The Pakistan Telecommunication Authority (PTA) plans to hire tax consultants to propose the most efficient/effective tax model in the telecom sector and a revised tax structure for mobile companies. The authority stated that it has a mandate to regulate Pakistan’s telecom industry. There is a need for licensing and a fair regime in the telecom sector. PTA also highlights the core tasks and scope of tax services.
In this context, the PTA intended to hire tax advisory services for core tasks
- Tax advice on existing tax structure
- Advice on the PTA’s existing tax structure and contractual arrangements in relation to its position within the telecommunications industry
- Proposing the most tax efficient/effective model for accounting and (iv) tax status of various PTA issues with tax authorities and forums.
PTA will hire consultants for taxation in the telecom sector
Also check: Why are mobile users unwilling to pay PTA taxes? A case study
Scope of tax services included
- Preparation and filing of the corporate income tax return with the tax authorities, including calculation of the underlying income/sales tax when finalizing the accounts and revision of the return, if necessary
- Preparation and submission of a refund request for a possible refund
- Attend before tax authorities, including the Internal Revenue Service, appeals bodies and tribunal, and respond to communications issued in connection with corporate/sales tax returns and audit procedures to finalize the income/sales tax or FED assessment
- Assistance in giving tax credits under the 2001 income tax ordinance and related sales tax or FED, where applicable
- Responding to daily messages and other correspondence with the Tax and Customs Administration and applet authorities regarding the items listed above
- Assistance in interpreting and reporting changes to income tax, sales tax, federal excise and customs laws as and when required.
PTA is also required to collect fees from operators providing telecom services under a license issued by the PTA. Also, the income from the PTA is taxable through an amendment to the ACT, and such authorities were required to be taxed by the 2006 financial ACT.
Pakistan is one of the most heavily taxed telecom markets in the world. Users in Pakistan pay 34.5 percent tax including 15 percent withholding tax (AIT) and 19.5 percent GST.
See also: Pakistan Mobile Phone Traders Association visits PTA HQ