The Federal Board of Revenue (FBR) has formally launched a simplified electronic tax return form for the 2025 tax year, aiming to make filing easier and more automated for individuals and small businesses.
A Delayed but Significant Rollout
After weeks of uncertainty, the FBR finalized the form through SRO1561 of 2025, following a 40-day consultation period on its draft released in early July. The official launch puts an end to speculation among taxpayers who were waiting for clarity on the process.
The form, however, is currently available only in English. An Urdu version—promised earlier by the government—has yet to be released, leaving some taxpayers at a disadvantage.
What’s Different in the New System
The updated filing platform has been redesigned into eight digital “windows,” each with a single input field, allowing users to move step by step. A key feature is its auto-fill mechanism:
- Employer details automatically bring up tax deductions.
- Withholding taxes tied to a filer’s CNIC are pre-loaded.
- Bank accounts show closing balances.
- Registered purchases and assets appear without manual entry.
The idea, according to tax experts, is to minimize human error and reduce the need for repeated data entry—both common hurdles in the previous filing system.
Who Can File Through the Simplified Form?
The new return is targeted at salaried individuals, people with rental income, and small businesses operating under a defined income threshold. Anyone earning above that threshold will still need to use the standard tax filing system.
In parallel, SRO1562 of 2025 introduced simplified electronic forms for a broader set of taxpayers, including companies, associations of persons (AOPs), and independent professionals.
Mandatory Disclosures on Foreign Assets
Another notable requirement is the new “Electronic Foreign Income and Assets Declaration.” Resident taxpayers who hold property, bank accounts, or investments abroad are now obligated to disclose them in detail. Non-residents with no Pakistan-sourced income, meanwhile, will use a separate filing format.
The Bigger Picture
The move reflects FBR’s ongoing effort to improve transparency and compliance in a country where tax collection has long fallen short of potential. By reducing manual input and offering clearer, interactive forms, the agency hopes more people will file returns accurately and on time.
Taxpayers still face the standard deadline of September 30 for filing, making the adoption of the new system critical in the weeks ahead.
