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Sindh IT Compliance — Complete Guide

Complete Sindh compliance: SRB, SESSI, SIRA, 0% PSEB SST, labor law & registration checklist

Compliance Provincial Guide Sindh
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Sindh Revenue Board
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Key Data & Rates

Sindh Sales Tax on IT Services
Verified May 3, 2026
ServiceDomestic RateExport RateCPC CodeLegal BasisReference
Software Exports (PSEB-registered)0%--SST Act 2011 + SRO 981(I)/2015 - zero-rated for PSEB-certified exportersSRO 981(I)/2015 https://srb.gos.pk/ActsNotificat... SRO 981(I)/2015
IT Software/System Dev Consultants (Domestic)15% (standard)-CPC 7331, 8313-8316, 843Default 15%. 3% concessional under SRB-3-4/45/2025 if CPC classification matches. No ITC on concessional rate.SRB-3-4/45/2025 https://www.srb.gos.pk/srb/wp-co... SRB Special Procedure 2023
IT Consulting (Local, Non-PSEB)15% (standard)--Default 15% unless concessional notification applies. Check SRB for specific SRO eligibility.SST Act 2011 https://www.srb.gos.pk/srb/wp-co... SRB-3-4/45/2025 — CPC + Sub-rule...
Call Centers/BPO (Domestic)15% (standard)-Tariff 9835.0000Default 15%. 3% concessional via Form L election under SRB Special Procedure. No ITC.SRB Special Procedure 2023 https://www.srb.gos.pk/srb/wp-co... SRB-3-4/28/2025 — CPC Code Class...
BPO/ITeS Export (PSEB-registered)0%--Zero-rated under SRO 981(I)/2015 for PSEB-certified exporters. SRB-3-4/7/2013.SRO 981(I)/2015 https://srb.gos.pk/ActsNotificat... SST Act 2011
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SRO 981(I)/2015 grants 0% SST on PSEB-registered IT exports. SRB CPC 83100 applicable. Sub-rule (1A) provides 3% reduced rate for domestic IT.
Source: https://srb.gos.pk/ActsNotifications/Sindh_Sales_Tax_Act_2011.pdf
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Details & Regulations

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

Sindh IT Compliance — Complete Guide

Quick Overview — Sindh
Tax AuthoritySindh Revenue Board (SRB)
Standard SST15% (Sindh)
IT Concessional3% (Sindh) — deemed exercised per sub-rule (1A), no Form S, no ITC
IT Rate (PSEB Export)0% (zero-rated with PSEB)
Social SecuritySESSI 6% employer + 1% employee (Sindh)
Labor ActSIRA 2013
Minimum WagePKR 37,000 (Notification)
CPC ClassificationCPC Ver 2.1 per SRB-3-4/28/2025
IT BoardSindh IT Board (SITB), KIIT / SITC 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.
July 2025 Update: SRB now classifies services under CPC Version 2.1 codes per SRB-3-4/28/2025. Per SRB-3-4/45/2025, the 3% concessional (Sindh — CPC 83100, sub-rule 1A) rate for IT software services is deemed automatically exercised — no Form S application required.

Provincial Sales Tax on IT ServicesSOURCE VERIFIED

Service TypeStandard Rate (Sindh)Concessional Rate (Sindh)PSEB Export RateLegal Basis
Software development / IT design3% (Concessional)3% (Sindh) sub-rule (1A)3% (Concessional)SRO 981(I)/2015 + SRB-3-4/45/2025
IT consulting & support3% (Concessional)3% (Sindh) sub-rule (1A)3% (Concessional)SST Act 2011 + SRB-3-4/45/2025
Hosting & cloud infrastructure15% (Sindh)3% (Sindh) sub-rule (1A)0%SRO 981(I)/2015
Software licensing / databases3% (Concessional)3% (Sindh) sub-rule (1A)3% (Concessional)SRO 981(I)/2015
BPO / ITeS / Call Centres3% (Concessional)3% (Sindh)3% (Concessional)SRO 981(I)/2015
Online content streaming15% (Sindh)——SST Act 2011
Collocation / Datacenter19.3% (Concessional)——SST Act 2011, Second Schedule
Market research15% (Sindh)——SST Act 2011
Advertisement services15% (Sindh)——SRB-3-4/45/2025

CPC Code Classification for IT Companies (Effective July 2025)SOURCE VERIFIED

New System: Effective 1 July 2025, SRB classifies services using CPC Version 2.1 codes alongside tariff headings per SRB-3-4/28/2025. The CPC code determines your rate bracket in the Special Procedure Rules 2023 (as amended). You must know your CPC code to file correctly.

IT-Relevant CPC Codes — Full ReferenceSOURCE VERIFIED

CPC CodeDescription (CPC Ver 2.1)Includes (Examples)Standard Rate (Sindh)Concessional Rate (Sindh)Sub-rule (1A) Applies?PSEB Export Rate (Sindh)
7331 Licensing services for the right to use computer software and databases 73311 — Software licensing
73312 — Database licensing		 3% (Concessional) 3% (Sindh) Yes 3% (Concessional)
8313 IT consulting and support services 83131 — IT consulting (hardware/software advice, systems integration, security)
83132 — IT support services		 3% (Concessional) 3% (Sindh) Yes 3% (Concessional)
8314 IT design and development services 83141 — App design & development (web, mobile, custom software)
83142 — Network & systems design
83143 — Software originals		 3% (Concessional) 3% (Sindh) Yes 3% (Concessional)
8315 Hosting and IT infrastructure provisioning services 83151 — Website hosting
83152 — Application service provisioning
83159 — Other hosting (incl. collocation/datacenter — taxed at 19.5%)		 3% (Concessional) 3% (Sindh) Yes 3% (Concessional)
8316 IT infrastructure and network management services 83161 — Network management
83162 — Computer systems management		 3% (Concessional) 3% (Sindh) Yes 3% (Concessional)
843 Other Internet telecommunications services / On-line content 8431 — Online text (books, news, directories)
8432 — Online audio (downloads, streaming)
8433 — Online video
8439 — Other online content		 15% (Sindh) 3% (Sindh) Yes —
8363 Advertising space/time services (purchase/sale on commission) 83631 — Print media advertising
83632 — TV/radio advertising
83633 — Internet advertising
83639 — Other advertising		 15% (Sindh) — No —
83700 Market research and public opinion polling services Market analysis, competition analysis, consumer behaviour studies, surveys 3% (Concessional) — No —

CPC code definitions from SRB-3-4/28/2025 — CPC Version 2.1 as published by United Nations. Note: CPC 83159 (collocation/datacenter) within 8315 is taxed at 19.3% (Concessional) under the Second Schedule, Part-I — it is the only IT sub-code at the higher rate.

Step-by-Step: Which CPC Code Applies to Your IT Company?SOURCE VERIFIED

  1. Identify your primary service — What do you actually do? Match from the table above:
    • Software house / dev shop → CPC 8314 (IT design & development)
    • IT consulting firm → CPC 8313 (IT consulting & support)
    • Web hosting / cloud provider → CPC 8315 (hosting & infrastructure) — but CPC 83159 = 19.5% if collocation
    • MSP / network management → CPC 8316 (IT infrastructure & network management)
    • SaaS / software licensing → CPC 7331 (licensing rights for software/databases)
    • BPO / call centre → Tariff heading 9835.0000 (CPC codes not yet assigned — use tariff heading)
    • Online content / streaming → CPC 843 (online content services)
  2. Check if you offer multiple services — Per CPC classification rules (SRB-3-4/28/2025, Part One, Chapter III):
    • Rule (a): Most specific description wins over general descriptions
    • Rule (b): Composite services → classify under the service giving essential character
    • Rule (c): If equally applicable → use the CPC code with the last numerical order
  3. Determine your rate based on registration status (see comparison table below)
  4. File your SRB return using the CPC code in the appropriate column on the eSRB portal

How Sub-rule (1A) — Automatic 3% Rate — WorksSOURCE VERIFIED

Per SRB-3-4/45/2025 — Amendment to Special Procedure Rules 2023
What changed?

Before July 2025, IT companies wanting the reduced 3% rate (instead of 15%) had to file Form S to exercise the option under the Second Schedule. This was a separate administrative step.

Now: Sub-rule (1A) provides that for services at S.No 2 of the amended Table (IT software/system development consultants — CPC 7331, 8313, 8314, 8315, 8316, 843), the option is deemed to have been exercised. You automatically get the 3% rate.

What this means in practice:
AspectBefore (Pre-July 2025)Now (July 2025+)
Rate for IT software services3% (if Form S filed) or 15%3% (automatic)
Form S applicationRequiredNot required
Input tax credit (ITC)Available (if Form S filed)Not available — 3% is under Special Procedure, not standard rate
Applicable CPC codesTariff headings onlyCPC 7331, 8313, 8314, 8315, 8316, 843
Tariff heading reference9815.60009815.6000 (relatable to CPC codes)
Important: No Input Tax Credit (ITC) at 3%. The 3% concessional (Sindh SRB) rate under the Special Procedure Rules does NOT allow input tax credit. If your IT company has significant domestic input tax (office rent, utilities, legal fees with SST), you may be better off at the standard 15% rate WITH ITC — consult your tax advisor. With PSEB registration for exports, the 0% rate PLUS input tax refund is the best deal.

Rate Comparison: PSEB vs Non-PSEB vs No RegistrationSOURCE VERIFIED

ScenarioYour CPC CodeSST Rate (Sindh)Input Tax CreditForm S RequiredAnnual Tax on PKR 10M Revenue
PSEB-registered IT exporter7331/8313/8314/8315/8316 0% (Sindh) Yes — refund available No PKR 0
Non-PSEB, domestic IT services7331/8313/8314/8315/8316/843 3% (Sindh) — auto per sub-rule (1A) No No (auto) PKR 300,000
Non-PSEB, wants ITC instead7331/8313/8314/8315/8316 3% (Concessional) Yes N/A PKR 1,500,000 (less ITC)
Advertising services8363 15% (Sindh) Yes N/A PKR 1,500,000
Market research services83700 15% (Sindh) Yes N/A PKR 1,500,000
Collocation / Datacenter83159 19.3% (Concessional) Yes N/A PKR 1,950,000
Bottom Line for IT Companies: If you export, get PSEB-registered → pay 0% AND claim input tax refunds. If you serve domestic clients only, you pay 3% automatically (no action needed) — but cannot claim ITC. If your input tax credits exceed the 12% gap (15% − 3%), consider opting for the standard 15% rate with ITC (consult your advisor on how to "un-deem" the sub-rule (1A) option if applicable).

SRB Special Procedure Rules 2023 — Amended Table (July 2025)SOURCE VERIFIED

Per SRB-3-4/45/2025, the Table in Rule 3(1) now reads:

S.NoTariff Heading (Second Schedule as on 30 June 2026)Description of Taxable ServiceRelatable CPC CodesRate of Tax (Sindh)
19802.1000–9802.9000Advertisement services (payment via collection agent to non-resident provider)CPC 836315% (Sindh)
29815.6000Services provided by software or IT-based system development consultants, including cloud-based content streaming services (payment via collection agent to non-resident provider)CPC 7331, 8313, 8314, 8315, 8316, 8433% (Sindh)
39818.3000Market research agency services (payment via collection agent to non-resident provider)CPC 8370015% (Sindh)

Source: SRB-3-4/45/2025 (amending Special Procedure Rules 2023)

Registration ChecklistSOURCE VERIFIED

#RegistrationAuthorityCostTimeline
1PSEB RegistrationPSEBFree2–4 weeks
2SRB e-EnrollmentSRBFree1–3 days
3SECP Company RegistrationSECP LEAPPKR 1,800+1 day (online)
4FBR NTN RegistrationFBR IRISFree1–3 days
5SESSI Employer RegistrationSESSIFree1–2 weeks

Labor & Social SecuritySOURCE VERIFIED

ItemRateLegal BasisReference
Minimum WagePKR 37,000/month (Federal minimum wage — FBR Notification)Sindh Minimum Wage ActSindh Laws Portal
EOBI (Employer)5% of minimum wage (Federal)EOBI Act 1976EOBI
SESSI (Employer)6% of wages (Sindh employer)SESSI Act 2016SESSI
WWF (Sindh)2% of profit (Federal WWF)Sindh WWF ActSindh Laws Portal

IT Programs & IncentivesSOURCE VERIFIED

Sindh IT Board (SITB), KIIT / SITC 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 (Sindh)Monthly15th of following monthPKR 10,000 + interest (per SRB Act 2011)SRB
EOBI ContributionMonthlyEnd of month2% penaltyEOBI Act 1976
Social SecurityMonthlyEnd of month6% surchargeSindh Laws Portal
Company Annual ReturnAnnualWithin 30 days of AGMPKR 500/daySECP LEAP

Cross-Province ComparisonSOURCE VERIFIED

ProvinceStandard SST RateIT ConcessionalIT (PSEB Export)Social SecurityMin WageIT Board
Sindh3% (Concessional)3% (Sindh)3% (Concessional)SESSI 6% employer + 1% employee (Sindh)PKR 37,000 (Sindh Labour Laws)SITC/KITB
Punjab0% (Zero-Rated)—0%PESSI 6% (Punjab)PKR 37,000 (PRA Punjab — PSTS Act 2012)PITB
KP5% (Digital) / 2% (BPO)—0%KP Social SecurityPKR 37,000 (KPRA Notifications)KPITB
Balochistan15% (Balochistan)—0%EOBI onlyPKR 37,000 (Notification)Federal programs
ICTFederal—0.25% (Federal/ICT)/1% WHTEOBIPKR 37,000 (FBR Notifications)NITB

Key SROs & Legal ReferencesSOURCE VERIFIED

ReferenceDescriptionSource
SRO 981(I)/20150% SST for PSEB-registered IT/ITeS exportersSRB
SRB-3-4/28/2025CPC Version 2.1 classification — service codes effective 1 July 2025SRB
SRB-3-4/45/2025Amends Special Procedure Rules 2023 — CPC codes in Table + sub-rule (1A) auto 3%SRB
SRB-3-4/44/2025Online Integration of Business Rules — CPC codes for E-IMS sectorsSRB
SRB-3-4/42/2025Withholding Rules — CPC codes replacing tariff headingsSRB
SRB-3-4/41/2025Collection Agent Rules — CPC codes for specified servicesSRB
SRB Working Tariff 2025Full working tariff with CPC code mappingSRB
Special Procedure Rules 2023Base rules for specified service taxation (as amended July 2025)SRB
ITO 2001Income Tax Ordinance — IT export income taxed under Sections 154/153FBR
SST Act 2011Sindh Sales Tax on Services Act — 15% base rateSRB
PSEB RegistrationSoftware Export Board — 0% SST eligibility gatewayPSEB

Related PoliciesSOURCE VERIFIED

Other Provinces:
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.
Sindh IT Compliance Checklist
SST Act 2011
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SRO 981(I)/2015
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SST Act 2011
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SESSI Act 2016
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EOBI Act 1976
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ITO 2001
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ITO 2001 Section 165
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Minimum Wage Ordinance
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Companies Act 2017
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Source Citations (13)
SRO 981(I)/2015 — Zero-rating IT/ITeS services
https://www.fbr.gov.pk/tax-laws-statutes
pk_only 2015 sro
Finance Act 2025
https://download1.fbr.gov.pk/Docs/2025629106147620FInanceAct2025.pdf
pk_only 2025 law
Income Tax Ordinance 2001
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
EOBI Act 1976
https://eobi.gov.pk/rules/eobilaw.html
pk_only 1976 law
PSEB Registration
https://pseb.org.pk/registration/
verified website
Sindh Sales Tax on Services Act 2011
https://103.171.122.217/docs/srb/Sindh_Sales_Tax_Act_2011.pdf
restricted law
Sindh SST Special Procedure (Tax on Specified Services) Rules 2023
https://www.srb.gos.pk/srb/wp-content/uploads/2024/09/Sindh-Sales-Tax-Special-Procedure-Tax-on-Specified-Services-Rules-2023-updated-upto-1st-July-2024-EOE.pdf
verified 2023 pdf
SRB Working Tariff (Amended up to July 2024)
https://www.srb.gos.pk/srb/wp-content/uploads/2024/07/Final-Working-tariff.pdf
verified 2024 pdf
SRB-3-4/45/2025 — Special Procedure (Tax on Specified Services) CPC Code Amendments
https://www.srb.gos.pk/srb/wp-content/uploads/2025/07/6-2.pdf
verified 2025 notification
SRB-3-4/28/2025 — CPC Code Classification for Services
https://www.srb.gos.pk/srb/wp-content/uploads/2025/07/CPC-Code-10.07.2025.pdf
verified 2025 notification
SRB-3-4/17/2025 — Special Procedure (Tax on Specified Services) Amendments May 2025
https://www.srb.gos.pk/srb/wp-content/uploads/2025/04/NOTIFICATION_17_25.pdf
verified 2025 notification
SRB Working Tariff (Amended up to July 2025)
https://srb.gos.pk/ActsNotifications/Sindh_Sales_Tax_Act_2011.pdf
pk_only 2025 sro
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Compliance Provincial Guide Sindh
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