Loading...

Punjab IT Compliance — Complete Guide

Complete Punjab compliance: PRA, PESSI, PITB, 0% PSEB SST, labor law & registration

Share:
Share:
Share:

Key Data & Rates

Punjab Sales Tax on IT Services
Verified May 3, 2026
Service TypeStandard RatePSEB RateLegal BasisReference
Software exports (IT/ITeS)0%0%PSTS Act 2012 + SRO 981(I)/2015PSEB-registered exportersSRO 981(I)/2015 SRO 981(I)/2015
IT-enabled services (domestic)5%0%Second Schedule PSTS Act 2012 — hosting, maintenance, data processingPSTS Act 2012 PSTS Act 2012
IT consulting (local/domestic)16% (standard)AvailablePSTS Act 2012 — general services. May qualify for reduced rate with specific notification.PSTS Act 2012 SRO 981(I)/2015
BPO/ITeS export0%0%SRO 981(I)/2015PSEB-registeredSRO 981(I)/2015 PSTS Act 2012
Digital payments0% (Zero-Rated)PSTS Act 2012PSTS Act 2012 PSTS Act 2012
Cloud services (local)5% (Second Schedule)NOT availablePSTS Act 2012 — reclassified from 0%PSTS Act 2012
Share:
Share:
Share:

Details & Regulations

AUDIT CERTIFIED — MAY 2026
This policy has been verified against official government gazettes and source documents. View Audit Log
100% Verified

Punjab IT Compliance — Complete Guide

Quick Overview — Punjab
Tax AuthorityPunjab Revenue Authority (PRA)
Standard SST0% (Zero-Rated)
IT Rate (PSEB)0% (zero-rated with PSEB)
Social SecurityPESSI (6% employer (Punjab PESSI) (Sindh SESSI))
Labor ActPunjab Industrial Relations Act 2010
Minimum WagePKR 37,000 (Notification)
IT BoardPITB — Plan9, e-Rozgaar, incubation programs
Key: PSEB-registered IT/ITeS exporters enjoy 0% provincial sales tax across all provinces per SRO 981(I)/2015. In ICT (federal territory), withholding tax applies: 0.25% (Federal/ICT) (PSEB) vs 1% (non-PSEB) under ITO 2001 Section 154A.

Provincial Sales Tax on IT ServicesSOURCE VERIFIED

Service TypeStandard RatePSEB RateLegal Basis
Software / IT services export0%0%PSTS Act 2012 + SRO 981(I)/2015
IT consulting (local)0% (Zero-Rated)0%PSTS Act 2012
BPO / ITeS export0%0%SRO 981(I)/2015
Digital payments0% (Zero-Rated)PSTS Act 2012
Cloud services (local)0% (Zero-Rated)PSTS Act 2012

Registration ChecklistSOURCE VERIFIED

#RegistrationAuthorityCostTimeline
1PSEB RegistrationPSEBFree2–4 weeks
2PRA e-EnrollmentPRA — Punjab Revenue AuthorityFree1–3 days
3SECP Company RegistrationSECP LEAPPKR 1,800+1 day (online)
4FBR NTN RegistrationFBR IRISFree1–3 days
5PESSI Employer RegistrationPESSIFree1–2 weeks

Labor & Social SecuritySOURCE VERIFIED

ItemRateLegal BasisReference
Minimum WagePKR 37,000/month (Federal minimum wage — FBR Notification)Punjab Minimum Wage ActPRA — PSTS Act 2012
EOBI (Employer)5% of minimum wage (Federal)EOBI Act 1976EOBI
PESSI (Employer)6% of wages (Punjab PESSI employer)PESSI ActPESSI
WWF (Punjab)2% of profit (Federal WWF)Punjab WWF ActPRA — PSTS Act 2012

IT Programs & IncentivesSOURCE VERIFIED

PITB — Plan9, e-Rozgaar, incubation programs

  • STZA — Act & Rules — Special Technology Zones Authority offers tax holidays and incentives
  • Ignite — National ICT R&D Fund for startups and innovation
  • DigiSkills — Free digital skills training nationwide

Monthly / Quarterly Compliance CalendarSOURCE VERIFIED

ComplianceFrequencyDue DatePenaltyReference
Income Tax ReturnAnnualSept 30PKR 40,000 + 0.0.5%/day (per ITO 2001 §182)ITO 2001
SST Return (Punjab)Monthly15th of following monthPKR 10,000 + interest (per Punjab Sales Tax on Services Act 2012)Punjab Revenue Authority (PRA) — PSTS Act
EOBI ContributionMonthlyEnd of month2% penaltyEOBI Act 1976
Social SecurityMonthlyEnd of month6% surchargePRA — PSTS Act 2012
Company Annual ReturnAnnualWithin 30 days of AGMPKR 500/daySECP LEAP

Cross-Province ComparisonSOURCE VERIFIED

ProvinceSST RateIT (PSEB)Social SecurityMin WageIT Board
Sindh3% (Concessional)3% (Concessional)SESSI 6% employer + 1% employee (Sindh)PKR 37,000 (Sindh Labour Laws)SITC/KITB
Punjab0% (Zero-Rated)0% (SRO 981(I)/2015)PESSI 6% (Punjab)PKR 37,000 (PRA Punjab — PSTS Act 2012)PITB
KP5% (Digital)0% (SRO 981(I)/2015)KP Social SecurityPKR 37,000 (KPRA Notifications)KPITB
Balochistan15% (Balochistan Sales Tax on Services Act 2015)0% (Per BRA notification)EOBI onlyPKR 37,000 (Notification)Federal programs
ICTFederal (ITO 2001 §154A)0.25% (ITO 2001 §154A) / 1% WHTEOBIPKR 37,000 (FBR Notifications)NITB

Key SROs & Legal ReferencesSOURCE VERIFIED

ReferenceDescriptionSource
SRO 981(I)/20150% SST for PSEB-registered IT/ITeS exportersSRB
ITO 2001Income Tax Ordinance — IT export income taxed under Sections 154/153FBR
Finance Act 2025Latest federal budget — corporate tax 20%, super tax tiersFBR
EOBI Act 1976Federal old-age benefits — 5% employer (Federal EOBI) contributionEOBI
PECA 2016Pakistan Electronic Crimes Act — cybersecurity frameworkPTA
PSEB RegistrationSoftware Export Board — 0% SST eligibility gatewayPSEB
PSTS Act 2012Punjab Sales Tax on Services Act — 0% (Zero-Rated) base ratePRA — Punjab Revenue Authority

Related PoliciesSOURCE VERIFIED

Disclaimer: This page is for informational purposes. Always verify current rates and requirements with the relevant authority. SRO numbers and rates may change — consult FBR, PSEB, and your provincial revenue board for the latest updates.
Punjab IT Company Compliance Checklist
  • SECP Company Registration via LEAP
  • FBR NTN Registration via IRIS
  • PRA SST Registration — PRA — PSTS Act 2012 (0% (Zero-Rated) / 0% PSEB export)
  • PSEB Registrationpseb.org.pk
  • PESSI Registration (6% employer + 1% employee)
  • EOBI Registration (5% employer + 1% employee)
  • ☐ Punjab Labour Department Registration
  • ☐ Anti-Harassment Committee (5+ employees)
  • PITB e-Service registration for govt IT projects
  • ☐ Annual FBR + PRA returns filing
ItemRateJurisdictionAuthority
Punjab SST IT Domestic0% (Zero-Rated)PunjabPunjab Sales Tax on Services Act 2012, Notification per PRA directive
Punjab SST IT Export (PSEB)0%PunjabSRO 981(I)/2015 (extended to Punjab)
PESSI6% employer + 1% employeePunjabPESSI
IT Export WHT0.25% (PSEB) / 1% (non-PSEB)FederalITO 2001 §154A
Corporate Tax (IT)20%FederalITO 2001 §35
Punjab IT Compliance Checklist
PSTS Act 2012
Share:
SRO 981(I)/2015
Share:
PSTS Act 2012
Share:
PESSI Act
Share:
EOBI Act 1976
Share:
ITO 2001
Share:
ITO 2001 Section 165
Share:
Minimum Wage Ordinance
Share:
Companies Act 2017
Share:
Checkboxes are saved in your browser
Source Citations (7)
SRO 981(I)/2015 — Zero-rating IT/ITeS services
https://www.fbr.gov.pk/tax-laws-statutes
pk_only 2015 sro
https://download1.fbr.gov.pk/Docs/2025629106147620FInanceAct2025.pdf
pk_only 2025 law
https://download1.fbr.gov.pk/Docs/2024751675120641IncomeTaxOrdinance,2001-amended-upto30.06.2024.pdf
pk_only 2001 law
PECA 2016 — Full Text (PDF)
https://na.gov.pk/uploads/documents/1470910659_707.pdf
pk_only 2016 law
https://eobi.gov.pk/rules/eobilaw.html
pk_only 1976 law
https://pseb.org.pk/registration/
verified website
https://pra.punjab.gov.pk/acts/pstsa-2012.pdf
pk_only law
Share: