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Net Profit Tax: A Complete Guide for Businesses

Net Profit Tax Calculation for Businesses in Pakistan - FilerNow.com Expert Guide

Are you a business owner in Pakistan? Then understanding how Net Profit Tax works is crucial to avoid penalties and stay FBR-compliant. Net profit tax is calculated on the profit after expenses — not on your total income.

At FilerNow, we help businesses file their income tax returns properly by calculating actual net profits and applying all allowable deductions and credits.

What is Net Profit Tax?

It’s the tax charged on your business’s net profit – i.e., total income minus business expenses such as rent, salaries, utilities, fuel, internet, etc.

Example:
If your total income is PKR 1,000,000 and your expenses are PKR 400,000, tax will be calculated on the remaining PKR 600,000.

👉 Need help calculating your profit accurately? Contact FilerNow

Allowable Business Expenses to Reduce Net Profit Tax

  • Office/shop rent
  • Employee salaries
  • Marketing costs
  • Utility bills (electricity, water, internet)
  • Software, IT tools
  • Travel & fuel
  • Tax consultancy services

How FilerNow Helps

Need more information? Contact us on WhatsApp.

Tax Return Filing FAQs

1. Who is required to file a tax return in Pakistan?

Every salaried person, freelancer, business owner, or property holder earning taxable income must file a tax return under FBR law.
👉 Start Tax Return Filing
Not a filer yet? 👉 Become a Filer

2. What documents are needed to file a tax return?

You’ll need your CNIC, salary slip or income proof, bank statement, and any investment or property details.
👉 See Required Documents
No NTN yet? 👉 Get NTN Online

3. Can freelancers or students file tax returns?

Yes. If you're earning income, even from freelance or online platforms, you should file to stay compliant and avoid future penalties.
👉 File Freelance Tax Return
Also check 👉 NTN for Freelancers

4. What are the benefits of filing a tax return?

You become a filer, pay lower taxes on vehicles/property, claim refunds, and appear in ATL (Active Taxpayer List).
👉 Become a Filer Now
Start here 👉 File Tax Return Online

5. What is the deadline for filing tax returns in Pakistan?

For most individuals and businesses, the FBR deadline is 30th September each year. Late filing can lead to penalties.
👉 Avoid Penalty – File Now
Want ATL status? 👉 Filer Registration

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