Pakistan’s Federal Board of Revenue (FBR) has rolled out new reporting obligations for online marketplaces, courier companies, and payment intermediaries in an effort to plug tax loopholes and improve oversight of the country’s expanding digital economy.
New Compliance Requirements for Digital Platforms
Under changes introduced through SRO.1634(I)/2025, amendments have been made to the Income Tax Rules, 2002, setting out stricter filing duties:
- E-commerce platforms must now submit monthly transaction statements. These reports will include details of all sales conducted by vendors on their platforms, filed using new templates labeled Form A1 and Form A2.
- Courier services and payment processors involved in tax collection or withholding are required to submit quarterly statements.
The move signals a clear push to formalize tax reporting for the growing digital trade sector, which has largely operated in a loosely regulated environment.
Context: Pakistan’s E-Commerce Boom
Digital commerce has exploded in Pakistan over the past few years, fueled by platforms like Daraz, AliExpress, Temu, and several local startups. While this growth has created new business opportunities, it has also made tax monitoring difficult, with many sellers operating outside formal systems.
The new reporting framework aims to close these gaps, reduce tax evasion, and align Pakistan’s approach with international norms for taxing digital transactions.
Filing Deadlines You Need to Know
The FBR has laid out strict timelines for the new quarterly reports, as per Section 165 and Section 165C of the Income Tax Ordinance:
| Reporting Quarter (End Date) | Submission Deadline |
|---|---|
| March 31 | April 20 |
| June 30 | July 20 |
| September 30 | October 20 |
| December 31 | January 20 |
Businesses that fail to meet these deadlines risk penalties, as the FBR tightens enforcement to bring more transparency to Pakistan’s tax ecosystem.
Why It Matters
For Pakistan’s digital economy, this policy shift represents a step toward better regulation and stronger integration of online trade into the formal tax net. While compliance might increase operational burdens for platforms and intermediaries, it could also build trust in the sector and help the government boost revenue collection.
