Mohsin Siddiqui (Chief Reporter)

The Securities and Exchange Commission of Pakistan (SECP) has stipulated a 90-day window for non-profit organizations (NPOs) to notify the Federal Board of Revenue (FBR) regarding the transfer of their assets to other NPOs subsequent to dissolution.

Issuing a Statutory Regulatory Order (SRO) over the weekend, the SECP outlined that upon dissolution, a company must, after settling all liabilities, transfer its assets to another entity licensed under section 42 of the Companies Act. This entity should preferably be an approved non-profit organization. The SECP also emphasized that notification of such asset transfer must be forwarded to the Commissioner Inland Revenue at the FBR within 90 days from the date of dissolution.

This directive entails an amendment to the Supplementary provision relating to Tax as outlined in the First Schedule of the Companies Act, 2017.

As per S.R.O.239 (I)/ 2024, exercised under the authority conferred by section 507 of the Companies Act, 2017, the SECP has made alterations to the First Schedule of the said Act. Specifically, in Table F, within the Article of Association section, Clause 65 (Supplementary provision relating to Tax) has been amended. Sub-clause (ii) now states that in the event of dissolution, a company must transfer all assets to another licensed entity under section 42, preferably with similar objectives, and notify the Commissioner at the FBR within ninety days of dissolution.