As published in Tribune November 23, 2022
Taxpayers would be required to file a form issued by the Federal Board of Revenue (FBR) for collecting the deemed tax levied on the rich people who owned more than one property along with their income tax returns for the current tax year 2022, according to a notification issued on Tuesday
The government has introduced a measure under which a resident owning immovable property in Pakistan will be taxed on deemed income for tax year 2022 and onwards. Such deemed income shall be computed as 5% of the fair market value of the immovable property. The rate of tax on such income is prescribed as 20%.
The FBR introduced the deemed tax form in October for the determination and collection of this tax. Now, the authorities have made the filing of the form mandatory for the filers. Even those who had already filed their returns are required to file the deemed tax form by 31st December 2022.
In the new deemed form, the taxpayers are required to provide details of all types of immovable property, including agricultural, industrial, residential and commercial etc, the total value of deemed taxable assets and the deemed income under Section 7E of the Income Tax Ordinance.
FBR officials have said that tax has been imposed on deemed income and the FBR has made filing of the form mandatory from the current tax year ie 2022, adding that the last date for filing the deemed tax form is December 31.
The officials said that the tax would be charged at the prevailing rate on the taxable deemed income in view of the particulars to be furnished by the taxpayer. The main objective of this initiative was to increase tax revenue help the FBR achieve the tax collection target.