Income Tax Ordinance covers taxable income earners, representatives and persons with tax filing or collection obligations  

ISLAMABAD: The Federal Board of Revenue (FBR) has defined the term “taxpayer” for tax purposes for Tax Year 2027 under the Income Tax Ordinance, 2001.

The FBR has issued the updated Income Tax Ordinance, 2001, incorporating amendments up to June 30, 2026, which sets out who qualifies as a taxpayer under Pakistan’s income tax law.

Who is a taxpayer?

According to the updated Income Tax Ordinance, a “taxpayer” means any person who derives an amount that is chargeable to tax under the law.

However, the definition extends beyond individuals or entities that earn taxable income.

It also includes a representative of a person who derives an amount chargeable to tax under the Income Tax Ordinance, 2001.

Persons responsible for tax deduction or collection

The definition further covers any person who is required to deduct or collect tax under Part V of Chapter X and Chapter XII of the Income Tax Ordinance.

This means persons with statutory responsibilities relating to withholding or collection of income tax may also fall within the definition of taxpayer, even where their status does not arise solely from earning taxable income.

Persons required to file returns or pay tax

The FBR’s definition also includes any person who is required to furnish a return of income or pay tax under the Income Tax Ordinance, 2001.

The provision therefore establishes a broad definition that covers taxpayers, their representatives and persons with specific tax compliance responsibilities.

Taxpayer definition for Tax Year 2027

The updated Income Tax Ordinance provides the applicable legal framework for determining taxpayer status for Tax Year 2027.

Individuals, businesses and other persons should assess whether their income, tax deduction or collection responsibilities, or filing and payment obligations bring them within the statutory definition of a taxpayer.