As per Lawkidunya, Here’s a step-by-step guide to sales tax registration for foreign companies in Pakistan:
Eligibility Criteria For Sales Tax Registration For Foreign Companies
1. Foreign Company: A foreign company is eligible for sales tax registration in Pakistan if it has a permanent establishment or a fixed place of business in the country.
2. Taxable Activity: The foreign company must be engaged in a taxable activity, such as importing goods, providing services, or manufacturing goods.
3. Annual Turnover: The foreign company’s annual turnover must exceed PKR 5 million (approximately USD 30,000) to be eligible for sales tax registration.
Required Documents For Sales Tax Registration For Foreign Companies
1. Copy of Registration Certificate: A copy of the registration certificate issued by the Securities and Exchange Commission of Pakistan (SECP).
2. Copy of Memorandum and Articles of Association: A copy of the memorandum and articles of association of the foreign company.
3. Copy of Passport: A copy of the passport of the authorized representative of the foreign company.
4. Proof of Business Address: Proof of the business address of the foreign company in Pakistan.
5. Bank Account Details: Details of the bank account of the foreign company in Pakistan.
Registration Procedure For Sales Tax Registration For Foreign Companies
1. Online Registration: The foreign company can register online through the Federal Board of Revenue (FBR) website.
2. Submission of Documents: The required documents must be submitted to the FBR.
3. Payment of Registration Fee: A registration fee of PKR 1,000 (approximately USD 6) must be paid.
4. Issuance of Sales Tax Registration Number: The FBR will issue a sales tax registration number to the foreign company.
Post-Registration Requirements
1. Display of Sales Tax Registration Number: The foreign company must display its sales tax registration number at its business premises.
2. Filing of Sales Tax Returns: The foreign company must file sales tax returns on a monthly basis.
3. Payment of Sales Tax: The foreign company must pay sales tax on its taxable supplies.
Penalties for Non-Registration
1. Penalty of PKR 50,000: A penalty of PKR 50,000 (approximately USD 300) may be imposed on the foreign company for non-registration.
2. Additional Penalty: An additional penalty of 1.5% per month or part of a month may be imposed on the foreign company for late payment of sales tax.