ISLAMABAD: The Federal Board of Revenue (FBR) has directed all companies and association of persons (AOPs) to retain the records of all beneficial owners for a period of ten years.
The FBR on Monday amended Income Tax Rules, 2002 to introduce a new “Chapter i.e. Record of Beneficial Owners.
Under the new rules, the Board shall retain the records of beneficial owners of all companies and association of persons (AOPs) registered with the Board for a period of ten years from the date when that company or AOP ceases to be registered with FBR.
Under the new rules, every company and association of persons (AOP), on its initial registration with FBR, shall electronically furnish the particulars of its beneficial owners to the Board as prescribed Form through the Board’s online system.
Every company and AOP, already registered with FBR, shall electronically furnish the particulars of its beneficial owners to the Fbr on or before December 31, 2023.
The record of the beneficial owners shall be updated whenever there is a change in any of the particulars of the beneficial owner as stipulated in Form within 30 days from the date when the change occurs.
In the case of a non-profit organization, the settlor, trustee, founder, promoter, beneficiary, or class of beneficiary, as the case may be, will be the beneficial owners of the nonprofit organization: Provided that where the beneficiary or class of beneficiary of the non-profit organization is general public, the beneficiary or class of beneficiary of such nonprofit organization shall be exempted from the requirement of providing information of beneficial owners.
In case there is no change in the beneficial owners of the Company or AOP throughout a particular tax year, the Company or AOP as the case may, shall furnish a “Certificate of Confirmation for Beneficial Owner” to this effect as prescribed in Form through Board’s online system along with the Income Tax return to be filed for that tax year, according to the new rules.
