Every sole proprietor in Pakistan is legally required to file annual income tax returns with the Federal Board of Revenue (FBR). Filing ensures compliance with tax laws, avoids penalties, and maintains the status of an active taxpayer. This status provides significant benefits, including reduced withholding tax rates, eligibility for business loans, and smoother financial transactions such as property transfers and imports/exports.

Documents Required

• Annual Accounts

• Details of Other Income Sources (if any)

• Annual Personal Expenses

• Details of All Owned Assets

• Investments Made During the Year

• Record of Asset Disposals During the Year

• Other Inflows/Outflows During the Year

• Any Additional Information as Required
  
  Filing of Annual Income Tax Return for sole proprietors is completed within 3–5 working days, provided all documents are available.