Pakistan tax glossary
Plain-language explanations of common Pakistan tax and payroll terms.
- NTN
National Tax Number used to identify a registered taxpayer.
- ATL
Active Taxpayer List maintained by the Federal Board of Revenue.
- IRIS
FBR’s online income-tax registration and return-filing system.
- Withholding tax
Tax deducted or collected at the time of a payment or transaction.
- Tax rebate
A reduction in tax liability allowed by a specific rule.
- Taxable income
Income remaining after applicable exclusions, deductions, and adjustments.
- Total income
The aggregate income under the heads recognized by tax law.
- Salary income
Income received from employment, as defined by tax law.
- AOP
Association of Persons, a tax-law category for certain groups and firms.
- Resident taxpayer
A person meeting the tax-law residence test for a tax year.
- Non-resident taxpayer
A person who does not meet the applicable residence test.
- Tax year
A statutory period used to report income and calculate tax.
- Fiscal year
Pakistan’s government financial year, running from July through June.
- Tax credit
A legally permitted amount that directly reduces calculated tax.
- Tax deduction
An amount that may reduce income used in a tax calculation.
- Withholding agent
A person required by law to deduct or collect tax on specified payments.
- Advance tax
Tax paid before final assessment under applicable rules.
- Adjustable tax
Tax that may be credited against the taxpayer’s final liability.
- Final tax
Tax treated as final for a transaction or income under a specific provision.
- Minimum tax
A minimum liability imposed under specified statutory conditions.
- Surcharge
An additional tax charge imposed by a particular law or schedule.
- Income-tax return
A statutory statement of income, tax, credits, and other required information.
- Wealth statement
A declaration reconciling assets, liabilities, and changes in wealth where required.
- Tax liability
The amount of tax legally due after applying relevant rules and credits.
- Marginal tax rate
The rate applied to the next unit of taxable income under a progressive schedule.
- Effective tax rate
Total modeled tax divided by a specified income amount.
- Tax slab
An income band with a threshold, rate, and sometimes a fixed tax amount.
- Tax exemption
Income or a person excluded from tax under a specific legal provision.
- Tax refund
An amount potentially repayable when eligible tax payments exceed final liability.
- Tax residency certificate
A certificate used to evidence tax residence for a defined period.
- Provident fund
An employment-linked savings arrangement funded under scheme rules.
- Gratuity
A terminal employment benefit governed by the applicable law or contract.
- EOBI
Employees’ Old-Age Benefits Institution, Pakistan’s federal social-insurance institution.
- Minimum wage
A wage floor set by the competent authority for covered workers.
- Withholding certificate
A record of tax deducted or collected and reported against a taxpayer.