PTBP Web Desk
The Federal Board of Revenue (FBR) has officially rolled out new electronic tax return forms for tax year 2025, expanding the scope of digital tax compliance in Pakistan. This initiative, notified through SRO 1562(I)/2025, marks another step in the authority’s efforts to simplify tax filing for individuals, businesses, and non-residents.
The new system introduces various categories of electronic returns, ensuring taxpayers from diverse backgrounds have access to forms suited to their specific financial situation. Alongside this, the FBR has also amended the Income Tax Rules, 2002, to align with the updated requirements.
One of the most significant changes is the introduction of the “Electronic Foreign Income and Assets Declaration for Resident Individuals”. This declaration is designed for taxpayers who are residents of Pakistan but maintain income or assets abroad. The move comes as part of Pakistan’s commitment to ensuring transparency and compliance with global standards of asset disclosure and anti-money laundering frameworks.
By making this declaration mandatory, the FBR aims to reduce tax evasion linked to undisclosed offshore holdings. It will also help the government track foreign assets more effectively, bringing Pakistan in line with international tax compliance norms.
In addition to resident taxpayers, the FBR has issued a separate return known as the “Electronic Return for Non-Resident Having No Source of Income in Pakistan.” This return is designed for overseas Pakistanis and foreign nationals who have no income streams originating from within the country.
This step reflects the government’s acknowledgment of the diverse taxpayer base and ensures that non-residents who are required to file returns can do so easily without going through unnecessary procedures.
The FBR has also notified a “Simplified Electronic Return for Individuals” under SRO 1561(I)/2025. This return is specifically designed for salaried individuals and small taxpayers who face difficulties in navigating complex tax forms.
The simplified version aims to promote voluntary tax compliance by making the process user-friendly and less time-consuming. According to the FBR, any updates made to the return available in the IRIS system—the official online tax portal—will be considered as part of the original return, ensuring that taxpayers are not disadvantaged if they filed before changes were implemented.
The FBR’s notification also covers the final electronic return forms for companies, associations of persons (AoPs), manufacturers, traders, and small and medium enterprises (SMEs). This reflects the government’s broader strategy to digitize the entire tax ecosystem, making it more efficient and transparent.
For businesses, these digital forms are expected to streamline record-keeping and minimize paperwork. SMEs, in particular, stand to benefit from these simplified digital returns, as the sector has long demanded easier compliance processes.
The rollout of these new electronic returns highlights the FBR’s ongoing efforts to modernize Pakistan’s tax system. The reforms are aimed at improving efficiency, enhancing transparency, and boosting tax revenue. By making filing easier for individuals and companies alike, the FBR hopes to encourage a higher level of compliance.
Moreover, the new forms reflect Pakistan’s alignment with international standards of tax reporting, especially with regard to foreign assets. This is in line with the government’s broader goal of tackling tax fraud, money laundering, and offshore asset concealment.
The implementation of these electronic return forms underscores the FBR’s broader push toward digital governance. With IRIS serving as the central platform for tax filing, taxpayers now have access to a fully integrated system that allows them to file, track, and update their returns in real time.
According to tax experts, the introduction of these forms could significantly reduce compliance costs and time, particularly for small taxpayers and non-resident individuals. However, they also stress the need for awareness campaigns to ensure that taxpayers understand the new filing requirements.
