What is a Tax Year?

A tax year in Pakistan is a period of twelve months ending on 30th June. It is also known as the financial year. The normal tax year is the calendar year, i.e. 1st January to 31st December. However, the Federal Board of Revenue (FBR) can approve a special tax year for a taxpayer, which can be any period of twelve months.

Examples of tax years in Pakistan:

Normal tax year: 2023-2024 (1st July 2023 to 30th June 2024)

Special tax year:

2022-2023 (1st January 2022 to 31st December 2022)
2023-2024 (1st October 2023 to 30th September 2024)

Taxpayers who may be eligible for a special tax year:

• Taxpayers who start a new business during the year.
• Taxpayers who have a significant change in their business activities during the year.
• Taxpayers who have a temporary interruption in their business activities during the year.

To apply for a special tax year, taxpayers must submit a request to the FBR. The FBR will consider the request and approve it if it is justified.

Tax return filing deadlines:

Taxpayer Individuals/AOPs are required to file their income tax returns for the previous tax year by 30th September of the current tax year. Taxpayer Companies are required to file their income tax returns for the previous tax year by 31st December of the current tax year.

For example, taxpayers must file their income tax returns for the tax year 2023-2024 by 30th September 2024.
If a taxpayer has been granted a special tax year, their tax return filing deadline will be determined by the FBR.

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