The Income Tax Ordinance defines a “non-profit organization” in Pakistan. According to the definition, a non-profit organization must meet the following criteria:
Purpose: It must be established for one or more of the following purposes:
- Religious
- Educational
- Charitable
- Welfare (for the general public)
- Promotion of an amateur sport
Registration: It must be formed or registered under a relevant law as a non-profit organization.
Commissioner Approval: It must be approved by the Commissioner for a specified period. This approval is granted upon application in the prescribed form, accompanied by necessary documents and any additional information requested by the Commissioner.
No Private Benefit: None of the organization’s assets can confer a private benefit to any individual or entity. In other words, the organization’s resources must be used exclusively for its stated purposes and cannot benefit any specific person or group.
Application for Approval
To: The Commissioner of Inland Revenue, ______________ Zone, ______________ (City).
1. Application:
With reference to clause (36) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001), I, the undersigned, hereby apply on behalf of ________________________ (name of the organization) for its approval for the purposes of the said clause for the tax year ending on __________________.
2. Particulars:
The necessary particulars are set out below to this application.
3. Enclosed Documents:
List of documents as mentioned below.
Note: This application must be signed either by the President, Secretary, or a Trustee of the organization.
Particulars for Non-Profit Organization Application
1. Name of the organization (in block letters): _________________________________
2. Full address of the organization (in block letters): ____________________________________________________________________
3. Date of registration of the organization: __________________________________
4. Aims and Objects:
- (a) ____________________________________________________
- (b) ____________________________________________________
- (c) ____________________________________________________
- (d) ____________________________________________________
5. Registration Status:
- Whether the organization is registered under the Companies Ordinance, 1984, the Societies Registration Act, 1860, the Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961, or any other relevant law.
- If registered, please provide the law and the number and date of registration: ____________________________________________________
6. Constitution and Rules:
- Does the organization’s constitution, memorandum and articles of association, trust deed, rules and regulations, or bye-laws conform to the provisions of sub-rule (1) of rule 213? If so, please provide the corresponding article, clause, or rule numbers: ____________________________________________________
7. Benefit to the General Public:
- Does the organization benefit the general public or a particular community or class of persons? Please provide details. ____________________________________________________
8. Number of Members/Trustees: __________________________________
9. Accounting Year:
- The organization’s accounting year commences on: ______________________
- The accounting year ends on: ______________________
10. Books of Accounts:
- The following books of accounts are being regularly maintained and are open for inspection:
- (i) ____________________________________________________
- (ii) ____________________________________________________
- (iii) ____________________________________________________
11. Bank Account Information:
- (i) Bank Account No.: _______________________________________
- (ii) Name of Bank: _______________________________________
- (iii) Branch: ____________________________________________
Signature: ______________________________
Name (in block letters): ____________________
Designation: ____________________________
Documents Required for Application for NPO
1. Organizational Documents:
- A duly attested copy of the organization’s constitution, memorandum and articles of association, rules and regulations, or bye-laws. This should clearly specify the organization’s aims and objectives.
2. Details of Members/Trustees:
- Names, CNIC numbers, income declared, and tax year for all members or trustees of the organization.
3. Registration Documents:
- A certified copy of the registered trust deed, if applicable.
- A certified copy of the certificate of registration if the organization is registered under the Companies Ordinance, 1984, the Societies Registration Act, 1860, the Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961, or any other relevant law.
4. Financial Statements:
- Duly attested copies of the organization’s audited balance sheet and revenue accounts for the previous year.
5. Promoters and Office Bearers:
- Names, CNIC/NTN numbers, last income declared, tax year, and addresses of all promoters, directors, trustees, president, secretary, treasurer, manager, and other office bearers.
- Indication of any family relationships among these individuals.
6. Performance Report:
- A detailed report on the organization’s performance in achieving its aims and objectives during the preceding financial year.
- This report must be evaluated and certified by an independent certification agency approved by the Government of Pakistan or, in the absence of such an agency, by the Chief Commissioner, Regional Tax Office, or Large Taxpayer Unit.
Additional Notes:
- The specific requirements for the certification agency may vary depending on the organization’s size and nature.
- The government may establish guidelines or criteria for the evaluation of the organization’s performance by the certification agency.
By submitting these documents, organizations can apply for non-profit status and potentially benefit from certain tax exemptions or privileges.
