Thursday , December 3 2020
Breaking News
Home / Islamabad / FBR asks government to get NGOs registered with tax authorities.
FBR asks government to get NGOs registered with tax authorities.

FBR asks government to get NGOs registered with tax authorities.

ISLAMABAD: Federal Board of Revenue has asked the government to ensure the registration of all International Non Governmental Organizations with the tax authorities so as to receive 100 percent tax credit, filing of tax returns and withholding statements annually. INGOs are currently registered with Economic Affair Division.

Sources told Customs Today that the Government is considering placing Foreign Contribution Act 2015 before Parliament to counter financing of INGOs, trusts and organizations getting funds from outside Pakistan. FBR writing letter to EAD regarding registration of INGOs under National Action Plan is also to eliminate threats of terrorism.

FBR is seeking documentation of all INGOs with tax authorities for submitting its viewpoint on draft of Foreign Contribution Act which will be tabled before the Cabinet Division. FBR had introduced concept of 100 percent tax credit from July 1, 2014 but certain INGOs were not complying with newly devised rules issued by the tax authorities.

On proposed Foreign Contribution Act, the sources said that FBR asked the government to ensure registration of all INGOs, binding them to file tax returns and submit withholding statement on annual basis. According to Income Tax Ordinance section 2 (36), the FBR has implemented 100 percent tax credit by placing rules with effect from July 1, 2014.

Procedure for approval of a non-profit organization, an institution, fund, trust, society or any other non-profit organization established in Pakistan for religious, educational, charitable, welfare or development purposes will require approval from Commissioner under clause (36) of section 2 of the Ordinance and shall make an application to Commissioner in the prescribed form of FBR