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1 month ago | [YT] | 0

Tax Dosti

Tax Dosti Fans Asked: Who has to file tax return in Pakistan every year
Answer:
Section 114 of Pakistan’s Income Tax Ordinance, 2001 sets out the requirements for the filing of a return of income. It specifies the categories of persons who must file tax returns annually. These include:

- Every company.
- Every individual (other than a company) whose taxable income exceeds the non-taxable threshold.
- Non-profit organizations.
- Individuals owning immovable property above specified land area thresholds.
- Owners of flats larger than a defined covered area.
- Owners of motor vehicles above 1000cc engine capacity.
- Holders of National Tax Numbers (NTN).
- Persons subscribing to telephone or mobile phone services.
- Individuals undertaking foreign travel (with some exceptions).
- Persons or classes of persons notified by the Federal Board of Revenue (FBR).

Additionally, subsection 1A requires individuals with business income between certain limits to file returns. The section also empowers the Commissioner to require filing of returns for incomplete tax years for reasons like death, bankruptcy, or permanent departure from Pakistan.

Real-life frequent questions around Section 114 often involve clarifications about who must file returns, what triggers notices under this section (such as notices under subsection 4 for non-filing), and consequences of not filing despite meeting the criteria.

Section 114 is foundational in defining taxpayer obligations for filing income returns in Pakistan, directly impacting compliance monitoring and enforcement by the FBR.

1 month ago | [YT] | 0

Tax Dosti

Tariq Rauf ‪@HamidRauf500‬ Asked:
Sir late filers ky bank profits py WHT kitena cut hota hy?
Answer:
For late filers in Pakistan, the withholding tax (WHT) on profit from bank accounts (profit on debt) is generally 20%, which is higher than the 15% rate for active filers. Non-filers face even higher rates, typically 40%. This is according to the latest withholding tax regime effective for the financial year 2025-26 and the related provisions of Section 151 of the Income Tax Ordinance. The 20% rate applies on the gross amount of profit credited or paid by the bank.

So, if you are a late filer, the bank profits will have WHT deducted at 20%. This WHT is generally considered a final tax/minimum tax liability for individuals and AOPs, but companies can adjust it against their final tax.

Summary:
- Active filers: 15% WHT on bank profit.
- Late filers: 20% WHT on bank profit.
- Non-filers: 40% WHT on bank profit.

This rate applies on the gross profit or yield credited to your account. Becoming an active filer can reduce the WHT from 20% (late filer) to 15%.

1 month ago | [YT] | 0

Tax Dosti

Cnergyico, Pakistan's largest oil refining company, reported a 24.09% topline growth for the fiscal year ending June 30, 2024.
Net profit was Rs.1,008.374 million, with an earnings per share of Rs.0.18 and a net profit margin of 0.42%.
The stock price is currently around 8.43 PKR, showing volatility but generally upward trends.
High finance costs and falling crude oil prices are notable factors affecting performance.
Company Overview
Cnergyico, formerly known as Byco Petroleum Pakistan Limited, is a major player in Pakistan's energy sector. It specializes in oil refining and petroleum marketing, with a refining capacity of 156,000 barrels per day, making it the largest in the country. The company operates through two main segments: oil refining and petroleum marketing, producing a range of products like liquefied petroleum gas, motor gasoline, and high-speed diesel.

Financial Performance for FY 2023-2024
For the fiscal year ending June 30, 2024, Cnergyico showed strong revenue growth, with a topline increase of 24.09%. The gross profit was Rs.12,430.15 million, translating to a gross profit margin of 5.17%. However, the net profit was Rs.1,008.374 million, with a net profit margin of 0.42%, indicating challenges in managing operating costs. The earnings per share stood at Rs.0.18. Notably, finance costs rose by 42.69% due to high discount rates and increased financing levels, which impacted profitability. On a positive note, falling international crude oil prices—from USD90 per barrel in April 2024 to USD70 per barrel by September 2024—likely helped reduce input costs, potentially benefiting future performance.

Stock Performance
As of recent data, Cnergyico's stock is trading at approximately 8.43 PKR. The stock has experienced volatility, but it has generally trended upward over time, with a reported 82.37% increase over the past year. Investors should note that the stock's performance can be influenced by industry-wide issues, such as petroleum smuggling, which affects sales and profitability.

Survey Note: Detailed Analysis of Cnergyico's Financial Performance
This section provides a comprehensive analysis of Cnergyico's financial performance, expanding on the key points and including additional details for a thorough understanding. The information is sourced from official reports, financial websites, and news articles, ensuring accuracy and relevance as of April 9, 2025.

Company Background and Operations
Cnergyico Pk Limited, previously known as Byco Petroleum Pakistan Limited, was incorporated in 1995 and is listed on the Pakistan Stock Exchange (PSX) under the ticker CNERGY. It is Pakistan's largest vertically integrated oil refining company, with a refining capacity of 156,000 barrels per day, as detailed on its official website (Cnergyico Profile). The company operates two main business segments: oil refining and petroleum marketing. Its operations include refining crude oil into products like liquefied petroleum gas (LPG), motor gasoline, kerosene, jet fuels, high-speed diesel, and furnace oil. Additionally, it has a single point mooring (SPM) facility, a strategic asset for importing crude oil, located 15 km from its refinery, connected via undersea and onshore pipelines, as noted in its company profile.

Cnergyico's vision is to achieve sustainable productivity while maintaining high environmental, health, and safety standards, as stated on its homepage (Cnergyico Homepage). This vertical integration positions it uniquely in Pakistan's petroleum industry, making it a critical player in meeting national energy demands.

8 months ago | [YT] | 0

Tax Dosti

What is the tax rate for toll manufacturing services provided by companies under Section 153 for Tax Year 2024-25 in Pakistan?

10 months ago | [YT] | 0

Tax Dosti

What is the tax rate on goods transport vehicles under Section 234 for Tax Year 2024-25 in Pakistan?

10 months ago | [YT] | 0

Tax Dosti

What is the tax rate for the sale of cotton seed oil under Section 153 for Tax Year 2024-25 in Pakistan?

10 months ago | [YT] | 0

Tax Dosti

What is the tax rate for brokerage services provided by advertisement agents for Tax Year 2024-25 in Pakistan?

10 months ago | [YT] | 0

Tax Dosti

What is the tax rate for rice and edible oil traders under Section 153 for Tax Year 2024-25 in Pakistan?

10 months ago | [YT] | 0

Tax Dosti

What is the tax rate for the issuance of sukuks by companies for Tax Year 2024-25 in Pakistan?

10 months ago | [YT] | 0