ISLAMABAD: Federal Board of Revenue has moved to strengthen its oversight of the country’s growing e-commerce sector by issuing draft amendments to the Income Tax Rules, 2002. The amendments, introduced through SRO 1634 of 2025, mandate quarterly return filings from couriers and payment intermediaries involved in collecting or deducting withholding tax. According to the notification, these changes will only apply to domestic e-commerce operators and courier services. The draft has been shared for stakeholder feedback before finalisation.
The proposed rules outline that any courier company or payment intermediary engaged in withholding tax collection under the relevant provisions of the Income Tax Ordinance must submit quarterly statements electronically, using the format prescribed in Part X of the Second Schedule. Specific deadlines have been set: April 20 for the quarter ending March 31, July 20 for the quarter ending June 30, October 20 for the quarter ending September 30, and January 20 for the quarter ending December 31. By standardising reporting timelines and formats, FBR aims to create a uniform compliance framework for operators handling tax deductions within the e-commerce and courier ecosystem.
In parallel to these quarterly filings, a new layer of monthly reporting has been introduced for digital marketplaces. Under Section 165C, online platforms that facilitate the sale of goods or services through digital orders must file detailed monthly statements covering both individual transactional records and aggregate data of registered sellers. This move brings structured oversight to online commerce channels, many of which have grown significantly in recent years but have faced limited tax monitoring. FBR’s directive ensures that data from online marketplaces is regularly captured, enabling more transparent tracking of digital trade activity within Pakistan.
Further compliance requirements are in place for online platforms that also operate courier services. These companies will be obligated to file statements under Sub-Rule 2 of Rule 44, in accordance with Part X of the Second Schedule, using designated formats Form A1 and Form A2. This dual compliance structure ensures that digital marketplaces involved in logistics are held accountable both as e-commerce facilitators and as service providers managing tax collection. By extending the reporting obligations to cover both financial transactions and logistical operations, FBR intends to close regulatory gaps that have previously allowed underreporting in Pakistan’s expanding digital economy.Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
