FAW Associates

08/05/2026

The Federal Constitutional Court (FCC) unanimously struck down Section 7E of the Income Tax Ordinance, 2001, declaring the contested property levy unconstitutional, void from its very inception, and without any legal force whatsoever.

The court left no room for ambiguity. Section 7E, it held, is ultra vires the Constitution. It is struck down. It is void ab initio, meaning it is treated as if it never legally existed, from the very moment of its enactment in 2022. The immediate practical effect is significant. Taxpayers who received assessments or demands under Section 7E — and there were many, are now formally in the clear.

04/05/2026

Super Tax Can not be levied on income that is already exempt under the ITO, 2001

O2ocon FAW Associates

30/04/2026

09/04/2026

🚨 Important Action for Tax Year 2026: Act Smart, Save Your Salary!

If you are a salaried professional, now is the time to act.

Inform your Finance/HR team immediately so your available advance taxes can be adjusted against your April, May & June 2026 salary — helping you increase your take-home income.

💡 Many individuals end up paying excess advance tax and later struggle with refunds. Avoid the hassle — adjust at source now.

📌 Are you tracking these adjustable sections?

✅ Section 236Y – 5% tax on international transactions (Netflix, AWS, Spotify, foreign shopping)
✅ Section 236CB – Tax on events (marriages, seminars, workshops, etc.)
✅ Section 236 – Advance tax on mobile/internet bills
✅ Section 231B & 234 – Tax on vehicle purchase/transfer/token
✅ Section 151 – Withholding tax on bank profits
✅ Section 236K – Advance tax on property transactions

⚠️ Don’t wait for the September filing rush!
Download your annual tax certificates from:
• Banking apps
• Telecom portals
• Relevant service providers

👉 Submit them to your employer now to enjoy a higher net salary in coming months.

📞 Need assistance? We’re here to help.

O2ocon
📱 0321 4192857
📧 [email protected]

FAWAssociates
📧 [email protected]

07/04/2026

📢 FBR Tax Update 2026 | Key Relief for Builders & Developers
FBR has issued an important clarification regarding the applicability of withholding tax u/s 236C for taxpayers operating under the special tax regime of Section 7F.

🔍 What’s the update?
Builders & Developers taxed u/s 7F (fixed tax on gross receipts) and having no other taxable income may now:
✅ Apply for exemption from advance tax u/s 236C
✅ Obtain an Exemption Certificate u/s 159

💡 Why it matters?
This clarification helps reduce unnecessary tax burden and improves cash flow management for the real estate sector.

📌 Action Point:
Eligible taxpayers should submit an application to the concerned Commissioner Inland Revenue for exemption.

💼 At O2OCON (Private) Limited, we assist clients with:
✔ Tax Advisory
✔ Compliance
✔ Representation before FBR

📞 0321 4192857
📧 [email protected]

13/02/2026

To facilitate effective tax collection in the e-commerce sector, the FBR implemented a new system where sales tax on digitally ordered goods is withheld at source.

This responsibility falls on intermediaries (withholding agent) such as payment intermediaries, courier companies & online marketplaces.

This manual is intended for Payment Intermediaries (PI), Courier Companies, Online Marketplaces and other stakeholders responsible for withholding and reporting sales tax on digitally ordered goods.

FBR has explained the mechanism where intermediaries deduct sales tax at source from payments made to suppliers for digitally ordered goods and remit it to the FBR. The system automatically calculates sales tax as a percentage of the invoice value submitted by the supplier.

The FBR issued a user manual to assist Payment Intermediaries, Courier Companies, Online Marketplaces, and other relevant stakeholders. It provides detailed instructions on executing statutory responsibilities through IRIS, including e-payment creation, Payment Slip ID (PSID) and Computerized Payment Receipt (CPR) generation, submission of monthly withholding statements, and the claiming of admissible sales tax credits.

It will promote accuracy, consistency, and procedural compliance across all stages of sales tax withholding on digitally ordered goods, FBR said.

The objective is to empower withholding agents and stakeholders to manage sales tax on digitally ordered goods with accuracy, efficiency, and transparency. It is intended to clarify responsibilities, provide guidance for proper utilization of the IRIS system, and ensure that all statutory obligations are met in a timely and consistent manner.

The FBR emphasizes clarity, consistency, and informed decision-making, enabling withholding agents and other stakeholders to contribute to a transparent, reliable, and well coordinated e-commerce taxation ecosystem

Monthly statement by Payment Intermediaries /Courier Services for Digitally Ordered Goods: Payment intermediaries and Courier Services are responsible for withholding and reporting sales tax only on the amounts they collect, or settle. Consequently, their withholding statements reflect solely the payments handled through their respective systems. The withholding statement for all the withholding agents is auto-populated from CPR data of the relevant PI and Courier Service.

Monthly Statement by Online Marketplace for Digitally Ordered Goods: In contrast to PI & Courier Services, the statement for Online Marketplaces reflects the aggregate amount of all transactions, including payments processed through both Payment Intermediaries and Courier Services, as Online Marketplace’s monthly statement is generated on the basis of monthly statements submitted by the payment intermediary and courier services.

FAW Associates

14/12/2025

FBR has clarified the principles of taxation for permanent establishments (PEs) of non-resident persons operating in Pakistan under Section 105 of the Income Tax Ordinance, 2001 for the tax year 2026.
Understanding these rules is crucial for foreign businesses and investors operating in Pakistan to compute their income chargeable to tax under the head “Income from Business”. These rules shall clarify the:
- computation of profit;
- admissibility of expense;
- nature of head office expenses; and
- inadmissibility of expenses.

FAW Associates / provide expert guidance on Pakistan Tax

23/10/2025

07/10/2025

30/09/2025