Tax amnesty scheme announced

The govt. has announced the Assets Declaration Scheme-2019 to provide an opportunity to regularize both domestic and foreign assets/expenditures, including Benami assets/accounts. The scheme can be availed by all companies, associations of persons and individuals, applicable up to 30th Jun’19 with no extensions. Domestic and foreign assets will be legalized at 4%, foreign liquid assets repatriated into Pakistan at 4% and foreign liquid assets not repatriated into Pakistan at 6%. The new scheme has imposed a restriction that the declared cash amount will have to be deposited into a bank account prior to declaration. For declaration of real estate assets, the govt. has hiked the evaluation rate of property to the tune of 150% of the notified rate of FBR, but the effective rate of tax on property transaction would be standing at 2.25% under this amnesty scheme against the normal tax rate of 4%. Businessmen out of the sales tax net can legalize their undeclared sales tax on payment of 2% of the total calculated sales tax.