Author: Shahnawaz Akhter

Banks in Pakistan are legally required to share specific customer information with the Federal Board of Revenue (FBR). This data-sharing framework is aimed at widening the tax net, improving compliance, and identifying potential taxpayers through documented financial activity. The authority for this reporting comes from Section 165A and 165B of the Income Tax Ordinance, 2001.

The withholding tax system is one of the strongest tools used by the Federal Board of Revenue (FBR) to identify individuals and businesses earning taxable income but remaining outside the tax net. At the heart of this system lie withholding tax statements, which act as a powerful data source for tracking economic activity across Pakistan.

If you are paying withholding tax to prescribed withholding agents under the Federal Board of Revenue (FBR), it is crucial to obtain a certificate of collection or deduction. This certificate is essential for filing your income tax return for tax year 2026.

When withholding tax is not collected or deducted, a common question arises: Who ultimately pays the unpaid tax—the withholding agent or the person receiving the payment? The Federal Board of Revenue (FBR) has clarified this under Section 162 of the Income Tax Ordinance, 2001 for tax year 2026.

If you act as a withholding agent—collecting or deducting tax on behalf of the Federal Board of Revenue (FBR)—it is crucial to understand your legal responsibilities and potential consequences under Section 161 of the Income Tax Ordinance, 2001 for tax year 2026.

Are you eligible for tax exemptions, lower tax rates, or tax credits in Pakistan? The Federal Board of Revenue (FBR) has streamlined the procedure for issuance of exemption or lower rate certificates during tax year 2026. Understanding the process can save time and ensure compliance.

Did you know that tax is deducted at source when you win prizes, lotteries, raffle draws, or prize bonds in Pakistan? The Federal Board of Revenue (FBR) has clarified the rules for tax year 2026, making it important for all prize winners to understand their obligations under the Income Tax Ordinance, 2001.

Are you engaged in exporting services from Pakistan, including IT and IT-enabled services? Understanding tax obligations on payments received from abroad is crucial for compliance and financial planning. For tax year 2026, the Federal Board of Revenue (FBR) has updated the Income Tax Ordinance, 2001, introducing Section 154A to govern tax deduction on export of […]