Understanding importance of meeting taxation requirements in running business operations in Pakistan is critical for almost every business . Whether you are managing a Non-Profit Organization multinational operations partnership a company or operating as sole proprietor you are bound to hear from the Revenue Authorities specially Federal Board of Revenue (FBR) sooner or later.
Amongst all taxation provisions in-depth and correct understanding of withholding tax application by far is considered most critical and important because of its serious implications in case of any non-compliance.
Withholding is an act of deduction or collection of tax at source. This act of tax collection and deposit in the Government treasury is performed by the business owners/operators as withholding agents on behalf of the Revenue Authorities. To ensure that not only the tax is collected on every taxable financial transaction but also correct amount of tax is collected and timely deposited in the government treasury FBR conducts periodical reviews of submitted tax data by the withholding agent or carry out tax audits. In case of any errors or omissions or submission of incorrect information Revenue authorities impose heavy financial penalties which can be significant and equally time consuming for the withholding agent.
The fact is that more than 73% of FBR's collection from direct taxes is dependent upon proper and accurate collection of Withholding Taxes. As a result FBR officers are putting their best time and effort on withholding tax monitoring assessment and collection. Equally employees of the organizations prescribed as withholding agent are also consuming more than 75% of their time on monitoring and compliance of withholding tax transactions and departmental proceedings.
With the passage of time the number of transactions subject to withholding of tax have multiplied resultantly increased the cost and time burden on withholding agents due to transaction wise monitoring submission of statements replying notices and handling departmental proceedings.
There is no doubt that withholding tax is an important but a complex area with a right approach and learning frame of mind it can be handled with ease. Thus everyone involved specially in withholding tax matters need to take this area seriously by enhancing their knowledge and skills to ensure effective and timely tax compliance. In order to save time cost and unnecessary burden of undue tax every employer need to ensure that the relevant staff is highly skilled and competent to handle all the tax matters timely and professionally. This Certification course is tailored to address all withholding tax requirements which would enhance the staff competency level.
Keeping in view the need of time Softax is introducing 4 weeks comprehensive specialized course on “Withholding Taxes under Income Tax and Federal / Provincial Sales Tax Laws” which will enable the participants to handle withholding tax matters from withholding on a single transaction to handling audit assessment appeals and recoveries in a proficient and professional manner.
Withholding under Income Tax Ordinance 2001:
Withholding taxes under Sales Tax Laws:
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This Certification is considered to be most suitable for:
WHAT DOES CWT AIMS AT?
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