01-25-2011, 08:33 PM
Hi
First of all I must say that the past topics in your forums are very helpful for a person looking for a quick overview of general practices in Pakistan. Keep up the active discussion, its a treasure trove that will be helpful to a lot of people.
Now to give you a bit of background of what I am doing here. We are a dubai based company that has a subsidiary office in pakistan. Now the management has decided to implement an erp solution that consolidates all the different offices. Naturally this means that all the accounts will be consolidated. So I am here in Pakistan overlooking the set up for the pvt ltd local subsidiary in the erp. So you might hear from me often in the forums during the next couple of weeks
My first query has to do with kick back accounts and sales commission and even bribes (speed money). What is the suggested treatment recommended by you folks and secondly are they legal and allowed on the books.
My second question has to do with financial year. The pakistan office is following the pakistan tax year of June-May but our Dubai office is following Jan-Dec. I know for certain in other tax jurisdictions like US and Canada Jan-Dec tax year is permitted and all one has to do is submit a declaration to the Tax office justifying the reason for change. Now is the same possible in pakistan ie a taxation year of Jan -Dec and how do one go about getting it done. Also if it is possible ( I do think it would be possible) What will the tax due be at the close of government tax year in June going forward. Will we have to pay the due tax on Jan-Dec previous year or will it be Jul-Dec previous year and Jan-June this year
Thanks and I do appreciate the help and time
Cheers
kash rafiq
First of all I must say that the past topics in your forums are very helpful for a person looking for a quick overview of general practices in Pakistan. Keep up the active discussion, its a treasure trove that will be helpful to a lot of people.
Now to give you a bit of background of what I am doing here. We are a dubai based company that has a subsidiary office in pakistan. Now the management has decided to implement an erp solution that consolidates all the different offices. Naturally this means that all the accounts will be consolidated. So I am here in Pakistan overlooking the set up for the pvt ltd local subsidiary in the erp. So you might hear from me often in the forums during the next couple of weeks
My first query has to do with kick back accounts and sales commission and even bribes (speed money). What is the suggested treatment recommended by you folks and secondly are they legal and allowed on the books.
My second question has to do with financial year. The pakistan office is following the pakistan tax year of June-May but our Dubai office is following Jan-Dec. I know for certain in other tax jurisdictions like US and Canada Jan-Dec tax year is permitted and all one has to do is submit a declaration to the Tax office justifying the reason for change. Now is the same possible in pakistan ie a taxation year of Jan -Dec and how do one go about getting it done. Also if it is possible ( I do think it would be possible) What will the tax due be at the close of government tax year in June going forward. Will we have to pay the due tax on Jan-Dec previous year or will it be Jul-Dec previous year and Jan-June this year
Thanks and I do appreciate the help and time
Cheers
kash rafiq