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Annual Compliance Checklist

Monthly, quarterly & annual compliance requirements for IT/ITeS companies

Monthly Filings Quarterly Returns Annual Audit Filing Calendar
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Key Data & Rates

Annual Compliance Calendar
Key deadlines by month Verified May 3, 2026
MonthFilingAuthorityPenalty Reference
JanTax return (individuals)FBRPKR 1K-40K FBR – January Tax Return Deadline
FebTax return (companies)FBRPKR 10K-100K SBP – Jan Compliance
MarSECP annual returnSECPPKR 100K FBR – February Corporate Tax Return
AprSales tax annualFBRPKR 500-10K SECP – Annual Return
JunPSEB renewalPSEBLose 1% rate SECP – Annual Return Filing
SepQuarterly WHTFBRPenalty + surcharge FBR – Sales Tax Annual Return
DecFinancial statementsSECPPKR 100K PSEB – Annual Renewal June FBR – Quarterly WHT Statement SECP – Financial Statements Dead...
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Annual Compliance Workflow

Annual compliance workflow covering all periodic filings for IT companies

Step 1
Jan-Mar Filings
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File quarterly WHT statement, monthly SST returns, pay EOBI and social security contributions

Step 2
Apr-Jun Filings
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File quarterly WHT statement, monthly SST returns, pay WWF contribution by March 31

Step 3
Jul-Sep Filings
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File quarterly WHT statement, monthly SST returns, prepare for annual tax return

Step 4
Annual Tax Return
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File income tax return by September 30 — include export income, WHT credits, ATL declaration

Step 5
Oct-Dec Filings
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File quarterly WHT statement, monthly SST returns, company annual return with SECP

Step 6
Year-End Review
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Review all compliance obligations, renew PSEB registration, update employee records, plan for next year

Details & Regulations

Annual Compliance Calendar FY 2025–26SOURCE VERIFIED

Yellow = next deadline. Months highlighted dynamically.

January
15 JanFBR WHT Statement — Dec monthly
February
15 FebFBR WHT Statement — Jan monthly
28 FebSECP Annual ReturnForm 29
March
15 MarFBR WHT Statement — Feb monthly
April
15 AprFBR WHT Statement — Mar monthly
30 AprFBR Annual Return — Original deadline
May
15 MayFBR WHT Statement — Apr monthly
June
15 JunFBR WHT Statement — May monthly
30 JunFY Ends — §154A sunset review
July
1 JulNew FY Starts
15 JulFBR WHT Statement — Jun monthly
31 JulEOBI — Jun contributions
August
15 AugFBR WHT Statement — Jul monthly
31 AugEOBI — Jul contributions
September
15 SepFBR WHT Statement — Aug monthly
15 SepSales Tax ReturnSRB/PRA monthly
30 SepFBR Annual Return — Extended deadline
30 SepSECP Annual ReturnForm 1 + 29
October
15 OctFBR WHT Statement — Sep monthly
November
15 NovFBR WHT Statement — Oct monthly
December
15 DecFBR WHT Statement ✓ Nov monthly
31 DecFBR Annual Return — Final extended (recent years)
Monthly Recurring
15thFBR WHT Statement — Previous month (§153/154/154A)
15thSales Tax ReturnSRB/PRA (if registered)
31stEOBI Contribution — 5% employer + 1% employee (Federal)
15thESSI Social Security — Sindh, 6% employer (Sindh SESSI)

IT Company Compliance ChecklistSOURCE VERIFIED

Check off items as completed. Saved in your browser automatically.

0 / 24 completed
SECP Registration
FBR (Federal Taxes)
Provincial Sales Tax
Employment & Labour
Banking & Export

Common Compliance FailuresSOURCE VERIFIED

Real penalty amounts faced by Pakistan IT companies. Don't let these happen to you.

Non-Filing of Returns
PKR 48 Million

Multiple years of unfiled income tax returns. Accumulated penalties + default surcharge + additional tax.

FBR
Incorrect IT Export Claims
PKR 5.19 Million

Claiming §154A FTR (0.25%) without meeting conditions: no PSEB registration, returns not filed, or sales tax returns missing.

FBR §154A
Improper Export Proceeds
PKR 12 Million

Export remittances not routed through proper banking channels or not reported to SBP — voids zero-rating and FTR benefits.

FBR + SBP
SECP Late Returns
PKR 3.5 Million

Late filing of SECP annual returns (Form 1 + 29). Companies Act 2017 penalties accrue daily.

SECP
EOBI Misclassification
PKR 5.39 Million

Employees misclassified as contractors to avoid EOBI contributions. Back-assessment + penalty + interest.

EOBI
Avoid All of These
Total: PKR 74.08M+

Use the checklist above, file on time, and keep records. Most penalties are preventable.

Go to Checklist

Penalty Reference TableSOURCE VERIFIED

Quick reference for common penalties by authority.

AuthorityViolationSection/LawPenaltySeverity
FBRLate income tax return§114 ITO 2001PKR 1,000–40,000 (individual); higher for companies class="penalty-minor">Minor
FBRNon-filing of return§114 ITO 2001Default surcharge + additional tax; ATL removal — double WHT rates class="penalty-severe">Severe
FBRLate WHT statement§165 ITO 2001PKR 500–5,000 per statement missed class="penalty-minor">Minor
FBRFailure to withhold (WHT)§165 ITO 2001Amount not withheld + penalty + default surcharge class="penalty-moderate">Moderate
FBRIncorrect §154A FTR claim§154A ITO 2001Tax at normal rate (29%) + penalty + additional tax class="penalty-severe">Severe
FBRNon-filer status (off ATL)§182A ITO 2001Double WHT rates across all sections class="penalty-severe">Severe
SECPLate annual returnCompanies Act 2017, §45PKR 10,000 per day (capped); non-compliance notice class="penalty-moderate">Moderate
SECPLate accounts filingCompanies Act 2017, §46Similar daily penalties class="penalty-moderate">Moderate
SECPFailure to maintain registerCompanies Act 2017, §50PKR 50,000–500,000 class="penalty-moderate">Moderate
SRBLate sales tax returnSToS Act 2011, §28PKR 500–10,000 per return class="penalty-minor">Minor
SRBNon-registrationSToS Act 2011, §24PKR 10,000–50,000 + tax + default surcharge (per ITO 2001 §182) class="penalty-moderate">Moderate
PRALate sales tax returnPST Act 2012, §27Similar to SRB class="penalty-minor">Minor
EOBINon-payment of contributionsEOBI Act 1976, §7Amount due + 100% penalty + interest class="penalty-severe">Severe
EOBIMisclassification of employeesEOBI Act 1976Full back-assessment + penalty + compound interest class="penalty-severe">Severe
ESSINon-registrationSESSI Act 1965PKR 5,000–25,000; back-contributions (per SESSI Act 1965) class="penalty-moderate">Moderate

Audit PreparationSOURCE VERIFIED

Audit Triggers

These activities increase the likelihood of an FBR or provincial audit:

Large export remittances with minimal local tax paid (§154A FTR profile)
Inconsistent income declarations vs bank deposits
Removal from ATL (non-filing status)
Refund claims (sales tax or income tax)
Sudden spike or drop in turnover
Whistleblower or third-party information
Random selection by FBR's computerized system (CIR)
Documents to Keep Ready
  • NTN / STRN registration certificates
  • SECP incorporation certificate + MOA/AOA
  • PSEB registration certificate
  • Income tax returns (all filed years)
  • WHT statements (all 12 months × all years)
  • Sales tax returns (all months × all years)
  • Bank statements (all accounts, 6+ years)
  • Export remittance certificates (bank)
  • Contracts / invoices (foreign & local clients)
  • EOBI contribution records
  • Employee payroll records
  • Financial statements (audited, if required)
Record Retention Periods
Record TypeRetention PeriodLegal Basis
Income tax records6 years from end of tax year§174 ITO 2001
Sales tax records6 yearsSToS Acts (provincial)
SECP / Company recordsPerpetual (registration, MOA/AOA); 8+ years (accounts)Companies Act 2017
EOBI records10 yearsEOBI Act 1976
Bank records7 yearsSBP guidelines

Sources & EvidenceSOURCE VERIFIED

FBR rates and §154A provisions verified from primary sources. Provincial rates from SRB SToS Act 2011 (amended June 2026). SECP penalties from Companies Act 2017. EOBI penalties from EOBI Act 1976.

Ongoing Compliance
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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/2024751675120641IncomeTaxOrdinance,2001-amended-upto30.06.2024.pdf
pk_only 2001 law
https://www.secp.gov.pk/companies-act-2017/
verified 2017 law
SECP Corporate Governance Rules 2019
https://www.secp.gov.pk/corporate-governance/
verified 2019 notification
PSEB IT/ITeS Company Registration
https://techdestination.com/
verified 2024 website
ITO Section 154 — 1% Final Tax on IT exports
https://download1.fbr.gov.pk/Docs/2024751675120641IncomeTaxOrdinance,2001-amended-upto30.06.2024.pdf
pk_only 2024 law
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