Region: Pakistan
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Pakistan · Tax, accounting & company complianceIn Pakistan, being on the Active Taxpayers List changes the tax you pay on almost everything. We keep your filings on time so you stay on it.

Registrations, income tax and sales tax returns, and SECP compliance for Pakistani businesses, freelancers, salaried professionals and overseas Pakistanis, filed through IRIS, eZfile and the provincial portals.

Book a consultation10 services in Pakistan

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Tax year
1 July – 30 June
Currency
Pakistani rupee (PKR)
Main authorities
FBR · SECP · PRA · SRB
Services
10 covered on this site
A South Asian businessman in a grey three-piece suit concentrates on his monitor in an open-plan office, a colleague working behind him
A stack of black ring binders marked with coloured index tabs beside a thick file of documents on an office desk

Tax year

1 July – 30 June

The system in brief

How Pakistan taxes a business.

Pakistan’s tax year runs from 1 July to 30 June. The Federal Board of Revenue (FBR) administers income tax and sales tax on goods through its IRIS portal, and it also collects sales tax on services in the Islamabad Capital Territory. Everywhere else, sales tax on services belongs to the provinces: the Punjab Revenue Authority, Sindh Revenue Board, Khyber Pakhtunkhwa Revenue Authority and Balochistan Revenue Authority each run their own law, rates and returns.

Companies are incorporated with the Securities and Exchange Commission of Pakistan (SECP), which also receives their annual filings. Sole proprietors and partnerships, known for tax purposes as associations of persons (AOPs), deal with FBR directly.

The detail that shapes almost everything else is the Active Taxpayers List (ATL). Banks, customers, employers and property registrars deduct or collect tax at source, and the rate usually depends on whether you are on the list. Filing your return on time is what keeps you on it.

The rules move quickly. Each June’s Finance Act changes rates, thresholds and penalties, and FBR adds to them through SROs and circulars during the year. We check the current position for every engagement instead of relying on last year’s answer.

The normal tax year ends on 30 June and takes the name of the calendar year it ends in, so Tax Year 2026 covers 1 July 2025 to 30 June 2026. A business can use a different 12-month ‘special tax year’ only with the Commissioner’s approval, or where FBR has notified one for its class of business. A special tax year is named after the normal tax year in which it closes.

Who you’ll deal with

The authorities, and what each one wants.

Knowing which body handles what saves a great deal of time. These are the ones most Pakistani businesses meet.

  • FBR

    Federal Board of Revenue

    Administers income tax and federal sales tax on goods through the IRIS portal, and collects sales tax on services in the Islamabad Capital Territory.

  • SECP

    Securities and Exchange Commission of Pakistan

    Incorporates companies and limited liability partnerships and receives their annual returns and other statutory filings through its eZfile portal.

  • PRA

    Punjab Revenue Authority

    Registers service providers and collects sales tax on services provided in Punjab under the Punjab Sales Tax on Services Act 2012.

  • SRB

    Sindh Revenue Board

    Registers service providers and collects Sindh sales tax on services, with monthly returns filed through its e-SRB portal.

  • KPRA

    Khyber Pakhtunkhwa Revenue Authority

    Collects sales tax on services provided in Khyber Pakhtunkhwa under the Khyber Pakhtunkhwa Sales Tax on Services Act 2022.

  • BRA

    Balochistan Revenue Authority

    Collects sales tax on services provided in Balochistan under the Balochistan Sales Tax on Services Act 2015.

How it works

What a business owner in Pakistan needs to understand.

  1. 01

    Registration starts with an NTN on IRIS

    Every taxpayer’s record sits on FBR’s IRIS portal. Individuals register with their CNIC, which then serves as their National Tax Number (NTN); an AOP registers in the firm’s name; companies usually receive an NTN when SECP incorporates them. Once you hold an NTN, you are expected to file a return every year, even if little tax is due.

  2. 02

    The Active Taxpayers List decides many of your rates

    FBR publishes the ATL each year on 1 March and updates it regularly. People who are not on it generally pay higher withholding tax, often double, on bank transactions, property, vehicles and many business payments. The Finance Act 2025 also introduced restrictions on large property, vehicle and investment transactions by ‘ineligible persons’, which are brought into force by government notification, so we check which currently apply.

  3. 03

    Much of the tax is collected before you file

    Banks, customers, employers, tenants and utility companies deduct or collect income tax at source. Some of it is final tax and some is adjustable against your return. Businesses that deduct tax from their own payments must also report it in quarterly withholding statements, and a clean return depends on reconciling all of it.

  4. 04

    Sales tax is split between FBR and the provinces

    Sales tax on goods is federal, charged under the Sales Tax Act 1990 at a standard 18% at the time of writing and filed monthly on IRIS. Sales tax on services is provincial: PRA, SRB, KPRA and BRA each have their own law, rates and returns, while FBR handles services in Islamabad. A business that sells both goods and services, or operates in more than one province, can need several registrations.

  5. 05

    Companies answer to SECP as well as FBR

    A private limited company keeps statutory registers, including ultimate beneficial ownership records, holds its general meetings and files an annual return with SECP. Unless an exemption applies, its accounts must also be audited. At the time of writing, private companies with paid-up capital of up to Rs 1 million that are not subsidiaries of public companies are generally exempt.

  6. 06

    IT exporters and freelancers have a separate regime

    When proceeds from exporting IT or IT-enabled services are received through a Pakistani bank, the bank deducts tax at source. At the time of writing the rate is 0.25% for exporters registered with the Pakistan Software Export Board (PSEB) and 1% otherwise, and the Finance Act 2026 extended the reduced rate to Tax Year 2029. It only counts as final tax if you file a return and meet the other conditions, so freelancers still need to file every year.

Pakistan services

What we handle in Pakistan.

Business & Incorporation

Tax

Accounting

Compare with the same services in other countries

Pakistan

Income tax is federal. Sales tax on services is provincial. Most businesses deal with both.

How it fits together

From registration to your first sales tax return

For a new business, the order matters. Each step depends on the one before it, and the authority you deal with changes along the way.

Timelines depend on FBR and provincial processing, and on verification visits where they happen. Registration conditions change often through SROs, so we confirm the current checklist before you apply.

Talk it through with us

  1. Choose the structure and register it

    A company is incorporated with SECP. A partnership starts with a deed and, depending on the province, registration of the firm. Sole proprietors can go straight to the next step.

    SECP · eZfile

  2. Get the NTN and complete the IRIS profile

    Companies usually receive an NTN through the SECP–FBR link, but the IRIS profile still needs a principal officer, business activity, address and bank account. Individuals register with their CNIC and a mobile number in their own name.

    FBR · IRIS

  3. Work out which sales tax applies

    Goods fall under federal sales tax with FBR. Services fall under the province where they are provided, or FBR for Islamabad. Some businesses need both, and some need more than one province.

    FBR · PRA · SRB · KPRA · BRA

  4. Register and complete verification

    The federal application (Form STR-1) goes through IRIS with evidence of premises, utilities and a business bank account, followed by biometric verification at a NADRA e-Sahulat centre. Each province runs its own online registration.

    FBR · NADRA e-Sahulat

  5. Set up invoicing and records

    Tax invoices need specific particulars, and FBR has been phasing in mandatory digital invoicing, through PRAL or licensed integrators, for notified businesses. Input tax on purchases generally depends on your supplier declaring the sale.

    Sales Tax Act 1990 · section 23

  6. File the first monthly return

    For federal sales tax, payment is typically due by the 15th and the return by the 18th of the following month, with sales in Annex-C and purchases in Annex-A. A return is still due in a month with no sales.

    FBR · IRIS · monthly

Choosing a structure

Sole proprietor, AOP or private limited company: how the main structures compare

ComparedSole proprietorAOP / partnershipPrivate limited (SECP)
RegistrationNTN on IRIS using your CNIC, with the business name added to your profilePartnership deed and, depending on the province, registration of the firm; then an NTN for the AOPIncorporated on SECP’s eZfile portal; NTN usually issued through the SECP–FBR link
Legal identity and liabilityNo separate identity; you are personally liable for business debtsNot a separate legal person; partners are generally liable for the firm’s debtsSeparate legal person with limited liability. An SMC-Pvt has one shareholder plus a named nominee
Income tax returnIndividual return with wealth statement, due 30 SeptemberAOP return due 30 September, with members’ wealth statementsCompany return with financial statements, due 31 December for a June year end
Who files whatYou file everything, including withholding statements and sales tax returns where they applyThe AOP files its own returns and statements; each partner also files personallyThe company files its tax returns and SECP filings; directors and shareholders file personally
Typical fitFreelancers, consultants and single-owner shopsFamily businesses and professional practicesStartups raising investment, foreign-owned businesses, larger contracts
Registration of firms is a provincial matter, and a limited liability partnership (LLP) registered with SECP is another option for professional practices. Tax treatment depends on your facts, so we compare the options with you before anything is registered.

Common situations

What’s involved, case by case.

Illustrative composites of situations we’re commonly asked about. They aren’t client stories, and your own circumstances may change what applies.

Scenario 01

A Lahore software house invoicing foreign clients

A private limited company in Lahore with around fifteen developers bills clients in the US and UK in dollars, plus two local clients in rupees. The founders incorporated with SECP but have not registered with PSEB, and the company’s first tax return is coming up.

What’s involved

  • PSEB registration, so the bank applies the reduced rate on IT export proceeds (0.25% at the time of writing) instead of 1%
  • Receiving export proceeds through a Pakistani bank, and matching the tax deducted to each remittance
  • Checking the conditions for final tax treatment under section 154A, including filing the return on time
  • PRA registration and monthly returns for the local clients, and confirming PRA’s treatment of services supplied abroad
  • Tax deducted from staff salaries, and quarterly withholding statements
  • The company return with financial statements, due 31 December for a June year end

How we help

We map each income stream to the right regime, prepare the PSEB and PRA registrations, keep books that tie each remittance to its invoice, and run the monthly, quarterly and annual filings from one calendar.

Scenario 02

An overseas Pakistani with rental income in Pakistan

A Pakistani engineer living in Dubai owns a flat in Islamabad let to a company, which deducts tax from the rent. She has not filed in Pakistan for several years and now wants to buy a plot in Lahore.

What’s involved

  • Confirming her residence status for each year, based on days in Pakistan and tax residence elsewhere
  • Registering on IRIS, or recovering access to an old profile, using her CNIC or NICOP
  • Reporting the rent and crediting the tax the tenant deducted under section 155
  • Deciding which earlier years to bring up to date before the purchase
  • Getting onto the Active Taxpayers List, and checking whether buying through a Roshan Digital Account changes the advance tax on the plot

How we help

We work with her remotely, prepare and file the returns, reconcile the tenant’s deductions against FBR’s records, and set out the tax on the plot purchase before she commits.

Scenario 03

A Karachi trading business registering for sales tax

A family-run AOP in Karachi buys kitchen equipment from manufacturers and importers and sells it to retailers and hotels. Its larger customers now want an STRN and sales tax invoices before they place orders, and the partners are unsure what registration will commit them to.

What’s involved

  • Federal sales tax registration on IRIS (Form STR-1), with premises, utility and bank evidence and a balance sheet of business capital
  • Biometric verification of the partners at a NADRA e-Sahulat centre
  • Tax invoices, and digital invoicing integration if the business is notified
  • Monthly returns with Annex-C sales and Annex-A purchases, including further tax on supplies to unregistered buyers
  • SRB registration only if it also provides taxable services, such as installation
  • Tax withheld by corporate customers, credited in the AOP’s annual return

How we help

We confirm what the business must register for, prepare the application, set up the sales and purchase records the returns depend on, and file every month so the STRN stays active.

Scenario 04

A startup incorporating a private limited company with foreign shareholders

Two founders in Islamabad and a co-founder who is a UK national are setting up a private limited company. A foreign angel investor will take shares in the first round.

What’s involved

  • Name reservation and incorporation on SECP’s eZfile, with passports and undertakings from the foreign subscribers
  • Ministry of Interior security clearance for foreign shareholders and directors, on timelines the Ministry sets
  • Bringing share capital in through banking channels and reporting the share issue under State Bank of Pakistan rules
  • The NTN through the SECP–FBR link, the IRIS profile and a company bank account
  • Registers of members, directors and beneficial owners, and an auditor if one is required

How we help

We prepare the incorporation file, coordinate the documents the foreign shareholders need from abroad, track the clearance, and set up the tax registrations and first-year compliance calendar. Shareholder agreements and investment terms stay with your lawyer.

Key dates

Deadlines in Pakistan, month by month.

These are statutory dates at the time of writing. FBR and the provincial authorities often extend deadlines by notification or circular, sometimes only days before the due date, and dates that fall on holidays can move. We confirm the live deadline for each filing and plan to the original date unless an extension has actually been announced.

PakistanMonthly · 15th & 18th
  • Federal sales tax: payment and returnBusinesses registered with FBR for sales tax

    Sales tax for a month is typically paid by the 15th, and the return (with Annex-C and Annex-A) e-filed on IRIS by the 18th of the following month. Nil returns are still due.

  • Provincial sales tax on servicesService providers registered with PRA, SRB, KPRA or BRA

    PRA, SRB and KPRA typically require payment by the 15th and the return by the 18th of the following month. Each authority sets and extends its own dates, so we confirm them province by province.

Deadlines that follow your own year end or filing period

  • Annually · after the AGMSECP annual returnCompanies registered with SECP

    Most companies hold an AGM within 120 days of the financial year end and file their annual return with SECP within 30 days of it. Requirements differ for single-member companies, so we confirm the timing for yours.

  1. January

    1 deadline
    • 20Quarterly withholding statementsPakistan · Employers and other withholding agents

      Statements under section 165 of tax deducted or collected in each quarter, due by the 20th of the month after the quarter ends. They are required even when nothing was deducted.

  2. March

    2 deadlines
    • 1Active Taxpayers List publishedPakistan · All taxpayers

      FBR publishes the annual ATL on 1 March based on returns filed for the latest tax year, then updates it regularly as late returns and surcharges come in.

    • 25Advance tax instalmentsPakistan · Companies, AOPs and some individuals

      Quarterly advance tax under section 147 for companies and AOPs. Individuals who are liable, broadly those with non-salary income of Rs 1 million or more in their latest assessment, pay by the 15th of September, December, March and June.

  3. April

    1 deadline
    • 20Quarterly withholding statementsPakistan · Employers and other withholding agents

      Statements under section 165 of tax deducted or collected in each quarter, due by the 20th of the month after the quarter ends. They are required even when nothing was deducted.

  4. June

    1 deadline
    • 15Advance tax instalmentsPakistan · Companies, AOPs and some individuals

      Quarterly advance tax under section 147 for companies and AOPs. Individuals who are liable, broadly those with non-salary income of Rs 1 million or more in their latest assessment, pay by the 15th of September, December, March and June.

  5. July

    2 deadlines
    • 1Biometric re-verification for sales taxPakistan · Sales tax registered individuals, AOPs and SMCs

      Individuals, AOP members and directors of single-member companies registered for federal sales tax re-verify at a NADRA e-Sahulat centre each July. Missing it restricts e-filing of returns.

    • 20Quarterly withholding statementsPakistan · Employers and other withholding agents

      Statements under section 165 of tax deducted or collected in each quarter, due by the 20th of the month after the quarter ends. They are required even when nothing was deducted.

  6. September

    3 deadlines
    • 25Advance tax instalmentsPakistan · Companies, AOPs and some individuals

      Quarterly advance tax under section 147 for companies and AOPs. Individuals who are liable, broadly those with non-salary income of Rs 1 million or more in their latest assessment, pay by the 15th of September, December, March and June.

    • 30Individual and AOP income tax returnsPakistan · Individuals, including salaried people and freelancers, and AOPs

      Returns for the tax year ended 30 June, with wealth statements for resident individuals and AOP members. Filing by this date keeps you on the Active Taxpayers List without a surcharge.

    • 30Company returns: July to December year endsPakistan · Companies with a special tax year

      Companies whose tax year ends between 1 July and 31 December file by 30 September following the end of that tax year.

  7. October

    1 deadline
    • 20Quarterly withholding statementsPakistan · Employers and other withholding agents

      Statements under section 165 of tax deducted or collected in each quarter, due by the 20th of the month after the quarter ends. They are required even when nothing was deducted.

  8. December

    2 deadlines
    • 25Advance tax instalmentsPakistan · Companies, AOPs and some individuals

      Quarterly advance tax under section 147 for companies and AOPs. Individuals who are liable, broadly those with non-salary income of Rs 1 million or more in their latest assessment, pay by the 15th of September, December, March and June.

    • 31Company returns: January to June year endsPakistan · Most companies

      Companies with a tax year ending between 1 January and 30 June, including the usual 30 June year end, file by 31 December, with financial statements attached.

Worth knowing

What we can’t do, said plainly.

Knowing a firm’s limits is as useful as knowing its services. Where something needs a lawyer, a licensed signature or an authority’s decision, we say so early.

  1. 01

    We are tax and accounting advisers, not a law firm. Shareholder agreements, disputes, and appeals before the Appellate Tribunal Inland Revenue or the courts need an advocate; we work alongside yours and prepare the numbers.

  2. 02

    Sales tax on services is governed by four provincial laws plus the Islamabad ordinance, each with its own rates, exemptions and procedures. We confirm the position for the province where your services are provided instead of assuming one rule applies everywhere.

  3. 03

    FBR, SECP and provincial processing times vary, and IRIS is often slow in the days before major deadlines. Some steps, such as biometric verification at NADRA, must be completed by you in person.

  4. 04

    Rates, thresholds and penalties change with each Finance Act and through SROs issued during the year. Figures on this site reflect the position when it was last reviewed, and we confirm current figures when we scope your work.

  5. 05

    Outcomes that depend on an authority, including registration approvals, security clearance, refunds and audit results, are outside our control. We prepare complete, accurate submissions and follow them up.

Questions

Pakistan: frequently asked.

Answers to what clients in Pakistan ask us most. Each service page has more detailed questions.

All FAQs

What is the difference between an NTN and an STRN?

An NTN is your income tax registration with FBR; an STRN is your registration for federal sales tax. Every business needs an NTN, but only businesses within the sales tax net need an STRN, and you need the NTN first. Sales tax on services is registered separately with the provincial authority, or with FBR for Islamabad.

How do I get on the Active Taxpayers List?

File your income tax return for the latest tax year by the due date. If you file late, you are only added after paying a surcharge, which the Finance Act 2026 raised to Rs 25,000 for individuals, Rs 50,000 for AOPs and Rs 100,000 for companies at the time of writing. Individuals can instead give an undertaking not to acquire property for six months. You can check your status on FBR’s website.

I am a freelancer paid from abroad. Do I need to file a return?

In most cases, yes. The reduced tax the bank deducts from IT export proceeds only counts as your final tax if you file a return and meet the other conditions, and holding an NTN brings its own obligation to file. Filing also keeps you on the ATL, which lowers withholding on many bank transactions and purchases.

I live abroad. Do I still have to file in Pakistan?

It depends on your residence status and your Pakistani income. Residence turns on days spent in Pakistan and, for citizens, whether you are tax resident in another country. Non-residents with Pakistani income above the taxable threshold, such as rent, generally need to file, but owning property alone does not create a filing obligation for a non-resident. Many overseas Pakistanis file anyway to be on the ATL before buying or selling property.

What happens if I miss the 30 September deadline?

You will not be included in the next Active Taxpayers List unless you file and pay the late-filing surcharge, and a penalty can apply under section 182. At the time of writing that penalty is the higher of 0.1% of the tax payable or Rs 1,000 for each day of default, with minimums of Rs 10,000 for mainly salaried individuals and Rs 50,000 for others, reduced if you file within three months.

Do I need to register with SECP?

Only if you are forming a company or a limited liability partnership. Sole proprietors register with FBR on IRIS, and partnerships register the firm provincially where required before registering the AOP with FBR. If you want limited liability, outside investment or foreign shareholders, SECP incorporation is usually the right route.

Should my business register for sales tax with FBR or with the province?

It depends on what you supply and where. Goods fall under federal sales tax with FBR, which covers manufacturers, importers, wholesalers, distributors and larger retailers; services fall under the province where they are provided. Businesses that do both, or work across provinces, can need more than one registration.

Do I need to file a wealth statement?

Yes, if you are a resident individual filing a return, and each member of an AOP files one with the AOP’s return. It lists your assets and liabilities, including those of dependants, and must reconcile with your income and spending for the year. An unexplained gap in that reconciliation is a common trigger for FBR notices.

Across borders

Working across more than one country?

Many clients have obligations in two or three of these systems at once. One team keeps them on a single calendar.

Speak with a consultant

Tell us what you need to register, file or regularise in Pakistan.

Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.

Or use our three-step guide, or email hello@fiscorra.com

A South Asian businessman in a grey three-piece suit concentrates on his monitor in an open-plan office, a colleague working behind him