Advertisement
Categories: BusinessNewsTech

FBR Serves Rs. 200 Million Income Tax Notice to Netflix

Advertisement

The Federal Board of Revenue (FBR) has issued a notice to Netflix for the recovery of over Rs. 200 million in income tax, according to official sources.

Netflix, a global streaming service offering a wide array of TV shows, movies, anime, and documentaries, provides subscription plans in Pakistan ranging from Rs. 250 to Rs. 1,100 per month.

Sources revealed that the Additional Commissioner of the Chief Tax Office (CTO) in Islamabad has generated a tax demand exceeding Rs. 200 million for two different fiscal years under section 6 of the Income Tax Ordinance (ITO) 2001. Netflix reported Rs. 1.3 billion in revenue in Pakistan for the tax year 2021 alone.

It was highlighted that Netflix, along with other companies, offers offshore digital services without physical offices in Pakistan. The Pakistani government introduced section 6 in the Income Tax Ordinance 2001 to ensure non-resident entities receiving Pakistan-source royalty or fees for offshore digital services or technical services are taxed.

Previously, the Sindh Revenue Board had been taxing non-residents for offshore services, and now the FBR is also imposing income taxes on these entities. Netflix’s tax consultant challenged the assessment orders before the Commissioner Appeal FBR, but the Commissioner upheld the FBR’s decision.

Advertisement
News Desk

Recent Posts

Unmissable events in Dubai this June for Pakistani visitors

Dubai has long been a favourite destination for people from Pakistan, offering a vibrant mix…

19 hours ago

Bank Alfalah partners with IBA and PAQI to launch Karachi’s first scientific Emissions Inventory Report

Marking World Environment Day, Bank Alfalah, in collaboration with the Pakistan Air Quality Initiative (PAQI)…

1 day ago

Karachi Fault Line Active as City Experiences Multiple Earthquakes Over Two Days

Karachi has been rattled by a series of low-intensity earthquakes over the past two days,…

3 days ago

AI with a Human Touch: The Next Step for Pakistani Banking Industry

No one likes standing in long lines, filling endless forms, or waiting days for a…

4 days ago

Government Weighs Income Tax Cuts, Pay Hikes, and Sector Relief in Budget 2025–26

The federal government is reviewing a series of relief proposals aimed at easing financial pressure…

4 days ago

Emirates Pakistan and Consulate of Italy Ink Partnership to Enhance Diplomatic Travel and Cultural Exchange

Emirates, the world's largest international airline, has signed a Memorandum of Understanding (MOU) with the…

4 days ago