What is Draft S.R.O. 420(I)/2024?
This notification, issued by the Federal Board of Revenue (FBR) of Pakistan, mandates the registration of all traders and shopkeepers in the country. Taking effect on April 1st, 2024, it aims to streamline business registration and enhance tax compliance.
Who Needs to Register?
S.R.O. 420(I)/2024 applies to all entities engaged in trading or shop keeping activities. This includes, but is not limited to:
- Retail stores
- Wholesalers
- Service providers (e.g., salons, repair shops)
- Online businesses
How to Register?
The notification offers several convenient registration options:
- National Business Registry (Tajir Dost): The government’s online platform specifically designed for business registration.
- Tax Asaan App: A mobile application developed by the FBR for simplified tax filing and registration.
- FBR Portal: The official FBR website offers an online registration portal for businesses.
- FBR Tax Facilitation Centers: In-person assistance is available at designated FBR centers across Pakistan.
Deadline for Registration:
All traders and shopkeepers must complete their registration by April 30th, 2024 (later extended).
Consequences of Non-Compliance:
If a business fails to register within the stipulated timeframe, the Commissioner of Inland Revenue has the authority to register them automatically. Additionally, businesses not registered may face penalties upto Rs.10,000
Benefits of Registration:
- Formalization of Business: Registration provides legal recognition and legitimacy to your business.
- Simplified Tax Compliance: A registered business can access simplified tax filing procedures and potentially benefit from tax incentives.
- Improved Access to Financial Services: Registration can facilitate access to bank loans and other financial products.
- Enhanced Credibility: Registration demonstrates a commitment to transparency and accountability, potentially attracting more customers.
What’s Next (Part II)?
While Part I of S.R.O. 420(I)/2024 focuses on registration, Part II deals with Advance Tax applicable to registered businesses, including filing requirements and applicable tax rates. It will be implemented from July 01, 2024
Conclusion:
S.R.O. 420(I)/2024 represents a significant step towards formalizing and increasing the tax base of the business landscape in Pakistan. By registering your business before the deadline, you can ensure compliance, gain access to benefits, and contribute to a more transparent and efficient economic environment. Remember to check for updates of the notification for comprehensive information on tax obligations.
