Govt to provide hassle-free Roshan Digital Accounts

Roshan Digital Accounts Government declares a new streamlined and comfortable tax regime

The Federal Government has announced several amendments to the Income Tax Ordinance 2001 through Tax Laws (Amendment) Ordinance 2021 on the basis of feedback from the diaspora and recommendations from the State Bank of Pakistan (SBP) to make the tax system simple, convenient, and hassle-free for the maintenance of Roshan Digital Accounts by non-resident Pakistanis (NRPs) (RDAs).

The reforms ease and decrease the cost of tax collection for the NRPs who manage RDAs.

The NRPs invested in Naya Pakistan Certificates (NPCs) by their RDAs have already been subject to the complete and final taxation system, with the amendments expanding the full and final taxation scheme scope.

According to a statement, “the amendments have extended the coverage of full and final taxation regime to dividends and capital gains on shares and mutual funds investments made through RDAs” and “capital gains on real estate investments made through RDAs.”

As a consequence, NRPs would not need to file tax returns under the above heads against their profits resulting from investments made by RDAs. NRPs with RDAs have now been isolated from fines (doubling of tax rate) with this elimination of return reporting provisions because of their exclusion from the Successful Taxpayer’s List (ATPL).

In addition, NRPs with RDAs would not be charged on cash deposits and bank transactions available to non-filers.

The profit, according to the details, on debt on RDA deposits is tax-exempt, the profits tax rate on NPCs is 10 percent for NRPs Pakistanis settled abroad.

1 percent purchase and sale tax of the real estate will be payable that will be the discharge of NRPs if the profit on the investment is done through RDAs.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker