Draft SWAPS Rules

Government of Pakistan Revenue Division Federal Board of Revenue lslamabad, lhe 22nd December, 2023. NOTIFICATION S.R.O. 1846(1y2023.- The following draft of certain amendments in the lncome Tax Rules, 2002, which the Federal Board of Revenue proposes to make in exercise of the powers conferred by sub-section (1) of section 237 of the lncome Tax Ordinance, 2001 (XLIX of 200'1), is hereby published for the information of all persons likely to be affected thereby, as required by sub-section (3) of the said section' and fornotice is hereby given that objections or suggestions thereon, if any, may consideration of the Federal Board of Revenue be sent within seven days of publication of the draft in the official Gazette. Any objections or suggestions which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be considered by the Federal Board of Revenue. Draft Amendments ln the aforesaid rules, in Chapter lX, after Part lll, the following new Part lV, shall be added, namely: ..PART.IV SWAPS RULES - (1) The provisions of this Chapter shall apply to all SWAPS agents as 46. Applicability. defined in clause (628) of section 2 of the lncome Tax Ordinance, 2001 (XLIX of 2001) ' from such date, and to the extent notified by the Board. and obligations as (2) The notified SWAPS agents shall fulfil requirements prescribed in this ChaPter. 47 . Definitions. - generated from FBR's web-based (a) "Digital lnvoice" means an invoice portal or computerized system integrated in the manner prescribed by the Board from time to time; l l Page 3

portal or any computerized system (b) "SWAPS" means FBR's web-based of the notified SWAPS Agents integrated with the Board as notified from time to time for the purpose of processing payments for goods and services; (c) "SWAPS lD" means a unique number for identifying transactions carried out by a SWAPS Agent; and payment relating to (d) "SWAPS Payment Receipt" means proof of transactions carried out by a SWAPS Agent. lRlS profile upon48. Registration. - Every SWAPS Agent shall update its notification under Sub-rule (1) of Rule (1). (1) A notified SWAPS Agent shall install and49. Obligations and Requirements- integrate such fiscal electronic device and software as approved by the Board for carrying out any transactions liable to withholding tax in the mode and manner prescribed in this Chapter. Provided that payments referred to in sub-rule (1) shall include advance or partial payments, whether having any statutory exemption or the exemption certificate granted by the Commissioner lnland Revenue. no SWAPS Agent shall carry (2) From the date to be notified by the Board, out any transactions specified in sub-rule (1), otherwise than through SWAPS. no SWAPS Agent shall carry (3) From the date to be notified by the Board, out any transactron specified in sub-rule (1) without receiving a digital invoice. no SWAPS Agent shall carry (4) From the date to be notified by the Board, out any transaction specified in sub-rule (1) unless the CNIC, NTN, and IBAN of the withholdee bear the same title. requirements for integration, (5) The Board may prescribe additional registration, or the mode and manner of carrying out transactions under this chapter. payment as well. (6) Need to add the simultaneous digital - The SWAPS Payment Receipt, hereinafter 'SPR', shall 50. Payments Receipt. include such particulars as may be prescribed by the Board, including- (a) SWAPS-ID, and SPR number; supplier; (b) name, address, NTN, and STRN of SWAPS Agent and the service; (c) quantity, and description of goods, contract or partial payments; (d) for partial payments, number, date, and amount of (e) vendor number, where applicable; 2 | Page 3

(0 digital invoice number of the withholdee; (s) total amount of transaction, including and excluding taxes and duties; (h) withholding income tax section, and amount; (i) sales tax section, withholding sales tax schedule, chargeable and charged amount; 0) FED section, duty chargeable, and charged amount; (k) provincial sales tax section, chargeable, and charged amount, and (l) any other data field as prescribed from time to time. payment of tax. - The SWAPS Payment Receipt (SPR) shall be 51. Certificate of the only proof of collection or deduction of tax, including for claiming a refund, or tax credit. - (1) A notified SWAPS 52. Extension of time for integration as SWAPS Agents. Agent may request the Commissioner lnland Revenue through lRlS, for extension in time for registration or integration as SWAPS Agent, stating the reasons for such delay. sub-rule (1), if (2) The Commissioner lnland Revenue may allow the request in deemed appropriate, for a period not exceeding thirty days, and not exceeding 90 days in aggregate. SWAPS Agent found to have53. Consequences of non-compliance. - A contravened any of the provisions of this chapter shall be sub.lected to penal provisions prescribed under the lncome Tax Ordinance, 2001". 1 (3)DD(SWAPSY2023llF. No. (.x' ry (Angel D Second Secretary (Rules & SROs) 3lPage3