New rules require taxpayers to prove successful integration with FBR’s computerised system, maintain supporting documents and claim eligible investment costs only once.
Islamabad, October 26, 2026: The Federal Board of Revenue (FBR) has prescribed conditions and restrictions for claiming tax credits on integration with its computerised system, requiring eligible taxpayers to meet specific technical, financial and documentation requirements.
Through SRO 1909(I)/2026, dated October 26, 2026, the FBR introduced Rule 33U, outlining the conditions for claiming tax credits under Section 64D of the Income Tax Ordinance, 2001.
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Under the new rules, a taxpayer must be legally required under the Income Tax Ordinance, Sales Tax Act, 1990, or Federal Excise Act, 2005, to integrate with the FBR’s computerised system for real-time production monitoring or recording and reporting sales or receipts during the relevant tax year.
The electronic resource for which the credit is claimed must be purchased, acquired, installed or implemented and successfully integrated and configured with the FBR system during the same tax year.
The equipment, hardware, software or other electronic component must be used directly and exclusively for the required integration.
Taxpayers must also provide an integration, activation, commissioning or configuration record generated or confirmed by the FBR system. The record must identify the taxpayer, electronic resource and activation date.
Eligible investment costs defined
The FBR has clarified that the amount actually invested may include the purchase price and one-time costs directly attributable to installation, configuration, interface development, integration, testing and implementation necessary to make the electronic resource operational.
However, the eligible investment amount must be reduced by any discounts, rebates, refunds, grants or subsidies received or receivable.
The rules exclude refundable, adjustable or recoverable taxes and duties, routine maintenance, repairs, recurring service charges, internet and telecommunications expenses, utility bills, employee salaries, training, consumables and financing costs.
Costs for general-purpose systems or components are also excluded unless a separately identifiable component is dedicated exclusively to integration.
Documentation and claim requirements
According to Rule 33U, taxpayers must claim the tax credit in the income tax return for the year in which the electronic resource is installed, integrated and configured with the FBR system.
The same expenditure cannot be claimed more than once under Section 64D.
Taxpayers must disclose details in their income tax return or a schedule available on the IRIS portal, including the electronic resource description, supplier details, invoice or agreement reference, acquisition or implementation date, investment amount, integration identification number and activation or commissioning date.
The FBR has made the tax credit subject to verification by the Commissioner based on records maintained under Section 174 of the Income Tax Ordinance, 2001.
The new rules establish documentation and verification requirements for taxpayers seeking integration-related tax relief, making compliance with technical and record-keeping conditions essential to securing the credit.