ISLAMABAD: Federal Board of Revenue (FBR) has issued a new “Electronic Foreign Income and Assets Declaration for Resident Individuals” for tax year 2025. The move introduces a dedicated mechanism for resident individuals to declare their offshore incomes and assets digitally through FBR’s electronic platform. Alongside this development, a separate return has also been notified under the title “Electronic Return for Non-Resident Having No Source of Income in Pakistan,” ensuring that tax compliance processes are clearly differentiated between residents with foreign financial connections and non-residents with limited reporting obligations. Both changes were formally notified through the issuance of SRO 1562(I)/2025.
In line with these updates, FBR has amended the Income Tax Rules, 2002, and rolled out a wider set of electronic return forms aimed at easing the tax compliance journey. These include the introduction of a “Simplified Electronic Return for Individuals,” offering a streamlined version of tax filing for those with less complex tax matters. The same notification also confirmed the finalization of electronic income tax return forms for companies, association of persons (AOPs), and individuals for tax year 2025. By doing so, FBR has consolidated its efforts to create a harmonized tax filing system that reduces complexity for taxpayers while ensuring compliance remains transparent and accessible.
As part of the reforms under SRO 1562(I)/2025, FBR has additionally notified final electronic return forms designed specifically for key economic groups including manufacturers, traders, and small and medium enterprises (SMEs). The introduction of these category-based electronic returns reflects a more customized approach, recognizing the diverse needs of businesses across different sectors of the economy. In parallel, FBR has also issued another notification, SRO 1561(I)/2025, to formally roll out the “Simplified Electronic Return for Individuals,” which is expected to further encourage tax compliance by reducing barriers faced by small taxpayers and first-time filers.
Importantly, FBR has clarified that any changes introduced to the return forms available on the IRIS system will be considered as though they had always been in place, ensuring uniformity in application. At the same time, it emphasized that such updates will not cause any prejudice to taxpayers who may have already filed their returns prior to the adjustments. The regulatory authority stressed that the changes are applicable for tax year 2025 and represent part of its broader agenda to digitize and modernize Pakistan’s tax administration framework. By digitizing declarations and returns across categories, FBR is not only simplifying compliance but also strengthening oversight of offshore incomes and assets, thereby aligning with global tax transparency standards.
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