- The FBR in Pakistan has launched the Synchronized Withholding Administration and Payment System (SWAPS) to increase tax transparency and combat tax evasion.
- The Income Tax Rules have been amended to establish a framework for implementing SWAPS, transitioning withholding tax administration and payment to the digital realm.
- SWAPS is supported by critical definitions and obligations, including terms such as “Digital Invoice,” “SWAPS,” “SWAPS ID,” and “SWAPS Payment Receipt.”
- Entities identified as SWAPS Agents must refine their profiles within the Integrated Risk Information System and integrate approved fiscal electronic devices and software.
- The new rules mandate the execution of specified transactions through the SWAPS platform, requiring digital invoices to include essential information. Failure to comply may result in penalties, but extensions may be granted for registration or integration processes. SWAPS aims to modernize and digitalize Pakistan’s tax system, promoting compliance and transparency.
Source RTCsuite
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