Tax Preparation Services in Pakistan
SECP-registered companies and individuals must comply with Pakistan's tax system administered by the Federal Board of Revenue (FBR) through the IRIS portal, covering income tax, federal sales tax (STRN), NTN registration, advance tax, and withholding tax obligations.
SECP-registered companies and individuals must comply with Pakistan's tax system administered by the Federal Board of Revenue (FBR) through the IRIS portal, covering income tax, federal sales tax (STRN), NTN registration, advance tax, and withholding tax obligations. Fintax Support Limited prepares and files annual income tax returns for salaried individuals, AOPs, and companies, manages monthly and annual STRN sales tax returns, and ensures withholding tax CPRs are issued correctly under applicable FBR sections. We also file provincial sales tax returns with PRA, SRB, and KPRA and represent clients during FBR audit proceedings.
Regulatory Framework
FBR income tax returns for companies are due by December 31 following the tax year (July 1 to June 30), while salaried individuals file by September 30. STRN sales tax returns are filed monthly by the 18th of the following month. Failure to file FBR returns triggers automatic default surcharges and potential NTN blocking.
Our Tax Preparation Services in Pakistan
NTN Registration & Active Taxpayer List (ATL) Maintenance
Register for a National Tax Number (NTN) with the Federal Board of Revenue through the IRIS portal and maintain Active Taxpayer List (ATL) status to avoid double withholding tax on payments. Non-filers and inactive taxpayers face doubled WHT rates under FBR rules — we manage NTN issuance, ATL verification, and timely return filing to keep your status active.
FBR IRIS NTN registration
NTN registration completed on the FBR IRIS portal for individuals, AOPs, and companies with correct business activity codes and bank account linkage.
ATL status maintenance
Active Taxpayer List status monitored and maintained through timely return filing so clients avoid Inactive Taxpayer List (ITL) penalties.
Double WHT protection
Non-filers and inactive taxpayers subject to doubled withholding tax rates identified and remediated through ATL restoration and compliance catch-up.
Annual ATL verification
ATL status verified before major transactions, bank account openings, and property transfers where FBR active status is mandatory.
How It Works
NTN application and IRIS setup
Submit NTN registration on FBR IRIS with CNIC/NTN, business particulars, and authorized representative credentials for corporate entities.
ATL status assessment
Verify current ATL or ITL status on the FBR portal and identify any unfiled returns or outstanding tax liabilities blocking active status.
Compliance catch-up and filing
Prepare and file outstanding income tax returns, wealth statements, and tax payments required to restore or maintain ATL listing.
Ongoing ATL monitoring
Track ATL status quarterly, confirm return filing before deadlines, and alert clients before status lapses trigger double WHT exposure.
NTN application and IRIS setup
Submit NTN registration on FBR IRIS with CNIC/NTN, business particulars, and authorized representative credentials for corporate entities.
ATL status assessment
Verify current ATL or ITL status on the FBR portal and identify any unfiled returns or outstanding tax liabilities blocking active status.
Compliance catch-up and filing
Prepare and file outstanding income tax returns, wealth statements, and tax payments required to restore or maintain ATL listing.
Ongoing ATL monitoring
Track ATL status quarterly, confirm return filing before deadlines, and alert clients before status lapses trigger double WHT exposure.
Every individual, association of persons, and company conducting business in Pakistan must obtain a National Tax Number from the Federal Board of Revenue and register on the IRIS portal. Active Taxpayer List (ATL) status confirms that the taxpayer has filed required returns and is compliant with FBR obligations — ATL-listed payees benefit from standard withholding tax rates on payments received. Taxpayers who fail to file returns are placed on the Inactive Taxpayer List (ITL), and payers must deduct withholding tax at double the normal rate on payments to non-filers and inactive taxpayers under FBR withholding provisions. Maintaining ATL status requires filing annual income tax returns by the applicable deadline — September 30 for salaried individuals and non-salaried persons, and December 31 for companies for the tax year ending June 30. We manage NTN registration for new businesses and individuals, verify ATL status before property transactions and bank account openings, and execute compliance catch-up programmes for clients who have lapsed into ITL status. Proactive ATL maintenance prevents unexpected double WHT deductions on contracts, dividends, rent, and banking transactions throughout the year.
Common Questions
Annual Income Tax Returns (Individuals & Corporates)
Prepare and file annual income tax returns for salaried individuals, non-salaried persons, AOPs, and companies through the FBR IRIS portal under Section 114 of the Income Tax Ordinance 2001. Returns for individuals and AOPs are due by September 30; companies file by December 31 — we compute taxable income, apply minimum tax under Section 113, and reconcile books to filed positions.
Section 114 return filing
Annual income tax returns prepared and submitted under Section 114 for individuals, AOPs, and corporate entities via the FBR IRIS portal.
September 30 deadline
Individual and AOP returns tracked against the September 30 filing deadline to prevent default surcharges and ATL status loss.
Section 113 minimum tax
Minimum tax computed under Section 113 for companies and turnover-based taxpayers, with excess minimum tax carried forward where applicable.
Default surcharge avoidance
Late filing default surcharges and NTN blocking risks mitigated through proactive deadline management and IRIS submission confirmation.
How It Works
Income compilation and classification
Gather salary certificates, business income records, capital gains statements, and foreign income documentation for the July–June tax year.
Taxable income computation
Compute taxable income with allowable deductions, exemptions, brought-forward losses, and minimum tax under Section 113 where applicable.
Return preparation and review
Complete the IRIS return with wealth statement linkage, advance tax credit adjustments, and withholding tax credit reconciliation.
FBR submission and payment
File the return on IRIS before the September 30 or December 31 deadline and arrange any balance tax payment to maintain ATL status.
Income compilation and classification
Gather salary certificates, business income records, capital gains statements, and foreign income documentation for the July–June tax year.
Taxable income computation
Compute taxable income with allowable deductions, exemptions, brought-forward losses, and minimum tax under Section 113 where applicable.
Return preparation and review
Complete the IRIS return with wealth statement linkage, advance tax credit adjustments, and withholding tax credit reconciliation.
FBR submission and payment
File the return on IRIS before the September 30 or December 31 deadline and arrange any balance tax payment to maintain ATL status.
Section 114 of the Income Tax Ordinance 2001 requires every person whose income exceeds the taxable threshold to file an annual income tax return with the Federal Board of Revenue through the IRIS portal. Salaried individuals, non-salaried persons, and associations of persons must file by September 30 following the tax year ending June 30, while companies have until December 31. Returns must reconcile declared income to wealth statements under Section 116 where net wealth exceeds PKR 1 million. Companies and certain turnover-based taxpayers are subject to minimum tax under Section 113, computed as a percentage of turnover or income with excess minimum tax creditable against normal tax in subsequent years. We prepare returns for salaried executives, business owners, professional AOPs, and SECP-registered companies, reconciling accounting records to taxable income and applying all available tax credits including advance tax under Section 147 and withholding tax deductions. Failure to file by the deadline triggers default surcharges, potential NTN blocking, and removal from the Active Taxpayer List with consequent double withholding tax on future payments.
Common Questions
Monthly Provincial Sales Tax Returns (PRA, SRB, KPRA, BRA)
Prepare and file monthly provincial sales tax on services returns with the Punjab Revenue Authority (PRA), Sindh Revenue Board (SRB), Khyber Pakhtunkhwa Revenue Authority (KPRA), and Balochistan Revenue Authority (BRA). Returns are due by the 15th of the following month — we reconcile service invoices, compute output and input tax, and submit through each authority's e-filing portal.
Multi-province coverage
Provincial sales tax returns filed with PRA, SRB, KPRA, and BRA for businesses operating across multiple provinces or service territories.
15th monthly deadline
Monthly provincial returns tracked against the 15th-of-following-month filing deadline for each revenue authority.
Output and input tax reconciliation
Service revenue and purchase invoices reconciled to compute net provincial sales tax payable or refundable for each tax period.
Provincial registration management
PRA, SRB, KPRA, and BRA registration numbers maintained with correct service category codes and filing credentials.
How It Works
Provincial registration verification
Confirm active registration with the relevant provincial revenue authority and verify service category codes and tax rate schedules.
Monthly transaction reconciliation
Reconcile service invoices, credit notes, and exempt supplies for the tax period against the general ledger and billing system.
Return preparation and review
Compute output tax on taxable services, claim allowable input tax, and prepare the monthly return with supporting schedules.
Portal submission and payment
File the return through the provincial e-filing portal by the 15th of the following month and arrange sales tax payment.
Provincial registration verification
Confirm active registration with the relevant provincial revenue authority and verify service category codes and tax rate schedules.
Monthly transaction reconciliation
Reconcile service invoices, credit notes, and exempt supplies for the tax period against the general ledger and billing system.
Return preparation and review
Compute output tax on taxable services, claim allowable input tax, and prepare the monthly return with supporting schedules.
Portal submission and payment
File the return through the provincial e-filing portal by the 15th of the following month and arrange sales tax payment.
Services supplied in Pakistan are subject to provincial sales tax administered separately by the Punjab Revenue Authority (PRA), Sindh Revenue Board (SRB), Khyber Pakhtunkhwa Revenue Authority (KPRA), and Balochistan Revenue Authority (BRA) depending on the place of supply. Registered service providers must file monthly returns by the 15th of the following month through each authority's electronic filing portal, reporting output tax on taxable services and input tax on qualifying purchases. Tax rates and service categories vary by province, and businesses operating in multiple provinces may need separate registrations and filings with each authority. We reconcile service revenue from ERP and billing systems to provincial return formats, verify correct tax treatment of inter-provincial services, and manage input tax credit claims with supporting invoice documentation. Late filing attracts penalties and can affect provincial registration status. Our preparation covers IT services, professional services, construction, telecommunications, and other scheduled service categories across all four provincial revenue authorities.
Common Questions
Federal Sales Tax Returns
Register for a Sales Tax Registration Number (STRN) with FBR and file monthly federal sales tax returns through the IRIS portal for manufacturers, importers, wholesalers, and retailers. We reconcile output tax on goods supplies against recoverable input tax, manage STRN compliance, and submit returns before the monthly FBR deadline.
STRN registration and returns
Federal sales tax registration obtained and monthly returns filed through the FBR IRIS portal with reconciled output and input tax figures.
Input tax credit reconciliation
Purchase invoices verified for valid STRN, correct tax amounts, and FBR-compliant format to support input tax credit claims.
Output tax computation
Output tax calculated on standard-rated, zero-rated, and exempt supplies with correct treatment of exports and inter-province transfers.
FBR penalty avoidance
Late filing penalties and STRN suspension risks managed through proactive monthly deadline tracking and payment confirmation.
How It Works
STRN registration and setup
Register for STRN on FBR IRIS, configure business activity codes, and establish monthly filing credentials for the entity.
Monthly invoice reconciliation
Reconcile sales and purchase invoices for the tax period, verifying tax rates, STRN numbers, and FBR invoice format requirements.
Return preparation and review
Compute net federal sales tax payable or refundable with supporting schedules for imports, exports, and adjustment entries.
IRIS submission and payment
File the monthly return on FBR IRIS before the statutory deadline and arrange sales tax payment or refund processing.
STRN registration and setup
Register for STRN on FBR IRIS, configure business activity codes, and establish monthly filing credentials for the entity.
Monthly invoice reconciliation
Reconcile sales and purchase invoices for the tax period, verifying tax rates, STRN numbers, and FBR invoice format requirements.
Return preparation and review
Compute net federal sales tax payable or refundable with supporting schedules for imports, exports, and adjustment entries.
IRIS submission and payment
File the monthly return on FBR IRIS before the statutory deadline and arrange sales tax payment or refund processing.
Federal sales tax in Pakistan applies to the supply of goods by manufacturers, importers, wholesalers, distributors, and retailers registered with the Federal Board of Revenue under a Sales Tax Registration Number (STRN). Registered persons must file monthly sales tax returns through the FBR IRIS portal, reporting output tax on taxable supplies and claiming input tax credits on qualifying purchases and imports. Standard-rated supplies attract sales tax at the applicable rate with zero-rated treatment for exports and certain notified goods. Input tax credit is available on purchases supported by valid tax invoices bearing the supplier's STRN, subject to FBR restrictions on inadmissible input tax. We reconcile ERP and accounting records to IRIS return formats, verify import GD entries for input tax on imported goods, and manage annual sales tax reconciliations alongside monthly filings. Non-compliance with monthly filing obligations can result in STRN suspension, penalties, and denial of input tax credits. Our preparation ensures consistency between federal sales tax returns, provincial sales tax filings, and audited financial statements.
Common Questions
Withholding Tax Compliance & CPR Management
Manage withholding tax obligations under FBR sections including 149 (salaries), 153 (contracts and services), and 236 (goods, utilities, and banking) with correct Computerized Payment Receipt (CPR) issuance. Non-filers face double WHT rates — we compute deductions, issue CPRs, file monthly withholding statements, and ensure ATL-verified payee rates are applied.
CPR issuance and tracking
Computerized Payment Receipts generated for every withholding deduction with correct section codes, rates, and payee NTN/CNIC details.
Double WHT for non-filers
Payee ATL status verified before each payment to apply standard rates or doubled withholding tax for inactive and non-filer recipients.
Multi-section compliance
Withholding obligations managed across Sections 149, 153, 156, and 236 with monthly FBR statements and annual reconciliation.
Withholding tax credit reconciliation
CPRs reconciled to recipient tax accounts so payees receive full credit against annual income tax liabilities on filed returns.
How It Works
Withholding obligation mapping
Identify all payment types subject to withholding tax and map applicable FBR sections, rates, and ATL verification requirements.
Payee ATL verification
Verify each payee's Active Taxpayer List status on FBR IRIS before payment to determine standard or double withholding tax rate.
CPR generation and payment
Compute withholding tax, deposit to FBR, and generate CPRs with correct section codes linked to the payee's NTN or CNIC.
Monthly statement filing
File monthly withholding tax statements on IRIS and provide CPR copies to payees for annual return tax credit claims.
Withholding obligation mapping
Identify all payment types subject to withholding tax and map applicable FBR sections, rates, and ATL verification requirements.
Payee ATL verification
Verify each payee's Active Taxpayer List status on FBR IRIS before payment to determine standard or double withholding tax rate.
CPR generation and payment
Compute withholding tax, deposit to FBR, and generate CPRs with correct section codes linked to the payee's NTN or CNIC.
Monthly statement filing
File monthly withholding tax statements on IRIS and provide CPR copies to payees for annual return tax credit claims.
Pakistani businesses and withholding agents must deduct tax at source on specified payments under the Income Tax Ordinance 2001 and deposit the amount to FBR with a Computerized Payment Receipt (CPR) issued to the payee. Common sections include Section 149 for salary payments, Section 153 for contracts and services, Section 156 for imports, and Section 236 for goods, utilities, and banking transactions. Where the payee is not on the Active Taxpayer List or is a non-filer, withholding tax must be deducted at double the standard rate — making ATL verification critical before every significant payment. CPRs serve as proof of tax deduction and enable payees to claim withholding tax credits on their annual income tax returns. We implement withholding tax workflows in accounting systems, verify payee NTN and ATL status, generate CPRs through FBR IRIS, and file monthly withholding statements. Annual reconciliation of CPR registers to filed returns ensures no credits are lost and defends positions during FBR audits. Proper CPR documentation is essential for both the deductor's compliance and the payee's tax credit entitlement.
Common Questions
Advance Tax Calculation & Payment
Calculate and pay advance tax under Section 147 of the Income Tax Ordinance 2001 through quarterly instalments based on estimated annual income. Advance tax paid is credited against the final liability on the annual return — we forecast tax liability, schedule Section 147 payments, and reconcile credits to avoid default surcharges.
Section 147 instalments
Quarterly advance tax computed under Section 147 based on estimated annual income with correct instalment due dates throughout the tax year.
Quarterly payment scheduling
Advance tax payment deadlines tracked for each quarter with reminders before due dates to prevent default surcharge accrual.
Credit reconciliation
Advance tax payments reconciled to annual return tax credits ensuring full credit is claimed against final income tax liability.
Default surcharge prevention
Underpayment of advance tax monitored against 90% of final liability threshold to avoid default surcharge on the balance tax.
How It Works
Annual tax liability forecast
Project estimated taxable income for the July–June tax year based on financial forecasts, prior-year trends, and known transactions.
Section 147 instalment calculation
Compute quarterly advance tax instalments per Section 147 schedules for companies, individuals, and AOPs with applicable rates.
Payment and CPR generation
Deposit advance tax to FBR before each quarterly deadline and obtain payment confirmation for annual return credit claims.
Year-end reconciliation
Reconcile total advance tax paid against final computed liability on the annual return and adjust for any under or overpayment.
Annual tax liability forecast
Project estimated taxable income for the July–June tax year based on financial forecasts, prior-year trends, and known transactions.
Section 147 instalment calculation
Compute quarterly advance tax instalments per Section 147 schedules for companies, individuals, and AOPs with applicable rates.
Payment and CPR generation
Deposit advance tax to FBR before each quarterly deadline and obtain payment confirmation for annual return credit claims.
Year-end reconciliation
Reconcile total advance tax paid against final computed liability on the annual return and adjust for any under or overpayment.
Section 147 of the Income Tax Ordinance 2001 requires taxpayers to pay advance tax in quarterly instalments based on estimated income for the tax year ending June 30. Companies typically pay advance tax in four quarterly instalments, while individuals and AOPs follow prescribed schedules linked to their expected annual tax liability. Advance tax paid during the year is credited against the final tax liability determined on the annual income tax return filed under Section 114. Failure to pay sufficient advance tax — generally less than 90% of the final liability — triggers default surcharge on the unpaid balance. We forecast annual taxable income from management accounts and business pipelines, calculate Section 147 instalments with correct timing, and manage payments through FBR IRIS. Year-end reconciliation ensures all advance tax credits are captured on the filed return alongside withholding tax CPR credits. For businesses with seasonal revenue patterns, we adjust instalment estimates mid-year to avoid overpayment or underpayment exposure.
Common Questions
Wealth Statement & Reconciliation Preparation
Prepare wealth statements and reconciliation statements required under Section 116 of the Income Tax Ordinance 2001 for individuals and AOPs with net wealth exceeding PKR 1 million. We document assets, liabilities, and personal expenses and reconcile net wealth movement to declared income for FBR IRIS submission.
Section 116 compliance
Wealth statements prepared under Section 116 with complete asset and liability schedules for FBR IRIS filing alongside the annual return.
PKR 1 million threshold
Wealth statement requirement assessed against the PKR 1 million net wealth threshold with full disclosure of all chargeable assets.
Income-to-wealth reconciliation
Reconciliation statement linking declared income, personal expenses, and wealth movement to explain year-on-year net worth changes.
FBR audit defence
Documented asset valuations and bank statements compiled to defend wealth positions during FBR scrutiny and audit proceedings.
How It Works
Asset and liability compilation
Gather bank statements, property valuations, investment portfolios, vehicle records, and liability schedules as of the tax year end.
Wealth statement preparation
Complete the Section 116 wealth statement with itemized assets, liabilities, and net wealth computation on FBR IRIS format.
Reconciliation statement
Prepare the reconciliation linking opening wealth, declared income, personal expenses, gifts, and closing wealth for the tax year.
IRIS submission and review
File the wealth statement and reconciliation with the annual return on IRIS and review for consistency with prior-year declarations.
Asset and liability compilation
Gather bank statements, property valuations, investment portfolios, vehicle records, and liability schedules as of the tax year end.
Wealth statement preparation
Complete the Section 116 wealth statement with itemized assets, liabilities, and net wealth computation on FBR IRIS format.
Reconciliation statement
Prepare the reconciliation linking opening wealth, declared income, personal expenses, gifts, and closing wealth for the tax year.
IRIS submission and review
File the wealth statement and reconciliation with the annual return on IRIS and review for consistency with prior-year declarations.
Section 116 of the Income Tax Ordinance 2001 requires individuals and associations of persons with net wealth exceeding PKR 1 million to file a wealth statement along with their annual income tax return on the FBR IRIS portal. The wealth statement discloses all assets including bank balances, properties, vehicles, investments, jewellery, and business interests, net of liabilities. A reconciliation statement must explain the movement in net wealth from the opening to closing position by reference to declared income, personal and household expenses, gifts received or given, and other inflows and outflows. FBR uses wealth statements to detect unexplained wealth increases that may indicate undeclared income, making accurate preparation and documentation critical. We compile asset valuations supported by bank statements, property records, and broker confirmations, and prepare reconciliations that align with declared business and salary income. Consistency between wealth statements, annual returns, and withholding tax CPR credits strengthens the taxpayer's position during FBR audit proceedings under Section 177.
Common Questions
FBR Audit Support & Representation
Represent clients during FBR audit proceedings under Section 177 of the Income Tax Ordinance 2001, preparing responses to audit notices, reconciling books to filed returns, and defending withholding tax and expense positions. FBR may audit up to six years of returns — we compile working papers, attend hearings, and negotiate assessments.
Section 177 audit defence
Audit responses prepared under Section 177 with reconciled schedules linking filed returns to underlying books and supporting documentation.
Working paper compilation
Detailed working papers, CPR registers, and invoice files compiled to substantiate income, deductions, and withholding tax positions.
Hearing representation
Clients represented at FBR audit hearings with prepared submissions, legal arguments, and documentary evidence for disputed items.
Assessment negotiation
Proposed additions and penalties reviewed and negotiated with FBR officers to minimize assessment impact and secure fair outcomes.
How It Works
Audit notice review and scoping
Analyse the FBR audit notice under Section 177, identify the tax years and issues under examination, and scope required documentation.
Document compilation and reconciliation
Compile books of accounts, filed returns, CPR registers, bank statements, and contracts reconciled to the audit period under review.
Response preparation and submission
Prepare detailed written responses to FBR audit queries with supporting schedules addressing each proposed addition or disallowance.
Hearing representation and closure
Represent the client at FBR audit hearings, negotiate the draft assessment, and pursue revision or appeal where additions are unjustified.
Audit notice review and scoping
Analyse the FBR audit notice under Section 177, identify the tax years and issues under examination, and scope required documentation.
Document compilation and reconciliation
Compile books of accounts, filed returns, CPR registers, bank statements, and contracts reconciled to the audit period under review.
Response preparation and submission
Prepare detailed written responses to FBR audit queries with supporting schedules addressing each proposed addition or disallowance.
Hearing representation and closure
Represent the client at FBR audit hearings, negotiate the draft assessment, and pursue revision or appeal where additions are unjustified.
The Federal Board of Revenue may conduct audits of income tax returns under Section 177 of the Income Tax Ordinance 2001, covering up to six prior tax years where returns have been filed. FBR audit notices require taxpayers to produce books of accounts, bank statements, invoices, contracts, CPR registers, and other records supporting declared income, claimed deductions, and withholding tax positions. Common audit issues include disallowance of expenses lacking documentation, unexplained wealth increases from Section 116 reconciliations, incorrect withholding tax CPR treatment, and transfer pricing adjustments on related-party transactions. We prepare comprehensive audit responses with reconciled schedules linking filed returns to audited accounts, compile CPR and invoice evidence for withholding tax positions, and represent clients at FBR hearings. Where draft assessments propose unjustified additions, we negotiate with assessing officers and pursue Commissioner Inland Revenue (Appeals) remedies within the 30-day limitation period. Proper documentation maintained throughout the year — including ATL verification records and advance tax payment confirmations — significantly strengthens audit defence outcomes.
Common Questions
Appeals Before CIR(A) and ATIR
File and pursue appeals against FBR assessment orders before the Commissioner Inland Revenue (Appeals) [CIR(A)] within 30 days and before the Appellate Tribunal Inland Revenue (ATIR) within 60 days. We prepare appeal memos, compile case law, represent clients at hearings, and pursue relief on disputed tax additions and penalties.
CIR(A) 30-day appeals
Appeals filed before Commissioner Inland Revenue (Appeals) within the 30-day limitation period from the date of assessment order.
ATIR 60-day appeals
Further appeals lodged before the Appellate Tribunal Inland Revenue within 60 days of the CIR(A) appellate order.
Appeal memo preparation
Detailed appeal memos drafted with legal grounds, factual submissions, and supporting case law for each disputed addition.
Tribunal representation
Clients represented at CIR(A) and ATIR hearings with oral arguments and documentary evidence for contested tax assessments.
How It Works
Assessment order review
Analyse the FBR assessment order, identify disputed additions and penalties, and evaluate grounds for appeal under tax law.
CIR(A) appeal filing
Prepare and file the appeal memo before Commissioner Inland Revenue (Appeals) within 30 days with supporting schedules and case citations.
CIR(A) hearing representation
Represent the client at CIR(A) hearings, present oral and written submissions, and pursue withdrawal or reduction of additions.
ATIR appeal if required
If CIR(A) order is unfavourable, file appeal before ATIR within 60 days and represent the client at tribunal proceedings.
Assessment order review
Analyse the FBR assessment order, identify disputed additions and penalties, and evaluate grounds for appeal under tax law.
CIR(A) appeal filing
Prepare and file the appeal memo before Commissioner Inland Revenue (Appeals) within 30 days with supporting schedules and case citations.
CIR(A) hearing representation
Represent the client at CIR(A) hearings, present oral and written submissions, and pursue withdrawal or reduction of additions.
ATIR appeal if required
If CIR(A) order is unfavourable, file appeal before ATIR within 60 days and represent the client at tribunal proceedings.
Taxpayers aggrieved by FBR assessment orders may appeal to the Commissioner Inland Revenue (Appeals) [CIR(A)] within 30 days of the order under the Income Tax Ordinance 2001. The CIR(A) is the first appellate forum and can confirm, reduce, or set aside additions proposed in the original assessment. If dissatisfied with the CIR(A) order, the taxpayer may appeal further to the Appellate Tribunal Inland Revenue (ATIR) within 60 days. Appeals require detailed memos setting out legal grounds, factual submissions, and supporting case law for each disputed item — including expense disallowances, income additions, penalty impositions, and withholding tax adjustments. We review assessment orders arising from Section 177 audits, prepare appeal memos within limitation periods, and represent clients at both CIR(A) and ATIR hearings. Stay of recovery applications may be filed to prevent enforced collection during pendency of appeal. Our approach combines technical tax arguments with practical negotiation at the CIR(A) level to achieve early resolution where possible, reserving ATIR escalation for substantive disputes requiring tribunal adjudication.
Common Questions
Cross-Border & Non-Resident Taxation
Advise on Pakistan tax obligations for non-resident individuals and foreign entities earning Pakistan-source income, including withholding tax on royalties, fees for technical services, dividends, and branch profits. We apply double taxation treaty relief, compute permanent establishment exposure, and ensure FBR compliance for cross-border transactions.
Non-resident WHT compliance
Withholding tax computed on Pakistan-source payments to non-residents including royalties, FTS, dividends, and interest at treaty or statutory rates.
Double taxation treaty relief
Applicable DTAA provisions applied to reduce withholding tax rates for residents of treaty partner countries with FBR certificate requirements.
Permanent establishment analysis
Permanent establishment exposure assessed for foreign entities operating in Pakistan through branches, agents, or project-based presence.
Section 152 compliance
Non-resident payment reporting and withholding managed under Section 152 with correct CPR issuance and FBR statement filing.
How It Works
Transaction and residency analysis
Determine tax residency of the foreign party, characterise the Pakistan-source income, and identify applicable withholding tax sections.
Treaty relief assessment
Review applicable double taxation avoidance agreement provisions and obtain tax residency certificates for reduced treaty withholding rates.
Withholding tax computation and CPR
Compute withholding tax at treaty or domestic rates, deposit to FBR, and issue CPRs for non-resident payees under Section 152.
Return filing and documentation
File required statements on FBR IRIS, maintain transfer pricing documentation for related-party cross-border transactions, and advise on PE filing obligations.
Transaction and residency analysis
Determine tax residency of the foreign party, characterise the Pakistan-source income, and identify applicable withholding tax sections.
Treaty relief assessment
Review applicable double taxation avoidance agreement provisions and obtain tax residency certificates for reduced treaty withholding rates.
Withholding tax computation and CPR
Compute withholding tax at treaty or domestic rates, deposit to FBR, and issue CPRs for non-resident payees under Section 152.
Return filing and documentation
File required statements on FBR IRIS, maintain transfer pricing documentation for related-party cross-border transactions, and advise on PE filing obligations.
Non-resident individuals and foreign entities earning Pakistan-source income are subject to withholding tax on payments including royalties, fees for technical services, dividends, interest, and branch remittances under the Income Tax Ordinance 2001. Pakistan has double taxation avoidance agreements with numerous countries that may reduce withholding tax rates below domestic statutory rates, subject to the non-resident obtaining a valid tax residency certificate from their home jurisdiction. Foreign entities with a permanent establishment in Pakistan — through a branch office, dependent agent, or project presence exceeding treaty thresholds — must file annual income tax returns and compute tax on Pakistan-attributable profits. Section 152 governs withholding on payments to non-residents, and failure to deduct exposes the Pakistani payer to liability for the tax plus penalties. We advise multinational clients on treaty relief eligibility, permanent establishment exposure, and transfer pricing documentation for related-party cross-border transactions exceeding PKR 50 million. Our preparation ensures CPR issuance at correct treaty rates, FBR statement compliance, and coordination with foreign tax advisors on credit availability in the payee's home jurisdiction.
Common Questions
Frequently Asked Questions
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