FBR issues new rules for online businesses

(Web Desk): The Federal Board of Revenue (FBR) has issued a draft amendment to the Income Tax Rules of 2002, aiming to bring the country’s digital economy under the tax net.

As per FBR's notification number 1634, every online business entity will now be required to submit a monthly financial report. According to the new rules, online businesses will file financial details monthly using Forms A1 and A2.

The online business details must include the NTN (National Tax Number) and monthly bank account statements. Additionally, businesses will be required to provide the seller’s name, address, and invoice number.

The new regulations also mandate that all courier service companies providing nationwide services must submit their financial details to the FBR every quarter. An SRO has been issued by the FBR, which requires courier companies to submit their financial information using Form 1. Online financial service providers will need to use a separate form to provide tax details related to their services.

Furthermore, online businesses are required to submit a sworn affidavit along with their tax details. Stakeholders can submit their feedback on the amended draft of the online business regulations within seven days.