PRA had issued notices to Google, Facebook and Daily motion about taxes two months ago.
They ask to pay Taxes for revenue these companies generating through online advertising from Pakistan, for which only Facebook responded through a letter and said:
“Registration with the PRA is not applicable to us as we aren’t taxable in the country. We are providing our online services from Ireland from where the multinational corporation is operating.”
While on the other hand, according to the PRA, act for advertisers: Pakistani advertisers who advertise with Facebook needs to pay sales tax.
A section of PRA Act says:
“Where a taxable service originates from outside Pakistan but is received or terminates in the Punjab, the recipient of such service shall be liable to pay the tax to the government.”
Now PRA looking toward to “Compulsory Registration” for those companies who generates from advertisement. These companies include Google, Facebook and Daily motion.