The Federal Board of Revenue (FBR) is likely to introduce new regulations for online marketplaces by proposing amendments to the Income Tax Rules, aimed at bringing the digital economy into tax net.
In a major step towards bringing the country’s digital economy into the tax net, the FBR has released a draft proposing amendments to the Income Tax Rules 2002.
According to the FBR’s Statutory Regulatory Order (SRO), all online marketplaces will now be required to submit seller-wise transactional details for digitally ordered goods and services to the FBR in forms A1 and A2.
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Names and addresses of registered sellers, invoice numbers, invoice value, amount of sales tax withheld, and amounts deposited in seller’s bank accounts are also required under the prescribed forms.
All payment intermediaries and courier service companies connected with online marketplaces will also be obligated to submit quarterly transactional reports and details of income tax deducted and tax deposited with the FBR.
The FBR has invited feedback from stakeholders on the amended draft, allowing them seven days to submit their objections or comments.
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