ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday imposed new conditions and restrictions on units intended to claim tax credit for integration with the Board’s systems, according to a FBR’s notification.
The amount of tax credit allowed for a tax year in which electronic resource is installed, integrated and configured with the Board’s computerised system shall be ten percent of the amount actually invested in the electronic resource.
According to a notification issued by the FBR on Wednesday, any person claiming tax credit under Section 64D of the Income Tax Ordinance shall satisfy the following conditions:
The person is required, under the Income Tax Ordinance, 2001, the Sales Tax Act, or the Federal Excise Act, 2005, to integrate with the computerised system of the Board for real-time production monitoring or for recording or reporting sales or receipts during the relevant tax year.
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The electronic resource in respect of which credit is claimed is purchased, acquired, installed or implemented and is successfully installed, integrated and configured with the computerised system of the Board during that tax year.
The equipment, hardware, software or other electronic component is directly and exclusively utilised for the required integration.
The integration is evidenced by an integration, activation, commissioning or configuration record generated or confirmed by the computerised system of the Board, identifying the taxpayer, the electronic resource and the date of activation.
The claim is supported by a tax invoice, bill, agreement, licence or other acquisition document, evidence of payment or liability, as applicable, and such other documentary or electronic evidence as may reasonably establish the amount actually invested.
The amount actually invested in an electronic resource shall include the acquisition or purchase price and one-time costs directly attributable to installation, configuration, interface development, integration, testing and implementation which are necessary to bring the electronic resource into operation for the required integration.
The amount actually invested shall be reduced by any discount, rebate, refund, grant or subsidy received or receivable in respect of the electronic resource and shall not include any amount of tax or duty which is refundable, adjustable or recoverable by the person; operation, routine maintenance, repair, annual maintenance, post-commissioning support or recurring service charges; internet, telecommunication or utility charges, employee salaries, training costs, consumables or financing costs; or the cost of a general-purpose system or component which is not directly and exclusively utilised for integration, except to the extent of a separately identifiable component dedicated exclusively to such integration.
The tax credit shall be claimed in the return of income for the tax year in which the electronic resource is installed, integrated and configured with the computerised system of the Board, and the same expenditure shall not be claimed more than once under Section 64D.
The person shall furnish, in the return or in a schedule made available on IRIS, the description of the electronic resource, vendor or supplier particulars, invoice or agreement reference, date of acquisition or implementation, amount actually invested, integration or resource identification number, and date of activation or commissioning.
Copyright Business Recorder, 2026
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