KARACHI:
The Federal Board of Revenue (FBR) has issued new rules and regulations for online businesses and released a draft amendment to the Income Tax Rules, 2002 aimed at bringing the digital economy into the tax net.
The FBR’s statutory regulatory order (SRO) states that every entity engaged in online business will be required to submit monthly financial reports.
Such entities will submit financial details through Form A1 and Form A2 on a monthly basis.
As per the SRO, details of online businesses will include their National Tax Number (NTN) and monthly bank account statements. Online businesses will also be required to provide the seller’s name, address, and invoice number.
Furthermore, all courier service companies across the country will be required to submit their financial details to the FBR every quarter, using Form One issued by the board.
The SRO also states that companies providing online financial services will be required to submit details of taxes on their services through a separate form.
Entities conducting online business must also submit an affidavit along with their tax details. The FBR has invited stakeholders to submit their feedback on the amended draft for online businesses within seven days.
