Govt Targets Non-Filers in Finance Bill 2025-26
Govt Targets Non-Filers in Finance Bill 2025-26 The federal government is set to include stricter measures against income tax non-filers in the Finance Bill 2025-26 by incorporating the Tax Laws (Amendment) Bill, 2024. These changes are expected to impose tighter restrictions on economic transactions for individuals who do not file their income tax returns, according to Business Recorder. However, the Federal Board of Revenue (FBR) has not yet completed the technological upgrades required to enforce Section 114C, the provision detailing these restrictions. FBR Chairman Rashid Mahmood Langrial previously requested a two-month extension from the National Assembly Standing Committee on Finance to develop the necessary digital infrastructure. In February 2025, the committee agreed to defer implementation of Section 114C until the FBR’s systems are ready. During discussions, former Minister of State for Finance, Ali Pervaiz Malik, emphasized the importance of documenting wealthy individuals and non-filers. He criticized the long-standing trend of relying on non-filers for revenue without any prosecution, calling for a systemic change. The FBR, which already has access to data on immovable property transactions, will continue its crackdown on non-filers. The committee has asked the FBR to demonstrate the updated online system before any further decisions on Section 114C are made. The demonstration is expected as part of the June 2025 budget process. Efforts are underway to ensure the system is user-friendly and avoids unintended disruptions. The committee has also directed NADRA, provincial excise departments, and land authorities to support the FBR in building the new infrastructure. Chairman Langrial clarified that the new restrictions would not apply to non-resident individuals or public companies. He urged the Revenue Division to finalize the system and present it to the committee within the next two months. Also Read ThisThe Essential Guide to Corporate Compliance: What Every Business Needs to Know
FBR Imposes New Restrictions on Sales Tax De-Registration in 2025
FBR Imposes New Restrictions on Sales Tax De-Registration in 2025 The Federal Board of Revenue (FBR) has introduced major changes to the Sales Tax Rules, 2006 through SRO 608(I)/2025. These changes mainly affect people or businesses who want to cancel (de-register) their sales tax registration. Below is a simple breakdown of what’s new: 1. Changes in De-Registration Process a) Online Application Only Previously, a person had to send a request for de-registration to the Commissioner Inland Revenue. Now: All applications must be submitted online through the FBR’s computerized system. Manual applications are no longer accepted. b) Faster Processing Time Before: The Commissioner had 90 days to process the application.Now: The application must be processed within 60 days. 2. Restrictions During De-Registration Process Once a business applies for de-registration, the following restrictions will apply immediately: The person cannot file: Annex-C Annex-D Sales Tax Returns The person cannot claim any input tax adjustment or refund. Other businesses cannot claim input tax on invoices issued by this person during this time. 3. Audit or Inquiry Before De-Registration If the tax department wants to check your business before de-registration: The Commissioner will send a written notice asking for business records. The audit or inquiry must be completed within 90 days from the date of de-registration application. If any tax is due after the audit, the person must pay it and file a final return under Section 28. After the final return is submitted and payment is made, the system will automatically complete the de-registration within 90 days. 4. Amendments to Rule 12 – Suspension of Sales Tax Registration The FBR also made some changes to the rules about suspending sales tax registration. a) Updated Terms “LTUs” (Large Taxpayer Units) are now called “LTOs” (Large Taxpayer Offices). The term “tax fraud” now follows the official definition under Clause (37) of Section 2 of the Sales Tax Act, 1990. b) “Non-Availability” Changed to “Non-Existence” If the business is found to be non-existent, registration can be suspended. c) Reasons for Suspension The FBR can suspend your registration for the following reasons: Refusing access to business premises (under Section 40B or 40C). Not providing records when requested (under Section 25 or 37). Business turnover is much higher (five times) than declared capital and liabilities. Dealing with suspended persons: If you buy from or sell to a suspended person and it exceeds 10% of your total business or Rs. 50 million, whichever is more. Not filing sales tax returns: Not filing for three months in a row. Filing zero returns for six months. Involvement in tax fraud, as defined by law. Conclusion These new rules by the FBR aim to make the sales tax system more transparent and reduce fraud. If you’re planning to de-register your business, make sure to follow the new online process and be aware of the restrictions during the application period. If you’re unsure how to proceed, it’s best to talk to a tax advisor or chartered accountant. Also Read ThisThe Essential Guide to Corporate Compliance: What Every Business Needs to Know
SECP Proposes Centralized UBO Registry to Promote Corporate Transparency
SECP Proposes Centralized UBO Registry to Promote Corporate Transparency ISLAMABAD: The Federal Board of Revenue (FBR) has formally authorised four companies to support the legal integration of retailers with its Digital Invoice System, as per Sales Tax Circular No. 1 of 2025 issued on Friday. According to the notification, all retailers and businesses mandated to issue digital invoices must now engage one of the approved licensed integrators for system integration. The FBR has designated the following companies as licensed integrators: Pakistan Revenue Automation Limited (PRAL) Haball (Pvt) Ltd EY (Pvt) Ltd WebDNAworks (Pvt) Ltd Notably, PRAL will offer its integration services at no cost. The circular further mandates that all registered entities obligated to generate digital invoices must first connect their hardware and software systems with the FBR’s centralised platform via a licensed integrator. Retailers are instructed to visit the FBR’s digital invoicing portal, choose an authorised integrator, and commence the integration process accordingly. Additionally, the FBR has directed all licensed integrators to adopt a prompt and efficient response system to handle integration requests through the portal. Also Read ThisThe Essential Guide to Corporate Compliance: What Every Business Needs to Know
FBR Approves Four Digital Invoice Integrators
FBR Approves Four Digital Invoice Integrators ISLAMABAD: The Federal Board of Revenue (FBR) has formally authorised four companies to support the legal integration of retailers with its Digital Invoice System, as per Sales Tax Circular No. 1 of 2025 issued on Friday. According to the notification, all retailers and businesses mandated to issue digital invoices must now engage one of the approved licensed integrators for system integration. The FBR has designated the following companies as licensed integrators: Pakistan Revenue Automation Limited (PRAL) Haball (Pvt) Ltd EY (Pvt) Ltd WebDNAworks (Pvt) Ltd Notably, PRAL will offer its integration services at no cost. The circular further mandates that all registered entities obligated to generate digital invoices must first connect their hardware and software systems with the FBR’s centralised platform via a licensed integrator. Retailers are instructed to visit the FBR’s digital invoicing portal, choose an authorised integrator, and commence the integration process accordingly. Additionally, the FBR has directed all licensed integrators to adopt a prompt and efficient response system to handle integration requests through the portal. Also Read This The Essential Guide to Corporate Compliance: What Every Business Needs to Know
SECP Issues Public Warning Against Unauthorized Online Trading Platforms
SECP Issues Public Warning Against Unauthorized Online Trading Platform The Securities and Exchange Commission of Pakistan (SECP) has issued a warning to the public about the growing number of unauthorized online trading and investment platforms targeting Pakistani investors with promises of quick and high returns through risky financial products. These platforms—offering services like forex trading, commodities, securities, options, and other speculative instruments—are operating without regulatory approval in Pakistan. Many are based offshore and are not licensed or monitored by any local regulatory authority. The SECP cautions that engaging with these unregistered entities poses serious risks, including potential fraud, loss of funds, and no legal protection or means of recovery for investors. One such platform identified is Qxbroker (Quotex), which is accessible through its website and a mobile app available on the Google Play Store. The SECP has confirmed that Quotex is not authorized to operate in Pakistan and has already been flagged by multiple international regulatory bodies for unauthorized activities. The matter has been referred to the Federal Investigation Agency (FIA), Pakistan Telecommunication Authority (PTA), and Google for urgent action, including blocking the platform’s access in Pakistan. The SECP strongly advises the public not to open accounts, deposit funds, or share personal or financial information with Quotex or any similar unregistered platforms. Additionally, investors are urged to be extremely cautious of unsolicited investment offers, especially those circulating via social media, WhatsApp groups, or influencer promotions. Before investing with any platform, individuals should verify its regulatory status on the SECP’s official website, which provides a full list of authorized brokers and licensed investment advisors. Also Read This The Essential Guide to Corporate Compliance: What Every Business Needs to Know
February Tax Return Deadline Extended by FBR — Avoid Penalties!
February Tax Return Deadline Extended by FBR — Avoid Penalties! ISLAMABAD: The Federal Board of Revenue (FBR) has officially extended the deadline for filing Sales Tax and Federal Excise Returns for the month of February 2025. Taxpayers now have until March 27, 2025, to submit their returns, offering them additional time beyond the original deadline of March 18, 2025. The extension has been granted under Section 74 of the Sales Tax Act, 1990, and Section 43 of the Federal Excise Act, 2005. In a notification issued on Tuesday, the FBR directed all Chief Commissioners of Inland Revenue across the Large Taxpayer Offices (LTOs), Medium Taxpayer Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs) to ensure taxpayers are informed and compliance is maintained with the revised timeline. This move is aimed at facilitating taxpayers and ensuring smoother processing of returns across the country. Also Read This The Essential Guide to Corporate Compliance: What Every Business Needs to Know
State Bank of Pakistan Announces New Monetary Policy, Keeps Interest Rate at 12%
State Bank of Pakistan Announces New Monetary Policy, Keeps Interest Rate at 12% The State Bank of Pakistan (SBP) has announced its new monetary policy for the next two months, deciding to keep the interest rate steady at 12%. According to the Monetary Policy Committee (MPC), inflation remained lower than expected in February 2025. However, rising food and energy prices could contribute to inflationary pressures. The SBP noted that economic activity continues to grow, but rising imports have increased pressure on the current account. The committee believes that maintaining the current interest rate is necessary for economic stability. Economic Challenges and Outlook The central bank reported that in January 2025, Pakistan’s current account deficit widened to $400 million due to increasing loan repayments, leading to a decline in foreign exchange reserves. Additionally, large-scale manufacturing output has decreased, while global economic uncertainty has increased due to rising tariffs on the international front. The Monetary Policy Committee (MPC) further highlighted that global economic growth, trade, and commodity prices could be affected in the coming months. Central banks worldwide have slowed down their rate-cutting cycles, emphasizing the need for a cautious monetary policy to keep inflation within 7.5%. GDP Growth & Previous Rate Cuts The SBP also revealed that Pakistan’s real GDP growth rate for FY 2025 stood at 2.5%. It is worth noting that the SBP had previously reduced the interest rate six consecutive times, cutting it by a total of 10%. This is now the seventh time the central bank has decided to keep the interest rate unchanged. This decision reflects the SBP’s commitment to maintaining economic stability while keeping a close watch on inflation, global market trends, and domestic economic growth. Also Read ThisThe Essential Guide to Corporate Compliance: What Every Business Needs to Know
How to Choose the Right Lawyer for Your Legal Needs
How to Choose the Right Lawyer for Your Legal Needs In today’s complex world, legal matters arise in various aspects of life—whether it’s setting up a business, resolving a dispute, buying property, or seeking justice in court. Choosing the right lawyer is crucial, as the right legal representation can make all the difference in the outcome of your case. However, with so many lawyers specializing in different fields, finding the best one for your specific needs can be challenging. This article serves as a comprehensive guide to help individuals and businesses make an informed decision when selecting a lawyer. Identify Your Legal Needs The first step in choosing the right lawyer is understanding what type of legal help you need. Lawyers specialize in different areas of law, such as: ✅ Corporate & Business Law – For company registration, contracts, mergers, and legal compliance. ✅ Taxation Law – For tax filings, audits, disputes, and advisory services. ✅ Real Estate Law – For property transactions, title verification, and land disputes. ✅ Family Law – For divorce, child custody, and inheritance matters. ✅ Criminal Law – For defense in criminal cases or filing complaints. ✅ Intellectual Property Law – For trademarks, copyrights, and patents. ✅ NGO/NPO Registration & Compliance – For non-profit organizations’ legal requirements. By identifying your legal issue, you can narrow your search to lawyers who specialize in that specific field. Research and Shortlist Potential Lawyers Once you determine the type of lawyer you need, the next step is researching and shortlisting potential candidates. Consider the following: 🔍 Online Directories & Bar Council Listings – Check official websites, such as Pakistan Bar Council or provincial bar associations, for registered lawyers. 🔍 Law Firm Websites – Reputable law firms often showcase their expertise, client testimonials, and case success rates. 🔍 Referrals & Recommendations – Ask colleagues, business partners, or friends who have faced similar legal matters for recommendations. 🔍 Social Media & Professional Networks – Many lawyers maintain professional profiles on LinkedIn, where they share legal insights and industry expertise. Evaluate Experience and Expertise Experience plays a key role in how effectively a lawyer can handle your case. When shortlisting, consider the following: 📌 Years of Practice – Lawyers with more years of experience tend to have deeper insights and refined strategies. 📌 Track Record of Success – Ask about past cases and their outcomes to assess their competence. 📌 Specialization & Certifications – A certified expert in corporate law, tax law, or real estate law may offer better insights than a general practitioner. 📌 Courtroom vs. Advisory Experience – If your matter involves litigation, choose a lawyer with courtroom experience. For corporate needs, opt for a lawyer skilled in advisory and negotiations. Assess Reputation and Client Reviews A lawyer’s reputation is a strong indicator of their credibility and success. Consider: ⭐ Client Testimonials – Look for feedback from past clients on Google Reviews, legal websites, or social media. ⭐ Professional Recognition – Has the lawyer received awards, media recognition, or honors from bar associations? ⭐ Ethical Standards – Verify whether the lawyer has ever been involved in disciplinary actions by the Bar Council. A lawyer with a strong reputation and positive client feedback is more likely to provide quality service. Check Availability & Communication Skills Good lawyers prioritize client communication and ensure accessibility. Before hiring, ask: 📞 How responsive are they? Do they answer calls and emails promptly? 💬 Do they explain legal terms in simple language? A good lawyer ensures that clients understand their case clearly. 📅 Can they dedicate sufficient time to your case? Overbooked lawyers may delay proceedings, impacting your case. Effective communication ensures you stay informed and confident throughout the legal process. Discuss Fees and Payment Terms Upfront Legal services can be expensive, so it’s essential to discuss fees upfront to avoid misunderstandings. 💰 Fee Structures Vary: ✔ Fixed Fees – Common for company registration or contract drafting. ✔ Hourly Rates – Used in consultation and ongoing legal representation. ✔ Contingency Fees – Lawyers take a percentage only if you win (common in personal injury cases). Ask for a written fee agreement to avoid hidden costs. Schedule an Initial Consultation Before making a final decision, schedule an initial consultation to: ✔ Assess Their Approach – Are they proactive and confident? ✔ Clarify Your Case Strategy – What is their plan for your legal issue? ✔ Gauge Comfort Level – Do you feel comfortable discussing sensitive matters? Most lawyers offer a free or low-cost initial consultation, making it a great opportunity to assess whether they are the right fit for your case. Ensure They Are Legally Authorized to Practice Before finalizing, verify that the lawyer is licensed to practice law in Pakistan and has no disciplinary record. 📌 Check Registration with the Pakistan Bar Council 📌 Confirm Membership in Local Bar Associations A legally authorized lawyer ensures ethical representation and compliance with legal standards. Final Thoughts: Making the Right Choice Choosing the right lawyer is a critical decision that affects the success of your case. By identifying your legal needs, researching options, checking credentials, and discussing fees upfront, you can select a lawyer who offers competence, integrity, and efficiency. A good lawyer not only resolves legal issues but also guides you through complex legal landscapes, ensuring your rights and interests are protected. 📩 Need Legal Assistance? Contact Legal Synergy Today! 📧 Email: info@legalsynergy.pk 🌐 Website: www.legalsynergy.pk 📞 Call: +92-334-9555252 Also Read This The Essential Guide to Corporate Compliance: What Every Business Needs to Know
SECP Launches Same-Day Account Opening & Digital Innovations to Boost Business in Pakistan
SECP Launches Same-Day Account Opening & Digital Innovations to Boost Business in Pakistan The Securities and Exchange Commission of Pakistan (SECP), in collaboration with the State Bank of Pakistan (SBP), is set to introduce a Same-Day Account Opening initiative to help businesses open corporate bank accounts quickly. This initiative will reduce delays, allowing companies to access financial services faster, such as credit facilities and payment processing. It will also streamline the process, eliminating unnecessary procedures and making banking more accessible, especially for small and medium-sized enterprises (SMEs). By synchronizing data between SECP and banks, this system will enhance accuracy and create a more efficient, business-friendly environment that attracts investment and supports business growth in Pakistan. SECP’s Digital Transformation and Ease of Doing Business SECP has been actively working on digital transformation and regulatory reforms to simplify company registration and compliance. The organization has introduced several key tech-driven initiatives to promote transparency, efficiency, and investor confidence. Some of the major changes include: Book-Entry Shares Transition: SECP is mandating all public unlisted and private companies to issue shares in electronic (book-entry) form instead of physical certificates. This system, facilitated through the Central Depository Company (CDC), will reduce fraud, loss, forgery, and shareholder disputes by ensuring secure and transparent record-keeping. AI-Powered Name Reservation System: SECP is introducing an AI-driven system for company name reservation, which will make the process more structured, objective, and transparent. This system will eliminate subjectivity, ensuring compliance with regulations while reducing processing time and human errors. eZfile – A Fully Digital Corporate Registry: SECP has launched eZfile, a completely digitized filing system for online company incorporation from anywhere in the world. Integration with NADRA and PMD ensures secure identity verification, making the registration process faster and safer. Currently, 99.9% of company registrations are done digitally. Electronic Mortgage Register (EMR): SECP introduced EMR to digitally track and register mortgages, providing banks and financial institutions with easy access to mortgage-related information. This eliminates the need for physical records, improving transparency and reducing risks. Legal & Regulatory Reforms To further simplify business regulations, SECP has: Reduced statutory forms from 75 to 28, removing duplication and unnecessary paperwork. Established a Special Committee to propose legal amendments, ensuring practical and efficient business operations. Consulted with law firms, accountancy bodies (ICAP, ICMAP), PBA, and corporate consultants to align regulations with international best practices, such as those in the UK, India, Malaysia, and Hong Kong. Legal Synergy’s Perspective At Legal Synergy, we believe these initiatives mark a significant transformation in Pakistan’s corporate environment. The same-day account opening, digital filing, and AI-driven name reservation will enhance business efficiency, making Pakistan more attractive for investors and entrepreneurs. For businesses looking to register, comply with SECP regulations, or transition to digital systems, Legal Synergy provides expert legal guidance to ensure smooth and compliant operations. 📩 For expert legal assistance, contact Legal Synergy today! 📧 Email: info@legalsynergy.pk 🌐 Website: www.legalsynergy.pk 📞 Call: +92 330 7085555 Also Read This The Essential Guide to Corporate Compliance: What Every Business Needs to Know
Legal Synergy’s Tax Calculator: Easy tax solutions by experts
Legal Synergy’s Tax Calculator: Easy tax solutions by experts Introducing Legal Synergy’s Income Tax Calculator: Simplifying Your Tax Calculations with the Expertise of Usman Rasheed & Co. Legal Synergy, in collaboration with our sister accountancy firm, Usman Rasheed & Co., is proud to introduce a powerful new tool – the Income Tax Calculator. Designed to help both individuals and businesses accurately calculate their income tax, this tool will make your tax management process simpler, faster, and more compliant with the Income Tax Ordinance 2001. In this detailed blog, we’ll explore how the calculator works, its benefits, and why this tool is essential for anyone navigating the complexities of income tax in Pakistan. We’ll also take a moment to give credit to Usman Rasheed & Co. for their valuable contribution in developing this cutting-edge solution. Why Use the Income Tax Calculator? Tax calculations can be confusing and tedious, especially when trying to stay compliant with regulations under the Income Tax Ordinance 2001. Whether you’re an individual or a company responsible for withholding taxes, miscalculations can result in compliance issues and penalties. To solve this, we have created an easy-to-use Income Tax Calculator that helps you compute your taxes accurately and efficiently. The calculator ensures that your tax calculations align with current laws, minimizing the risk of errors and making tax season less stressful for everyone. Key Features of the Income Tax CalculatorOur calculator is designed to cater to a wide range of tax needs, from individual taxpayers to large organizations. Here are some of the main features that make it an essential tool: 1. Annual and Monthly Tax Calculations Whether you’re looking to calculate your income tax on a monthly basis to stay ahead of your finances, or on an annual basis to plan your year-end tax obligations, this calculator does it all. It offers a clear breakdown of your income, deductions, and the exact tax amount owed. 2. Accurate Withholding for Businesses For companies responsible for deducting taxes from employees’ salaries, the calculator is an invaluable resource. It helps ensure that your tax withholding is in strict compliance with the Income Tax Ordinance 2001, eliminating the guesswork and ensuring that employees’ tax deductions are accurate. 3. Compliance with the Income Tax Ordinance 2001 Our calculator is built around the legal framework provided by the Income Tax Ordinance 2001, ensuring that your tax calculations are aligned with current tax laws. You can rest assured that you’re staying compliant with all regulations and avoiding potential legal issues. 4. User-Friendly Interface The tool is designed with simplicity in mind, making it accessible to both tax professionals and individuals with no prior tax expertise. The intuitive interface ensures that you can calculate your taxes quickly and efficiently, without getting bogged down by complicated tax formulas. 5. Free and Easily Accessible We’re committed to providing valuable resources to our clients and the broader community. The Income Tax Calculator is free and accessible online, ensuring that anyone can use it to manage their tax calculations with ease. The Team Behind the Tool: Usman Rasheed & Co. We would like to extend special thanks to Usman Rasheed & Co., our trusted accountancy partner, for their exceptional work in bringing this project to life. Their extensive knowledge in tax laws and financial management was instrumental in developing this calculator. Their dedication to accuracy and compliance has helped us create a tool that is not only efficient but also legally robust. As our sister firm, Usman Rasheed & Co. has been a trusted name in accountancy services, known for their expertise in tax management, auditing, and financial consulting. Their contribution to this project reflects their commitment to providing high-quality services and innovative solutions to clients. Why Legal Synergy and Usman Rasheed & Co.? At Legal Synergy, we are more than just a law firm – we are a one-stop solution for legal and financial services. Our collaboration with Usman Rasheed & Co. allows us to offer comprehensive solutions that combine both legal and financial expertise. This means we can assist clients with everything from corporate and tax law compliance to financial management and accounting services. With the launch of the Income Tax Calculator, we’re furthering our commitment to simplifying the lives of our clients, providing tools and resources that make it easier to navigate complex legal and financial landscapes. Start Using the Income Tax Calculator Today We invite individuals and businesses alike to take advantage of this tool. Whether you’re calculating your own taxes or managing tax deductions for employees, the Income Tax Calculator will ensure you stay compliant and accurate. Visit our website to access the tool and explore more ways Legal Synergy, in collaboration with Usman Rasheed & Co., can assist you with your legal and financial needs. About Legal Synergy Legal Synergy is a full-service law firm providing legal expertise in corporate law, tax law, civil litigation, and more. We are dedicated to offering tailored legal solutions that meet the diverse needs of our clients. About Usman Rasheed & Co. Usman Rasheed & Co. is a leading accountancy firm offering tax, auditing, and financial consulting services. With years of experience and a strong reputation for accuracy and compliance, the firm is a trusted partner for businesses and individuals looking for reliable financial management solutions. With the support of Usman Rasheed & Co., Legal Synergy continues to provide innovative tools and services to help you manage your legal and financial obligations effortlessly. Explore our Income Tax Calculator today and simplify your tax process! Download Income Tax Calculator Download Also Read ThisThe Essential Guide to Corporate Compliance: What Every Business Needs to Know