Strategic tax advice that protects value and manages risk.

Taxation in Pakistan is a complex and rapidly evolving field. With frequent amendments to the Income Tax Ordinance, Sales Tax Act and provincial revenue laws, businesses need advisors who stay ahead of change. ZAFCA's tax practice combines deep technical knowledge with practical commercial judgment to help clients manage their tax obligations efficiently and defensibly.

Our taxation services

We serve a diverse clientele — from owner-managed businesses and family offices to public companies and multinational groups — offering end-to-end tax support that spans compliance, planning, controversy and transaction advisory.

Income tax compliance and planning

Our team prepares and files corporate and individual income tax returns, computes advance tax liabilities, manages withholding tax obligations and advises on the structuring of business operations to optimise tax outcomes within the framework of the law. We regularly handle matters involving presumptive tax regimes, final tax regimes, minimum tax on turnover and the alternative corporate tax mechanism.

Sales tax and indirect taxes

We assist clients with sales tax registration, monthly and annual return filings, input tax reconciliation, refund claims and compliance with the Sales Tax Act, 1990. Our services extend to provincial sales tax on services under the respective provincial revenue authorities of Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan, as well as federal excise duty where applicable.

Corporate tax structuring

For groups operating across multiple entities and jurisdictions, we provide tax-efficient structuring advice — from holding company and subsidiary architecture to cross-border transactions, dividend repatriation strategies, treaty analysis and withholding tax optimisation. Our advice is always grounded in substance, commercial rationale and full disclosure.

Tax assessments, audits and dispute resolution

We represent clients before the Federal Board of Revenue (FBR) and provincial tax authorities in assessments, audits, show-cause proceedings and appeals. Our team prepares detailed written submissions, attends hearings and engages with assessing officers to resolve disputes at the earliest possible stage. Where matters escalate, we coordinate with leading tax counsel — drawing on relationships with Pakistan's tax bar associations, including the Lahore Tax Bar Association and Karachi Tax Bar Association — to mount robust appellate and tribunal-level advocacy.

Transfer pricing

Pakistan's transfer pricing rules require documentation and arm's-length analysis for transactions between associated enterprises. We prepare transfer pricing documentation — including master files, local files and Country-by-Country (CbC) reporting notifications — aligned with OECD guidelines and FBR notification S.R.O. 1163(I)/2018 and subsequent amendments. Our team conducts benchmarking studies, functional analysis and economic modelling to support compliant and defensible transfer pricing positions.

M&A and transaction tax advisory

Mergers, acquisitions, divestitures, demergers and corporate reorganisations carry significant tax implications. We advise on deal structure, tax due diligence, purchase price allocation, post-deal integration and the utilisation of carried-forward losses and tax credits. Our transaction teams work closely with legal counsel and investment bankers to ensure tax considerations are built into the deal from the outset.

• Income tax return preparation and filing for corporates, AOPs and individuals
• Sales tax registration, return filing and refund management
• Corporate tax structuring and entity rationalisation
• FBR and provincial tax authority audit representation
• Transfer pricing documentation and benchmarking studies
• M&A, demerger and reorganisation tax advisory
• Withholding tax compliance and optimisation
• Liaison with Pakistan's tax bar associations for appellate matters