Jul 12, 2019 01:21:59 AM by Hussain A
Nov 26, 2019 12:02:00 AM by Muhammad A
There is no requirement of registering with PSEB in clause 133.
I beleif the requirement to register with PSEB is for getting tax exeption under clause 143 for new start up companies as defined in clause 62(A) of section 2.
Nov 26, 2019 12:24:38 AM by Syed Z N
There is no requirement like you said.
What I am finding out that it would be way easier if company is registered with PSEB as Bank want PSEB certificate to open company bank account, to add purpose code to your remittance for PRC and even FBR is familair with it. Otherwise I don't know what would be required to prove the income from software work.
note: only companies can get registered with PSEB NOT individuals.
Nov 26, 2019 01:22:19 AM by Hussain A
I asked in a freelance group, a very established freelancer said, he once got FBR audit and he had to show an agreement between himself & the company he was working for & that was it. He didn't said if anything else was requested by FBR.
Pakistan is like 4th in top freelancing countries, which means a large number of Pakistani freelancers are receiving remittances, and of course majority of them are individual freelancers and they're most certainly not registered with PSEB, because there is no law that asks anyone working as freelance to get registered anywhere.
I ask myself, how many freelancers in Pakistan are actually registered with PSEB? Maybe 1% or less? Then why should I go through the hassle of forming a company, getting registered with PSEB, making business bank account, then start visiting bank to credit every single payment, filling a bunch of documens of every payment, etc. etc. etc.?
Nov 26, 2019 02:06:29 AM by Syed Z N
Nov 26, 2019 05:22:37 AM by Hussain A
Yes, FBR staff is extremely frustrating.
I've spoken with my bank several times & the staff at branch said it's fine to receive your remittances in it's current state. They said no need to do anything extra as long as your remittances come in your account without any query. But this maybe different for different banks. I opened an account in Askari bank & after opening the account, the staff member said you can't receive remittances in this account, bcoz the headoffice will hold it each time & will just cause you more delays.
If a freelancer is a filer, then he has already provided his/her bank details to FBR & since remittances come in the bank, so such freelancers are not hiding anything at all.
Freelancing may fall under business category, but it has to be on paper, there has to be some written legislation on freelancing by the government, which is not in place right now. Govt officials really need to sit & make some rules for freelancing, so we freelancers can be at ease that we're doing things right. But it doesn't look like they've any interest here at all.
Nov 26, 2019 06:02:16 AM by Syed Z N
Hopefully this thing will get clearer. So in short there is no right and wrong way.
I have now form the sole propriety business. And receiving payment to bank account with correct purpose code. Payment has not been stopped OR/AND I didn't need to submit r-form, probably because the NTN is with the bank and also bank call for purpose code which kind a is a R-form.
I personally don't recommend to go through all the hassle if some one is earning 1 million pkr in a year But if someone is earning a bit more chances of Audit increases and hence this MAY OR MAY NOT help in long run. only Allah Knows.
Nov 26, 2019 06:59:08 AM Edited Nov 26, 2019 07:01:42 AM by Hussain A
Ok so PSEB is not necessary then if business bank account & purpose codes are in place?
When you said you got correct purpose code, please explain this a bit?
How is purpose code tagged with all your remittances to proof all your remittances are freelances related?
Ever since you've this setup in place, did you acquired PRC yet? Also which bank is this?
> "Receiving payment to bank account with correct purpose code."
Is the purpose code mentioned somewhere in statement for each payment?
Thanks
Nov 26, 2019 07:39:47 AM by Syed Z N
Ok so PSEB is not necessary then if business bank account & purpose codes are in place?
I am not saying PSEB is NOT necessary or VERY necessary. I haven't got upto point to register for it. Thinking out few personal reasons.
Yes a business bank account.
When you said you got correct purpose code, please explain this a bit?
4 Export of Computer Software - Receipts on account of export of computer software including design, development, and programming of customized system. Purpose code: 9184
I am doing software work. So my remittance should also show the purpose of payments. The bank needs to report SBP about the reason of foreign funds, hence the correct purpose code.
How is purpose code tagged with all your remittances to proof all your remittances are freelances related?
I tell them the purpose code which should be printed on all my PRCs and reported to SBP. So since I have sole business, the PRC generation won't be an issue hopefully.
Ever since you've this setup in place, did you acquired PRC yet? Also which bank is this?
NO I haven't. I got bit lazy after getting things setup. it took more than a month for Bank to open a bussinees account. Hence I haven't got many payments so I will apply soon.
SCB and UBL.
Is the purpose code mentioned somewhere in statement for each payment?
NO. I am hoping it will be on PRC. I am positive because I got call from bank and they ask for reason of payment and purpose code. (very first time)
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