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
- Accurate profit calculation
- Expense optimization for lower tax
- Tax return filing with proper documentation
- FBR compliance
- Claim tax refunds if overpaid
FAQs – Net Profit Tax in Pakistan
1. Do I have to pay tax if I made zero profit?
No. You only pay net profit tax if your profit after expenses is positive. Still, filing return is mandatory.
2. Can I deduct all expenses from my income?
Only valid business expenses are allowed. FilerNow helps you filter them properly.
3. What if my profit is very low?
You may still need to file your return. FilerNow ensures accurate reporting to avoid FBR issues.
4. Do I need to show proof of expenses?
Yes — bank statements, invoices, and receipts. We assist you in preparing documentation.
5. What’s the deadline to file?
Usually 30th September every year. Don’t wait — file now.