Frequently Asked Questions

Any individual with annual income exceeding PKR 600,000, all companies and AOPs regardless of income, NTN holders, and anyone appearing on the FBR Active Taxpayer List (ATL) is required to file. Even if no tax is due, filing keeps you on the ATL and avoids higher WHT rates on your transactions.

Under section 118 of the Income Tax Ordinance, individuals (including salaried persons) and AOPs file by 30 September following the tax year ending 30 June. Companies with a tax year ending between 1 January and 30 June file by 31 December; companies with a tax year ending between 1 July and 31 December file by 30 September. FBR frequently extends these dates — always check the latest FBR notification or ask your adviser.

A "filer" is someone on the FBR Active Taxpayer List (ATL) — they pay lower withholding tax rates (e.g., 3% vs 6% on services). A "non-filer" is not on the ATL and is subject to higher WHT rates, sometimes double. Filing a return and paying dues restores ATL status.

WHT is tax collected at source by the payer (a company or AOP) before making payments for services, supplies, rent, dividends, etc. The payer is responsible for deducting and depositing the amount with FBR by the 15th of the following month and filing the relevant withholding statement.

Yes — adjustable WHT is credited against your final tax liability. If the total WHT deducted exceeds your annual tax, you can claim a refund through your income tax return. Final tax categories (dividends, exports) are not adjustable.

A Private Limited Company (Pvt Ltd) requires at least 2 shareholders, offers limited liability, and is ideal for businesses planning to scale. An SMC-Pvt Ltd (Single Member Company) is similar but owned by one person. An LLP (Limited Liability Partnership) combines elements of a partnership and a company — suited for professional firms — and has lower compliance costs but partners cannot be companies.

Online registration via the SECP eServices portal typically takes 1–3 working days once all documents are in order. The main documents required are CNICs of directors/shareholders, a Memorandum and Articles of Association, and payment of the prescribed government fee. We often complete registrations within 24 hours.

Form A is the Annual Return — a statutory declaration filed within 30 days of the company's Annual General Meeting (AGM). It confirms directors, shareholders, registered office, and share capital. Failure to file attracts a penalty of PKR 1,000/day under the Companies Act 2017.

Form 29 notifies SECP of changes in directors, CEO, registered office address, company secretary, or any other corporate particulars. It must be filed within 15 days of the change. Late filing incurs penalties, so it is important to notify SECP promptly after any board or address changes.

Yes. Every SECP-registered company must obtain an NTN (National Tax Number) from FBR, register for Sales Tax if annual turnover exceeds PKR 10 million (or from day one in certain sectors), and comply with both SECP and FBR filing obligations separately. We handle both registrations together.

For Tax Year 2027 (July 2026 – June 2027), under Finance Act 2026: up to PKR 600,000 — 0%; PKR 600,001–1,200,000 — 1% of the excess over 600,000; PKR 1,200,001–2,200,000 — PKR 6,000 + 11%; PKR 2,200,001–3,200,000 — PKR 116,000 + 20%; PKR 3,200,001–4,100,000 — PKR 316,000 + 25%; PKR 4,100,001–5,600,000 — PKR 541,000 + 29%; PKR 5,600,001–7,000,000 — PKR 976,000 + 32%; above PKR 7,000,000 — PKR 1,424,000 + 35%. The 9% surcharge on high-earning salaried individuals has been abolished. Use our free FBR Salary Tax Calculator for an exact figure.

EOBI (Employees' Old-Age Benefits Institution) is a mandatory pension scheme for private sector employees. Businesses with 5 or more employees must register. The employer contributes 5% of minimum wage (PKR 1,850/month per employee) and the employee contributes 1% (PKR 370/month). Failure to register attracts penalties and back-payment of contributions.

Best practice is to maintain an imprest petty cash fund with a fixed float (e.g., PKR 10,000–50,000). Every payment is supported by a receipt and entered in a petty cash register. At the end of the period, the fund is replenished to the float amount. This should tie into the main accounting system (QuickBooks, Xero, or even an Excel ledger) monthly.

Monthly reconciliation is the minimum standard — comparing your bank statement with your books to catch any discrepancies, missed entries, or bank charges. For businesses with high transaction volumes, weekly reconciliation is advisable. Reconciliation errors that go undetected for months become very difficult and costly to unwind.

Businesses with annual turnover exceeding PKR 10 million are required to register for Sales Tax. Some sectors (e.g., restaurants, services in certain provinces) have lower or no thresholds. Once registered, you must pay the tax by the 15th and file the monthly return by the 18th of the following month, charge 18% on standard-rated supplies, and claim input tax on purchases.

Yes. Free zone entities must register and file returns. Qualifying Free Zone Persons may pay 0% on qualifying income, but only if they meet substance, audit and income conditions.

The return and any tax payable are due within nine months of the end of the tax period — for a 31 December year-end, by 30 September of the following year.

A company must apply to de-register within three months of ceasing business, after filing its final return and settling any liabilities. We manage the full process, including licence cancellation coordination.

Within 30 days of your taxable supplies exceeding AED 375,000 over the previous 12 months, or when you expect them to exceed that amount in the next 30 days.

You must apply to de-register if you stop making taxable supplies, and may apply if supplies fall below AED 187,500. All returns must be filed and liabilities settled first.

Errors above AED 10,000 in tax generally require a voluntary disclosure. Disclosing before the FTA contacts you significantly reduces penalties.

It depends on your jurisdiction and size. Mainland LLCs and many free zones require audits, and Corporate Tax requires them above AED 50 million revenue. Our free requirements checker gives a quick answer.

No — independence rules prevent the preparer from auditing the same statements. We prepare the statements and work alongside your licensed auditor.

For trade receivables and contract assets without a significant financing component, IFRS 9 lets you recognise lifetime expected losses using a provision matrix based on ageing buckets — no staging needed.

At every reporting date. Loss rates should be refreshed at least annually and the forward-looking overlay reviewed whenever economic conditions change.

Yes. Prescribed companies and non-financial entities are commonly used for holding structures, family offices and regional headquarters.

Non-financial entities can typically be incorporated in 4–8 weeks once documents are ready. DFSA-authorised firms usually take several months.

Monthly suits VAT-registered and higher-volume businesses; quarterly suits steady, lower-volume businesses. Our free recommender suggests a cadence and cost range.

Corporate Tax law requires records to be retained for seven years after the end of the tax period; VAT records generally for five years, and longer for real estate.

UAE companies must maintain a register of their ultimate beneficial owners — individuals owning or controlling 25% or more — and file it with their registrar, updating it within 15 days of changes.

Yes. Each free zone has its own audit, renewal and reporting rules on top of federal FTA obligations. We track both.

A mainland licence lets you trade anywhere in the UAE and bid for government work; a free zone licence is often cheaper and faster but restricts direct mainland trade. We compare both for your activity.

Late renewal fines accrue and the establishment card can be blocked, which stops new visas and renewals. We track expiry dates and start renewals early.

Categories include property investors (generally AED 2 million+), business investors, highly paid professionals, exceptional talents, top students and others. We assess eligibility before you apply.

Employment visas usually take 2–3 weeks end to end; Golden Visas can take 30–60 days depending on category and authority.

We offer end-to-end financial and compliance services for Pakistani businesses: bookkeeping and accounting, FBR tax filing (income tax, sales tax, WHT), SECP company registration and annual compliance, payroll processing (EOBI/PESSI/SESSI), financial planning and analysis, and CFO advisory services for growing SMEs.

Yes. The majority of our clients are served entirely online — we use cloud accounting tools, e-mail, and video calls. FBR and SECP filings can be done remotely from anywhere in Pakistan. Our team works with businesses in Peshawar, Karachi, Lahore, Islamabad, and beyond.

We offer monthly retainer packages for ongoing services (bookkeeping, payroll, compliance) and fixed-fee quotes for one-time work (company registration, tax filing, audit support). We discuss pricing transparently in the first consultation — no hidden charges. Contact us for a tailored quote.

Sonnets Consultancy LLP is registered under SECP as a Limited Liability Partnership. You can reach us at business@sonnetsllp.com or via phone at 0330-685-1625. For direct partner correspondence, rafy@sonnetsllp.com is also available.

The quickest way is to book a free 30-minute consultation via our Contact page. We'll understand your business, identify the compliance gaps, and send you a clear proposal within 48 hours — no obligation.