Tax Filing · PakistanThe annual return is only one part of business tax in Pakistan. What happens during the year decides how it goes.
We prepare and file income tax returns for companies and associations of persons, run the quarterly withholding statements and advance tax, and answer routine FBR notices.
Tax
At a glance
- Authorities
- Federal Board of Revenue (FBR)
- Forms & references
- Return of income (section 114)Withholding statements (section 165)Advance tax (section 147)Financial statements
- Filed with
- FBR, on IRIS
- Company returns
- 31 December for a June year end
- AOP returns
- 30 September
- Withholding statements
- Quarterly, by the 20th after each quarter
Overview
What it is, and why it matters.
Business income tax in Pakistan runs all year. Customers and banks deduct tax from many of your receipts, you deduct tax from your own payments to staff, suppliers and landlords, and companies and AOPs pay advance tax each quarter. The annual return brings all of it together.
Companies with the usual 30 June year end file by 31 December, and AOPs file by 30 September. Following the Finance Act 2026, companies must also submit their financial statements in an electronically readable format with the return from Tax Year 2026.
The return is only as good as the reconciliation behind it. Tax credits need to match what withholding agents reported to FBR, turnover needs to agree with sales tax returns, and minimum tax on turnover and super tax need checking each year where they apply.
We also deal with routine notices, such as information requests, mismatch queries and reminders about missing returns or statements. Audits and appeals are scoped separately.
Who needs it
Who typically needs it.
- 01
Private limited companies and SMCs
Every company must file a return each year, whether or not it made a profit.
- 02
Partnerships and other AOPs
The AOP files its own return, with wealth statements from its members, and each member files personally.
- 03
Foreign-owned subsidiaries
Group reporting deadlines rarely match Pakistan’s, so the local return and withholding need their own calendar.
- 04
IT and service exporters
Final tax on export proceeds depends on conditions, including filed withholding statements, which we check before the return.
- 05
Businesses with staff and suppliers
Anyone deducting tax from salaries, rent or supplier payments must file quarterly withholding statements.
When you need it
The moments that usually trigger it.
- Your company’s first tax year has ended and nobody has planned the return.
- FBR has sent a notice about a missing return or withholding statement.
- The tax credits in IRIS do not match what your customers say they deducted.
- You have started paying salaries, rent or contractors and are unsure what to deduct.
- Your turnover has grown and minimum tax or advance tax now matters.
- Your previous adviser has left and the earlier years’ filings are unclear.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Company and AOP income tax returns, with the computation, annexes and financial statements
- 02
Quarterly withholding statements under section 165, including nil statements
- 03
Calculating and scheduling advance tax instalments under section 147
- 04
Reconciling tax deducted from your receipts against FBR’s records before claiming it
- 05
Checking withholding on your payments to staff, suppliers, landlords and non-residents
- 06
Minimum tax, super tax and final tax regimes where they apply
- 07
Replies to routine FBR notices and information requests
- 08
Late filing, the ATL surcharge and restoring ATL status where a return was missed
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationYear-end review
We review your books, prior returns, IRIS profile and the tax credits FBR holds for you.
Reconcile credits and withholding
We match deductions made from your receipts, and by you, against the statements filed with FBR, and follow up gaps with customers.
Prepare the computation
We compute taxable income, check minimum tax, super tax and final tax regimes, and prepare the annexes.
Review with you
You see the draft return, the tax payable or refundable and the main judgements before anything is filed.
File and plan ahead
We file on IRIS, generate the payment challan (PSID) if tax is due, and set the dates for next year’s advance tax and statements.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Accounts and records
- Trial balance and financial statements (audited, where required)
- Fixed asset register
- Bank statements for all business accounts
- Sales and purchase ledgers
Tax records
- IRIS access, or authorisation for us to act
- Prior-year returns and any assessment orders
- Withholding certificates and payment receipts (CPRs) for tax paid or deducted
- Advance tax paid during the year
- Sales tax returns, if registered
People and payments
- Payroll records and employee CNICs
- Rent agreements
- Payments to non-residents and the related contracts
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Claiming credits FBR cannot see
If a customer deducted tax but did not report it in their statement, IRIS will not show the credit and the claim is likely to be questioned.
- Mistake 02
Skipping nil withholding statements
Statements are required even for quarters with no deductions. Missing them attracts penalties and can affect final tax treatment.
- Mistake 03
Ignoring advance tax
Underpaid instalments can lead to default surcharge and a large balance due at year end.
- Mistake 04
Turnover that disagrees with sales tax returns
FBR’s systems compare income tax and sales tax declarations, and unexplained differences trigger notices.
Worth knowing
The limits, stated upfront.
Audits under section 177, amended assessments and appeals are scoped separately. Appeals before the Appellate Tribunal Inland Revenue or the courts need an advocate.
Financial statements come first, and must be audited where the Companies Act requires it. Our Financial Statements service can prepare them, but a statutory audit must be carried out by an independent auditor.
We rely on the records you provide, and on withholding agents reporting deductions correctly to FBR.
Questions
Tax Filing: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionWhen is my company’s tax return due?
For a tax year ending between 1 January and 30 June, including the usual 30 June year end, by 31 December. For a tax year ending between 1 July and 31 December, by 30 September after the year end. FBR sometimes extends these dates by notification.
Does a company with no income still need to file?
Yes. Every company must file an income tax return each year under section 114, including dormant companies and those in their first year.
What are withholding statements?
They are quarterly statements listing the tax you deducted or collected on payments such as salaries, rent and supplier invoices. They are due by the 20th of the month after each quarter and are required even when nothing was deducted.
Do AOP members file separately?
Yes. The AOP files its own return, with each member’s wealth statement, and members also file personal returns for their own income.
What is minimum tax?
For many businesses, tax on turnover under section 113 acts as a floor: if the normal tax on profit is lower, the minimum tax applies instead. Rates vary by sector, and we calculate it each year alongside super tax where relevant.
Can you deal with an FBR notice we have already received?
Yes, for routine notices such as information requests, mismatch queries and reminders about missing returns. Send it to us promptly, because notices carry response dates; audits and complex disputes are scoped separately.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about tax Filing.
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