OICCI seeks Withholding IT exemption certificates from FBR

ISLAMABAD: The Overseas International Chambers of Commerce and Industries (OICCI) has written a letter to the Chairman FBR Dr Mohammad Ashfaque, asking him to issue Withholding Income Tax exemption certificates to all provident/gratuity/superannuation funds.

In a letter written to chairman FBR, the OICCI stated that on behalf of the members of Overseas Investors Chamber of Commerce and Industry (OICCI), they would like to raise their members' concern, with reference to the promulgation of Sindh Trust Act (STA), 2020, which requires all trusts in Sindh created under Trust Act, 1882 or registered under Registration Act 1908 or any other law to be registered under the STA.

Earlier, the FBR had concurred to issue a No Objection Certificate (NOC) to all approved/ recognized funds, which have filed their income tax returns for the tax year 2020. Earlier, the Sindh government linked the registration/re-registration of Specialized Funds under STA, 2020 with the issuance of the above NOC. The letter stated that there is a need to note that so far, no such NOC has yet been issued by the FBR to Specialized Funds, resultantly all the specialized trusts created prior to coming into force of STA, 2020 are facing difficulties in obtaining the registration.

It is pertinent to note that in the absence of a registration certificate issued under the STA, the commissioner(s) Inland Revenue are not issuing the withholding income tax exemption certificates to provident/ gratuity/ superannuation funds.

The OICCI stated that in the given circumstances, the OICCI members, on the one hand, are following-up with assistant director of relevant district(s) for registration of their trusts under STA and, on the other hand, they are facing hardship in getting their exemption certificates from commissioner(s) Inland Revenue.

Keeping in view of the above, the OICCI requested to the chairman FBR to issue NOCs to all the recognized/approved funds, which have filed income tax returns for the tax year 2020; and the due date for registration under STA, 2020 for the purpose of issuing exemption from withholding income tax certificate to the approved/recognized retirement benefits funds may be extended till 30.06.2022.

The OICCI requested immediate intervention to ease out the hardships for their members, who represent the diligent large taxpayers of the country.