FBR makes authorised shipping agents responsible for tax returns and payments on behalf of non-resident ship owners, charterers and operators under Finance Act 2026 amendments.
ISLAMABAD: The Federal Board of Revenue (FBR) has made shipping agents responsible for filing income tax returns on behalf of non-resident ship owners, charterers and operators under amendments introduced through the Finance Act, 2026.
The FBR issued Income Tax Circular No. 2 of 2026-27, explaining major changes to the Income Tax Ordinance, 2001, introduced through the Finance Act, 2026.
Under the revised framework, a new clause (6A) of Section 2 defines an “authorised shipping agent”.
An authorised shipping agent is a person in Pakistan appointed by a non-resident ship owner, charterer or operator to act on its behalf in relation to a vessel.
The agent must be responsible for receiving, collecting or accounting for total freight, as well as documentation and manifest filing, and must furnish the tax return required under Section 143.
The FBR said such an agent will be treated as the representative of the non-resident under Section 172 and will be jointly and severally liable for the relevant tax and other obligations.
Authorised agents to file vessel tax returns
The amendments have also revised Section 143 to enable an authorised shipping agent to submit an income tax return relating to a vessel or voyage.
Under the revised provisions, only one return is required for each vessel or voyage, covering the total freight and all other related amounts.
The master of the ship and the authorised shipping agent will be jointly and severally responsible for complying with the applicable tax requirements.
This provision places a clear responsibility on shipping agents to ensure that tax obligations connected with non-resident vessels are properly reported and fulfilled.
Tax clearance required before port departure
Another significant requirement relates to port clearance.
The amended law requires electronic confirmation of the filing of the return and payment of tax to be received before clearance is granted to a vessel at the port.
This means vessels covered by the revised provisions will need confirmation that the relevant tax return has been filed and tax paid before completing the port clearance process.
FBR strengthens shipping sector tax compliance
The changes are aimed at strengthening tax compliance in Pakistan’s shipping sector and ensuring that income earned by non-resident shipping operators is properly reported and taxed.
By placing clear reporting and payment responsibilities on authorised shipping agents, the revised framework also gives the FBR a more direct mechanism for monitoring freight-related tax obligations associated with vessels operating through Pakistani ports.