In order to help companies and businesses facilitate the current crisis due to COVID-19, Regulatory deadlines under the Companies Act 2017 have been relaxed by the Securities and Exchange Commission of Pakistan (SECP).

Following regulations have been approved by SECP in the powers conferred under Section 510 of the Companies Act 2017:

1. As provided in Section 132 of the Act, extension for 30 Days has been allowed for holding of the Annual General Meeting to those companies which are facing difficulties in holding AGM for the year ended 31st December 2019. The companies can now hold their meetings for the year ended 31st December 2019 on or before the 29th of May 2019.
2. Those companies may file impediment reports with the concerned registrar under section 158(2) of the act whose election of directors is due before or in the above-mentioned AGM. The impediment report should cite the reasons for the delay in holding the elections of directors.
3. An extension period of 30 days has been allowed for the filing of any statutory return which is required to be filed on or after 24^thof March 2020. The statutory return would be filed with the concerned registrar after the occurrence of any event with a delay of 30 days. No additional filing fee would be charged as no penal action shall be taken for the late filing.

Maintenance of the continuity of the economic activity and health and safety of the business workforce all over Pakistan is being focused in the response of SECP to COVID-19. For ensuring the health and safety of Members of SECP, a plan of operating with 50% workforce from office and 50% workforce from home on the weekly rational basis is adopted by SECP having effect from 24^th of March, 2020. The members who have been asked to work from home include especially mothers who use in-house daycare activity and the employees with medical conditions. To facilitate employees work from home, the arrangements have been completed by the Information Technology Department of SECP.

Moreover, all such unnecessary assignments including training and employee engagement activities have been suspended for time being. All hearings by the adjudication division would be done through skype video call only.

To ensure the safety of people and resist the spread of COVID-19, precautionary measures have already been taken by SECP. The measures included are closure of daycare and cafeteria, in-house gym, use of an elevator for up to a maximum 03 person at a time and social distancing has also been ensured in general.

Reference:

https://www.secp.gov.pk/wp-content/uploads/2020/03/Press-Release-March-23-SECP-relaxed-regulatory-deadlines-amid-COVID-19-Pandemic.pdf

27 March 2020

Keeping in view the threats being imposed by the Corona Virus epidemic and restricted movement of people due to lockdown in the country, FBR has provided the taxpayers with the facility of Alternate Delivery Channels (ADC) to make the payment of Customs Duty, Income Tax, Sales Tax, and federal Excise Duty.

Following are the options that are included in the list of Alternate Delivery Channels to make payment of above-mentioned liabilities:

1. ATMs
2. Mobile Banking (Jazz Cash etc.)
3. Internet Banking
4. Over the counter from all the branches of all the scheduled banks

List of banks which have the facility of online banking and ATMs under alternate delivery Channels:

1. Askari Bank
2. Bank Alfalah
3. Meezan Bank
4. NBP
5. Habib Metro
6. ICBC
7. Soneri Bank
8. JS Bank
9. MCB
10. UBL
11. HBL
12. ABL
13. Summit Bank
14. Bank of Punjab
15. Bank Al Habib
16. Faysal Bank
17. Silk Bank
18. Bank Islami

Reference:

https://fbr.gov.pk/alternate-delivery-channels-for-payment-duties-taxes/152297

26 March 2020

An SRO having number 54(I)/2020 has been issued by the Securities and Exchange Commission of Pakistan (SECP) in the exercise of powers conferred under section 512 read with section 88 of the companies act, 2017 (XIX of 2017). The SRO clearly mentioned the amendments being made in the regulations (2019) of Buy-Back of shares by the Listed Companies. The same has been previously published in the official gazette vide notification no, 1549 dated December 11, 2019, as per the requirements of the provisions to the said section 512.

In regulation 9, in sub-regulation 1;

The words

“provided that the free float of the company after the purchase does not fall below twenty-five percent of the total paid-up share capital of the purchasing company”, shall be omitted.

The said SRO is dated as 28^th of January, 2020.

Reference:

https://www.secp.gov.pk/document/sro-54-i-2020-amendments-in-the-listed-companies-buy-back-of-shares-regulations-2019/?wpdmdl=38235

25 March 2020

There has been an amendment made in the 12th schedule of the Sales tax act 1990. According to this amendment, an additional value addition tax at the rate of 3% would be levied on the import of goods other than inputs or raw materials and including import of such goods which are subject to customs duty at the rate of 16% or above.

According to this ordinance, the effect of the amendment in the twelfth schedule (3% value addition tax) is not applicable on the Plant, machinery and equipment being imported by a manufacturer for in house installation or house, falling in chapters 84 and 85 of the first schedule to the Customs Act 1969 (IV of 1960).

The refund of a 3% value addition tax would not be barred if paid on goods used in making zero-rated supplies.

Reference:

ICAP Newsletter- March 2020

24 March 2020