Questions
539 questions answered in plain language, grouped by who is asking. Each answer explains what the law says for that situation, works through an example, and links the section it comes from so you can check it against the official text.
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539 questions
Salaried employees
Tax on salary, deductions by your employer, allowances, perks and refunds.
- Can tax paid on my mobile bill or electricity bill be adjusted against my salary tax, and can my employer take it into account?
- I changed jobs mid-year; will my new employer account for tax my old employer deducted?
- If my company gives me a car, how much is added to my taxable salary?
- My employer deducted tax from my salary but did not deposit it; am I liable?
- How is a golden handshake or redundancy payment taxed when I am laid off?
- How does my employer calculate the tax deducted from my salary each month?
- Is my Eid or performance bonus taxable, and why was more tax deducted in my bonus month?
- Is an interest-free or low-interest loan from my employer taxed as salary?
- Is my conveyance, fuel or travel allowance taxable?
- Is house rent allowance, a company-provided house, or employer-paid utilities taxable?
- Is leave encashment taxable when I cash in my unused leave?
- Is medical allowance tax free, and what about medical bills my company reimburses?
- Do I still need to file a tax return if my employer already deducts tax from my salary?
- If my employer pays my income tax for me (net salary package), is that also taxable?
- Can contributions to a voluntary pension fund or charity reduce the tax deducted from my salary?
- Too much tax was deducted from my salary; how do I get a refund?
- What is the last date for salaried people to file their return, and what is the penalty for filing late?
- I received salary arrears this year; can they be taxed at the rates of the year I earned them?
- I have salary plus rental income or a side business; do I still get the salaried tax rates?
- What is the salary tax deduction certificate, and does my employer have to give it to me?
- How much income tax is payable on my salary in tax year 2027, and up to what salary is there no tax?
- Is there still a tax rebate for full-time teachers and researchers?
- I work two jobs at the same time; how is tax on both salaries worked out?
- What counts as salary for tax purposes: are overtime, commission and perks included?
- Do Zakat, my children's tuition fees or my house loan reduce my salary tax?
Pensioners and senior citizens
Pension, commutation, retirement benefits and relief for older taxpayers.
- Is army, government and private-company pension all taxed the same way now?
- Did Budget 2026-27 change the tax on pension?
- Do I have to file an income tax return if my only income is pension?
- Does a pensioner with rent or other income have to pay quarterly advance tax under section 147?
- Do I show exempt pension, commutation and gratuity in my return and wealth statement?
- Is a golden handshake or early retirement package taxable, and can it be taxed at a lower average rate?
- Is a golden handshake or early retirement package taxable, and can it be taxed at a lower average rate?
- Is government, armed forces or private-company pension taxed differently?
- Are pension arrears or a lump sum of back pension taxed at a higher rate?
- Is a benevolent fund grant or superannuation payment received by the family after a death taxable?
- Is a pension I receive from abroad taxable if I live in Pakistan?
- Is my provident fund balance taxable when I retire from a recognised fund?
- Is commuted pension (the lump sum at retirement) taxable?
- Is the pension paid to the family of a government servant or soldier who died in service exempt?
- Is family pension received by a widow taxable?
- Is GP Fund money received at retirement taxable, including the interest?
- Is gratuity taxable when I retire from government or a private company?
- Is LPR encashment taxable at retirement?
- I am over 70. Do I pay any tax on my pension at all?
- I am over 70, do I pay any tax on my pension at all?
- Is my pension taxable in Pakistan after the Finance Act 2025 changes, and what applies in tax year 2027?
- Is my pension taxable in Pakistan after the Finance Act 2025 changes?
- Is my provident fund or GP Fund balance taxable when I retire?
- Is the tax on Behbood or Pensioners' Benefit Account profit final, or do I pay more when I file?
- Is there still a 50% tax reduction or a separate tax slab for senior citizens aged 60 or above?
- Can I transfer my provident fund to a pension fund at retirement without paying tax?
- Do I have to file an income tax return if my only income is pension?
- If I get pension and a salary from a new job, how is each taxed?
- I retired but still work, either on contract for my old employer or in a new job. How is my pension taxed?
- I retired but now work on contract for the same company. Is my pension taxed?
- Do I have to show exempt pension, commutation and gratuity in my return and wealth statement?
- What tax applies to profit on Behbood Savings Certificates and the Pensioners' Benefit Account, and is it final?
- What tax is charged on Behbood Savings Certificate and Pensioners' Benefit Account profit?
- Is benevolent fund or group insurance money received by the family after a death taxable?
- How much tax is charged on a pension above Rs 10 million a year, and is it on the whole pension or only the excess?
- How much tax is charged on a pension above Rs 10 million a year, and who deducts it?
- How is money withdrawn from a Voluntary Pension Scheme taxed at or before retirement?
- My company's provident fund is not recognised. How is my PF withdrawal taxed?
- I receive two pensions. Are both exempt or only one?
- I receive two pensions. Are both covered, or only one?
- Is the tax on a pension above Rs 10 million deducted at source, or do I pay it with my return?
Freelancers and IT service exporters
Income from Upwork, Fiverr and foreign clients, remittances and export of services.
- My bank deducted tax when my foreign payment arrived. Is that my final tax or do I owe more at filing time?
- What did the 2026-27 budget change for freelancers, and how long does the 0.25% rate last?
- Can FBR ask me to explain foreign money coming into my account, and what does the section 111(4) limit protect?
- Can I choose normal tax slabs instead of final tax on my export income, and what happens if I do not qualify?
- My foreign client withheld tax on my payment. Can I claim credit for it in Pakistan?
- Does my freelance export tax double if I am not on the Active Taxpayers List?
- Is PSEB registration mandatory for freelancers, and does it really cut the rate from 1% to 0.25%?
- Can I use my final-taxed export income to explain the assets I have bought?
- How do I show freelance earnings and Payoneer, Wise or foreign account balances in my wealth statement?
- What if my client pays in USDT or through a friend abroad instead of a bank?
- Is freelance income from foreign clients taxable in Pakistan, or is it exempt?
- Is the 0.25% charged on gross receipts or profit, and can I deduct platform fees, laptop and internet costs?
- Is the 100% tax credit on IT exports and its 80% remittance rule still available?
- Do freelancers in Islamabad pay sales tax on IT services exported to foreign clients?
- Do I still need to file an income tax return if the bank already deducted final tax on my remittances?
- Can a PSEB-certified freelancer or startup get a 100% tax credit?
- I work full time remotely for a foreign company. Am I a freelancer exporting IT services or a salaried employee for tax?
- What is the difference between section 154 and section 154A for freelancers receiving foreign payments?
- A Pakistani company deducted tax from my freelance invoice. What rate applies?
- How is tax worked out if I have a local salaried job and also freelance on the side?
- How much tax do I pay on my Fiverr or Upwork earnings in Pakistan?
- How much tax is charged when I pay for foreign software or subscriptions with my Pakistani card, and can I adjust it?
- Do I pay tax if my yearly freelance income is under Rs. 600,000?
- Is YouTube or Google AdSense income taxed like freelancing at the export rate?
- Which kinds of work count as IT or IT-enabled services: graphic design, writing, virtual assistance, data entry?
Software houses and IT companies
Tax on IT exports and local IT services, sales tax on services and company obligations.
- Has the 0.25% tax on IT export proceeds been extended after Budget 2026-27, and until when?
- Is export of IT services from Islamabad zero-rated under the ICT tax, and what follows from that?
- Why did the bank deduct 1% instead of 0.25% from our IT export remittance, and can we get it back?
- Can FBR audit a software house under the IT export final tax regime, and what records must it keep?
- Can FBR audit a software house under the IT export regime, and what records must it keep?
- What conditions must a software house meet to keep IT export income under the final tax regime, and does it still have to file returns?
- Does minimum tax on turnover under section 113 apply to a software house?
- Why is withholding on our IT services doubled when our company is not on the Active Taxpayers List?
- How are employee stock options taxed for employees of a Pakistani tech company?
- Can a software house get an exemption or lower rate certificate so local clients do not deduct section 153 tax?
- How are employee stock options taxed for employees of Pakistani tech companies, and must the company withhold tax?
- Is export of IT services from Islamabad zero-rated for ICT sales tax, and can an IT exporter reclaim input tax?
- Must a software house in Islamabad charge ICT sales tax on IT services it provides to local clients?
- Must an Islamabad software house charge ICT sales tax on IT services to local clients, and is the rate 15% or 5%?
- Can an Islamabad software house charge the reduced 5% ICT tax instead of 15%, and what does it give up?
- How much income tax does a software house pay on IT export revenue in Pakistan?
- Is the tax deducted on our IT export remittances a final tax, and what conditions must the company meet to keep it final?
- Is the tax the bank deducts on our IT export remittance a final tax, or do we still pay corporate tax on the profit?
- Is the 0.25% tax on IT exports only for PSEB-registered companies, and what is the rate if we are not registered or our registration lapses?
- What happens to our IT export tax rate if the company is not PSEB-registered or its registration lapses, for example when the bank deducts 1% instead of 0.25%?
- Can a software house opt out of the final tax regime on IT exports to claim losses, depreciation and expenses?
- Do PSEB-certified tech startups get a tax exemption, for how many years, and who counts as a startup?
- Do PSEB-certified tech startups get income tax relief, and what counts as a startup?
- What sales tax and advance income tax apply when a software house imports laptops and computers?
- Does minimum tax on turnover under section 113 apply to a software house?
- Can a software house get an exemption or reduced-rate certificate so clients do not deduct section 153 tax?
- Is the tax deducted from our local IT service invoices adjustable, or is it minimum tax for a company?
- How much tax will a local client withhold under section 153 when it pays our software house for IT services?
- How much tax will a local client withhold under section 153 when it pays our software house for IT services?
- Is the section 65F 100% tax credit and the 80% remittance condition still available to IT exporters?
- Is the section 65F 100% tax credit and its 80% remittance condition still available to IT exporters?
- What happens if a software house fails to deduct or deposit withholding tax on salaries and contractor payments?
- What happens if a software house fails to deduct or deposit withholding tax on salaries and contractor payments?
- Why is the withholding rate on our services doubled when the company is not on the Active Taxpayers List?
- What must a software house do as an employer to deduct and deposit tax on staff salaries?
- What are a software house's obligations to deduct tax from staff salaries under section 149?
- How much income tax does a software house pay on IT export revenue, and until when does the 0.25% rate run?
- How is a software house taxed when it earns both export and local income, and how are expenses split between them?
- How does a software house split expenses, depreciation and losses between export income under final tax and local income?
- Does a certified startup still pay minimum tax, and do clients still withhold tax from its payments?
- Does a certified startup still pay minimum tax, and do clients still withhold tax from its payments?
- Does super tax under section 4C apply to a software house whose income is mostly IT exports?
- Does super tax under section 4C apply to an IT company whose income is mostly exports?
- How is tax deducted when an IT company pays salaries in dollars or linked to the dollar rate?
- Must a software house deduct tax when it pays local freelance or contract developers?
- Is tax deducted when a software house pays AWS, Google Cloud or foreign SaaS subscriptions from Pakistan?
- How is income from local Pakistani clients taxed for a software house that also exports, and is the tax clients deduct adjustable?
- Must a software house deduct tax when paying AWS, foreign SaaS vendors or a foreign subcontractor?
- What withholding applies when a Pakistani software house pays a foreign subcontractor or its foreign parent company?
- Must a software house deduct tax when it pays local freelancers or contract developers?
Sole proprietors and small businesses
Registering, keeping records, turnover tax and filing for a one-person business.
- Is there a 10% surcharge on business income, and does it apply to me?
- Which taxes withheld from my business can I adjust against my income tax, and which are final?
- Which taxes withheld from my business, such as advance tax on my purchases, are adjustable and which are final?
- What books of account and records must a sole proprietor keep, and for how long?
- Which business expenses are not allowed as a deduction under section 21?
- Which expenses does the law not allow as a deduction for a business?
- My business made a loss. Can I set it off against my salary or rent, or carry it forward, and for how many years?
- Can I set off my business loss against my salary or rental income?
- I deposit a lot of cash sales in my bank account. Can FBR treat it as unexplained income?
- My business made a loss. Can I carry it forward, and for how many years?
- Can I carry forward the extra minimum tax I paid and adjust it in later years?
- If I pay a supplier or employee in cash above a certain amount, is that expense disallowed?
- If I pay a supplier or staff in cash above a certain amount, is that expense disallowed?
- How do I close my business for tax purposes, and do I still file returns afterwards?
- How do I close my business for tax purposes, and do I still have to file returns?
- Which business expenses can I deduct, including costs of running the business from home?
- Can I claim depreciation on my shop equipment, furniture, vehicle or machinery?
- Can I claim depreciation on my shop equipment, vehicle or machinery?
- If I do not deduct withholding tax when I pay someone, can the expense be disallowed?
- How is my business income calculated? Is tax charged on my sales or on my profit?
- I run a business in my own name. How much income tax do I pay on my profit in tax year 2027, and up to what profit is there no tax?
- When customers deduct tax from my payments under section 153, is that my final tax?
- I have a job and a side business. Which tax slab applies to me, salaried or business?
- What is minimum tax on turnover under section 113, and do I have to pay it even if my business made a loss?
- What is the minimum tax rate on turnover, and what counts as turnover?
- What is the minimum tax rate on turnover: 1%, 1.25% or 1.5%?
- As a sole proprietor, do I have to deduct tax when I pay suppliers, contractors or my own employees?
- Do I have to file a return if my business income is below the taxable limit, and what must it include?
- Do I have to file an income tax return if my business income is below the taxable limit?
- Do I need a separate NTN for my business, or is my CNIC enough?
- What is the penalty if I do not keep proper business records or issue invoices?
- Do I have to pay quarterly advance tax under section 147, and how is it calculated?
- What books of account and records must a sole proprietor keep, for how long, and what happens if I do not?
- Do I have to register for sales tax as a small business, and am I exempt as a cottage industry?
- What is the section 21(s) rule on sales received in cash over Rs. 200,000?
- What is the section 21(s) rule on sales received in cash over Rs. 200,000?
- Do I need a separate NTN for my business, or is my CNIC enough?
- Is there a reduced tax rate for small manufacturers, and do I qualify as an SME?
- What does turnover include for minimum tax: gross sales, sales tax, returns and discounts?
Retailers and shopkeepers
Sales tax on retail, Tier-1 retailers, POS integration and tax on electricity bills.
- Can a shopkeeper charge sales tax on top of the printed retail price, and who is liable if no price is printed?
- Can I adjust or get a refund of the income tax collected on my shop's electricity bill?
- Can an unregistered shop add sales tax to my bill?
- Can FBR cut my shop's electricity or block my bank account for not registering as a Tier-1 retailer?
- Can FBR seal my shop over POS violations, and how is it de-sealed?
- Can my shop be sealed for not registering or paying advance tax under the traders' scheme?
- Does taking card payments or having a 1,000 square foot shop still make me a Tier-1 retailer?
- Does taking card payments or having a 1,000 square foot shop still make me a Tier-1 retailer?
- Why is more tax charged on my shop's electricity bill if I am not on the Active Taxpayers List?
- Does my retail shop need sales tax registration, or does paying through the electricity bill cover it?
- Does a retail shop need sales tax registration, and what happens if it does not register?
- Why is income tax charged on my shop's commercial electricity bill and how much is it?
- How much input tax does a Tier-1 retailer lose if its outlets are not integrated?
- Is POS integration with FBR compulsory for every Tier-1 retailer?
- Is POS integration with FBR compulsory for every Tier-1 retailer?
- Does minimum tax on turnover under section 113 apply to a retail shop, and at what rate?
- Does minimum tax on turnover apply to a retail shop, and at what rate?
- What is the penalty for issuing a receipt without a valid FBR invoice number or QR code?
- What is the penalty if a Tier-1 retailer does not integrate its POS with FBR?
- What is the penalty if a Tier-1 retailer does not integrate its POS with FBR?
- What is the penalty for issuing a fake or unverified invoice from an integrated POS?
- A shop did not give me a verifiable FBR invoice. Can I report it and is there a prize?
- Does a turnover above Rs. 200 million make my shop Tier-1, and how is a wholesaler-cum-retailer treated?
- How is sales tax collected from a small shop through its electricity bill, at 5% or 7.5%?
- Can a shop charge sales tax on top of the printed retail price of packaged goods?
- What sales tax rate does a Tier-1 retailer charge on goods it sells?
- Why is income tax charged on my shop's electricity bill, and can I adjust or get it refunded?
- Why does my supplier collect advance tax under section 236H when I buy stock, and at what rate?
- Why does my supplier deduct advance tax under section 236H, and at what rate?
- What is section 99A, and is the old Rs. 3,000 to Rs. 10,000 fixed tax on shop electricity bills still charged?
- What is section 99A tax through electricity connections, and is the old Rs. 3,000 to Rs. 10,000 fixed tax still charged?
- What does section 99B allow for small traders and shopkeepers after the Finance Act 2026?
- What is the section 99B special procedure for small traders and shopkeepers?
- If my shop's electricity bill crosses Rs. 1.2 million in a year, do I become a Tier-1 retailer?
- If my shop's electricity bill crosses Rs. 1.2 million in a year, do I become a Tier-1 retailer?
- How is sales tax collected from a small shop through its electricity bill, and is it 5% or 7.5%?
- Can FBR seal my shop for not integrating POS, and how is it de-sealed?
- If sales tax is collected through my electricity bill, do I still need to register and file sales tax returns?
- Which goods sold in shops are taxed on the printed retail price, and what did the Finance Act 2026 add?
- A shop gave me an invoice that does not verify with FBR. Can I report it, and is there a prize?
- What happens if my POS goes offline and cannot report sales to FBR in real time?
- What is a Tier-1 retailer and how do I know if my shop is one?
- What must a retailer's sales tax invoice show?
- What details must a retailer's sales tax invoice contain?
- I sell wholesale and to walk-in customers. When am I treated as a Tier-1 retailer?
- Why do big stores add Re. 1 to every bill? Is the POS service fee lawful?
Wholesalers and distributors
Withholding on sales to distributors and retailers, sales tax registration and invoicing.
- What is the 236G rate for a distributor on the Active Taxpayers List and for one who is not?
- What section 236H rate applies when the retailer I sell to is not on the Active Taxpayers List?
- Is 236G and 236H tax final, or can I adjust it against my income tax and claim a refund of any excess?
- Can FBR register me and assess sales tax from my 236G purchase data if I have not registered?
- Can further tax be offset against input tax, and can a buyer claim further tax charged to it as input tax?
- Can a distributor carry forward minimum tax paid above its normal tax to later years?
- If my minimum tax on turnover is more than my normal tax, can I carry the excess forward?
- What happens to a distributor who fails to collect or deposit 236G or 236H tax?
- What happens to a distributor who fails to collect or deposit 236H tax from retailers?
- Do sections 236G and 236H still apply only to listed sectors like pharma, FMCG and cement, or to all goods?
- Do 236G and 236H now apply to every kind of goods, or only to the old list of sectors?
- Will I lose input tax if I pay my supplier in cash or pay a credit invoice late?
- Do wholesalers and distributors have to issue electronic invoices integrated with FBR?
- As a distributor, do I have to collect section 236H advance tax when I sell to shopkeepers, and at what rate?
- Can a distributor adjust all its input tax, or does the 90% limit in section 8B apply?
- Does the 90% input tax limit in section 8B apply to distributors?
- What is further tax, and is the extra 4% on sales to unregistered buyers still charged in 2026-27?
- Do I charge further tax if my buyer is registered for sales tax but not on the Active Taxpayers List?
- Can my input tax be reduced because I sell to unregistered shopkeepers?
- What happens to my input tax if my supplier is suspended, blacklisted or found issuing fake invoices?
- Is 236G or 236H tax a final cost, or can I adjust it against my income tax and get a refund of any excess?
- What happens if a distributor files the monthly sales tax return late or pays the tax late?
- What minimum tax on turnover applies to distributors under section 113 for tax year 2027?
- What is the minimum tax on turnover for distributors and wholesalers in tax year 2027?
- Do I as a distributor or wholesaler have to collect section 236H advance tax when I sell to shopkeepers?
- Do wholesalers and distributors have to issue electronic sales tax invoices integrated with FBR?
- What is the penalty for not issuing a sales tax invoice or issuing an invoice without authority?
- What records and stock registers must a registered wholesaler keep, for how long, and what if stock does not match the books?
- What records and stock register must a registered wholesaler keep, and for how long?
- Does a distributor who sells only exempt goods have to register for sales tax?
- Is sales tax registration compulsory for a wholesaler or distributor even if turnover is small?
- When is a distributor's monthly sales tax return due and what are the penalties for filing or paying late?
- How much sales tax can a company withhold when it buys from a registered distributor, and is it excluded for Third Schedule goods?
- When a company or government department buys from me, how much sales tax can it withhold?
- How much income tax does a company deduct under section 153 when it buys goods from me as a distributor?
- How much section 153 tax does a company deduct when paying a distributor for goods, and is it minimum or adjustable tax?
- What is section 236G advance tax and who collects it from distributors and wholesalers?
- What is the section 236G rate for tax year 2027 for a distributor on the Active Taxpayers List and one who is not?
- If the manufacturer paid sales tax on the printed retail price of Third Schedule goods, does a distributor charge sales tax or further tax again?
- What must a sales tax invoice issued by a wholesaler or distributor show?
- What must a distributor's sales tax invoice contain, including the CNIC or NTN of an unregistered buyer?
- When do I have to charge 4% further tax on a sale to an unregistered buyer or one not on the active taxpayers list, and is it still in force?
- Which purchases can a wholesaler not claim input tax on?
- How do I tell whether a buyer is a wholesaler (236G) or a retailer (236H) when collecting advance tax?
Restaurants, cafes and bakeries
Tax on food businesses: sales tax, services tax, withholding and record keeping.
- Can I adjust the income tax on my restaurant's commercial electricity bill?
- Does my restaurant have to collect advance tax on weddings and functions it hosts?
- Are bun, rusk, sheer mal and vermicelli sold by a bakery taxed at the reduced 10% rate?
- Can a bakery or sweet shop claim input tax on flour, sugar, ghee and packaging?
- Can a restaurant or bakery charge sales tax if it is not registered?
- Can FBR post an officer at my restaurant or bakery to monitor sales?
- Can FBR seal my restaurant or bakery, and on what grounds?
- If my cafe accepts card payments, does that make it a Tier-1 retailer?
- Do I need an NTN or sales tax registration to run a home bakery or cake business?
- How can I check whether my restaurant bill is a genuine FBR invoice, and what happens if I report it?
- Is a restaurant meal charged federal sales tax as goods, or taxed as a service?
- Is bread, naan or roti from a bakery or tandoor exempt from sales tax?
- Is it mandatory for my restaurant to integrate its POS with FBR?
- Is my restaurant, cafe or bakery a Tier-1 retailer?
- Why do Islamabad restaurants charge 5% tax when I pay by card but 15% in cash?
- What is the penalty if my restaurant does not integrate with the FBR POS system?
- Do I deduct tax from my restaurant staff's salaries, and are free staff meals taxable?
- Is the tax on my restaurant bill in Lahore, Karachi or Peshawar charged under FBR law?
- What sales tax does a bakery or sweet shop charge on cakes and mithai?
- Is income tax deducted from my payouts when I sell through Foodpanda or other delivery apps?
- How much tax is deducted when a franchise pays royalty or franchise fee to a foreign food brand?
- What is the tax rate on catering services in Islamabad?
- What must a restaurant or bakery receipt and menu show under the sales tax law?
- When does a bakery or restaurant have to register for federal sales tax?
- Does a company deduct withholding tax when it pays my restaurant for food or catering?
E-commerce and online sellers
Tax on online stores, marketplaces, courier-collected payments and digital sales.
- What happens if a customer pays more than Rs. 200,000 in cash on delivery?
- What happens if my courier or payment gateway does not deduct the tax?
- Do foreign sites like Temu or AliExpress pay tax on sales to Pakistani buyers?
- Do I need sales tax registration (STRN) to sell goods online, or is an NTN enough?
- Do I need an NTN to sell online, and why does my courier refuse to book parcels without it?
- Does the online sales tax apply to services I sell online, like courses or digital downloads?
- Is the e-commerce tax deducted on orders I ship abroad from my online store?
- Does the e-commerce tax apply to my own website or Instagram store, or only to marketplaces like Daraz?
- I sell from home or only sold a few items once. Is there an exemption from registering?
- How much income tax is deducted from my online sales paid by cash on delivery or by card?
- Is there 18% sales tax on everything I sell online?
- Is the 2% sales tax withheld on my online orders my full liability, or can I adjust it against input tax?
- Is the tax deducted on my online sales a final tax, and when can it be adjusted instead?
- Is there a turnover limit below which online sellers pay no tax?
- Is more tax deducted from my online sales if I am not on the Active Taxpayers List?
- What is the penalty for selling online without registering with FBR?
- How do I get proof of the tax my courier or payment gateway deducted?
- Do I still have to file an income tax return if tax is already deducted on my online sales?
- I have a physical shop and also sell online. Which sales tax rules apply to my online orders?
- Is tax deducted when customers pay me through JazzCash, Easypaisa or a direct bank transfer?
- Is the online sales tax worked out on the full order value, including delivery charges and returned parcels?
- What counts as a cottage industry for the online sales tax rules?
- What do online marketplaces and couriers report to FBR about my sales?
- Who deducts tax from my Daraz or other marketplace payout, and at what rate?
- Why is 4% cut from my COD remittance when the income tax rate is 2%?
Textile mills and manufacturers
Sales tax, input adjustment, export zero-rating and duty on raw materials.
- Is my input tax lost if I paid the supplier in cash instead of through the bank?
- What counts as a cottage industry for sales tax, and can a small power loom or weaving unit avoid registration?
- What special sales tax and income tax rules apply to a cotton ginning factory?
- What special sales tax and income tax rules apply to a cotton ginning factory?
- Does federal excise duty apply to anything a textile mill makes or buys?
- Under the Export Facilitation Scheme, which category does a textile manufacturer fall in, what security must it give, and can it bring in machinery?
- Under the Export Facilitation Scheme, which category does a textile manufacturer fall in, and what security and time limits apply?
- Under EFS, how much output can I sell in the local market and what duty, tax and surcharge apply?
- How can a manufacturer get an exemption or reduced-rate certificate so buyers or customs deduct less income tax?
- How much income tax is collected through a mill's industrial electricity bill, and can it be adjusted?
- If I supply yarn or fabric to an exporter locally as an indirect exporter, what income tax and sales tax treatment applies?
- Which purchases can a registered manufacturer claim as input tax, including sales tax on industrial electricity and gas bills?
- When is input tax disallowed because of the supplier, such as fake invoices, unpaid tax or a blacklisted or non-active supplier?
- What penalty and default surcharge apply if a manufacturer files the monthly sales tax return late or pays less than due?
- Is sales tax charged when a mill imports new machinery, and can it be claimed back?
- How is sales tax charged when a unit dyes, processes or weaves someone else's yarn or fabric on conversion charges?
- What sales tax rate applies to yarn and fabric today, and is any textile supply still zero-rated?
- Does a factory or manufacturing unit have to register for sales tax, and what does FBR ask a manufacturer for at registration?
- Why can FBR suspend or blacklist a manufacturer's sales tax registration, including for not integrating e-invoicing, and how is it restored?
- When a company or government buyer withholds one-fifth of the sales tax on my invoice, how do I account for it in my return?
- How much income tax is deducted under section 153 when a manufacturer supplies goods, and is it minimum tax or adjustable?
- What tax does an exporter deduct when paying a unit for stitching, dyeing, printing, embroidery, washing, sizing or weaving?
- How long does FBR have to pay a textile exporter's sales tax refund, and is compensation due if it is late?
- Why can a manufacturer adjust input tax only up to 90% of output tax, and how is the remaining input tax recovered?
- How does FBR fix allowable wastage for a manufacturer, and how does it limit input tax on wasted material?
- As a textile company or exporter, when must I withhold sales tax from payments to my own suppliers?
- Why is part of my export sales tax refund deferred or held back, and what does the law say happens next?
- What withholding tax applies to toll manufacturing, such as processing or converting someone else's yarn or fabric?
Importers and exporters
Customs duty, goods declarations, valuation, advance tax at import and export proceeds.
- What is the 3% value addition sales tax charged on commercial imports, and who is exempt from it?
- What must I declare in my baggage at a Pakistani airport, and what happens if customs detains it?
- How do I appeal a customs order, and is it the Collector (Appeals) or the Appellate Tribunal?
- How do I claim a lower customs duty rate on goods from a free trade agreement country such as China?
- Can customs seize my goods, and do I get a show cause notice before they are confiscated?
- Which duties and taxes are charged when I import goods into Pakistan, for example from China?
- Is there a duty-free limit for small parcels ordered online from abroad through post or courier?
- How can an exporter import or buy inputs without duty and sales tax under the Export Facilitation Scheme?
- Can I get confiscated goods back by paying a fine under section 181?
- When must I file a goods declaration for imported goods, and can I amend it after clearance?
- How does customs decide the value of my imported goods if it does not accept my invoice price?
- How do I claim duty drawback on exported goods, and when is drawback refused?
- How is the correct HS code (PCT heading) decided for my product, and can I get an advance ruling?
- How much income tax is collected at import on a mobile phone brought into Pakistan?
- Is section 148 import tax a minimum tax, and why does a commercial importer pay more than a manufacturer importing for its own use?
- What happens if customs finds a misdeclaration in my goods declaration, and is an honest mistake treated like deliberate fraud?
- What is the punishment for smuggling under the Customs Act?
- What are regulatory duty and additional customs duty, and why are they charged on some imports but not others?
- Why is sales tax on some imported goods charged on the retail price instead of the customs value?
- How much advance income tax is collected at import under section 148 in tax year 2027, and is it higher if I am not on the Active Taxpayers List?
- How much tax is deducted from export proceeds under section 154, and is it final, minimum or adjustable?
- What happens to a non-custom-paid car, or a vehicle used to carry smuggled goods, when customs seizes it?
- Can customs demand more duty after my goods were cleared, and how long do I have to claim back duty I overpaid?
- What is a valuation ruling under section 25A, and how do I challenge one under section 25D?
- Are exports zero-rated for sales tax, and how does an exporter get a refund of input tax?
Partnership firms and AOPs
How firms and associations of persons are taxed and what partners pay.
- Does a partnership firm have to pay advance tax in quarterly instalments?
- Our firm's turnover is over Rs. 300 million. Do we need audited accounts to keep the partners' share exempt?
- Are partners personally liable if the firm does not pay its tax or commits a tax offence?
- Can the firm deduct the salary, interest or commission it pays to partners?
- If the firm files its return, do the partners still have to file their own returns and wealth statements?
- Does a partnership firm have to declare its beneficial owners to FBR?
- Does a partnership firm need its own NTN separate from the partners' NTNs?
- How is a company's share taxed when the company is a partner in an AOP?
- What are the income tax rates for a partnership firm or AOP for tax year 2027?
- Is a partnership firm taxed separately from its partners in Pakistan, and is my share of profit taxed again?
- Is a limited liability partnership (LLP) taxed as a company or as an AOP?
- What happens if our firm files its return late?
- Does minimum tax on turnover apply to a partnership firm?
- Does our firm have to deduct tax from the rent it pays for its office or shop?
- How are a non-resident partner's share and a firm managed partly from abroad taxed?
- Can partners set off the firm's loss against their own income, and how long can the firm carry it forward?
- Is a partnership taxed less than a private limited company?
- What is the last date for a partnership firm to file its income tax return?
- Does super tax under section 4C apply to a partnership firm?
- Is there tax when a partnership firm is converted into a private limited company?
- What happens for tax when a partner leaves or the partnership firm is dissolved?
- What counts as an association of persons: a firm, a family business, an unregistered partnership?
- When does a partnership firm have to deduct tax on payments to suppliers and contractors?
- Which professional firms pay a 40% top rate instead of 45%?
- Why does my exempt share of profit from the AOP increase the tax on my salary or rent?
Companies (mid-size and large)
Corporate tax rate, super tax, minimum tax, dividends and withholding duties.
- What is Alternative Corporate Tax under section 113C, when does 17% of accounting profit apply, and which companies are outside it?
- Can Alternative Corporate Tax paid over normal tax be carried forward, and for how long?
- Which company expenses are disallowed for cash payments, purchases from people without an NTN, or failing to integrate with FBR?
- What happens if my company does not deduct withholding tax from a payment: do we pay it ourselves and lose the expense?
- What is the income tax rate for a private or public limited company in Pakistan for tax year 2027?
- When are a company's quarterly advance tax instalments due, how are they calculated, and does super tax go into them?
- When must a company file its income tax return, and in what format must its financial statements be attached?
- How much tax must a company deduct when it pays a dividend, and why is it 25% when the company paid no tax?
- My company made a loss this year. Do we still have to pay tax?
- Does tax on undistributed profits under section 5A still apply to companies that do not pay dividends?
- Can a subsidiary's tax loss be surrendered to its holding company under group relief, and what shareholding is needed?
- Can a holding company and its wholly owned subsidiaries be taxed as one group under section 59AA?
- For how many years can a company carry forward business losses and unabsorbed depreciation?
- For how many years can excess minimum tax be carried forward and adjusted against later tax?
- Does my company have to withhold sales tax from suppliers' invoices as a withholding agent?
- Is a single member company (SMC) taxed as a company or as the owner personally?
- Is a dividend one company receives from another company taxable, and is it exempt within a group?
- What is minimum tax on turnover under section 113, what counts as turnover, and what rate does a company pay?
- Does a company that supplies taxable goods have to register for sales tax and file monthly returns?
- What tax must a company deduct when paying a foreign company for royalties, technical fees or services, and can treaty rates be used?
- How much tax must a company deduct from payments to suppliers for goods, services and contracts, and is it higher for suppliers not on the Active Taxpayers List?
- How is income for super tax worked out, and are brought-forward losses and depreciation deducted?
- Does super tax under section 4C apply to my company, and at what income level and rate?
- Why can my company not adjust all its input tax, and how does the 90 percent limit in section 8B work?
- What is a small company for tax purposes, and does it get a lower rate?
- When are a company's quarterly withholding tax statements due, and what is the penalty for filing late?
Doctors, lawyers and other professionals
Tax on fees, clinic and chamber income, and withholding on professional services.
- Does a professional have to pay advance tax in quarterly installments on practice income?
- Can a professional get an exemption or reduced-rate certificate so clients deduct less tax from fees?
- If most patients or clients pay in cash, how does the law treat cash income and cash expenses?
- How does a doctor or lawyer claim credit for tax deducted by several hospitals or clients?
- If a company or hospital client did not deduct tax from my professional fee, who is liable: me or the client?
- What expenses can a doctor or lawyer deduct: clinic or chamber rent, staff salaries, council fees, books?
- Can a doctor claim depreciation on an ultrasound machine, dental chair or other practice equipment?
- How is a doctor's or lawyer's private practice income taxed in Pakistan: as salary or as business income?
- What legal powers does FBR use to post officers at hospitals and ask for doctors' income details?
- Are doctors' consultations and tuition or coaching in Islamabad subject to ICT sales tax on services?
- What income tax slab rates apply to a professional's practice income in tax year 2027?
- Is private tuition or academy income taxable, and how is it declared alongside a teaching salary?
- Is the tax deducted from my professional fees a minimum tax, or can I adjust it or get a refund?
- Do doctors, lawyers and accountants registered with PMDC, a Bar Council or ICAP have to file a return even with low income?
- I am a salaried doctor who also runs an evening clinic. How are both incomes taxed in one return?
- Do lawyers, accountants, architects, engineers and consultants in Islamabad charge sales tax on their services?
- Does a clinic owner or lawyer have to deduct tax from the salaries of staff, clerks and juniors?
- Is a medical or law practice taxed differently if run as a partnership firm or company?
- Is the 25% tax rebate for full-time teachers and researchers still available, and did it cover tuition or medical teachers?
- Is a visiting or part-time consultant at a hospital an employee or an independent professional for tax?
- Does a professional have to file a wealth statement, and why must it reconcile with income?
- What happens if a doctor or other professional with a practice does not file a tax return?
- Who has to deduct tax when paying a professional's fee, and does a patient or individual client have to?
- Why is withholding on my fees doubled when I am not on the Active Taxpayers List?
- What rate of withholding tax is deducted from doctors', lawyers' and accountants' fees in tax year 2027?
- Can a doctor or lawyer reduce tax with Zakat, donations or pension fund contributions?
Property buyers, sellers and landlords
Rental income, tax on buying and selling property, and capital gains.
- Is 236K charged when I buy a society file or pay for an apartment in installments?
- How much advance tax do I pay when I buy a plot, house or flat in Pakistan (section 236K)?
- Can a non-filer still buy property after the Finance Act, 2025?
- Is there any capital gains exemption if I sell my only house or buy another one with the money?
- What is the capital gains tax on selling a property I bought on or after 1 July 2024?
- I bought my property before 1 July 2024. Is capital gains tax still zero after six years?
- Is capital gains tax charged when I sell agricultural land?
- Which expenses can I deduct from rent, such as repairs, property tax or loan interest?
- Is property tax charged on the price in my sale deed or on the FBR valuation table?
- How is rental income taxed in Pakistan, and is there a tax-free limit on rent?
- How is the capital gain on a property sale calculated, and which costs can I deduct?
- Can I adjust the 236K or 236C tax against my income tax, or is it a final tax?
- Is the 7E deemed income tax on a second property still payable?
- Is gifting a property to my son, wife or brother taxable?
- I have a salary and also rent out a house. Is the rent added to my salary for tax?
- My tenant deducted tax from the rent. Is that my final tax, or do I still file?
- If I let my house to a relative at a low rent, does FBR tax me on a higher rent?
- How much more tax does a non-filer pay when buying or selling property, and is there still a late-filer rate?
- If I buy and sell plots frequently, is it capital gain or business income?
- How much tax is collected from the seller when a property is sold or transferred (section 236C)?
- Do I pay tax when I inherit a property, and what happens when I later sell it?
- If a property is owned jointly by several people, how are rent and gains taxed?
- How is a non-refundable advance, security deposit or pagri from a tenant taxed?
- Which tenants must deduct tax from my rent, and at what rate (section 155)?
- Who is exempt from 236K or 236C, and is there relief for first-time home buyers?
Vehicle buyers and owners
Tax at registration, token tax collection and tax on transferring a vehicle.
- Who pays advance tax when I lease a car through a bank, and can I claim it in my own return?
- How much advance tax do I pay when I register a new car, and is it based on engine cc or the price?
- How much advance income tax does a truck or goods transport vehicle owner pay under s.234?
- Can I buy a car in my wife's, father's or brother's name if I am not eligible to buy it myself?
- Can a non-filer still buy a car, and what is the Rs. 7 million limit for 'ineligible persons'?
- Does the transfer tax go down as the car gets older, and when does it stop?
- Is there extra tax on a new car sold on 'own money' before it is registered?
- Gari transfer par tax kitna lagta hai? How much tax is collected when a used car is transferred into my name?
- Is the advance tax I paid on buying a car adjustable against my income tax, and can I get it refunded?
- Is advance tax collected when I buy from the manufacturer and again when I register the car?
- Is the tax paid by transporters under s.234 their final tax on transport income?
- How much more advance tax does a non-filer pay than a filer when buying or transferring a car?
- How much income tax do van, wagon, coaster and bus owners pay per seat with their token?
- How do I get proof of the advance tax paid on my car registration or transfer to claim it in my return?
- Is advance tax charged on registering an imported or reconditioned car if tax was already paid at import?
- How much s.234 income tax is collected with the token for my car, for a filer and a non-filer, yearly or as a lump sum?
- Do I pay vehicle advance tax on a motorcycle, rickshaw or commercial vehicle?
- Does the income tax collected with my token ever stop, for example after ten years?
- Why is there income tax in my car's token tax, and can I claim it in my return?
Savers and investors
Tax on bank profit, national savings, dividends, shares and mutual funds.
- How much more tax is deducted on bank and National Savings profit if I am not on the Active Taxpayers List?
- What must the withholding tax certificate from my bank show, and why do I need it?
- How much capital gains tax is deducted when I redeem mutual fund units?
- What is the capital gains tax on shares sold on the Pakistan Stock Exchange? (Share bechne par kitna tax lagta hai?)
- Is capital gains tax on shares higher if I am not on the Active Taxpayers List?
- How much tax is deducted on dividends if I am not on the Active Taxpayers List?
- What is the tax rate on dividends in tax year 2027, and why do some companies' dividends get a different rate?
- How does NCCPL calculate and collect capital gains tax on my shares?
- Is the tax deducted on my dividend final, or is dividend added to my other income?
- Is profit on National Savings certificates, including Defence Savings and Regular Income Certificates, taxable?
- Is the tax deducted on my bank profit final, and what changes if my profit is above Rs. 5 million?
- Can I set off a loss on shares against gains or carry it forward?
- Does capital gains tax on shares depend on how long I held them or when I bought them?
- How much tax does the bank deduct on my savings or term deposit profit in tax year 2027?
- What tax applies to profit on Behbood Savings Certificates and the Shuhada Family Welfare Account?
- Are bonus shares taxed in Pakistan, even though no cash is received?
- Who pays tax on cash withdrawal from a bank, above what amount, and do filers or ATM withdrawals count?
- How much advance tax is charged on international debit and credit card transactions?
- How much tax is deducted on mutual fund and money market fund dividends?
- Is profit on T-bills, PIBs and Sukuk taxable for individuals?
Overseas Pakistanis
Residency, tax on income from abroad, remittances and property back home.
- Does 236K tax apply when I buy a plot in a government housing scheme for overseas Pakistanis?
- Do I pay the non-ATL rate of 236K tax when I buy property in Pakistan as an overseas Pakistani with a NICOP or POC?
- Can I be stopped from travelling abroad because I am not a filer?
- I am a Pakistani citizen working abroad. Can Pakistan still treat me as a tax resident?
- Can FBR question the source of money remitted into Pakistan, and is there a yearly limit on the protection?
- Can I get an NTN with a NICOP or a Pakistan Origin Card?
- What happens if customs seizes my cash, gold or baggage at a Pakistani airport, and how do I get it back?
- I live and work abroad. Do I still have to file an income tax return in Pakistan?
- I pay tax abroad on income that Pakistan also taxes, such as a foreign pension or Pakistani rent. Do I pay tax twice?
- What can I bring in my baggage duty free when I visit Pakistan, and what must I declare?
- How many days can I stay in Pakistan before I count as a tax resident?
- I inherited property in Pakistan while living abroad. Is there tax on inheriting it or on selling it later?
- If I buy property through a Roshan Digital, FCVA or NRVA account, is the 236K tax final?
- I am moving back to Pakistan for good. Is my foreign income taxed in the year I return?
- Is the money I send home to my family taxable for them in Pakistan?
- Is the profit on my Roshan Digital Account or NRVA deposit taxable in Pakistan?
- Is the salary I earn abroad taxable in Pakistan?
- Do I have to declare my foreign bank accounts and property abroad in a Pakistani wealth statement?
- Should I become a filer and join the Active Taxpayers List even though I have no income in Pakistan?
- Can I get back tax that was deducted in Pakistan while I was a non-resident?
- I work remotely from abroad for a Pakistani company. Is my salary Pakistan-source income?
- Is the rent from my house in Pakistan taxable if I live abroad, and what should my tenant deduct?
- Can I buy property, a car or shares in Pakistan without being a filer now that section 114C restricts ineligible persons?
- What tax do I pay when I sell my property in Pakistan while living abroad?
- How are government securities, PSX shares and dividends bought through my FCVA or NRVA taxed?