Bank Withdrawal To Company Account

Hi!

I have been using payoneer for quite a few years now. Uptil now I used to withdraw funds to my personal bank account in Pakistan and I never faced any issues.

Now for tax purposes I registered a Private Limited Company and opened a business account in my bank. I linked this new bank account with my payoneer and made a withdrawal to it.

Can anyone please share their experience of withdrawing funds to company account in Pakistan? Does this require any additional steps? Does the funds get automatically credited to company account or do I have to call the bank and provide some additional documents before the funds can be credited?

Secondly can anyone from Pakistan share their experience of filing tax? I'm aware that foreign remittance are exempted from tax and some exemption are aslo given on Software Export but nevertheless we still have to file the tax return. So can any one please explain how do they filed their tax return in this scenario

Thanks!

Comments

  • princeali7princeali7 Posts: 3Member
    Watching . No one here is to Help . I would like to know details on this one too .
  • Umermirza95Umermirza95 Posts: 3Member
    I just went through the whole process so I think I should answer my own questions.

    First regarding the taxes, If you want to become a tax filer in Pakistan like I did then the most easiest way is to register a sole proprietorship company. You will ask your bank to report your incoming foreign transactions to State Bank under the code of 9184 which will grant you tax exemption on the basis of 'software export'. This exemption is till 2019 but is expected to be extended.

    If you're a paranoid kind of person (like me) I would recommend you to open a private limited company. It will provide you with much better legal identity and you will be able to differentiate between your company assets and your personal assets thus giving your personal assets a protection.

    The hassle of opening a private limited company bank account is much more than sole proprietorship account. Therefore I would recommend you to choose a small bank instead of some multi-national bank. I chose faysal bank as it was near to my residential area. I got my account opened within a week whereas standard charted gave me a time estimate of three weeks. Overall the terms and conditions of small banks are lenient which suited well for my young startup company.

    Now receiving funds in your company account is a really hectic. State bank regulations is quite strict when it comes to company /business transactions. Plus these small banks usually partner up with other banks to receive international transfers. In my case when I withdrew funds from payoneer account to my faysal bank company account they didn't arrive directly to faysal bank account. They came via standard charted bank. So when they first arrive at standard charted bank they notified faysal bank and asked them the source and reason of these funds. Faysal bank then asked me to provide them with R-form and an invoice. The r-form specifies the reason for the incoming transaction which in my case was software export. On the r-form I also specified the 9184 code of state bank. For the invoice I made it in the name of payoneer instead of my client since the bank was receiving funds from payoneer, and not from my client. When standard charted received received the r-form and invoice from faysal bank they finally released the funds to faysal bank which then credited them to my company account. Overall process took 8 working days. So approx 2 weeks in total.

    I'm hoping that only first transaction was this slow and from now on the process would become smoother. I will share my experience for my next transactions as well.
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