Islamabad – July 8, 2025: In a move set to ease the tax filing burden on millions of employees, the Federal Board of Revenue (FBR) has launched a simplified income tax return form exclusively for salaried individuals for Tax Year 2025.
The reform comes as part of the FBR’s ongoing effort to boost compliance and encourage voluntary tax filing by making the process less intimidating.
Through SRO 1213(I)/2025, issued on July 7, the FBR unveiled the draft version of the simplified return form. With minimal data entries required, the FBR is aiming to bring ease, clarity, and convenience to Pakistan’s salaried class—many of whom have long struggled with complex filing procedures.
This simplified form caters to those with salary and pension income, while also allowing for optional declarations including income from property, bank profits, and dividends. The FBR has requested stakeholders to submit feedback within seven days of the SRO issuance, after which the return will be finalized for use.
One major change: salaried individuals will now be required to update their bank account details—complete with IBAN and year-end balances as of June 30, 2025. Those who did not submit such details in the past will need to provide them now. This is seen as an effort by the FBR to link asset ownership and income with financial records.
Additionally, deductions against withholding taxes, allowances, and any tax credits claimed during the year can be easily recorded under the simplified format. The accompanying wealth statement asks taxpayers to disclose property assets, liabilities, and other personal holdings, with an option to exclude certain properties from deemed income provisions.
Despite the FBR’s delay in releasing the return forms for Tax Year 2025, this new simplified format is being hailed as a major win for transparency and ease of doing taxes. By cutting the clutter and reducing paperwork, the FBR is taking bold steps toward digitizing and humanizing the tax culture in Pakistan.
With this bold initiative, the FBR has not just released a simplified return—it has taken a simplified leap toward building trust with the salaried taxpayer.