New Law?

[s55]

These shenanigans will not save Pakistan's economy which is headed towards a catastrophe.

Its time to pull your money out of Pakistani banking system, as government can cease your money in your bank account. Happened with a relative.

what happened exactly?

[capsat]

if there is nothing as such in your name it is very simple short & easy.

no salary slips no employers' letter.

simple bank data with account opening date, and the tax collected by bank upon transfer of money over period of time. account statement you need for yourself to match the inward & outward movement of money.

since there is nothing under your cnic as you stated above, the withdrawls are towards certain expenses which you can document as contribution to family.

send me email capsat@outlook.com - time to take this away from open forum

[capsat]

These shenanigans will not save Pakistan's economy which is headed towards a catastrophe.

Its time to pull your money out of Pakistani banking system, as government can cease your money in your bank account. Happened with a relative.

please share exactly what has happened, and persons' source of prosperity

[Nabs]

He bought a small car and did not file return. The money was from foreign remittances though banking channel (IT export), total exemption of tax. He had to pay 300,000 Rs. to unlock his bank accounts. Don't know if it was bribe or penalty.

I am a filer but this event scared me. I have dollar accounts fed only by foreign remittances for last 15 years. IT Services export, total tax exemption. Government locking your bank accounts on a whim is scary.

A few days ago I was served with an audit notice for 2014 tax year. I have since dried all savings in my bank accounts and diverted foreign remittances to relatives living abroad. I don't know what FBR people are cooking against me. I absolutely do not trust them, and we all know the condition of justice system in this country. I don't have friends with connections, so I will be at their mercy.

[khurem]

FBR has the authority to block any bank account and cease withdrawal from it if the account holder is a non-filer. Being a filer, you don't have to worry as they can't do the same to you.

[s55]

That's horrible.

[s55]

Did you transfer money in one go or in chunks?

[Nabs]

Did you transfer money in one go or in chunks?

"A currency transaction report (CTR) is a report that U.S. financial institutions are required to file with FinCEN for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000."

I had to provide proof of source of income to local bank when I first received remittance of more than $10K. Payment was also delayed.

So as a general rule I always try to keep transactions below $10K involving USD.

[Anaam]

This thread is full of misinformation. Anyone with little or no knowledge will end up confused going through this thread.

So you earn money, you have to file tax return to make it your legal earnings. If you are only getting foreign remittances, then you don't have to pay tax, But you have to file tax return.. to show that you earned this much amount and liable of 0 tax on it.

If you don't file tax return and wealth statement, you can get away with small amounts and transactions but moment you will spend your money to buy something expensive ( a plot, a car etc ), you will get into radar of FBR and FBR will come up with questions.

I have been working online for last 12 years, getting all payments as foreign remittances, got encashment certificates of every transaction, filled tax returns with ZERO tax every year. Have been selected for audit as well. Had no issues at all as I had everything documented and filled.

regarding general rule mentioned by "Nabs". I have got transactions $10k and above many times without any questions asked. why? because I file tax returns.

[Nabs]

I was just mentioning that $10K transactions are reported and they may ask for proof. I have a registered business and have been filing tax for last 12 years and receiving remittances for 15. Banks have asked for source of income numerous times. I have received $30K+ remittances where bank didn't ask for proof. Its not a sure thing, but you do come under radar above $10K.

Additionally, you do not get "encashment certificate" for foreign remittances in foreign currency account. You have to obtain remittance certificate for that. I have partial, but not complete. Though, it can be obtained later from bank. I also have other proof of payments from foreign companies.

Despite all the proof, I have little trust in FBR.

[Anaam]

question is .. are you a filer? if you are, then you don't need to worry.

[capsat]

money landing in a bank account via foreign remittance has ZERO TAX rating - banking charge plus 2.5% withholding is charged, for non-domestic [ home remittance ] landings. and bank issue a remittance advice mentioning amount with deduction head as per State Bank Law.

in order to avail a Filer status you need to file an income tax return by all means . Be it zero tax or any Z amount as per calculation done in the online filing system.

-
getting foreign income in a bank account does not exempt account holder NOT to file income tax return., thus his status remain non-filer and subject to penalty.

by all means in order to avail FILER Status and saving from EXTRA Payment of TAX and subsequent notice from FBR at major investment i.e vehicle, property or DFI investments under CNIC -

register & become a Filer.

-
whats the confusion here ?

[dakoon]

Finance Minister Miftah Ismail remarked that as per the bill people who have dollar accounts must be tax filers. "Non-tax filers cannot keep dollar accounts," he explained.

There is no restriction on overseas Pakistanis sending remittance to the country. However, overseas Pakistanis who send more than USD0.1 million their source of funding will be questioned, he said."People who are sending money must declare their source of income."

If Foreign Board of Revenue receives more than Rs10 million remittances then it will be probed, Miftah added.

[s55]

Finance Minister Miftah Ismail remarked that as per the bill people who have dollar accounts must be tax filers. "Non-tax filers cannot keep dollar accounts," he explained.

There is no restriction on overseas Pakistanis sending remittance to the country. However, overseas Pakistanis who send more than USD0.1 million their source of funding will be questioned, he said."People who are sending money must declare their source of income."

If Foreign Board of Revenue receives more than Rs10 million remittances then it will be probed, Miftah added.

10 million PKR or 0.1 million USD?

Source of income will be asked? but a filer would have to declare source of income, no? why the source of income would be asked after being a filer?

[dakoon]

Checked on other websites .it is 10 lakh pkr .

[s55]

https://nation.com.pk/06-Apr-2018/govt-to-lure-overseas-cash-with-amnesty

[Nabs]

This thread is full of misinformation. Anyone with little or no knowledge will end up confused going through this thread.

So you earn money, you have to file tax return to make it your legal earnings. If you are only getting foreign remittances, then you don't have to pay tax, But you have to file tax return.. to show that you earned this much amount and liable of 0 tax on it.

If you don't file tax return and wealth statement, you can get away with small amounts and transactions but moment you will spend your money to buy something expensive ( a plot, a car etc ), you will get into radar of FBR and FBR will come up with questions.

I have been working online for last 12 years, getting all payments as foreign remittances, got encashment certificates of every transaction, filled tax returns with ZERO tax every year. Have been selected for audit as well. Had no issues at all as I had everything documented and filled.

regarding general rule mentioned by "Nabs". I have got transactions $10k and above many times without any questions asked. why? because I file tax returns.

Not all foreign remittances are tax exempt. To avail IT services / export tax exemptions you have to be registered with PSEB + State Bank and report to them your exports/services on regular basis. Home remittances are tax exempt from people who are non-resident Pakistani. Resident remittances are tax exempt only if you paid tax on it in foreign country. I have read all clauses of income tax ordinance and there is no mention of blanket foreign remittance exemption. It is a misconception that all remittances are exempt for people working online.

This is from an email PSEB sent me in 2014.

1. SBP will send an advisory to the banks emphasizing the importance of reporting IT & ITeS exports against proper SBP codes.

2. IT exports are required to be reported to SBP through your respective bank(s) (copy of PSEB registration certificate to be provided with your application).

3. PSEB will require SBP registration number for renewing PSEB registration.

[dakoon]

They are dakoos bro nothing more .they don’t pay tax themselves and want other people to not only pay tax but also get zaleel in the process . Ishaq Dar should be brought back by Interpol and be given harsh punishment

[s55]

kia update hain bhaion?

[Nabs]

Foreign remittances with rupee encashment at bank is the most secure way to transfer money. You just have to get encashment certificate and then you've immunity. You don't even have to tell FBR source of income. Just show them the certificate of encashment. There is now limit of $100,000 per year for this.

Government is in short supply of dollars, so maintaining a dollar account at this time will be like "billi ke agay chichray rakhna".