Karachi: It is now mandatory for taxpayers to declare their foreign income figures and assets to avoid government penalties – a news source reported Vishno Raja Qavi, the former chief tax policy of Federal Board of Revenue (FBR), as saying.
Qavi was highlighting the key points of the Automatic Exchange of Information (AEOI) initiative at a seminar.
He explained that under the new section, any citizen, who receives foreign income of USD 10,000 or above, or has foreign assets worth PKR 100,000 or above, is now required to file a statement under Section 116A of the Income Tax Ordinance, 2001.
The taxpayers concerned are also required to file their normal tax returns, in order to avoid penalties.
He informed that the government had entered into a multilateral treaty for the avoidance of double taxation – and for the exchange of information for preventing fiscal evasion.
The treaty also includes provisions for the automatic exchange of information – with respect to taxes on income imposed under the ordinance.
