Pakistan Tax Glossary — Key Terms Explained

Key Tax Terms

FBR

Federal Board of Revenue — Pakistan's federal tax authority responsible for income tax, sales tax, and customs.

NTN

National Tax Number — a unique identifier assigned by FBR to every taxpayer in Pakistan.

ATL

Active Taxpayer List — FBR's list of taxpayers who have filed their annual returns. Being on the ATL provides benefits like lower withholding tax rates.

WHT

Withholding Tax — tax deducted at source by banks, employers, or property registrars before payment to the recipient.

AOP

Association of Persons — a business entity such as a partnership or unincorporated association, taxed under its own slab schedule.

Taxable Income

Gross income minus allowable deductions, exemptions, and tax credits — the figure slab rates are applied to.

Super Tax

Additional tax (Section 4C) on high-income companies above a threshold — Rs. 500M for standard sectors in FY 2026-27.

Minimum Tax

The minimum tax a company must pay regardless of profit — 1.25% of gross turnover for companies in Pakistan.

Section 236C

Withholding tax on sale of immovable property in Pakistan — paid by the seller.

Section 236K

Withholding tax on purchase of immovable property in Pakistan — paid by the buyer.

Surcharge

Additional tax on high-income earners. Abolished for salaried individuals in FY 2026-27; 10% remains for AOPs above Rs. 10M.

Finance Act

The annual budget legislation that sets Pakistan's tax rates, slabs, and exemptions for each fiscal year.