Islamabad, August 10, 2025 – To help taxpayers understand corporate taxation, the Federal Board of Revenue (FBR) has issued a detailed clarification on what qualifies as a public company under Pakistan’s tax laws for the tax year 2026, covering the period from July 2025 to June 2026.
According to the Income Tax Ordinance, 2001, a public company is defined as:
(a) A company in which at least 50% of the shares are held by the Federal Government or any Provincial Government.
(ab) A company in which at least 50% of the shares are held by a foreign government, or by a foreign company owned by a foreign government.
(b) A company whose shares were traded on a registered stock exchange in Pakistan during the tax year and which remained listed on that exchange at the end of the year.
(c) A unit trust whose units are widely available to the public, as well as any other trust defined under the Trusts Act, 1882 (II of 1882).
The FBR emphasized that this clarification is aimed at promoting transparency in corporate tax compliance. By clearly defining a public company, the tax authority seeks to ensure correct classification, proper reporting, and fair treatment of income for both domestic and foreign entities operating in Pakistan. This measure will also make it easier for the public to identify companies that qualify for certain tax benefits or regulatory obligations associated with the status of a public company.