If you are permanently leaving Pakistan, obtaining a Tax Clearance Certificate (TCC) is not optional—it is a legal requirement under Pakistan’s income tax law.
Under Section 145 of the Income Tax Ordinance, 2001 (updated for Tax Year 2026), certain persons must obtain tax clearance before departure to ensure that all income tax liabilities are settled or properly secured.
This guide explains what a tax clearance certificate is, who needs it, how to apply, the prescribed format, documents required, and key exemptions.
📌 What Is a Tax Clearance Certificate?
A Tax Clearance Certificate is an official document issued by the Commissioner Inland Revenue confirming that:
✔ All income tax liabilities have been paid, or
✔ Satisfactory arrangements have been made for payment of outstanding tax
Without this certificate, a person may face issues while leaving Pakistan permanently.
⚖️ Legal Framework (2026 Updated)
📘 Relevant Law & Rules
• Section 145 – Income Tax Ordinance, 2001
• Rule 221 – Income Tax Rules, 2002
(Amended up to November 24, 2023)
✅ Who Must Obtain a Tax Clearance Certificate?
You must apply if:
✔ You are leaving Pakistan permanently
✔ You have earned income from Pakistan sources
✔ You are an individual, businessperson, professional, or employee
✔ You have filed returns or have pending assessments
❌ Who Does NOT Need a Tax Clearance Certificate?
🚫 Tourists are exempt, provided:
• They earned no income from Pakistan sources
• They entered Pakistan on a tourist visa
• Their stay did not exceed 90 days in a tax year
🧭 When Is a Tax Clearance Certificate Issued?
Under Rule 221(1), the Commissioner issues the certificate when:
🔹 Case A: All Tax Liabilities Are Cleared
✔ All assessed and payable taxes have been paid
🔹 Case B: Tax Liabilities Are Secured
✔ Arrangements satisfactory to the Commissioner are made
✔ A guarantee certificate is provided by employer or business associate
🧾 Step-by-Step: How to Apply for Tax Clearance Certificate
Step 1: Prepare Application Under Rule 221
Application must be submitted to the Commissioner Inland Revenue having jurisdiction over your last assessment.
Step 2: Use the Prescribed Application Format
📄 Prescribed Application Format
(Rule 221 – Section 145)
APPLICATION FOR A CERTIFICATE UNDER SECTION 145
OF THE INCOME TAX ORDINANCE, 2001
Not applicable to tourists who earned no Pakistan-source income and stayed not more than 90 days.
To,
The Commissioner,
______________ Zone,
______________ (City).
Sir,
I request that a Tax Clearance Certificate under Section 145 of the Income Tax Ordinance, 2001 may kindly be granted to me. Necessary particulars are given below:
1. Name of applicant (in block letters): ___________________________
2. Domicile: _________________________________________________
3. Present address: ___________________________________________
4. Address in home country: ___________________________________
5. Nature of business/profession/vocation in Pakistan: _____________
(If tourist with no income, clearly state)
6. Place(s) where business/profession was carried on: _____________
7. Name and address of employer/company (if applicable): _________
8. Name of Commissioner where last assessment was made: ________
9. Date of arrival in Pakistan: _________________________________
10. Probable date of departure: ________________________________
11. Destination: _____________________________________________
12. Mode of travel (air/sea/land): ______________________________
13. Place: ____________________ Date: ____________________
14. Evidence of tax payment attached
15. Guarantee under Rule 158 enclosed (if applicable)
Yours faithfully,
Signature: _______________________
Date: ____________________ 20___
📎 Documents Required (Quick Checklist)
✔ Copy of CNIC / Passport
✔ NTN certificate
✔ Latest income tax return
✔ Evidence of tax payment
✔ Travel details (ticket / destination)
✔ Guarantee certificate (if tax is outstanding)
🧾 Guarantee Certificate (If Tax Is Outstanding)
If you fall under Rule 221(1)(b), your application must include the following:
📄 Guarantee Certificate by Employer / Business Associate
✔ Confirms applicant’s relationship
✔ States outstanding tax demand
✔ Includes cheque or undertaking to pay tax
✔ Bears official seal and signature
This allows departure before final tax determination.
⏳ How Long Does It Take?
⏱ Typically 7–15 working days, depending on:
• Outstanding liabilities
• Verification status
• Completeness of documents
❓ Frequently Asked Questions (FAQs)
🔹 Is tax clearance mandatory for everyone leaving Pakistan?
Only for those leaving permanently and having Pakistan-source income.
🔹 Can I leave Pakistan with pending tax?
Yes—only if a guarantee arrangement is approved by the Commissioner.
🔹 Is this certificate required for overseas employment?
✔ Yes, if departure is permanent and income was earned in Pakistan.
🔹 Is tax clearance required for students?
Usually no, unless they earned taxable income in Pakistan.
⚠️ Disclaimer: This article is provided for general informational purposes only and does not constitute legal, tax, or professional advice. Tax laws, rules, and FBR procedures may change or be applied differently based on individual circumstances. Readers are advised to consult the Federal Board of Revenue (FBR), relevant provisions of the Income Tax Ordinance, 2001, or a qualified tax advisor before making travel or tax-related decisions. The publisher shall not be responsible for any loss or consequences arising from reliance on this information.