Dec 22, 2017 06:56:18 AM Edited Dec 22, 2017 09:25:29 AM by Nand Kumar K
Dec 22, 2017 06:56:18 AM Edited Dec 22, 2017 09:25:29 AM by Nand Kumar K
Hi,
As Pakistan gov't has given the Tax exemption on IT and related service providers who are generating income from foreign countries and bring their hard earned money back via remittances. In this case, I contacted the local tax attorney in order to file the tax returns, he asked me to bring remittances certificate (with a list of all the transactions I received via Upwork) from my local bank. Somehow, the transactions those I am receiving in my bank are showing as the "Inter Bank Funds Transfer Through ATM From AC# 00050100834601" and "Inter Bank Funds Transfer Through ATM From AC# 00581630000060 20586", see:
IBFT Transactions
However the local bank is not in a legal position to provide me with any foreign remittance certificate as all the transactions are credited via IBFT through ATM which I mentioned above. Though I am receiving funds via IBFT since June 2016, see:
IBFT Transactions Statment
Now, only the processing local bank (might have the Voster account of Upwork) can provide me with the PRC (Proceeds Realization Certificate), see attached jpg:
PRC
Sorry, I forgot to mention the good work done by Upwork previously as the payments were credited to my account through proper channel via PRI (Pakistan Remittance Initiative) before June 2016 and particulars/details are clearly reflecting the transactions as the foreign remittances. see:
A very straight forward question: why your local processing bank in Pakistan sending payments to your customers in mode/form of IBFT through ATM, when there is a legal and proper way to process it through PRI (Pakistan Remittance Initiative) Bank Transfer?
I hope to hear from you ASAP.
Regards,
Dec 22, 2017 08:07:02 AM by Valeria K
Hi Nand Kumar,
Direct to Local Bank Transfers from Upwork may show as an ATM transfer or interbank transfer once it's processed by our payment partner in your country. Processing payments this way allows us to offer Direct to Local Bank transfers at a lower fee. However, we won't be able to change the transaction description.
Dec 22, 2017 11:06:42 AM Edited Dec 22, 2017 11:37:33 AM by Nand Kumar K
Hi Valeria,
Thanks for the prompt response. Yes, it makes sense, I never asked for making changes in the transaction description though.
However, Income Tax Dept. is asking for remittances proof at the receiver end via local bank. Somehow, is it not possible that your payment partner in our country provide me with PRC (Proceed Realization Certificate) which I can add in my statemtent as the substantial proof.
Can you please let me know which local bank is an upwork's payment partner in Pakistan, so, I'll open my account in it to avoid receiving payment via IBFT.
Looking forward to hearing soon.
Thank you so much!
Dec 22, 2017 11:15:38 AM by Valeria K
Nand Kumar,
Unfortunately, we don't have that information. If it is required for you to receive transfers that appear international in the transfer description, you can use US Dollar Wire Transfer.
May 26, 2018 06:01:35 AM by Joanne Marie P
Hi Aziz,
You can consult a local tax advisor in your area so that you can be guided accordingly.
May 26, 2018 06:05:29 AM by Aziz A
I did but unfortunately the local bank is not in a legal position to provide me with any foreign remittance certificate as all the transactions are credited via IBFT through ATM. Since foregin remittance are exempt from the tax in Pakistan, how can I prove these funds/payments are via remittance through upwork since bank statement does not refect it?
May 26, 2018 06:53:35 AM by Petra R
@Aziz A wrote:I did but unfortunately the local bank is not in a legal position to provide me with any foreign remittance certificate as all the transactions are credited via IBFT through ATM. Since foregin remittance are exempt from the tax in Pakistan, how can I prove these funds/payments are via remittance through upwork since bank statement does not refect it?
You may want to look into using US Dollar Wire Transfer.
If I understand it correctly, this should solve your problem.
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