IPO-chief-696x418

HOW TO REGISTER A COPYRIGHT IN PAKISTAN?

opyright is a form of legal protection granted to original works of authorship such as literary works, music, films, software, photographs, artistic creations, and cinematographic works. In Pakistan, copyright is governed by the Copyright Ordinance, 1962, and is administered by the Intellectual Property Organization of Pakistan (IPO-Pakistan).

Copyright gives the creator the exclusive legal right to reproduce, distribute, perform, or publicly display the work. While copyright protection is automatic upon the creation of the work in a tangible form, registration is highly recommended in Pakistan to enforce rights through legal proceedings, especially in cases of infringement.

Determine Eligibility

To be eligible for copyright protection in Pakistan, the work must be original and expressed in a fixed, tangible form. Eligible works include:

  • Books, articles, poetry, and other literary works

  • Music compositions and sound recordings

  • Paintings, drawings, sculptures, and other artistic works

  • Films, dramas, documentaries, and video content

  • Computer software, databases, and applications

  • Photographic and architectural works

Copyright does not protect ideas, methods, or concepts—only their tangible expressions.

Prepare and File the Copyright Application

To register your copyright with IPO-Pakistan, you must complete and file a copyright application form (Form C-1).

The application must include:

  • Full name and address of the applicant (creator or owner)

  • A clear and concise description of the work

  • Nature and category of the work (e.g., literary, artistic, musical, software)

  • The date and place of creation or publication

  • Name of the publisher, if applicable

  • Copies of the work (hard or digital formats depending on the medium)

You can file the application manually at the IPO regional offices in Islamabad, Lahore, or Karachi, or through IPO-Pakistan’s online e-filing system introduced in recent years to streamline submissions.

Pay the Required Fee

As of 2025, the government fee for copyright registration in Pakistan remains nominal:

  • PKR 1,000 per application per work

Payment can be made through:

  • Bank Challan at designated National Bank of Pakistan (NBP) branches

  • IPO’s e-payment system (available for online submissions)

Keep the payment receipt or challan as part of your application documentation.

Wait for the Registration Certificate

Once submitted, the IPO-Pakistan’s Copyright Office reviews your application and examines the contents to ensure eligibility and completeness. This process can take two to three months, depending on the complexity and backlog.

During this time, IPO may:

  • Request clarifications or additional documents

  • Raise objections if the work is found to be plagiarized or ineligible

If no objections are raised or all issues are resolved, the application proceeds to registration.

Obtain the Copyright Registration Certificate

Once approved, IPO-Pakistan issues a Copyright Registration Certificate, which serves as legal proof of ownership and authorship.

Key features of copyright registration in Pakistan:

  • Valid for the lifetime of the author plus 50 years after death

  • For works with joint authorship, the protection extends until 50 years after the last surviving author’s death

  • For corporate-owned or anonymous works, the protection extends for 50 years from publication

This certificate becomes critical evidence in case of legal action against copyright infringement.

Required Documents for Copyright Registration in Pakistan

• Completed Copyright Application Form (Form C-1)
• Two copies of the original work
• A description and classification of the work
• Proof of payment (challan or e-payment receipt)
• Power of Attorney (if filed through an attorney or representative)
• No Objection Certificate (NOC) from publisher or co-authors, if applicable
• Identity documents of the applicant (CNIC or company registration)

How to Search for a Copyright in Pakistan

IPO-Pakistan provides a public access database for searching registered copyrights.

Steps to conduct a copyright search:

  1. Visit https://ipo.gov.pk

  2. Go to the “Copyright Search” option under the “Services” section

  3. Enter details such as the copyright owner’s name, title of the work, or registration date

  4. Click “Search” to view the list of works that match your criteria

  5. Review the search results for registration details, including date, status, and work description

This search helps verify ownership, check for duplicates, and confirm the legal status of existing copyrights.

Additional Considerations in 2025

  • IPO-Pakistan has digitized a large portion of its copyright records, allowing for faster processing and certificate delivery

  • Pakistan is a signatory to the Berne Convention, which ensures copyright protection for Pakistani authors in all member countries

  • Moral rights such as the right of attribution and the right to object to distortion of the work are also protected under Pakistani copyright law

  • Software, websites, and apps are increasingly being registered under literary works due to growing demand from the IT sector

  • Infringement cases can be filed in civil courts, and remedies include damages, injunctions, and seizure of infringing materials

Why You Should Register Your Copyright

• Legal ownership confirmation to protect your work
• Essential for licensing, publishing, and monetization deals
• Helps enforce rights in court and prevent unauthorized use
• Establishes a public record of your authorship
• Enhances your credibility as a content creator or company

download (2)

HOW TO REGISTER A BRAND IN PAKISTAN?

HOW TO REGISTER A BRAND IN PAKISTAN?

Registering a brand name or logo in Pakistan is a crucial step in protecting your business identity, securing your intellectual property rights, and gaining legal exclusivity over the use of your brand. Brand registration in Pakistan is carried out under the Trade Marks Ordinance, 2001, and is administered by the Intellectual Property Organization of Pakistan (IPO-Pakistan).

Conduct a Trademark Search

Before applying for trademark registration, it is important to verify that your brand name, logo, or slogan is not already in use or registered by another party.

Visit the IPO-Pakistan website at https://ipo.gov.pk and use the “Trademark Search” tool. Enter the proposed brand name, logo keywords, or class of goods/services. The search results will help you check for any existing trademarks that may be identical or confusingly similar. Conducting a proper search reduces the risk of your application being rejected or opposed.

Prepare and File the Trademark Application

After confirming that your proposed brand is unique, prepare a trademark application. The application must include the name and address of the applicant, a clear representation of the trademark, the goods or services associated with the trademark, and the class based on the Nice Classification system.

As of 2025, IPO-Pakistan allows both manual and online filing via their e-filing system. Online filing is preferred for faster processing.

Pay the Required Fee

The trademark application fee in 2025 is PKR 10,000 per class. If you’re claiming priority under the Paris Convention, an additional fee of PKR 3,000 applies. Payment can be made via a bank challan at designated NBP branches or through IPO-Pakistan’s online e-payment portal. Upon payment, you’ll receive a tracking number or application reference number.

Trademark Examination

Once submitted, the application undergoes examination by the Registrar of Trademarks at IPO-Pakistan. This examination checks if the trademark is distinctive, not descriptive or generic, and does not conflict with any previously registered marks.

The examination usually takes four to six months, depending on application volume and complexity.

Respond to Objections, if Any

If any objections are raised, IPO-Pakistan will issue an Examination Report or Show Cause Notice. The applicant may need to justify the distinctiveness of the mark, modify the content, or submit evidence of prior use. You can respond within 30 days or request a hearing before the Registrar.

Publication in the Trademarks Journal

If the application clears the examination stage, it is published in IPO-Pakistan’s Official Gazette (Trademarks Journal). This allows the public to file oppositions within two months. If no oppositions are filed or if they are resolved, the trademark proceeds to registration.

Issuance of Trademark Registration Certificate

After all formalities and waiting periods are complete, IPO-Pakistan issues a Trademark Registration Certificate. The trademark is valid for 10 years from the date of application and can be renewed every 10 years upon payment of renewal fees. This certificate grants you exclusive rights to use and protect your brand within Pakistan.

Required Documents for Trademark Registration in Pakistan

• Completed Trademark Application Form (Form TM-1)
• Clear representation of the trademark (logo or wordmark)
• Power of Attorney (Form TM-48) if filed through a trademark agent
• Proof of fee payment (bank challan or online receipt)
• Description of goods/services and applicable trademark class
• Copy of priority document (if applicable)

How to Check the Status of a Trademark in Pakistan

Visit https://ipo.gov.pk and navigate to the “Trademark Search” section. Enter the trademark name, class, or application number to view the registration status, publication details, and applicant information. You can also download the trademark certificate or review any pending oppositions.

Key Considerations in 2025

IPO-Pakistan has introduced enhanced online tracking features and fast-track options for trademark filings. Disputes can now be resolved by IPO’s Dispute Resolution Board (DRB) or taken to civil courts. Pakistan’s alignment with TRIPS under WTO ensures international compatibility for registered trademarks.

Why Register Your Brand in Pakistan

• Legal protection against unauthorized use of your brand
• Enhanced brand recognition and consumer trust
• Easier expansion through franchising and licensing
• Increased brand valuation as an intangible asset
• The right to take legal action against infringement and counterfeiting

download (2)

HOW TO REGISTER PATENT IN PAKISTAN?

In Pakistan, registering a patent is essential to legally protect your invention from being copied, used, or sold without your consent. The process is governed by the Patents Ordinance, 2000, and administered by the Intellectual Property Organization of Pakistan (IPO-Pakistan). A registered patent grants the inventor exclusive rights to the invention for a period of 20 years.

Step-by-Step Procedure to Register a Patent in Pakistan

1. Conduct a Patent Search

Before submitting a patent application, you must ensure that your invention is:

  • Novel

  • Non-obvious

  • Industrially applicable

To confirm this, a patent search must be conducted through the IPO-Pakistan database. This step helps you avoid wasting time and money on ideas that are already patented.

How to do a patent search:

  • Visit https://ipo.gov.pk

  • Navigate to the “Patent Search” tab

  • Enter keywords, inventor names, or classification numbers

  • Review the search results to ensure your idea has not already been patented

2. Prepare and File the Patent Application

Once you’re confident about the uniqueness of your invention, prepare a complete patent application. It must contain:

  • A description of the invention, clearly explaining how it works

  • Drawings or diagrams, if the invention involves a device or process

  • Claims that define the scope of the patent protection you’re seeking

  • Background and field of the invention

  • Abstract, which provides a brief summary

  • Details of the inventor and applicant

In 2025, applicants can now file patents online through the IPO-Pakistan e-filing system, which helps avoid delays caused by postal submissions.

3. Pay the Required Fee

As per the updated IPO-Pakistan fee schedule for 2025, the basic filing fee is:

  • PKR 10,000 for individuals and sole inventors

  • PKR 15,000–20,000 for companies, depending on the nature of the invention

The payment can be made through a challan form at designated National Bank of Pakistan (NBP) branches or via online banking integrated into the e-filing system.

4. Formal Examination by IPO-Pakistan

After submitting your application, IPO-Pakistan performs a formal examination. This step verifies:

  • Whether the application complies with legal formalities

  • If the content is complete and within the patentable scope

The examination process typically takes 6 to 12 months depending on the backlog. You will receive a Patent Examination Report indicating acceptance, objections, or need for modifications.

5. Respond to Objections (If Any)

If the examination report raises any objections or rejections, you will have an opportunity to:

  • Submit clarifications or counterarguments

  • Modify claims or application content

  • Attend a hearing (if required) with a patent examiner or legal advisor

Timely and detailed responses improve the chance of successful patent registration.

6. Publication in the Official Gazette

Once the examination phase is cleared, your application is published in the IPO Official Gazette. This allows third parties to:

  • Oppose the patent (if applicable)

  • File observations against its grant

If no oppositions are filed within the prescribed period (usually 4 months), the patent proceeds toward registration.

7. Grant of Patent and Certificate

After successful clearance of all stages, IPO-Pakistan issues a Patent Registration Certificate. The granted patent:

  • Is valid for 20 years from the date of filing

  • Requires annual renewal fees to keep it in force

  • Can be licensed, sold, or enforced in court in case of infringement


Documents Required for Patent Registration in Pakistan

To file a patent application, the following documents are needed:

• Completed Patent Application Form (Form P-1 or Form P-2 for convention applications)
• A complete specification and description of the invention
Drawings or illustrations, if the invention involves mechanical or design elements
• A clear statement of claims defining the scope of the patent
Power of Attorney (Form P-28) if the application is being filed by an agent or attorney
• Proof of payment of official fees (challan or receipt)
Copy of priority document, if claiming priority from an earlier application abroad


How to Search for Existing Patents in Pakistan

If you want to verify whether a patent already exists or check the legal status of a filed application:

Visit the IPO-Pakistan website: https://ipo.gov.pk
• Click on the “Patent Search” option in the services section
• Enter keywords, names, or patent numbers to begin your search
Review the search results, which show patent title, registration status, and inventor details
• If a document is available, you can download the specification in PDF format for review


Important Notes for 2025 Applicants

  • IPO-Pakistan now accepts e-signatures for patent submissions via its revamped portal

  • Priority right under the Paris Convention can be claimed within 12 months of filing abroad

  • To enforce your patent, legal action can be taken in civil courts under Sections 60–73 of the Patents Ordinance

  • Keep track of your annuity payments annually to avoid cancellation of your patent


Why Should You Register a Patent?

Exclusive Rights: You get legal protection against unauthorized use, replication, or sale of your invention
Commercialization: Monetize your invention by licensing it to third parties
Investor Credibility: Patents improve the valuation and investment appeal of your business
Competitive Edge: It differentiates your product in the market and protects your R&D

download

HOW TO FILE INCOME TAX IN PAKISTAN?

In Pakistan, individuals and businesses are required to pay income tax if their taxable income exceeds the threshold prescribed under the Income Tax Ordinance, 2001. The Federal Board of Revenue (FBR) administers the income tax collection system and facilitates online tax filing through its IRIS portal.

Who is Required to File Income Tax in Pakistan?

The following categories of taxpayers must file their income tax returns in Pakistan:

Salaried individuals: If your annual salary exceeds the taxable limit (currently Rs. 600,000 for Tax Year 2025), you are required to file an income tax return. Tax is usually deducted at source by employers, but a return must still be filed.

Business owners: Sole proprietors, partnerships, and companies are obligated to file annual income tax returns if their income exceeds the prescribed threshold or if they are registered under sales tax laws.

Freelancers and consultants: Any income earned by self-employed individuals, whether through local or foreign clients, is subject to tax. With rising exports in the IT and services sector, FBR now requires freelancers earning above Rs. 600,000 annually to file returns and become active taxpayers.

Rental income recipients: Individuals receiving rent from property are taxed under Section 15 of the Income Tax Ordinance. The tax can be final or adjustable depending on whether the tenant is a withholding agent.

Capital gains earners: Individuals who earn profits from the disposal of shares, securities, or immovable property must pay capital gains tax (CGT) as per current CGT schedules provided by the FBR.

Foreign income residents: Pakistani residents who receive foreign-sourced income must declare it in their tax returns. Double taxation treaties may apply depending on the source country.

What-is-PSEB-1-1024x577

HOW TO RENEW PSEB REGISTRATION IN PAKISTAN

How to Renew PSEB Registration in Pakistan – Detailed 2025 Guide for Freelancers and IT Exporters

Renewing your registration with the Pakistan Software Export Board (PSEB) is a mandatory step for IT professionals and freelancers who want to continue availing official government incentives, export-related benefits, and tax reliefs. Whether you’re an individual freelancer or running a registered IT company, PSEB renewal ensures that your name stays on the government-recognized list of IT and ITeS service providers.

This guide explains every detail about the renewal process, required documents, common challenges, and practical tips based on 2025 requirements.

What is PSEB Registration?

PSEB registration certifies that you or your company is actively engaged in IT or IT-enabled Services (ITeS) and is exporting services internationally. It’s required to enjoy the tax incentives under the Income Tax Ordinance, participate in government programs, and gain access to international tech exhibitions and trade delegations.

Why You Must Renew Your PSEB Registration Annually

  1. Maintain Exporter Status
    If your certificate expires, you lose the ability to claim benefits such as reduced income tax rates and official exporter recognition.
  2. Tax Incentive Continuity
    PSEB-registered individuals and companies are taxed at just 0.25% on export income, compared to 1% for regular exporters.
  3. Credibility and Compliance
    An active PSEB certificate enhances your profile when dealing with clients, banks, and investors. Many clients ask for proof of PSEB registration before contracting IT work from Pakistan.
  4. Eligibility for Government Programs
    PSEB-registered entities gain priority access to skill development programs, subsidized certifications, and funding initiatives supported by MoITT and Ignite.
  5. Visa Facilitation Letters
    PSEB helps freelancers and IT companies obtain visa recommendation letters for international events, training programs, and client visits.

Who Needs to Renew?

  • Individual Freelancers (Registered as Sole Proprietors)
  • Private Limited Companies (IT/ITeS service providers)
  • Single Member Companies (SMCs)
  • LLPs and Partnerships engaged in IT exports

All categories must renew annually to remain in good standing.

Renewal Fee for 2025

  • Individual/Freelancer: Rs. 2,000 per year
  • Company (SMC/Pvt Ltd/LLP): Rs. 3,000 to Rs. 5,000 depending on type
  • Payment Methods: Debit/Credit Card (via portal if enabled), Pay Order/Demand Draft in favor of “Pakistan Software Export Board (G) Ltd”

Documents Required for Renewal

  1. Valid NTN Certificate (in your name for freelancers or in company’s name)
  2. Scanned CNIC (front and back)
  3. Bank Account Maintenance Certificate
    • It must clearly show your name and account number
    • Dated within the past 30 days
  4. Payment Remittance Certificates (PRCs)
    • Issued by your bank or received via foreign inward remittance (e.g., Payoneer/Bank Swift)
    • Must carry SBP Purpose Code 9186 for IT exports
    • Match declared export income on the portal
  5. Latest Filed Income Tax Return (FBR portal)
    • Include screenshot or PDF of “Filed” status
    • Must show declared foreign income
  6. Previous PSEB Certificate (if applicable)
    • Helps in record verification

Note: First-time renewals may be allowed with an affidavit if PRCs are not available, but for subsequent renewals, proper PRCs are mandatory.

Step-by-Step Process for PSEB Renewal (2025 Updated)

  1. Login to the PSEB Portal
    • Visit the official portal (TechDestination.com > Registration Portal)
    • Login with your credentials
    • If password is forgotten, use the “Forgot Password” option to reset
  2. Select “Renew Registration” Option
    • On your dashboard, you’ll see the “Renew” button if your certificate is near expiry
    • Select your registration type: Freelancer, Company, SMC, LLP
  3. Update Profile Information
    • Review all fields: Name, Business Activity, Export Income, Bank Details, Contact Info
    • Ensure all fields are accurate as they are reviewed manually
  4. Upload All Required Documents
    • Upload each document in PDF/JPEG format
    • Maximum file size per document: Usually 2MB
    • File names should be clear (e.g., “NTN_Certificate.pdf”, “PRC_2024.pdf”)
  5. Pay the Renewal Fee
    • Option 1: Pay via card on the portal (if active)
    • Option 2: Prepare a Pay Order
      • Title: Pakistan Software Export Board (G) Ltd
      • NTN: 2315376-8
      • Write your Name and CNIC/Company name on the back
      • Upload scanned copy and send original via courier to the PSEB office
  6. Submit Application and Wait for Review
    • After submitting the form and payment, your application status will change to “Under Review”
    • Verification usually takes 2 to 5 working days if documents are complete
  7. Download Renewed Certificate
    • Once approved, a downloadable link for your renewed certificate will appear in your dashboard
    • Save and print the certificate for record and future use

Common Issues and How to Avoid Them

  • Missing PRCs: Always receive export payments via banking channels using correct SBP codes. Avoid apps like Wise or Skrill that don’t issue PRCs.
  • Delayed Payment Verification: Always mention your registration type and name on the Pay Order and upload the scanned copy as soon as it’s issued.
  • ITR Not Filed: File your return on time even if income is NIL. You won’t be able to renew without a valid filed return.
  • Wrong SBP Code: Banks may use wrong remittance codes. Always confirm your payments are coded under “9186” or related IT/ITeS service codes.

Pro Tips for Smooth Renewal

  • Start the renewal process at least 30 days before your certificate expiry
  • Keep digital and printed copies of all submissions and payments
  • Keep your FBR profile and tax filings updated as they are cross-verified by PSEB
  • Open a freelancer-friendly bank account that issues PRCs digitally and offers export services (UBL, Meezan, JS, etc.)
  • Join freelancer communities or groups to stay updated on any changes in PSEB policy

Final Thoughts

Renewing your PSEB registration is more than a formality—it’s an essential part of maintaining your status as a legitimate IT service exporter from Pakistan. It ensures continued access to reduced tax rates, enhances your professional reputation, and opens doors to government incentives, certifications, and international exposure. With growing global demand for remote services, keeping your PSEB status active is vital for scaling your freelancing or IT business.

By following this updated 2025 guide and staying compliant with documentation and timelines, you can easily maintain your eligibility for all the benefits the Pakistan Software Export Board offers to the digital economy.

Punjab-revenue-authority-SMK-MOJO-222-Sadaan

HOW TO FILE PRA SALE TAX RETURN

The Punjab Revenue Authority (PRA) is responsible for collecting Sales Tax on Services in the province of Punjab. All service providers registered with PRA must file monthly sales tax returns, even if no taxable services were provided during the month (zero return). Filing is done electronically through the PRA’s official portal.

Below is a step-by-step updated guide for filing PRA sales tax returns in 2025:

Step 1: Register with PRA

If you haven’t already registered, visit https://www.pra.punjab.gov.pk and complete the online registration process to obtain your Punjab Sales Tax Registration Number (PSTRN).

Step 2: Gather Required Information

Before starting the return filing, prepare the following:

  • Monthly sales invoices

  • Purchase invoices (if claiming input tax)

  • Payment receipts

  • Tax calculation sheets

  • Bank details (for tax payment)

  • Adjustments and carry-forward summaries (if any)

Step 3: Log In to PRA e-Filing Portal

Step 4: Go to ‘Return Filing’

  • Click on “Sales Tax Return” under the e-Services menu

  • Select the tax period (month and year) for which the return is being filed

  • Click on “Start Filing” to initiate the process

Step 5: Fill Out the Sales Tax Return

  • Taxable Turnover: Enter gross value of taxable services provided during the month

  • Output Tax: System auto-calculates based on applicable rate (usually 16%)

  • Exempt/Zero-Rated Services: If applicable, provide details

  • Input Tax (if allowed): Input any admissible purchases and services that qualify for tax adjustment

  • Adjustments: Include any previous month’s carry-forward credits or debit notes

  • Net Payable Tax: The system will compute the amount payable

Step 6: Review and Submit Return

  • Carefully review all fields before submission

  • Once confirmed, click “Submit”

  • A confirmation message and Return Filing Reference Number (RFRN) will be generated

Step 7: Generate PSID and Pay Tax

  • Go to “Payment” section

  • Select your tax period and click on “Generate PSID”

  • Use the PSID to pay via:

    • 1Link connected bank branches

    • Mobile banking apps

    • ATM or internet banking

  • Save proof of payment

Step 8: Recheck Filing Status

  • After successful payment, revisit the dashboard to ensure the status shows “Filed”

  • Download and save a copy of your filed return PDF for your records

Filing Deadline

  • Returns must be filed by the 15th of every month for the previous month

  • Late filing may result in penalties and default surcharge

Key Compliance Notes

  • Zero activity? You must still file a Nil Return

  • Maintain digital and hard copies of all documents for 5 years

  • PRA may conduct audits, so ensure record accuracy

Punjab-revenue-authority-SMK-MOJO-222-Sadaan

HOW TO REGISTER WITH PRA IN PAKISTAN?

In Pakistan, PRA refers to the Punjab Revenue Authority, not Pakistan Revenue Automation Limited, which is a separate entity. The Punjab Revenue Authority (PRA) is responsible for the administration and collection of Sales Tax on Services in the province of Punjab under the Punjab Sales Tax on Services Act, 2012.

If you are a service provider operating in Punjab and fall under the taxable services list, registration with PRA is mandatory. The process is fully online, and registration can be completed through the PRA’s official portal.

Who Needs to Register with PRA?

  • Individuals, sole proprietors, firms, or companies providing taxable services in Punjab

  • Businesses involved in sectors such as restaurants, salons, consultants, construction, freight, IT services, and more (as per PRA Schedules)

  • Any service provider with a business location in Punjab, even if the head office is elsewhere

Prerequisites for PRA Registration

Before initiating registration with PRA, make sure you have the following:

  • Valid CNIC (for individuals)

  • NTN (National Tax Number) from FBR

  • Sales Tax Registration Number (if already registered with FBR)

  • Business Registration Certificate (SECP for companies or Partnership Deed for firms)

  • Active email address and mobile number

  • Utility bill and tenancy/ownership documents (for business premises verification)

  • Bank account details of the business

Step-by-Step PRA Registration Process (2025 Updated)

Step 1: Visit the PRA Portal
Go to the official PRA website: https://www.pra.punjab.gov.pk

Step 2: Click on “e-Registration”
Under the “Taxpayer Services” or “Login” menu, choose “e-Registration” for new taxpayers.

Step 3: Create an Account
You will be asked to create an account using your CNIC/NTN, email, and phone number. An OTP will be sent for verification.

Step 4: Fill Out the Registration Form
Enter the following information:

  • Personal/business profile

  • Type of service you offer

  • Address of business premises

  • Bank account details

  • CNIC/NTN/Registration documents

Step 5: Upload Required Documents
Upload scanned PDF copies of:

  • CNIC

  • NTN certificate

  • SECP incorporation or business registration certificate

  • Rent/ownership agreement of premises

  • Utility bill (electricity or gas – not older than 3 months)

Step 6: Submit the Application
Once the application is submitted, PRA will verify the information. You will receive an acknowledgment email with a tracking ID.

Step 7: PRA Verification and Account Activation
The PRA team may conduct a physical or virtual verification. After approval, your PRA Registration Number (PSTRN) will be issued, and your account will be activated.

Step 8: Start Filing Returns
Log in using your credentials. File monthly Sales Tax Returns on Services through the PRA portal by the 15th of every month, even if there is no activity (zero return).

Key Compliance Requirements After Registration

  • File monthly returns (Form PST-03) on time

  • Pay due tax through PSID and integrated bank channels

  • Maintain proper records and invoices (Rule 29 of Punjab Sales Tax Rules, 2012)

  • Display PRA Registration Certificate at your place of business

  • Cooperate with PRA audit and enforcement teams if required

Common PRA Taxable Services (Partial List):

  • Restaurants and catering services

  • Beauty salons, spas, and gyms

  • Software development and IT services

  • Event management

  • Freight forwarding and logistics

  • Legal and accounting services

  • Advertising and marketing agencies

Note: Failure to register may result in penalties, fines, or forced registration by the PRA

WHAT IS TAX OF VEHICLES IN PUNJAB PAKISTAN?

In Punjab, vehicle-related taxes are administered by the Excise, Taxation and Narcotics Control Department under the Motor Vehicle Ordinance, 1965 and the Motor Vehicle Tax Act, 1958. These taxes generate significant revenue for the provincial government and include token tax, withholding tax, professional tax, and capital value tax (CVT). Vehicle tax obligations differ based on engine capacity, ownership status, and whether the taxpayer is on the FBR Active Taxpayer List (ATL).

Methods of Payment

  • Online via ePay Punjab App or FBR’s e-portal

  • Designated bank branches using printed challans

  • Excise and Taxation Offices across Punjab

Token Tax (Motor Vehicle Tax – MVT) and Professional Tax

Vehicle Engine Capacity Token Tax (MVT) Filer Non-Filer Professional Tax
Motorcycle (new reg.) PKR 1,500 PKR 200
Up to 1000cc PKR 15,000 PKR 10,000 PKR 20,000 PKR 200
1001–1199cc PKR 1,800 PKR 1,500 PKR 3,000 PKR 200
1200–1299cc PKR 1,800 PKR 1,750 PKR 3,500 PKR 200
1300cc PKR 1,800 PKR 2,500 PKR 5,000 PKR 200
1301–1499cc PKR 6,000 PKR 2,500 PKR 5,000 PKR 200
1500cc PKR 6,000 PKR 3,750 PKR 7,500 PKR 200
1501–1599cc PKR 9,000 PKR 3,750 PKR 7,500 PKR 200
1600–1999cc PKR 9,000 PKR 4,500 PKR 9,000 PKR 200
2000cc PKR 9,000 PKR 10,000 PKR 20,000 PKR 200
2001–2500cc PKR 12,000 PKR 10,000 PKR 20,000 PKR 200
2500cc and above PKR 15,000 PKR 10,000 PKR 20,000 PKR 200

Capital Value Tax (CVT) on Motor Vehicles

  • Imposed on vehicles with engine capacity above 1300cc

  • Tax rate: 1% of the vehicle’s value (as per Excise’s valuation tables)

  • Tax Period: 5 years from the fiscal year of first registration

  • Depreciation: Annual deduction of 10% in vehicle value

  • Exemption: After 6 years, no CVT is applicable

Withholding Tax on Vehicle Registration (Effective FY 2025)

Applies at the time of first registration or transfer of ownership. Rates vary based on engine size and taxpayer status.

Engine Capacity Filer Non-Filer
Up to 850cc PKR 10,000 PKR 30,000
851–1000cc PKR 20,000 PKR 60,000
1001–1300cc PKR 25,000 PKR 75,000
1301–1600cc PKR 50,000 PKR 150,000
1601–1800cc PKR 150,000 PKR 450,000
1801–2000cc PKR 200,000 PKR 600,000
2001–2500cc PKR 300,000 PKR 900,000
2501–3000cc PKR 400,000 PKR 1,200,000
Above 3000cc PKR 500,000 PKR 1,500,000

Important Notes

  • Filing status as Filer or Non-Filer significantly affects tax liabilities

  • Registration or transfer of vehicles cannot proceed unless taxes are paid

  • Withholding tax paid at registration is adjustable against annual income tax liability

  • Non-filers also face restrictions on purchasing certain categories of vehicles

download

WHAT IS FEDERAL EXCISE DUTY(FED) IN PAKISTAN?

WHAT IS FEDERAL EXCISE DUTY(FED) IN PAKISTAN?

Federal Excise Duty (FED) in Pakistan is an indirect tax levied by the federal government on the manufacture, production, import, and certain services as defined under the Federal Excise Act, 2005. The primary objective of FED is to regulate the consumption of specific goods and services, especially those considered non-essential, harmful, or luxury in nature, while also generating substantial revenue for the government.

FED is administered by the Federal Board of Revenue (FBR) and is payable by manufacturers, importers, and service providers.

Legal Framework

The key legislative instruments governing FED in Pakistan include:

  • Federal Excise Act, 2005

  • Federal Excise Rules, 2005

  • Finance Act (issued annually)

  • Notifications and SROs issued by FBR

Scope of Federal Excise Duty in Pakistan

FED applies to both:

  • Goods manufactured or produced in Pakistan

  • Goods imported into Pakistan

  • Certain services provided within Pakistan

FED is either charged in:

  • Ad valorem terms (as a percentage of value)

  • Specific terms (fixed amount per unit/quantity)

Common Goods & Services Subject to FED (2025 Update)

Tobacco Products

  • Cigarettes, cigars, and other tobacco substitutes

  • FED can range from 24.5% to over 300%, depending on brand and retail price

  • Tiered structure applies based on per 1,000 sticks or retail price slabs

Carbonated and Aerated Drinks

  • Soft drinks, energy drinks, flavored sodas

  • FED charged at 20% of retail price

  • Bottled sweetened juices may also fall under this category in some cases

Luxury and Non-Essential Items

  • High-end vehicles (over 1300cc), imported cosmetics, perfumes, watches, and jewelry

  • FED rates range from 10% to 25%, subject to government policy updates

Services Subject to FED

  • Telecommunications (mobile, internet, and landline services) – 16% to 19.5%

  • Air travel (business/first class domestic and international tickets) – PKR 10,000 to PKR 50,000 per ticket

  • Franchise services, banking and insurance services – 13% to 16%

Cement

  • FED on cement is charged at a fixed rate per metric ton, currently PKR 2 per kg (i.e., PKR 2,000 per metric ton)

Edible Oils and Ghee

  • Typically attract ad valorem FED of 16%, though zero-rated in some cases when sold unpackaged or in bulk for industrial use

Who Is Required to Pay FED?

  • Manufacturers and Producers of excisable goods in Pakistan

  • Importers bringing excisable goods into the country

  • Service Providers offering excisable services

  • FED is deposited on a monthly basis along with filing of FED returns through the IRIS portal

Registration and Filing

  • Entities involved in excisable goods/services must be registered for FED with FBR

  • Monthly FED return (Form STR-1) must be submitted by the 15th of the following month

  • Payment is made through PSID (Payment Slip ID) via banks integrated with 1Link system

Exemptions and Concessions

  • FED may not apply if the supply is export-oriented or within exempt sectors

  • Exemptions or reduced rates may be granted through SROs or under Free Trade Agreements (FTAs)

  • Cottage industries producing below certain annual revenue thresholds may also be exempt

Enforcement and Penalties

Failure to comply with FED laws may result in:

  • Penalties for late filing or non-filing

  • Recovery of unpaid FED

  • Seizure of goods or business records

  • Legal action including fines and prosecution under Excise Act

WHAT IS TAX ON PARTNERSHIPS IN PAKISTAN?

In Pakistan, partnerships are governed under the Partnership Act, 1932 and taxed under the Income Tax Ordinance, 2001. For taxation purposes, all partnerships—whether registered or unregistered—are classified as Associations of Persons (AOPs). The taxation of AOPs depends on the nature of income, total taxable income, and compliance status with the Federal Board of Revenue (FBR).

Types of Partnerships in Pakistan

General Partnership
This is the most common form of partnership in Pakistan, where all partners are personally liable for business obligations. Each partner shares in the profits and losses of the firm either equally or according to an agreed ratio.

Limited Partnership
This structure includes both general and limited partners. Limited partners contribute capital and share profits but are not involved in daily operations and are only liable up to their capital investment.

Taxation Structure for Partnerships (AOPs)

Income from Business or Profession
AOPs are taxed on their net business income as per the progressive tax slabs notified by FBR each year. For Tax Year 2025, the latest income slabs are:

  • Up to PKR 400,000 – 0%

  • PKR 400,001 to 600,000 – 5% of the amount exceeding PKR 400,000

  • PKR 600,001 to 1,200,000 – PKR 10,000 + 10% of the amount exceeding PKR 600,000

  • PKR 1,200,001 to 2,400,000 – PKR 70,000 + 15% of the amount exceeding PKR 1,200,000

  • PKR 2,400,001 to 3,000,000 – PKR 250,000 + 20% of the amount exceeding PKR 2,400,000

  • PKR 3,000,001 to 4,000,000 – PKR 370,000 + 25% of the amount exceeding PKR 3,000,000

  • Above PKR 4,000,000 – PKR 620,000 + 30% of the amount exceeding PKR 4,000,000

Capital Gains
Short-term capital gains on securities (held less than one year) are taxed at 15% to 20%
Long-term gains (held more than one year) are taxed at 0% to 15% depending on holding period
Capital gains on immovable property may also be taxed under separate slabs defined by FBR

Rental Income
Rental income earned by AOPs is taxed separately at progressive slab rates ranging from 15% to 30%, based on total rental income in a tax year

Dividend Income
Dividend income received by the partnership is taxed at 15% for ATL (Active Taxpayers) and 30% for non-ATL members

Profit on Debt
Income from profit on bank deposits and debt instruments is taxed at 15% (ATL) or 30% (non-ATL)

Other Applicable Taxes on Partnerships

Sales Tax
If the partnership is involved in the sale of goods or taxable services, it must be registered for sales tax. The general sales tax rate is 18% under the Sales Tax Act, 1990

Federal Excise Duty (FED)
Applicable only if the partnership is engaged in manufacturing or providing excisable goods or services

Withholding Tax (WHT)
AOPs are required to deduct and deposit withholding tax under various sections such as payments to contractors, rent, and salaries

Advance Tax Under Section 147
All AOPs with taxable income must pay advance tax on a quarterly basis

Minimum Tax Under Section 113
If an AOP reports a loss or low taxable income, a minimum tax of 1.25% of turnover is applied (subject to exceptions and thresholds)

Partnership Registration and Tax Compliance

  • Choose a business name and check availability with the Registrar of Firms

  • Draft a Partnership Deed detailing profit-sharing ratios, roles, and capital contributions

  • Register the firm with the Registrar of Firms under the applicable provincial law

  • Obtain National Tax Numbers (NTNs) for both the firm and its partners from FBR

  • Register for Sales Tax if applicable

  • File annual income tax return and wealth statement through IRIS system

  • Register with Social Security (PESSI) and Employees’ Old-Age Benefits Institution (EOBI) if employing staff