Services/Taxation
PRACTICE / TAXATION

Tax advice grounded in how Pakistan actually taxes.

We plan, advise and file across income tax, sales tax and the withholding regime, keeping your affairs efficient, on the Active Taxpayer List and free of unwelcome notices. Every engagement is led by a specialist who stays with you from the first brief to the final return on FBR IRIS.

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FBR IRIS
All returns filed online
Partner-led
Scoped and filed by the specialist
Ordinance 2001
Grounded in Pakistani tax law
A defensible tax position is one the FBR can question and you can answer, on the record, without hesitation.

Tax in Pakistan is not a single annual event settled after the books close. It is a continuous discipline running through the year: monthly withholding statements, monthly sales tax returns, advance tax instalments, and the constant need to stay an active filer so that higher rates on non-filers do not quietly erode margins. The Income Tax Ordinance 2001, the Sales Tax Act 1990 and the Federal Excise Act 2005 are amended almost every year through the Finance Act, and the FBR issues circulars and notifications that change how a position is applied long before any court rules on it. A treatment that was correct last year may need revisiting this year.

Our Taxation practice is built for that reality. We combine technical depth across federal income tax, federal sales tax on goods and the provincial sales tax on services administered by the SRB, PRA, KPRA and BRA, with the practical knowledge of how the FBR IRIS portal, audits and monitoring actually work. We do not sell schemes or chase savings that will not survive an audit or an appeal. We build positions that are commercially sound, properly documented, and able to stand in front of a Commissioner, an auditor and, if it comes to it, the Appellate Tribunal Inland Revenue.

The practice is partner-led in substance, not just in name. The specialist who scopes your engagement is the one who forms the judgements, prepares the returns and signs off the advice. That continuity matters most where tax is hardest: the difference between the final tax regime and the normal tax regime on a given receipt, whether an exemption or credit genuinely applies, how a payment to a non-resident should be treated under a double taxation treaty. In those grey areas the quality of the reasoning and the quality of the record are what protect you.

Capabilities

What we do.

We work in defined phases so you always know what we are examining, what we have concluded and what remains open. The emphasis throughout is on building a record that holds up under FBR audit long after the return is filed.

01

Income tax planning and advisory

Forward-looking advice that aligns your tax position with commercial reality and the annual changes brought in by the Finance Act, so decisions are made with the full picture.

02

Compliance and return filing on FBR IRIS

Accurate, timely filing of every return and statement, managed as a controlled process through the year rather than a deadline scramble.

03

Withholding tax and agent obligations

Managing the extensive withholding regime under the Income Tax Ordinance 2001 so your obligations as a withholding agent are met without over or under deduction.

04

Cross-border, transfer pricing and disputes

Advice for non-residents, permanent establishments and multinational groups in Pakistan, plus representation when the FBR raises an audit or notice.

Our Approach

How we work.

A disciplined, staged engagement model, from first question to defensible outcome.

PHASE 01

Scope

A partner reviews your structure, revenue streams and current registrations, then maps the taxes, provinces and filing obligations that actually apply to you. This produces a prioritised picture of where exposure and opportunity sit, not a generic checklist.

PHASE 02

Analyse

The lead specialist works the substantive questions: final versus normal tax regime treatment, withholding provisions, sales tax jurisdiction between the FBR and the provincial authorities, and any treaty position. Contentious points are reasoned through against the Ordinance, the rules and current FBR practice.

PHASE 03

Position

We set out our conclusions in writing, with the reasoning, the statutory basis and the assumptions made explicit. Where a position carries risk, we say so plainly and document why it is taken, so the record speaks for itself if the FBR asks.

PHASE 04

File

We prepare and submit the returns and statements on FBR IRIS, from monthly withholding and sales tax returns to the annual income tax return and wealth statement. We coordinate with your finance team and auditors so the tax numbers reconcile cleanly to the accounts.

PHASE 05

Sustain

Tax positions are not static in Pakistan. We track each Finance Act, FBR circular and notification that bears on your business and flag when a change in law, or a change in your operations, means a position should be revisited before it becomes a problem.

"

Good advice solves today’s problem, and prepares you for the next one.

, Finspera 21
Questions

Frequently asked.

What does your taxation service cover?
We cover income tax, federal and provincial sales tax, the withholding regime, Federal Excise Duty, and cross-border and transfer pricing matters. That runs from NTN and STRN registration through monthly and annual filing on FBR IRIS to representation in audits and appeals. The partner who scopes your work also delivers it, so nothing is handed down a chain. We look beyond deadlines to the commercial decisions behind them, which means advice that protects value, not just returns that file on time.
Why does staying on the Active Taxpayer List matter so much?
The Active Taxpayer List is the FBR's record of taxpayers who have filed their returns on time, and it sits behind the filer versus non-filer distinction. Non-filers face higher withholding rates on a wide range of transactions, from banking to property, which quietly raises your cost of doing business. We monitor your status and keep your filings current so you stay an active filer and pay the correct rates. Where you have fallen off the list, we advise on the steps and any surcharge needed to be restored.
How is federal sales tax different from provincial sales tax on services?
In Pakistan, sales tax on goods is federal and administered by the FBR under the Sales Tax Act 1990, while sales tax on services is provincial. That means services can fall under the Sindh Revenue Board, the Punjab Revenue Authority, the Khyber Pakhtunkhwa Revenue Authority or the Balochistan Revenue Authority, with the FBR administering sales tax on services in the Islamabad Capital Territory. Businesses operating across provinces often have to register and file in more than one jurisdiction. We determine where each supply is taxable, manage the separate registrations and returns, and make sure input tax is claimed correctly across them.
We make payments to overseas suppliers and parents. How is that taxed?
Payments to non-residents can attract withholding tax under the Income Tax Ordinance 2001, and the rate often depends on whether the recipient has a permanent establishment in Pakistan and whether a double taxation treaty applies. We assess the nature of the payment, check the relevant treaty, and apply any reduced rate or relief with the documentation the FBR expects. Where your group has intercompany dealings, we also address the arm's length standard and transfer pricing documentation under the Income Tax Rules 2002. The aim is a position that is correct in Pakistan and defensible to the counterparty's tax authority as well.
What happens if the FBR opens an audit or issues a notice?
If the FBR selects you for audit or issues a notice under the Ordinance, you want positions that were built to be defended from the outset. We take considered, well-documented positions and stand behind them, handling the correspondence and submissions on your behalf. If a matter is not resolved at assessment, the appeal chain runs from the Commissioner (Appeals) to the Appellate Tribunal Inland Revenue and on to the High Court, and an Alternative Dispute Resolution Committee is available in suitable cases. The same partner who advised you leads the response, so nothing is lost in the handover.
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Position your tax affairs with confidence.

Whether you are registering for the first time, tidying up withholding and sales tax compliance, or handling a payment abroad that raises a treaty question, a conversation with the specialist who would lead your engagement is the right place to start. Tell us where you stand, and we will tell you plainly what we see.

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