ATTA LAW COMPANY

!!!Just Know!!!

TAXATION AND FBR

Atta law company

Corporate taxation in Pakistan is administered primarily by the Federal Board of Revenue (FBR) under the Income Tax Ordinance, 2001.Corporate Tax Structure & RatesBusiness CategoryApplicable Tax RateKey Conditions / ScopeStandard Company29%Public/Private Limited companies (standard threshold)Small Company20%Turnover $\le$ PKR 250M with specific capital constraintsSMEs (Manufacturing)7.5% – 15%Concessional rates based on Category 1 or 2 turnover thresholdsBanking Sector~39% (Effective)29% normal corporate tax + 10% Super TaxMinimum Tax (Sec 113)1.25%Applied on gross turnover if normal tax is below this threshold or if loss is reportedKey FBR Compliance RequirementsQuarterly.

"Advance Tax: Calculated under Section 147 and paid in four quarterly installments based on estimated or historical turnover.Annual Filing via Iris: Electronic submission of corporate income tax returns and audited financial statements via the FBR Iris Portal by December 31 for standard tax years ending June 30.Withholding Tax (WHT) Responsibilities: Companies act as withholding agents to deduct tax at source on vendor payments, salaries, and dividends, filing monthly statements via Iris.Active Taxpayer List (ATL): Maintaining active status avoids penalized non-filer withholding rates (often double the standard rates) across all corporate transactions.Record Keeping: Statutory books, invoice records, and financial statements must be retained for at least six years for audit readiness."

Critical FBR Issues & ChallengesSuper Tax: Additional slab-based tax (ranging from 1% to 10%) levied on high-earning corporations.Turnover Tax Floor: Loss-making companies are still required to pay the 1.25% minimum turnover tax.Audit Risk: Risk-based computerized audits select corporate cases annually, requiring reconciliation between sales tax filings and income tax returns.

Core Specializations

Corporate Law Services

SECP & Company Incorporation

Pex Regulator: Apex regulatory body governing corporate entities, capital markets, non-banking financial companies (NBFCs), and insurance providers.Statutory Framework: Enforces corporate activities under the Companies Act, 2017 and the SECP Act, 1997.Core Areas of Legal Expertise to ShowcaseCompany Incorporation & Entity StructuringRegistration of Private, Public Limited, Single Member (SMC), and Foreign Companies via eServices/eZFile.Reporting changes in board composition, shareholding structure, or registered address.Issuance and allotment of new shares (Form 3) and capital increases.Corporate Governance & AdvisoryImplementation of the Listed Companies (Code of Corporate Governance) Regulations.

Mergers & Acquisitions

Mergers and Acquisitions (M&A) in Pakistan refer to corporate transactions where businesses either combine operations or buy out other entities to consolidate, scale, or restructure:Merger:

Corporate Taxation & FBR

Corporate taxation in Pakistan is administered primarily by the Federal Board of Revenue (FBR) under the Income Tax Ordinance, 2001.Corporate Tax Structure & RatesBusiness CategoryApplicable

Intellectual Property (IPO)

Registration, protection, and litigation regarding Trademarks, Patents, Copyrights, and Industrial Designs with IPO Pakistan to safeguard key brand assets.

Commercial Litigation

Financial litigation in Pakistan’s banking sector operates under a specialized legal and regulatory framework designed to resolve financial disputes, recover defaulted loans, and address banking offenses.Primary Governing FrameworkFinancial Institutions (Recovery of Finances) Ordinance, 2001 (FIO 2001): The core statutory law regulating financial disputes and loan recovery suits between banks and borrowers.State Bank of Pakistan (SBP) Directives: Prudential Regulations set by the SBP that govern credit risk, non-performing loans (NPLs), write-offs, and fair banking practices.Offences in Respect of Banks Ordinance, 1984: Regulates criminal offenses such as bank fraud, forgery, and willful default.Key Legal Forums & JurisdictionBanking Courts: Special tribunals established under FIO 2001 to handle financial recovery suits where the claim value does not exceed PKR 50 Million.

Labor & Regulatory Compliance

Drafting employment terms, HR manuals, handling labor union disputes, and ensuring statutory compliance under federal and provincial employment standards.

ATTA LAW COMPANY

Navigating Complex Corporate & Regulatory Landscapes