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IT Hardware Import Standards & Value Addition
| SRO/Notification | Description | Benefit | Reference |
|---|---|---|---|
| SRO 981(I)/2015 | IT services zero-rated for sales tax | 0% SST for PSEB-registered | |
| SRO 540(I)/2018 | Customs duty exemption for IT equipment | 0% customs for PSEB-registered | |
| SRO 288(I)/2026 | Online integration of businesses | New compliance requirement | |
| Finance Act 2025 | Customs tariff changes | Check latest rates | |
| IT Hardware SRO | Reduced duty on specified IT equipment | 5-10% for PSEB-registered |
| Function | Description | Jurisdiction | IT Company Impact |
|---|---|---|---|
| Quality Standards | Sets standards for imported IT equipment | Federal/ICT | Must comply before customs clearance |
| Value Addition | Local assembly/processing requirements | Federal/ICT | Affects duty rates for hardware imports |
| Duty Exemption Schemes | Manages exemption for registered manufacturers | Federal/ICT | PSEB companies can claim exemptions |
| Conformity Assessment | Pre- and post-import verification | Federal/ICT | IT equipment must meet EDB standards |
| Auto Policy Input | Advises on engineering sector policy | Federal/ICT | Affects hardware manufacturing incentives |
| Equipment | Standard Duty | PSEB-Registered | SRO Reference | Jurisdiction |
|---|---|---|---|---|
| Computers/Laptops | 0-20% | 0% (exempt) | SRO 488(I)/2013 | Federal/ICT |
| Servers | 0-20% | 0% (exempt) | SRO 488(I)/2013 | Federal/ICT |
| Networking Equipment | 5-20% | 0% (exempt) | SRO 488(I)/2013 | Federal/ICT |
| Software | 0% | 0% (always exempt) | N/A | Federal/ICT |
| IT Equipment (general) | 0-20% | 0% (exempt) | SRO 488(I)/2013 | Federal/ICT |
| Non-IT Equipment | 5-35% | Standard rates apply | N/A | Federal/ICT |
| Laptops (non-PSEB, assembled) | 25% | Standard | Import Policy Order | Federal/ICT |
| Desktop Computers (non-PSEB) | 20% | Standard | Import Policy Order | Federal/ICT |
| Computer Peripherals | 15% | PSEB exempt | Import Policy Order | Federal/ICT |
| Networking (non-PSEB) | 18% | PSEB exempt | Import Policy Order | Federal/ICT |
| Category | Local Value Addition | Jurisdiction |
|---|---|---|
| Complete Units | 25% local assembly/processing | Federal/ICT |
| Semi-Knocked Down (SKD) | 40% local content | Federal/ICT |
| Completely Knocked Down (CKD) | 60% local assembly | Federal/ICT |
| Tax | Rate | Conditions | Reference |
|---|---|---|---|
| Corporate Tax (PSEB IT export) | 0.25% | PSEB registration required | ITO §154A |
| Corporate Tax (domestic) | 20% | Standard rate | ITO §154A |
| WHT Export (PSEB) | 0.25% | PSEB-registered | ITO §154A |
| WHT Export (non-PSEB) | 1% | Non-PSEB | ITO §154A |
| Startup Tax Credit | 100% for 3 years | ITO §65F(b) | ITO §65F |
| SST Sindh IT concessional | 3% | Software dev, CPC 83100 | SRO 981(I)/2015 |
| SST Punjab IT | 0% (Zero-Rated) | IT-enabled services | PRA — Punjab Revenue Authority |
| SEZ Tax Holiday | 10-year 0% | SEZ companies | SEZ Act 2012 / BOI |
| Resource | Link |
|---|---|
| EDB | edb.org.pk |
| PSEB | pseb.org.pk |
| FBR / WeBOC | weboc.gov.pk |
| PTA DIRBS | dirbs.pta.gov.pk |
| PSW | psw.gov.pk |
| FBR IRIS | iris.fbr.gov.pk |
| Tax | Rate | Jurisdiction | Conditions | Reference |
|---|---|---|---|---|
| Corporate Tax (PSEB IT export) | 0.25% | Federal/ICT | PSEB + 80% export revenue | ITO §154A |
| Corporate Tax (domestic IT) | 20% | Federal/ICT | Standard corporate rate | ITO §154 |
| WHT Export Remittance (PSEB) | 0.25% | Federal/ICT | PSEB-registered | ITO §154A |
| WHT Export Remittance (non-PSEB) | 1% | Federal/ICT | No PSEB registration | ITO §154A |
| WHT Domestic Services | 3-8% | Federal/ICT | Standard service withholding | ITO §153 |
| Startup Tax Credit | 100% for 3 years | Federal/ICT | PSEB mandatory, <PKR 100M | ITO §65F(b) |
| SEZ Tax Holiday | 10-year income tax 0% | Federal/ICT | SEZ-registered companies | SEZ Act 2012 / BOI |
| SST Sindh — IT concessional | 3% | Sindh | Software dev, CPC 83100 | SRB Notification July 2025 (CPC 83100, sub-rule 1A) |
| SST Sindh — IT export (PSEB) | 0% | Sindh | PSEB + 80% export | SRO 981(I)/2015 (exemption for PSEB-registered IT exporters) |
| SST Sindh — Standard | 15% | Sindh | Default rate | Sindh Sales Tax on Services Act 2011 §4 |
| SST Punjab — IT-Enabled Services | 0% (Zero-Rated) | Punjab | Hosting, maintenance, data processing | Punjab Sales Tax on Services Act 2012, PRA Notification (0% (Zero-Rated) for domestic IT) |
| SST Punjab — Software Dev | 0% (zero-rated) | Punjab | Pure software development | Punjab Sales Tax on Services Act 2012, Notification per PRA directive |
| SST Punjab — IT export (PSEB) | 0% | Punjab | PSEB + 80% export | SRO 981(I)/2015 (extended to Punjab) |
| SST Punjab — Standard | 16% | Punjab | Default rate | Punjab Sales Tax on Services Act 2012 §4 |
| SST KP — IT concessional | 2-5% | KP | PSEB-registered IT | KP Finance Act (annual), Notification per KPRA |
| SST KP — IT export (PSEB) | 0% | KP | PSEB + 80% export | SRO 981(I)/2015 (extended to KP) |
| SST KP — Standard | 15% | KP | Default rate | KP Finance Act (annual) |
| SST Balochistan — IT export | 0% | Balochistan | PSEB + export | SRO 981(I)/2015 (extended to Balochistan), per BRA notification |
| SST Balochistan — Standard | 15% | Balochistan | Default rate | Balochistan Sales Tax on Services Act 2015 |
| SST Telecom (all provinces) | 19.5% | All provinces | Mobile, internet, fixed-line | Provincial Acts |
| EOBI | 5% employer + 1% employee | Federal/ICT | 5+ employees, PKR 37,000/mo ceiling (EOBI Act & Rules) | EOBI Act 1976 |
| SESSI (Sindh) | 6% employer + 1% employee | Sindh | 5+ employees | SESSI Act |
| PESSI (Punjab) | 6% employer + 1% employee | Punjab | 5+ employees | PESSI Ord. 1965 |
| Workers Welfare Fund | 2% of income > PKR 500K | Federal/ICT | 5+ employees, annual | WWF Ord. 1969 |
| 50% FCY Retention | Retain export proceeds in FCY | Federal/ICT | All IT exporters | SBP FECL 05/2026 — Foreign Exchange |
| 100% Foreign Ownership | IT sector allows 100% foreign equity | Federal/ICT | All IT companies | BOI Investment Policy 2023 |
| Duty-Free IT Equipment | 0% customs duty | Federal/ICT | PSEB-registered | PSEB / SRO 488(I)/2013 |
| Body | Role | Website |
|---|---|---|
| FBR / IRIS | Income tax filing, WHT, ATL status | iris.fbr.gov.pk |
| SECP / LEAP | Company registration, annual returns | leap.secp.gov.pk |
| PSEB | IT registration, 0.25% WHT, duty exemptions | pseb.org.pk |
| SBP | FCY retention, EFS, Cyber Shield (Mar 2026) | sbp.org.pk |
| PTA | Telecom licensing, 5G, DIRBS | pta.gov.pk |
| SECP | Corporate governance, company law | secp.gov.pk |
| NADRA | Digital identity (PakID: 15.4M downloads) | nadra.gov.pk |
| WeBOC | Electronic customs declarations | weboc.gov.pk |
| Roshan Digital Account | Overseas Pakistani investment | roshandigitalaccount.com |
| Raast | Instant payment system | raast.pk |
| STZA | Special Technology Zones | STZA — Act & Rules |
| BOI | Investment policy, 100% foreign ownership | invest.gov.pk |
| PPRA | Government procurement (EPADS V2.0) | PPRA — Rules & Regulations |
| FIA Cybercrime | PECA enforcement, Helpline 1991 | cybercrime.gov.pk |
| EOBI | Federal pension: 5%+1% | eobi.gov.pk |
| SRB | 0% | srb.gos.pk |
| PRA | Punjab SST: 0% (Zero-Rated) IT / 0% PSEB export | PRA — PSTS Act 2012 |
| KPRA | KP SST: 2-5% IT / 0% PSEB export | KPRA — Acts & Notifications |
| BRA | Balochistan SST: 0% PSEB IT export | bra.gob.pk |