Taxation & Regulatory Matters

Taxation in Pakistan is governed by the Income Tax Ordinance 2001 (federal income tax), the Sales Tax Act 1990 (federal GST), and provincial sales tax on services. The Federal Board of Revenue (FBR) administers these laws through a network of Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs). Our tax practice provides comprehensive advisory on corporate taxation, withholding taxes, sales tax, and the increasingly complex regime of international taxation including transfer pricing and double taxation treaties.

Corporate tax compliance requires meticulous record-keeping and timely filing of returns, withholding tax statements, and annual audited financial statements. The FBR's increasing use of data analytics and third-party reporting means that discrepancies are detected early, leading to audits, show-cause notices, and penal proceedings. We assist clients with tax return preparation, filing of wealth statements, tax audit representation, and voluntary declarations. We also handle appeals before the Commissioner (Appeals), the Appellate Tribunal Inland Revenue (ATIR), and the High Court.

Regulatory tax advisory covers entity structuring for tax efficiency, advising on tax implications of mergers and acquisitions, international tax structuring, transfer pricing documentation, and customs duty planning. We also guide clients through the sales tax regime, including registration, input tax adjustments, monthly filing, and refund claims. For businesses operating in special economic zones or enjoying tax incentives, we ensure compliance with conditions while maximizing available benefits.