Amendment in Section 111 of the Ordinance
Amendment in Section 111 of the Ordinance: Section 111(4) provides exclusion from unexplained income or assets to any amount of foreign exchange remitted from outside Pakistan through normal banking channels not exceeding five million rupees en-cashed into rupees by a scheduled bank.
The amendment through insertion of an explanation has now also treated remittances through Money Service Bureaus (MCBs), Exchange Companies (ECs) and Money Transfer Operators (MT0s) or other similar entities as foreign exchange remitted from outside Pakistan through normal Banking channels. After a formal clarification from SBP, Circular No. 05 of 2022 was issued by the Board.
Through this amendment the Board’s clarification has now been made part of legislation to facilitate foreign remittance and align the law with innovations that have taken place in the banking industry.
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/