Home / Blog / FBR Tax Return Guide 2025–26
A complete, step-by-step guide to filing your Pakistan income tax return on the IRIS FBR portal — covering salaried employees, business owners, and freelancers.
IN THIS GUIDE
Under the Income Tax Ordinance 2001, you are required to file an annual income tax return if any of the following apply to you:
Your annual income exceeds PKR 600,000
That's PKR 50,000/month gross salary or above.
You own a business or are self-employed
Regardless of whether you made a profit or not.
You earn freelance income from abroad
Including via Upwork, Fiverr, Toptal, or direct clients.
You own property or received rental income
Even if the property is jointly owned.
You want to stay on the Active Taxpayer List (ATL)
Required to avoid higher withholding tax rates on banking, vehicles, and property.
Gather these before opening IRIS. Having them ready means you can finish filing in one sitting.
Annual Salary Certificate (Form 149)
Get this from your employer's HR or accounts department. It shows your total salary, allowances, and tax deducted at source.
CNIC
Your national ID number — used as your NTN if you're a salaried individual.
Bank statements (Jul 2025 – Jun 2026)
Showing all income deposits. Required for the Wealth Statement.
Investment certificates
Provident fund, life insurance, mutual funds — these qualify for tax credits.
Property details
Address and valuation of any property you own as of June 30, 2026.
Foreign remittance receipts
Bank certificates showing foreign income received (required for PSEB reduced rate of 0.25%).
Client invoices
Total billed amounts per client, in PKR equivalent at the rate on receipt date.
Business expense records
Equipment, internet, software subscriptions — these reduce your taxable income.
PSEB registration (if applicable)
Registered freelancers pay 0.25% final tax on foreign remittances instead of the standard rate.
Audited financial statements
Profit & loss account and balance sheet for the tax year.
Sales tax returns (if registered)
FBR cross-references income tax and sales tax filings.
Expense vouchers and receipts
Rent, salaries, utilities, depreciation — all deductible expenses.
Advance tax payment receipts
If you paid quarterly advance tax (Section 147), enter those CPRs.
All income tax returns in Pakistan must be filed electronically via the IRIS FBR portal. Paper returns are not accepted. If you don't have an IRIS account yet, see our IRIS FBR Complete Guide to register first.
Log in to IRIS
Go to iris.fbr.gov.pk and log in with your CNIC (for individuals) or NTN and password. If you've forgotten your password, use "Forgot Password" — it sends a reset link to your registered mobile number.
Go to Declaration → Income Tax Return
From the left sidebar, click Declaration, then select Income Tax Return. Choose the correct tax year — for income earned July 2025 to June 2026, select Tax Year 2026.
Select your return type
Choose your taxpayer category: Salaried (if 75%+ of income is salary), Business Individual, or AOP (Association of Persons). This determines which form fields appear.
Enter your income details
Fill in all income sources: salary, business income, rental income, foreign income, capital gains. For salaried employees, IRIS often pre-fills data from your employer's withholding statements — verify it's accurate.
Add deductions and tax credits
Enter eligible deductions: provident fund contributions, life insurance premiums (up to PKR 300,000), tuition fees, charitable donations (to approved organizations). These directly reduce your tax liability.
Complete the Wealth Statement
IRIS will not let you submit your return without completing the Wealth Statement (Form WS). List all assets as of June 30, 2026 (cash, property, vehicles, investments) and all liabilities (loans, mortgages). The net worth should match your income pattern — unexplained wealth growth is an audit red flag.
Review your tax liability
IRIS calculates your tax automatically. If tax is payable (i.e., you owe more than what was already deducted), generate a PSID (Payment Slip ID) and pay through your bank's internet banking, mobile wallet (EasyPaisa/JazzCash), or at any bank branch.
Submit and download acknowledgement
Click Submit. IRIS generates an Acknowledgement Slip with a unique filing reference number. Download and save this as PDF — it's your legal proof of filing.
DEADLINE
September 30, 2026
For Tax Year 2026 — income earned July 1, 2025 to June 30, 2026. FBR has extended this deadline in past years (most recently to October 31, 2025), but extensions are not guaranteed.
Filing late triggers penalties under Section 182 of the Income Tax Ordinance 2001:
If 75% or more of your income comes from salary, you file as a salaried individual. Your employer deducts tax monthly under Section 149 — but you still need to file your own return.
Is my employer's tax deduction enough?
No. Your employer's deduction (withholding under Section 149) settles your tax liability, but filing the return is a separate legal obligation. Without it, you don't appear on the ATL.
What if I have multiple employers in one year?
Enter income from each employer separately. Each should provide a Form 149 salary certificate. IRIS will calculate the combined liability.
Can I claim tax credits as a salaried employee?
Yes. Contributions to an approved provident fund, life insurance premiums (up to PKR 300,000 or 10% of salary, whichever is lower), and tuition fees for children (up to PKR 25,000 per child) are all eligible for tax credits.
What income tax slab applies to me?
Pakistan uses a progressive slab system. For Tax Year 2026, income up to PKR 600,000 is exempt. Above that, rates range from 5% to 35% depending on income bracket. See our income tax slabs guide for a full breakdown.
Business individuals (sole proprietors, partners in an AOP, or owners of an unregistered business) file under the Business Individual category. Key differences from salaried filing:
Financial statements required
You must report profit & loss. Keep clean bookkeeping throughout the year — IRIS requires income and expense breakdowns by category.
Advance tax (Section 147)
If your last assessed tax liability exceeded PKR 1 million, you're required to pay quarterly advance tax instalments (by Sep 15, Dec 15, Mar 15, Jun 15). Payments made appear as credits in your return.
Minimum tax (Section 113)
Even if your business shows a loss, you may owe minimum tax — calculated as 1.25% of your annual turnover (0.25% for certain sectors). This applies if the normal tax is lower.
Carry forward losses
Business losses can be carried forward for up to 6 years and set off against future income. Record them correctly in your return to protect this benefit.
Pakistan freelancers earning foreign income have a favourable tax regime — but only if you file correctly.
Freelancer Tax Rates (2025–26)
Register with PSEB first
Pakistan Software Export Board registration gets you the 0.25% reduced tax rate vs 1% for non-registered freelancers. Registration is free and takes 1–2 weeks online.
Report as non-salaried individual
Freelancers select 'Business Individual' in IRIS, not 'Salaried'. Freelance income goes under 'Income from Business'.
Foreign remittance proof is essential
Obtain a bank certificate showing total foreign remittances received during the tax year. Without this, you can't claim the reduced 0.25% / 1% final tax rate.
This is a final tax — no refund
The withholding on foreign remittances under Section 154A is a final tax. You declare it in your return but cannot claim a refund even if your total tax liability is zero.
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