FBR Sales Tax on Services: PRA vs SRB vs KPRA vs BRA Rules for Tech Agencies
A practical provincial tax compliance guide for Pakistani software houses, digital marketing agencies, and IT consultants comparing Punjab Revenue Authority (PRA), Sindh Revenue Board (SRB), KPRA, and FBR sales tax rules.
Regulate services in Punjab & Sindh. IT export services to foreign clients enjoy 0% zero-rating or exemption. Domestic IT services taxed at 5%–13%.
KPRA regulates KPK; FBR handles ICT Islamabad. Monthly return filings due by 15th–18th of every month.
Table of Contents
1. The 5 Sales Tax Authorities in Pakistan Explained
Following the 18th Constitutional Amendment, taxation of services was devolved to provincial governments:
- PRA: Punjab Revenue Authority (Lahore)
- SRB: Sindh Revenue Board (Karachi)
- KPRA: Khyber Pakhtunkhwa Revenue Authority (Peshawar)
- BRA: Balochistan Revenue Authority (Quetta)
- FBR: Federal Board of Revenue (Islamabad Capital Territory)
2. Zero-Rating (0%) Exemption for IT Export Proceeds
All provincial tax laws classify IT export services (software development, SaaS, digital consulting) provided to foreign clients as Zero-Rated (0%) or Exempt, allowing IT exporters to operate tax-free locally while claiming back input sales tax paid on office expenses.
PROVINCIAL SALES TAX ADVISORY
Register for PRA / SRB / KPRA Sales Tax with ADVAQ
ADVAQ manages sales tax registration with PRA, SRB, KPRA, and FBR, files monthly sales tax returns, and secures 0% IT export exemptions.
3. Domestic IT Sales Tax Rates (PRA, SRB, KPRA, FBR)
For domestic services delivered to clients inside Pakistan, PRA levies 5% to 16%, SRB levies 13%, KPRA levies 5% to 15%, and FBR ICT levies 15%.
4. Monthly Sales Tax Return Filing Workflow
Registered entities submit monthly sales tax returns on provincial portals by the 15th (for tax payment) and 18th (for final return submission).
Frequently Asked Questions
PAKISTAN PROVINCIAL TAX SOLUTIONS
Manage Provincial Sales Tax Compliance
PRA, SRB, KPRA, and FBR sales tax registration, 0% IT export zero-rated auditing, monthly returns, and input tax recovery.