Pakistan Tax Glossary
Every Pakistan tax term — explained in simple English, with the section reference and a real example. From ATL and NTN to Minimum Tax, FTR and Input Tax.
Tax deducted that you can adjust against your final liability — the opposite of final tax.
Tax collected in advance on certain transactions (vehicle, property, utilities), usually adjustable against your final liability.
FBR's public list of people who filed their return on time — being on it means lower withholding tax rates.
A person on the Active Taxpayers List (filed their return) — gets the lower withholding rates.
Income where the tax deducted is full and final — not taxed again at slab rates.
The value FBR uses for property — often notified valuation tables — to compute 236C/236K tax.
Extra sales tax charged when you supply to an unregistered person.
Sales tax you paid on your purchases, which you can adjust against the sales tax you collect.
A floor tax on turnover that applies even if you have little or no profit.
A person not on the Active Taxpayers List — faces higher, often double, withholding tax rates.
Income taxed at standard slab rates after expenses and deductions — not final.
Your unique tax registration number with FBR, used for all filings and tax matters.
The sales tax you charge your customers on your taxable supplies.
Proceeds Realization Certificate — bank proof that foreign export income was received legally.
Pakistan Software Export Board — registration gives IT exporters the reduced 0.25% rate under 154A.
The annual income tax return filed with FBR declaring your income and tax.
Reduced final tax on export of IT and IT-enabled services — 0.25% for PSEB-registered, 1% for others.
Tax on deemed income from certain immovable properties.
A legal notification FBR issues to change tax rules, rates or procedures.
An additional tax on high-income persons and companies above set income thresholds.
An amount subtracted directly from the tax you owe (not from income).
The 12-month period for income tax — in Pakistan, 1 July to 30 June.
Total income minus allowable deductions, on which your tax is calculated.
A statement of your assets, liabilities and expenses filed alongside your return.
Tax deducted at source by a payer (bank, employer, buyer) and deposited with FBR on your behalf.