, helping them receive funds from their international customers.
By providing these services to Pakistani service exporters, Payoneer helps ensure that hard-earned foreign currency is received in Pakistan through formal bank channels, with unparalleled levels of service, compliance, and security and at low cost.
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As per the Payoneer Report, “Freelancing in 2020 – An Abundance of Opportunities,” Pakistan ranks as the eighth fastest-growing freelancing economy. Payoneer has directly contributed to the tremendous growth of these businesses, supporting Pakistan’s economy as it continues to thrive and compete internationally.
As a regulated entity, Payoneer maintains strict security practices to ensure that customer funds and data are always kept secure.
It is the obligation of each business in Pakistan to report their income to local authorities, including income obtained from the export of goods or services, and that this is not something that Payoneer does or is required to do on their behalf.
The discussion around taxation has taken a leading role in the Pakistani freelancing community, as it has in many countries around the world where the remote workforce is growing. The digital economy provides a massive opportunity, but it comes with lots of complexity which tax authorities and regulators all over the world are frequently examining.
Payoneer’s goal is to take the complexity out of cross-border payments and lower borders for freelancers in Pakistan. Payoneer will continue to do so with transparency and through engagement with local regulators and relevant authorities.
Koi aik cheze chal tahi hai Pakistani freelancers kay liyay. Us ko bhi bhaga do. Well done FBR and GOV of Pakistan.
Already banks don’t recognize freelancers. We can’t get loans, credit cards.
There is scarcity of payment providers in Pakistan. Payoneer is one that works for millions of freelancers in PAkistan.
FBR, please hire people with some brains. Do NOT harass Payoneer. If they go millions of Pakistanis will have to look for alternative payments method when there aren’t many.
Khuda ka kuch khauf karo.
Sir kash app ki awaz suntey ya log….
Must be a stooge of nawaz who have started this
Hafeez sheikh is also a stooge of zardari government..
Dollors earned and surrendered to SBP being labbled as scam sounds strange?
Ajj tak goverment na kabi job opertunities paida ke ne aur bachon na apna balbuta pai aik rasta nikala freelancing , youtube etc aur sarkar agayw bhatta laina. Shame on such 3rd class polices, agar rozgar nai da sakta to jo kar raha hain unko to karna do
Being a user of Payoneer for 8 years now, I feel the time we were facilitating to international community, we would had spared some to teach the pathetic bureaucrat who is marking Payoneer as “un-taxed” income.
Puri dunya ma koi mo ap ko lagata nai, aur Payoneer ko notices bhaij rhy hain..
Before pointing finger on Payoneer who is doing great job by providing livelyhood to many Pakistanis who would have been unemployed otherwise, the authorities should have had taken a deep dive into their own system and processes to identify weaknesses that are leading people not to file tax returns. Rather they should appreciate Payoneer for collecting forex for the country.
FBR baboos are idiots of epic proportions. They deliberately generate such headlines to gain attention in their monotonous lives.
Is ghadhay Imran khan ko farig krou sub se pehle
Some ashole commissioner is claiming it as an achievement “voila we found xxbn of untaxed income”. Abey gadhey ye income taxable hai hi nahi. Ye foriegn remittance hai jo ke as per Foriegn income ordinance taxable nahi hai. No. 2 tum log 10 saal se so rahey they sarkari naukrion pe bet ke haram kha rahe ho abhi khayal aya big achievement. You must be a tout of corrupt politicians. This is a shame for you. I am a lawyer and if I get some phony notice on my hard-earned income il kick your a$$ in court.
get rid of this govt asap.
money came into pakistan through proper banking channel and a scum bag from fbr labels it as A scam
Perfect response from Payoneer. It is not their duty to report data to SBP. It is duty of Pakistani citizens. Payoneer is not answerable to Pak Govt.
All Freelancers must unite against such a stupid decision by FBR. The foolish officials are not able to facilitate our freelancers, they are not able to create earning opportunities for our talented youth in the country. People in private sector are creating learning opportunities for individuals. But these stupid people on such a responsible level are now trying to sabotage the talent of our youth. They are not so capable to satisfy and bring PayPal to Pakistan but now trying to stop the service of Payoneer.
All freelancers must raise their voice and do complain on Pakistan Citizens Portal.
I am not a freelancer but I am shocked after reading this news. This is clear that no matter who’s gov is in Pakistan only common man is being targeted and no big fish is ever caught and punished. This is really bad. Its like the double sawari law … pathetic move by our gov.
phele to yaha koi dhang ki job milti nahi Pakistan main phele job k liye khuwar ho to agr mil bhi jati hai to ghatiya log pehle wahan bethe hote hain insan kese bhi kr k koi or zariya nikalta hai k chlo yaha se apna ghr chlain or waha bhi humen skoon se koi kaam ni krnr dete ..jahil k bacho khud jb tum kuch kr ni skte to atleast humen kuch krne do ismain tumhara kya jarha hai khuda ko mano akkal use kro mehnat krhe hain hum log wo bhi tum ko raas ni arhi
Woh sb log Jo keh rhy hen k fbr ko aesa NH krna chahye , wrna bhot se free-lancers Ka nuqsaan Hoga aur Woh alternative payment method find krengy, toh ap sb logo se Mera yh sawal ha k agr free-lancers tax pay krty hoty, from the day1, toh fbr kyun Involve hota, aur tax pay krna Kia apka farz NH ha? Aur Woh log Jo government ko Bura keh rhy Woh sb jawab de k dunya k Konse mulk me apse legal way of business me tax NH demand Kia jaata ? UK me 21% tax pay krty hen, on payments.. in non- tax payers ki mehrbaani se e es mulk ki economy itni Achi ha , hats off to those who are blaming the authorities.. level ae twada v
Pakistan main aam logun pe 6 lakh se uper annual income pe tax lagaya jata hai jab ye log freelancers pe $400 se upr annual income pe 15% tax laga rahay hain. is it fair?? we already pay 20% of our money the freelance market places, we are also charged for bank transfer. tou sab kuch idr he cut jaye ga tou pechay bachay ga kya?? kon kray ga phir kaam???