Connect with us

Tech

FBR Orders Netflix To Pay Rs. 200 Million In Income Tax

Published

on

Netflix
(Image credit: Shutterstock)

(CTN News) – ProPakistani has been informed that the Federal Board of Revenue (FBR) has sent Netflix a notice seeking to recover more than Rs. 200 million in income tax. This notice contains information that the FBR has filed. In an effort to recover extra revenue, this notice was delivered to the appropriate parties.

On thousands of devices that are connected to the internet, Netflix subscribers have access to a vast range of award-winning television shows, movies, animation, documentaries, and other types of media. Netflix also provides users with access to a documentary library.

Netflix is a streaming service accessed online. In accordance with the information that has been presented, Netflix has made available to its subscribers a variety of different subscription packages, the prices of which range from Rs. 250 to Rs. 1,100 each month.

Additionally, viewers in Pakistan can now subscribe to Netflix.

It is alleged that the Additional Commissioner of the Central Tax Office in Islamabad was responsible for generating a demand for more than two hundred million rupees in two different years. This was done in order to comply with section 6 of the Income Tax Act 2001. It is sources that have provided this information.

According to further sources, the corporation declared an income of Rs. 1.3 billion for the tax year 2021 alone, which was entirely recorded in Pakistan. This revenue was reported by that corporation. It was in Pakistan that this revenue was recorded here.

It has been reported that Netflix and a few other corporations offering digital services in other countries do not have any presence in Pakistan, despite the fact that it has been said that these companies are providing digital services in other nations.

In addition, the FBR had already provided notice to the Netflix office in Singapore, and the company had also constructed an office in the Netherlands quite some time ago. The information in question originates from a variety of sources.

Additionally, it has also been revealed that businesses that provide digital services in other countries are hiding behind Double Taxation Agreements (DTAs) in order to ostensibly avoid paying taxes. There has been some light shed on this topic.

A bilateral trade agreement (DTA) is a contract that is formed by two nations in order to prevent or alleviate (minimize) territorial double taxation on the same income by the two countries.

Netflix DTAs are contracts between two countries.

Please take note that the government of Pakistan has adopted section 6 of the Income Tax Ordinance 2001 in order for any non-resident person receiving Pakistan-sourced royalty fees for offshore digital services or charging for technical services to be in compliance with the law. You should be aware of this important point. In relation to this topic, this is an issue that should be raised.

Before, the Sindh Revenue Board had already begun levying taxes on non-residents for offshore services. These taxes were imposed on offshore services.

On the other hand, the Federal Board of Revenue (FBR) has only recently begun levying income tax on individuals who do not reside in the country.

Through the assistance of its tax advisor, the Company has reportedly submitted an objection to the assessment orders to the Commissioner’s Appeal FBR. This information comes from sources. In spite of this, the Commissioner of Appeal has issued a decision that appears to be beneficial to the Fire and Rescue Department.

SEE ALSO:

Apple Developer Conference Will Break AI Silence

How Does Meta’s WhatsApp Business Utilize Artificial Intelligence?

Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

Continue Reading