Pakistan Taxation, FBR, IRIS, Income Tax, Sales Tax, NTN, GSTN

  Managing your finances in the current economic climate requires more than just earning; it requires smart planning. For salaried individuals in Pakistan, the Federal Board of Revenue (FBR) has updated the tax slabs for the 2025–2026 fiscal year, making it essential to understand how you can legally optimize your taxable income. In this post, we’ll explore the most effective ways to reduce your tax liability under the Income Tax Ordinance. 1. Know Your Tax Slabs for 2025–2026 The first step to saving tax is knowing how much you are actually liable to pay. The tax-free threshold remains at PKR 600,000 per year . If your annual salary exceeds this, you fall into the progressive tax brackets: 2. Invest in a Voluntary Pension System (VPS) One of the most powerful tax-saving tools available under Section 63 of the Income Tax Ordinance is the Voluntary Pension System. The Benefit: You can claim a tax credit on contributions made to an FBR-authorized pension fund. The Limit: You can ...

  Are you a Non-Resident Pakistani (NRP) looking to invest back home? The Government of Pakistan and the Federal Board of Revenue (FBR) offer several lucrative tax incentives that can save you significant money on property, banking, and income. In this post, we break down the essential tax benefits every Overseas Pakistani should know. 1. Who Qualifies as a Non-Resident? For tax purposes in Pakistan, you are considered a non-resident if you stay in the country for less than 183 days during a tax year (July 1st to June 30th). This status is the key to unlocking the exemptions below. 2. 100% Tax Exemption on Foreign Income One of the biggest perks of being a non-resident is that your hard-earned foreign salary and business income are not taxable in Pakistan . You can bring this money into the country through legal banking channels without worrying about local tax deductions. 3. Property Investment Perks (Section 236C & 236K) Real estate is a favorite investment for NRPs. Under c...

  Running a profitable kitchen in the hospitality sector isn't just about great recipes—it’s about precise mathematics. If you are calculating your food costs based solely on the price you pay at delivery, you are likely losing a significant portion of your profit margin to "hidden" waste. In today’s guide, we dive deep into Hotel Yield Testing , a critical process for every F&B Manager, Cost Controller, and Hotel Accountant. What is Yield Testing? Yield testing is the process of determining the actual usable amount of an ingredient after it has been processed (peeled, trimmed, or cooked). In the industry, we use two key terms: As Purchased (AP): The weight and cost of the product as it arrives from the supplier. Edible Portion (EP): The weight of the product that actually goes onto the plate for the guest. The Gold Formula for Profitability To find your yield percentage, use this standard formula: Yield % = (Edible Portion Weight ÷ As Purchased Weight) × 100 Why th...

  Are you planning a real estate transaction in 2026? The Pakistani property market has seen significant regulatory shifts following the Finance Act 2025 . From the introduction of the "Late Filer" category to the revised tiered tax slabs, navigating these changes requires more than just a basic understanding of the law. To help you stay compliant and save on costs, we have launched the most accurate Property Transfer Tax Calculator 2026 on our website. New Tax Slabs for 2025-26 The Federal Board of Revenue (FBR) has implemented a tiered system where tax rates increase based on the value of the property. Whether you are buying a plot in a housing society or selling a constructed house, these rates apply to the higher of the DC rate or FBR valuation. For Purchasers (Section 236K) Property Value (Purchaser) Active Filer Late Filer Non-Filer ...

 The landscape for digital earners in Pakistan has officially shifted. On April 1, 2026, the Federal Board of Revenue (FBR) issued two landmark draft notifications— SRO 545(I)/2026 and SRO 546(I)/2026 . If you are a YouTuber, Blogger, or Influencer, the days of a simple 1% tax deduction might be over. These new rules introduce a "Special Procedure" that fundamentally changes how your income is calculated and taxed. Note: These are draft rules issued by the FBR for getting input from the stake holders. 1. Why the Change? Export vs. Local Income The biggest point of confusion is the distinction between Section 154A (Export of Services) and the new SRO 546 . Section 154A: Applies to services rendered to non-residents (foreigners). SRO 546: Applies specifically to income derived from interaction with users in Pakistan . If your audience is local, the FBR no longer views this as an "export," even if the payment comes from Google in the USA. 2. Key Differences at a Gl...