rehan...tax environment
TRANSCRIPT
-
7/27/2019 Rehan...Tax Environment
1/13
Tax Environment of
Pakistan(A bird eye view)
Presented By:
Rehan Rafique
-
7/27/2019 Rehan...Tax Environment
2/13
TAXTax includes any penalty, fee or other charge or any sum or
amount leviable or Payable. In ordinary sense, taxes are the
levies by the Government in exchange for the services
provided to the general public and are the lifeline of any
country because of the fact that major chunk of the revenue
to run a country comes from them..
-
7/27/2019 Rehan...Tax Environment
3/13
Types of taxes
Income Tax
Payroll Tax
Capital Gains Tax
Sales Tax
Estate Tax
Corporate Tax
Gift Tax
Transfer Tax
Property Tax
Consumption Tax
Toll Tax
-
7/27/2019 Rehan...Tax Environment
4/13
Practical Study
Tax Year in PakistanTax year is a period of twelve months ending on 30th June and
shall be denoted by the calendar year in which the said date
falls.
Taxable Income in PakistanIt is the total income of a person for a tax year reduced by
the total of any deductible allowances, under the
Ordinance, for the year. A person is entitled to a
deductible allowance for the amount of any Zakat paid bythe person in a tax year under the Zakat & Ushr
Ordinance, 1980.
-
7/27/2019 Rehan...Tax Environment
5/13
Contd
Total IncomeIt is the sum of a person's income under each of the heads of
income for the year.
Heads of Income in PakistanUnder the Ordinance income is classified into the following five
heads:
Salary
Income from property,
Income from business,
Capital gains and
Income from other sources.
-
7/27/2019 Rehan...Tax Environment
6/13
Residence
An individual is
considered resident
for a tax year if
he/she is in Pakistan
for more than 182
days in that tax year.
Tax Filing statusJoint tax returns
are not permitted;
each individual
must file a separate
tax return.
Tax Deductions and
tax allowancesDeductions and
allowances are
available for the non
salaried class, but not
for the salaried class.
Penalties
The penalty for
failure to file a tax
return is 0.1% of
the amount of the
tax payable for each
day of default. Theminimum penalty is
PKR 500 and the
maximum is 25% of
the amount of taxpayable.
-
7/27/2019 Rehan...Tax Environment
7/13
Analysis of tax Rates in
Pakistan
Personal Tax
Tax on Companies
Inter-Corporate Dividend Tax
Customs
Sales Tax
Income Tax
-
7/27/2019 Rehan...Tax Environment
8/13
Short comes in Pakistans
Taxation system
Corruption
Tax exemptions
Faulty Tax policy
Narrow tax base
-
7/27/2019 Rehan...Tax Environment
9/13
Shares in Taxes
Agriculture 1%
Manufacturing 14%
Services 34%
Other 51%
-
7/27/2019 Rehan...Tax Environment
10/13
SWOT Analysis
Strengths:
Reduction in poverty level
Increase in revenues
Help in building strong
infrastructure of country.
Weaknesses:
Complex tax system
Low tax to GDP ratio
Corruption
Poor management Lack of trust on
Government
-
7/27/2019 Rehan...Tax Environment
11/13
Opportunities:
Improve tax system
through legislation
Build trusting
relationships with
taxpayers.
Collect more taxes from
other areas.
Threats:
Political uncertainty
Broadening gap between
rich and poor.
Narrow tax base.
-
7/27/2019 Rehan...Tax Environment
12/13
Recommendations
-
7/27/2019 Rehan...Tax Environment
13/13