Income Tax & Sales Tax Reg & Returns
Introduction:
Pakistan Software Export Board (PSEB) is a government organization that promotes and facilitates the growth of Pakistan’s IT industry. The PSEB provides various services and programs to support the development and growth of software exports from Pakistan.
For software companies in Pakistan aiming to explore international markets and seize global opportunities, registration with the Pakistan Software Export Board (PSEB) is a strategic move. Let’s delve into the process and significance of registering with PSEB for software export endeavors.
Income tax is levied on the income earned by individuals and businesses. Every individual and company that earns income above a certain threshold is required to register for income tax and file tax returns. The income tax rate varies depending on the income bracket of the individual or business.
Sales tax, on the other hand, is levied on the sale of goods and services. Businesses that are registered for sales tax must charge sales tax on the goods and services they sell and then file sales tax returns with the FBR. The sales tax rate is currently 17%, but there are exemptions and reduced rates for certain goods and services.
Understanding PSEB Registration:
The Pakistan Software Export Board (PSEB) is a government agency dedicated to promoting and developing the software and IT services industry in Pakistan. Registering with PSEB can open doors to various benefits for software exporters. Here’s a comprehensive look at the process:
Eligibility Criteria:
To qualify for PSEB registration, a company should be engaged in the business of software development, IT services, or IT-enabled services. It should be a registered legal entity in Pakistan.
Application Submission:
The company must submit an application for PSEB registration, providing detailed information about its activities, services, products, and international business goals.
Documentation:
Along with the application, relevant documents such as company incorporation certificates, tax registration, and financial statements may need to be submitted.
Evaluation and Approval:
PSEB evaluates the application based on the provided information and documents. Once approved, the company becomes a registered software exporter under PSEB.
Benefits of PSEB Registration:
Registering with PSEB offers a plethora of advantages for software companies:
Access to Incentives:
PSEB-registered companies can avail themselves of various incentives, including tax exemptions, reduced withholding tax rates, and access to funding programs.
International Exposure:
PSEB facilitates participation in international exhibitions, trade shows, and business delegations, creating opportunities for networking and global market access.
Skill Enhancement:
PSEB offers training and capacity-building programs to enhance the skills and capabilities of software professionals, fostering innovation and competitiveness.
Market Intelligence:
PSEB provides valuable market intelligence, insights, and industry trends, enabling companies to make informed decisions in their export strategies.
Advocacy and Support:
PSEB advocates for the interests of the software industry, representing registered companies at various forums and engaging with policymakers.