Islamabad: The Federal Board of Revenue (FBR) has notified Capital Value Tax (CVT) Rules 2022 for implementation on immovable and movable properties of Pakistani residents in other countries, according to news published on September 30.
Previously, the government introduced CVT at 1% on the value of Pakistanis’ foreign assets and motor vehicles. The said tax applied to properties worth PKR 100 million. The value of said assets will be determined as per the exchange rate on June 30, 2022.
As per the notified regulation, people who are obliged to CVT payments, are required to file an electronic declaration on IRIS (FBR’s online portal). The value of the assets will then be changed into rupees according to the ready transaction exchange rates for market-to-market revaluation notified by the State Bank of Pakistan (SBP) for the last day of the tax year.
The CVT will be paid by way of credit to the federal government through a computerized payment receipt when income tax returns are due for tax payment on foreign movable assets, as outlined in Forms ‘C-1’ and ‘C-2’.
All sums of CVT collected under Section 8 of the Finance Act, 2022, will be paid by remittance into the government treasury or in the authorised branches of the SBP, or the National Bank of Pakistan. Under the new regulations, the tax authorities will be entitled to collect CVT from those who either didn’t pay due taxes or short paid along with default surcharge.
Anyone not satisfied with any order passed by the commissioner of income tax or an officer of Inland Revenue under this section may prefer an appeal before the Commissioner (Appeals) against the order as provided in section 127 of the Ordinance and all provisions of Part III of Chapter.