Brief Introduction:
The taxation system is the system for the collection of taxes by the Government of a country. It is considered to be the backbone of the economy of any country as Revenue and expenditures of country are mainly dependent on it.
Pakistan’s current taxation system is mainly composed of Direct taxes (Income Tax) & Indirect taxes (Sales tax, Federal Excise duty and Custom duty), regulated by Federal Government under the name of FBR(Federal Board Of Revenue) and provincial government.
Whenever a person earns in Pakistan more than a certain limit or involve in certain profitable activity, it needs to get itself registered for Income tax through FBR and sales tax under the relevant regulatory authority.
Income Tax :
As the name suggests, the tax which is levied or charged on the income of any person is called Income tax. It generally deducted advance, withheld by the Specific agent or paid the end of every financial year after calculation of tax liability of the taxpayer.
The levy and collection of Income tax in Pakistan is regulated by the FBR through Income tax Ordinance 2001, which is amended by the time to time especially in the light of presented budget by the Federal Government every year.
Sales Tax :
Whenever a person sales specific goods or provide certain services to another person, it is liable to collect after charging sales tax and deposit it to the Government.
In Pakistan, sales tax is charged by the seller to the end consumer and deposited to the relevant regulatory authority.
Sales Tax on Product/Supplies :
All types of sales tax on goods is dealt by the FBR through the Sales Tax Act 1990 (amended/updated from the time to time)
Sales Tax on Services :
After the 18th Amendment to the constitution of Pakistan the right to charge and collect the sales tax on services transferred to provinces. So now the relevant provincial authority, regarding the origination and termination of services, charge and collect sales tax on services under their respective laws. (Which are updated from the time to time).
Sales tax on services, just like Sales tax on product, is also ultimately paid by the end consumer. It is also deposited every month to the relevant provincial authority like PRA, SRB, KPRA, ICT.
Our services regarding the Tax registration :
NTN (National Tax number) issuance by FBR for the Individual/Partnership/Company
Sales tax Registration Issuance for Supplies/Services by FBR, Punjab, KPK, SINDH, and Baluchistan