The Federal Board of Revenue (FBR) has introduced a new electronic declaration for the owners of foreign assets and motor vehicles for payment of the Capital Value Tax (CVT).
In this regard, the FBR has notified Capital Value Tax Rules, 2022 under an SRO.1797(I)/2022 here on Thursday.
As per new rules, every person who is liable to pay CVT on assets mentioned in clauses (b) and (c) of sub-section (2) of section 8 of the Finance Act, 2022 shall file the electronic declaration in Iris as set out in the Form-A attached to these rules.
The value of foreign assets shall be converted in PKR as per ready transactions exchange rates for mark-to-market revaluation notified by the State Bank of Pakistan (SBP) applicable for the last day of the tax year, the rules said
As per the rules, every motor vehicle registration authority or a manufacturer or a person selling a motor vehicle through auction liable to collect CVT in respect of the motor vehicle in Pakistan shall furnish to the Commissioner a quarterly electronic statement in Iris as per the schedule mentioned in sub-section (2) of section 165 of the Income Tax Ordinance.
Every person liable to collect CVT in respect of the motor vehicle in Pakistan shall also furnish to the Commissioner an annual electronic statement in Iris for the relevant tax year within thirty days of the end of the tax year, in addition to the statement to be filed, the rules state.
The tax required to be collected by a registration authority, manufacturer or a person selling a motor vehicle through auction shall be paid by way of credit to the federal government through a computerized payment receipt (CPR) or SWAPS payment receipt (SPR) as set out in the Form ‘B’ attached to these rules.
The person required to pay tax in respect of foreign assets or assets specified by the federal government shall pay tax by way of credit to the government through a computerized payment receipt (CPR) at the time the income tax return for the tax year is due for payment of tax on foreign movable assets, as set out in the Form ‘C-l’ and for payment of tax on foreign immovable assets, as set out in the Form ‘C-2’ appended to the rules.
All sums being CVT collected under section 8 of the Finance Act, 2022, shall be paid by way of credit to the government by remittance into the government treasury or in the authorized branches of the SBP or the National Bank of Pakistan.
The rules revealed that the Income Tax Rules, 2002 shall apply to the recovery of arrears of the CVT as they apply to the recovery of the arrears of income tax. The rules also state that a person may apply to the Commissioner having jurisdiction over the person for revision of any order passed by an officer of Inland Revenue in the manner provided in Iris.
Any person dissatisfied with any order passed by the Commissioner or an officer of Inland Revenue under this section may prefer an appeal before the Commissioner (Appeals) against the order as provided in section 127 of the ordinance and all provisions of Part III of Chapter X of the ordinance shall apply accordingly, the new rules added.