Business
FBR Serves Notice to Netflix for Recovery of Rs 200 Million Tax
The Federal Board of Revenue (FBR) has served a notice to Netflix, the popular streaming service, for the recovery of over Rs 200 million in income tax.
According to sources, Netflix has been accused of tax evasion despite generating Rs 1.3 billion in revenue in Pakistan alone during the tax year 2021.
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The FBR has taken action against Netflix for providing offshore digital services without having a physical presence in Pakistan.
The company has been using Double Taxation Agreements (DTA) to allegedly evade taxes, sources revealed.
The government of Pakistan had introduced Section 6 in the Income Tax Ordinance 2001 to bring non-resident persons providing offshore digital services under the tax net.
The Sindh Revenue Board was already taxing non-residents for offshore services, and now the FBR has also started imposing income tax on such individuals.
Netflix has challenged the assessment orders before the Commissioner Appeal FBR, but the decision has been made in favor of the FBR.
