FBR Directs SWAPS Agents to Integrate Fiscal Electronic Devices

The Federal Board of Revenue (FBR) has directed the “SWAPS Agents” (withholding tax agents) to install and integrate fiscal electronic devices and software for carrying out any transactions liable to withholding tax. In this connection, the FBR issued draft SWAPS rules through an S.R.O. 1846(I)/2023 on Friday. Under the new rules, the notified SWAPS agents shall fulfill requirements and obligations as prescribed in the rules. The “SWAPS” means FBR’s web-based portal or any computerized system of the notified SWAPS Agents integrated with the Board as notified from time to time for the purpose of processing payments for goods and services. From the date to be notified by the Board, no SWAPS Agent shall carry out any transaction specified unless the CNIC, NTN, and IBAN of the withholdee bear the same title. The SWAPS Payment Receipt (SPR) shall be the only proof of collection or deduction of tax, including for claiming a refund, or tax credit. A notified SWAPS Agent may request the Commissioner, lnland Revenue through lRlS, for extension in time for registration or integration as SWAPS Agent, stating the reasons for such delay. The “SWAPS Payment Receipt” would be proof of payment relating to transactions carried out by a SWAPS Agent. The SWAPS Payment Receipt (SPR) shall include such particulars as may be prescribed by the Board, including SWAPS-ID, and SPR number; name, address, NTN, and STRN of SWAPS Agent and the supplier; quantity, and description of goods, contract or service; for partial payments, number, date, and amount of partial payments; vendor number, where applicable, rules added.