KARACHI: The Federal Board of Revenue (FBR) has further expedited its efforts to bring unregistered individuals and companies representing foreign companies into the tax net.
The sources said companies and individuals have been promoting products of foreign companies in the country without registration with the tax authorities for a long time. The registration entails a nominal tax on their services.
“Through the Finance Act 2017 the definition of liaison office has been amended to bring persons/companies promoting products into the definition,” said an official at Large Taxpayers Unit (LTU) Karachi.
The LTU Karachi had proposed this amendment into Income Tax Ordinance 2001, but the proposal was not incorporated in Finance Bill 2017. Yet, it was added when the bill was made into law.
The FBR official said a place of business would not be treated as liaison office if it engages in activities, including commercial, trading or industrial or negotiation and conclusion of contracts.
