- FBR introduces SWAPS rules for digital invoicing enforcement
- Aim is to enhance tax transparency and combat evasion
- Rules outlined in SRO 419(I)/2024 to amend Income Tax Rules, 2002
- SWAPS system designed to streamline withholding tax administration and payment
- Key provisions include definitions for terms like “Digital Invoice” and “SWAPS ID”
- SWAPS Agents mandated to update profile in IRIS and use approved fiscal electronic devices
- Prohibited from carrying out specified transactions without SWAPS platform
- Digital invoicing made mandatory with strict requirements for alignment of CNIC, NTN, and IBAN
- SWAPS Payment Receipt (SPR) serves as primary documentation for tax collection or deduction
- Non-compliance may result in penal provisions under Income Tax Ordinance, 2001
- Mechanism for requesting extensions in registration or integration timelines
- Aims to modernize tax administration system and promote digitalization in financial transactions in Pakistan.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
