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Tax Reform Package for Real Estate Industry

Tax Reform Package for Real Estate Industry

  • Oct 05, 2019
  • Laws and Taxes

Much Needed Tax Reform to Be Introduced Soon For Real Estate and Construction Industry We are all aware that the Pakistani economy has taken a downturn and this is an issue that needs to be addressed without any delay. The real estate and construction industry is one of the industries that will help Pakistan’s economy stabilize and grow. Recently in a news show, Mr. Hassan Bakshi Ex-Chairman Association of Builders and Developers Pakistan (ABAD) informed that the government is introducing a Tax Reform Package that will give a boost to the real estate and construction industry. He mentioned that their discussion with government officials indicated that the builders, developers, and investors do not have any problem with paying income taxes; instead what they want is a streamlined system that eliminates the exchange between the tax payer and tax collector. The highlights of this tax reform package will be that financiers will be encouraged to invest in this sector, without much questioning about their financials. The growth of this sector will not only impact the industry, but will also power the growth of more than 70 dependent industries.

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Laws Safeguarding Rights of Pakistani Property Owners

Laws Safeguarding Rights of Pakistani Property Owners

  • Oct 02, 2019
  • Laws and Taxes, Real Estate

Property Owners: DO YOU KNOW ALL YOUR RIGHTS ? Although things seem mismanaged and disorderly in our dear country, there are laws in place that govern all aspects of ownership of property in Pakistan. These laws cover buying and selling of real estate in Pakistan. As a property owner, you should know these laws. The Transfer of Property Act, 1882 The Transfer of Property Act of 1882 is the oldest law that is still being followed regarding the real estate in Pakistan. This Act explains how properties can be transferred, what types of properties are transferable, and people who are permitted to transfer properties. The Stamp Act, 1899 The Stamp Act of 1899 is a very widely used law that incorporates that all legal documents must be published on Stamp papers issued by the Government of Pakistan. These stamp papers are deemed of a certain value, the revenue of which goes to the government. The stamp papers also validate any transaction that may be carried out. The Registration Act, 1908 The Registration Act of 1908 is a very comprehensive law that encompasses all aspects of registration of property in Pakistan. It comprises of 15 Sections that describe these details completely. This Act applies to all areas of Pakistan except a few districts. The Land Revenue Act, 1967 The Land Revenue Act of 1967 describes the overall structure and progressive system of the land and revenue department of Pakistan. The Act additionally gives clear rules on collecting land income. The rudimentary issues of partition of land, marking of boundaries, settlements, and conducting surveys also part of the Land Revenue Act of 1967.

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Top Property Lawyers Pakistan Real Estate

Top Property Lawyers Pakistan Real Estate

  • Aug 07, 2019
  • Laws and Taxes

Ahmed and Partners: Ahmed & Partners is an advanced, dynamic, and customer-focused law firm whose mission is to transform the provision of legal services to deliver true engagement, quality legal representation and advice, and above all value to their clients. We provide specialized, cost effective and comprehensive legal services to businesses and individuals in a variety of areas including banking and finance, including Islamic finance, corporate, commercial, transaction and employment, litigation and dispute resolution in civil and commercial matters, property and mediation, intellectual property and taxes. Vellani & Vellani: Vellani & Vellani, a corporate and intellectual property law firm, was founded in 1937. They offer legal services including consulting services for companies and other clients. Some of the areas include finance, taxes, mergers, acquisitions, divestments, syndicated loans, licenses and technology transfer, start-ups and joint ventures. The company also provides intellectual property services related to trademarks, patents, designs, copyrights, licenses and domain names. Irfan Mir Halepota & Associates: Ahmed Ali Dewan & Co works with expertise and considerable performance. The company provides intellectual property rights services in all countries of the world as well as civil, criminal and constitutional law services. Ahmed Ali Dewan and Co: Ali & Associates is an internationally recognized Pakistani law firm specializing in intellectual property, media and information technology laws. The firm is also highly respected for its litigation practice and has represented a large number of clients, including some of the largest national ones. Ali and Associates: Ali & Associates is an internationally recognized Pakistani law firm specializing in intellectual property, media and information technology laws. The firm is also highly respected for its litigation practice and has represented a large number of clients, including some of the largest national ones. Azimuddin Law Associates: The Karachi Lawyers Association of Pakistan wants to make the ordinary people and those who are really greedy by law more and more aware of the law. And Azimuddin Law Associates offer their customers maximum free legal advice. This is the sole legal reason that advises customers for free. Munir & Munir Associates: Munir & Munir Associates strives to consistently work in the intellectual property space to deliver high performance and the best possible satisfaction of their customers and employees. Their practice covers all aspects of registering trademarks, patents, designs, copyrights, domain names and litigation. Real Estate in Pakistan: Property in Pakistan is a growing industry in Pakistan. Pakistan Spends $ 5.2 Billion a Year on Construction. In addition, billions will be spent on the purchase of residential and commercial land. According to the Pakistan Bureau of Statistics, construction output is 2% of GDP, with less than half of housing construction. With the increasing urbanization in Pakistan, the need for urban planning is growing. GDP from construction in Pakistan enlarge from 320769 million PKR in 2017 in 2018 to 343183 million PKR. The average construction industry output in Pakistan amounted to PKR 247,347.62 million from 2006 to 2018, reaching an all-time high of PKR 343183 million in 2018 and a record low of PLN 186380 million in 2006. Demand for residential real estate in Pakistan increased in 2010, raising interest among real estate developers and investors. Since prices have exceeded 10 million PKR, new housing developments are often targeted at the upper middle class. The Pakistani government announced in 2012 a cut in interest rates on mortgage credit. The Pakistani real estate industry generates sales with Pakistan from Germany and abroad. This sector has been denied marketing and technology - there is not a single brand with offices across Pakistan. The problems that people face in this sector are also related to safe and smooth transactions. Portals are now on the market to provide better facilities in this sector, and they are initiating awareness raising campaigns on real estate issues through characters such as PAT the Patwari. PAT explains the real estate terminology and helps people solve the problems they face in the real estate industry. Another development in this area is the introduction of fairs and festivals. Not only are these festivals a platform to buy and sell, they also provide the opportunity to learn about the market, draw attention to the real estate industry, and entertain the children and families present.

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Why we should become a filer in Pakistan

Why we should become a filer in Pakistan

  • Aug 06, 2019
  • Laws and Taxes

The percentage of people who are familiar with the concept of tax filing in Pakistan is significantly low. In recent years, governments in power have tried to introduce various incentives to encourage people to become filers. To better understand why you should become a filer, this blog summarizes the benefits of being a filer. Taxation is the backbone of the economy, and with the efforts being made to formalize the economic and property tax system, it will be extremely beneficial to tax inspectors over time. Bank Savings: The government has introduced a withholding tax on cash withdrawals of more than Rs. 50,000, but the withholding tax rates for applicants and non-applicants are different. A non-submitter is subject to a withholding tax rate of 0.6% on cash payments, compared to 0.3% for a contributor. So for cash withdrawal of Rs. 100,000, a filer would be subject to withholding tax from Rs. 300 against Rs. 600 for a non-filer. In addition, the applicant can easily adjust this tax deduction to his other tax liabilities such as payroll tax. The filer effectively pays no tax on cash withdrawals, but a non-filer. Sell and Purchase of Vehicles & Property: Only a filer can buy real estate worth more than Rs. 5,000,000. Only a filer can buy a new or imported car. A non-filer pays 50% or more of the annual token tax and vehicle registration tax. The real estate transfer tax for non-applicants is 2% compared to 1% for applicants. Other benefits: It's clear that a company that pays taxes can bring many business benefits: First of all, your customers and other companies know that you are a credible business that you need to do business with and companies that submit taxes as a non-submitting. Only a taxpayer can get government contracts or participate in government auctions - even with foreign governments, companies, and companies. Likewise, only a taxable company can become a member of one of the Chambers of Commerce and Industry and have access to the benefits they offer.

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How to Attested and Registered your Power of Attorney in Pakistan

How to Attested and Registered your Power of Attorney in Pakistan

  • Jul 26, 2019
  • Laws and Taxes

The power of attorney is an effective legal document that can be used for a variety of purposes. Basically, however, it is permission for another person to act in their own name. A power of attorney is useful when a person cannot be present to file the documents. So they empower another to do this for them. In short, it is a legal document in which you delegate certain legal powers, such as the right to sell or rent a property, to another person. Types of Power of Attorney: There are many types of proxies, while common powers and special powers are commonly used. Permanent POA A power of attorney that remains valid during the incompetence of the grantor. (Such tools typically allow an agent to make healthcare decisions for an incompetent patient. General POA A deed that authorizes someone to actually act as a proxy or solicitor for the grantor. Irrevocable POA A power of attorney that the client cannot revoke. Also called a proxy in connection with interest. Special Price A power of attorney that limits the powers of the agent to a specific matter. Attestation of Power of Attorney: The certification of documents such as POA should be signed by the managing director in front of the representatives of the embassy. All documents originating from Pakistan must be signed by the Ministry of Foreign Affairs, Islamabad or the field offices (Peshawar, Lahore, Quetta, and Karachi). In Pakistan, a certificate of attorney is available from the respective Consulate or Embassy of Pakistan in the country of residence of the Principal. Attestation Requirements: Original authorization and a few copies. Application form for the power of attorney certificate. His/her original passport along with his copy. His original Computerized National Identity Card (CNIC) or National ID Card for Pakistani overseas (NICOP) along with his copy. Two current passport photos are attached to the power of attorney next to the place of the signature. If the power of attorney extends to more than one page, each page must be signed. Copies of your CNIC and those of the witnesses. Processing fee in the form of a postal order or bank check. The document will be certified by the authorities and you can proceed to the next phase.

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Income Tax Calculator Pakistan

Income Tax Calculator Pakistan

  • Jul 22, 2019
  • Laws and Taxes

Income tax is the tax you pay on your income. The income tax is paid by the workers, that is to say, the employees, the self-employed and the unincorporated enterprises. Income tax is one of the important sources by which a government finances its activities. Personal income tax revenues represent only 1.1% of GDP in Pakistan (11% of total tax revenue) and only 2% of the working-age population is registered as a taxpayer. In accordance with the 2018-2019 Finance Law approved by the Government of Pakistan, this Web-based tax calculator applies the income tax rates in Pakistan to the taxable income of employees and the class of employees. Slabs in the category of employees are applicable when the wage income exceeds 50% of the total taxable income. Exemptions: A senior citizen of Pakistan, a taxpayer aged 60 or over on the first day of the tax year concerned, receives a 50% reduction in the amount of his tax liability if his taxable income during that year tax is Rs. 1,000,000 / - or less. The income tax exemptions announced last year, which had generously exempted from taxation less than 100,000 rupees per month (1.2 million rupees per year), were removed. Reintroducing taxes: The PTI government has proposed reintroducing taxes for anyone earning more than 50,000 rupees a month (600,000 rupees per year). The government has also introduced 11 tax boards with a progressive tax rate of between 5 and 35 percent of income. Those who earn Rs 2.4 to 4.8 million per year pay taxes of Rs 60 000. Those with a salary of more than Rs 4.8 million pay in addition to 15 percenta of the salary fixed tax of Rs 300,000. The Last Government: In the tax concessions announced in the financial year 2018/19, the PML-N government had earmarked monthly allowances of between Rs 5,000-35,000 in its most recent budget, with Rs.5,000-25,000 less deducted from their salaries. Tax experts said it was a great relief to the salaried class and said that actually Rs 5,000 was added to the salaries of those who received Rs 60,000 monthly salaries. The last government had defined 12 categories (plates) for the salary grade and a fixed tax rate of 2% to 30%. In the last category, an employee who received more than Rs 70 lakh a year had to pay taxes of 30% and a fixed amount of Rs 1422,000. These employees with an annual income of 400,000 rupees were exempt from tax. Those who received Rs 400,000 to 800,000 and Rs 800,000 to R 1200,000 were charged a fictitious tax. Therefore, those who receive monthly salaries in the range of Rs. 40,000 to Rs.100,000 receive financial benefits of Rs. 5,000 to 9,000.

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Comparing Filer and Non Filer in Pakistan

Comparing Filer and Non Filer in Pakistan

  • Jul 18, 2019
  • Laws and Taxes

Comparing the pros and cons of filer and non-filer, non-filer also have to pay 20 percent tax on their dividends. Filers have different advantages when buying real estate. A concept was introduced for filers and non-filers to promote tax culture, prevent non-compliance with tax laws and address the concerns of citizens who pay taxes as tax evaders due to their higher business costs. A filer within the meaning of the Regulation is a taxable person whose name appears in the list of active taxpayers published from time to time by the Federal Tax Office or who is the holder of a tax card. A "non-filer" is a person who is not a filer. According to FBR (Federal Board of Revenue): The Federal Financial Supervisory Authority (FBC) has determined the difference between applicants and non-notifies of income tax returns at double withholding tax rates for non-applicants under the Income Taxation Act 2001 by the Finance Act. In the case of late filing of the tax return, taxpayers would have to wait a full year to become an active taxpayer. Similarly, taxpayers would only have to pay half of the withholding tax compared to the tax paid by non-taxpayers. A non-filer cannot buy a property worth more than Rs 5 million, whereas active taxpayers are not excluded from purchasing real estate. When transferring real estate, the active taxpayer pays only one percent tax against two percent tax paid by non-registrants, and the tax registrant pays two percent on the total amount of acquired property, while the non-registrar pays four percent on the same. Withholding Tax: It is a governmental requirement that the payer of an income item must withhold or deduct taxes from the payment and pay these taxes to the government. In most countries, the withholding tax applies to earn income. Withholding tax is treated as a payment based on the final tax liability of the recipient. It may be reimbursed if, when filing a tax return, it is found that the tax liability of the beneficiary is less than the tax withheld from the State receiving the withholding tax, or if it is established that the recipient’s tax is an additional tax liability is more than the withholding tax. Amount of Withholding Tax: Withholding tax on income payments other than earned income is usually a fixed percentage. Income from work is often based on an estimate of the employee's final tax liability, determined either by the employee or by the state. Liability: This term refers only to money or service that is currently owed to another party. One form of liability would be, for example, the property taxes that a homeowner owes to the municipalities.

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The Real Purpose of Amnesty Scheme of Pakistan 2019

The Real Purpose of Amnesty Scheme of Pakistan 2019

  • Jul 11, 2019
  • Laws and Taxes

Amnesty Scheme 2019 Pakistan The amnesty or asset recognition scheme announced by the PTI government envisages taxing all assets other than immovable property at 4 percent, domestic immovable property at 1.5 percent, foreign liquid assets at 6 percent, and unexplained expenses at 4 percent. 5 percent. The standard surcharge, which can be called waiting, is up to 40 percent of the total tax amount. Their 6 percent will be 8.4 percent. It is obvious that this is a comprehensive system covering all aspects of the informal economy. Benami Rules: In an effort to speed up the process of documenting the economy, the federal authority has enforced the Benami rules to initiate the process of attaching immovable and movable goods to Benami and intercept transactions of these goods in fictitious names. It was also authorized to take action against the Benamidar or the fictitious person on whose behalf the Benami property was transferred or held. Go for the legal way: Acting legally, paying taxes and keeping movable and immovable property lawful is not only the legal responsibility of every citizen but also a moral obligation to the state and its fellow citizens. At the same time, the government is committed to ensuring that the benefits of development and other public welfare policies are shared by all citizens. This is only possible if the economy is properly documented and the government is able to generate sufficient domestic resources. A country cannot be run for unproductively issued loans. The current economic situation makes it imperative for the government to undertake credible and concrete steps to remedy the diseases affecting the economy. The best way to do that is to increase the formal economy. Citizen and Business Community: The government, for its part, has already made some hard and difficult decisions, some of which have taken some unprotected sections of society, but they were necessary to stem the rot. They have led to a decline in the current account and budget deficits, the effects of which will become apparent over time. While the government is working hard to lift the economy out of the sandpit it is in, it is also up to the citizens and the business community to appreciate these measures in their true perspective and to make their contribution to the success of these efforts indispensable secure future prosperity, even if this could cause some difficulties in the short term. The land belongs to all of us, and its future development and prosperity depend on our sense of patriotism and the fulfillment of our obligations to the state as its citizens.

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