The Federal Board of Revenue (FBR) Thursday said that registration for construction projects under Prime Minister’s construction package continued in full swing as 348 persons have registered 389 projects with the total estimated cost of Rs157 billion so far.
The requirements for availing the package are pretty simple, it said, adding every builder and developer is required to register on computer based IRIS Software of the FBR on or before 31.12.2020 and the projects are required to be completed before 30.09.2022.
The Prime Minister of Pakistan’s construction package for builders and developers was promulgated through Tax Laws (Amendment) Ordinance, 2020 whereby a new section 100D and Eleventh Schedule were inserted in Income Tax Ordinance 2001.
The statement said that the construction package was very vast in scope and offers handsomely attractive tax incentives, adding it was applicable to both the builders and developers of the land and covers both the new and existing construction and development projects.
“Builders and developers can avail the tax benefits of the package in respect of residential as well as commercial buildings. This can be availed by individuals, association of persons and companies, irrespective of the entity status. It provides for fixed tax rates on per square foot and per square yard basis for builders and developers respectively.”
The tax so calculated is reduced by 90% in cases of low cost housing projects. Moreover, to facilitate the shareholders of limited companies, the dividend income of the shareholders has been made tax free. The PM Package for construction also provides for many concessions from withholding taxes.
In order to mobilize investment, a complete immunity from probe regarding the sources of investment has been provided to the builders/developers and to the buyers of the properties of such projects subject to fulfillment of certain conditions.
The requirements for registration include provision of bank account, ownership documents and approved plan. The FBR System also provides for temporary registration pending completion of approvals. In order to facilitate builders, developers and buyers,
The FBR has established online support setup, this includes a banner on the front page of official website, dedicated web page, dedicated email to address queries and online step-by-step guidelines has also been uploaded.