Befiler, Pakistan’s leading online tax filing portal, has raised $1.5 million in seed funding from international and local investors. The seed round was co-led by Cistech Capital and Lakson Venture Capital with participation from local angel investors as Befiler looks to expand its product and service offerings to customers.
Akbar Tejani and Mudassir Jokhio, co-founders of Befiler, stated, “We are grateful for the seed funding from our investors. Despite economic challenges, Pakistan is undergoing a major digital transformation and formalization of the economy, and we are proud to be at the forefront of this positive and direly needed change. Befiler is Pakistan’s first fintech company in the field of digital tax filing and advisory services, and has experienced significant growth in the past two years. We have established ourselves as a reliable digital tax advisory solution by making tax services more accessible and affordable for the average taxpayer. Befiler’s app has been downloaded over 1 million times on the Google Play Store, with 460,000 users and a rating of 4.5 stars out of 5. In the coming years, we plan to serve over two million individuals, SMEs, and corporates.”
Cistech Capital, co-lead investor in this fundraising round, is thrilled to aid in the company’s expansion, and digital transformation of Pakistan’s tax system. Befiler’s rapid growth to this point has been impressive, and we strongly believe that their services with streamlined user experience and online access is essential for Pakistan’s push towards a formal economy.
Since its founding, Befiler has excelled in the startup industry. In 2019, the Company received a grant from the Innovation Challenge Facility (ICF) for Digital Financial Services, funded by DFID and evaluated by a committee led by the State Bank of Pakistan. In 2021, Befiler was awarded ‘Startup of the Year’ at the Pakistan Digital Awards (PDA) and also received a grant from Karandaaz Pakistan, a non-profit funded by the Bill & Melinda Gates Foundation, to increase digital financial inclusion for women. Recognizing the significant gap in advisory services, Befiler has also started offering a range of business and advisory services such as sales tax, corporate tax and compliance, intellectual property, and business formation and tax advisory in the United States.
Stock options are a type of employee compensation that allows employees to purchase company stock at a predetermined price, known as the strike price. Stock options can be an attractive benefit for employees, as they allow them to potentially profit from the appreciation of the company’s stock.
In Pakistan, the taxability of stock options depends on a few factors. The first component of taxation is whether the shares have vested to the employee with or without restrictions on transfer or sale. If the shares have vested to the employee with restrictions on transfer, they will not be considered as issued and therefore not taxable until the restriction is removed. On the other hand, if the shares have vested to the employee without any restrictions, they will be considered as issued and taxable as salary by the amount of the market value minus any strike price paid for the shares.
The market value for a listed company is the quoted price on the stock exchange, while the market value for a private company is the balance sheet break-up value, calculated as the equity divided by the number of shares.
The second component of taxation relates to the disposal of the shares. After the shares have been issued and any tax has been paid on them as salary, they will be reflected in the personal wealth statement until they are disposed of. When the shares are disposed of, any capital gain (the sale consideration minus the amount taxed as salary and the strike price paid) will be taxed.
In the case of a private company, the full amount of the capital gain will be taxed at normal rates, which range from 5% to 35% depending on the amount. In the case of a listed company, the capital gain will be taxed at a declining rate, starting at 15% if disposed of within one year and decreasing to 0% after six years. This rule applies to shares issued after July 1, 2022.
In conclusion, the taxability of stock options in Pakistan depends on the vesting and transfer restrictions of the shares, as well as the timing and circumstances of their disposal. It is important for employees to understand the tax implications of stock options in order to properly plan for and manage their financial affairs.
Pakistan’s economy is heavily reliant on international trade, making import and export licenses essential for any business operating in the country. Without a license, businesses will be unable to partake in the lucrative trading opportunities available throughout the world. This blog post will discuss the importance of import and export licenses in Pakistan, as well as how businesses can go about obtaining their own.
Why Is It Important to Have an Import and Export License?
Having an import and export license allows businesses to operate within Pakistan’s legal framework while engaging in international trade. Such licenses are also required by law, so being without one can have serious repercussions. Additionally, having a license indicates that a company is legitimate and has satisfied all the necessary requirements for trading with other countries. As such, it serves as a sign of credibility and trustworthiness when dealing with foreign partners or customers.
How Can Businesses Obtain an Import and Export License?
The process of obtaining an import/export license differs depending on which goods are being imported or exported, as different items may require special permissions from certain government departments or agencies. Generally speaking, however, companies must first register themselves with the relevant authorities by providing evidence of legal registration (e.g., Memorandum & Articles of Association) and other documents such as audited financial statements for the last two years or more. Once registered, companies may apply for an import/export license through their local Chamber of Commerce or relevant government agency (e.g., Federal Board of Revenue). The application must include details such as the type of goods being imported/exported, destination/country of origin, terms and conditions under which they are to be traded (e.g., quantity limits), etc. Upon approval from these authorities, companies will receive their import/export license which will enable them to begin trading internationally within Pakistan’s borders legally!
In conclusion, having an import and export license is essential for businesses operating in Pakistan who wish to engage in international trade legally. Such licenses serve as proof that a company is legitimate and has met all necessary requirements for trading with foreign partners or customers—making them invaluable assets when it comes to doing business abroad! Fortunately, obtaining one isn’t too difficult; simply register your business with the relevant authorities (or confirm your existing registration) then apply for an import/export license through your local Chamber of Commerce or other government agency—and you’ll be ready to start trading internationally soon!
Opening and running a successful software house in Pakistan requires determination, hard work, and knowledge of the country’s registration process. If you are an entrepreneur looking to open your own software house in Pakistan, this blog post is for you! In it, we will discuss the registration process and what you need to know before taking the plunge.
The Government of Pakistan has recognized the potential and ability of IT Sectors to promote business in their country. So far, foreign income from the IT sector, up until June 30th 2025, had previously been exempted from taxation. The new reforms have withdrawn this exemption but offer a 100% tax credit for those who meet specific criteria; no Turnover Tax is required to claim it! To determine eligibility, companies must satisfy four
Major government requirements.
Submission of income tax return
Submission of withholding tax statements
Submission of provincial sale tax returns
Withholding tax should be deposited in the national exchequer
Registering Your Business
The first step when registering your business is to select a name. This can be done through the Securities and Exchange Commission of Pakistan (SECP). The name should reflect your company’s mission and goals. Once you have chosen a name for your company, it must be registered with SECP. This will require filing out the relevant forms and submitting them along with the necessary documents; these documents may include proof of identity, bank statements, etc.
Registration with Pakistan Software Export Board (PSEB)
The next step is registering your software houseto Pakistan Software Export Board (PSEB). PSEB is a Government of Pakistan initiative tasked to promote and develop the country’s IT sector both domestically and internationally. Companies must register with PSEB to access various tax benefits from the Income Tax Department, providing an incentive for businesses whilst also assisting the government in tracking remittances made abroad through their valuable contribution towards documenting economic movements. Through such actions, insights into specific areas where technology can spur economic growth are gained as further foreign investment pour into this thriving Pakistani industry.
Creating Company Policies
Once all legal procedures are completed, you must develop internal policies specific to software houses that adhere to local laws and regulations, such as labor laws or intellectual property rights laws. These policies are essential because they provide clear guidelines on how employees should conduct themselves while working together or with clients/customers. Additionally, these policies also define the roles & responsibilities of each employee within their department, allowing everyone to stay organized and efficient while working towards achieving organizational goals.
Starting a software house in Pakistan can seem intimidating, but following this guide should make the process much smoother! Remember that success depends heavily on having proper documentation in place before starting operations, such as registering with SECP and PSEB, respectively. Additionally, developing company policies is also essential for maintaining efficiency within the organization, which helps create a better customer experience down the line! If you’re a budding business owner in Pakistan with dreams of launching your own software house, count on the expert advisors at team Befiler to get you started heading down the right path.
In Pakistan, there is a common misconception that if a business has no business activity during a tax period, then the taxpayer is not liable to file a monthly sales tax return for the same. This blog post will provide an overview of what is null filing of sales tax return and when it is required to file in accordance with legal provisions prescribed under the law.
Here, we would like to discuss the parameters under which the sales tax registered person is bound to choose an option towards filing of null sales tax return in the tax periods where neither any business transaction is being made nor any record / data is available to report. We would like to highlight the importance towards filing of null sales tax return, non-compliance to which may results of certain repercussions which are listed as underneath:
Sales tax registration comes with an obligation that every registered person required to file monthly sales tax return in the manner prescribed under the Sales Tax Act, 1990 [ST Act] and allied Rules. Even in the event where the business has made no sales, the registered person is still under obligation to inform the same to the Tax Authority by way of filing Null Return.
The registered person may face some sort of discomfort by non-filing of sales tax return for two consecutive months as result of which the registration status would be excluded from Sales Tax Active Taxpayer list.
Non-compliance to filing of return may adversely affect the business operations of the company as Tax Authority may issue notice to penalize that registered person on account of non-filing of sales tax return. This is not only the matter of penalties imposed by respective canon of taxation, but also harm the business image among the suppliers and buyers.
Based on above scenarios and legal understanding, we would like to summarize here that every person who has got himself registered with relevant tax authority is required to fulfil all the obligations and compliance comes under the obligation of respective tax laws. Here in Befiler, we are offering all the related services concerning the Sales Tax Obligations along with the necessary guidance regarding the matter. We recommend speaking with our professional tax advisor at Befiler who can help you to determine what is best for you in accordance with specific situation.
Copyright is the exclusive and assignable legal right to copy, publish or perform an artistic work for a limited time. It’s an intellectual property that gives its owner all rights in their creations, including making copies of it with permission from original author/sender.
Copyright protects your original expression of ideas in a tangible form. That means things like books,paintings, musical compositions, sculptures, and computer programs are protected. Copyright does not protect ideas themselves—only the expression of those ideas.
Copyrights protect your creative work from being replicated and used by others for a limited time. Get the copyright registered as soon as possible because it can help to prove that you own this intellectual property in case any disputes arise with an accused person or organization who is duplicating/using one of your creations without permission.
Why is copyright registration important?
It is important to know the copyright laws in order not only protect your own work, but also be able to represent other people’s creations. Without proper knowledge of these regulations, you could find yourself facing legal action! There are many types of work that are eligible for copyright protection, such as:
o Articles, books and other written compositions o Computer Software and video games o Audiovisual work, such as movies and TV shows o And many other examples
Benefits of copyright registration in Pakistan?
Copyright registration in Pakistan is not mandatory. However, there are several advantages to registering your copyright. For starters, it creates a public record of your ownership claim. This can be important if you ever need to enforce your rights against an infringer. Additionally, if you register your work within five years of publication, you will be entitled to statutory damages and attorney’s fees in any infringement action.
Copyright registration offers many benefits, but it can be a complicated process if you’re not aware of all the steps. That’s why we wrote this guide to help clarify what needs to be done so that your business will reap the rewards without worrying too much!
It’s time to start your business in the right direction with Befiler copyright registration services. You can’t copyright your ideas. But you might be able to register them with the help of team Befiler! Whether it’s a logo or an invention, we will make sure that all intellectual property protection is tied up in one package for affordable prices-so don’t wait another minute and get started today by contacting us through our website: www. befiler.com.
The Securities and Exchange Commission of Pakistan (SECP) is the regulator of the Pakistani securities market. It was established in October, 2008 after the Securities Commission of Pakistan Ordinance, 2007 was promulgated. The SECP is a multi-functional regulator exercising regulatory and developmental functions to develop a modern and efficient securities market in Pakistan.
The SECP is responsible for regulating and supervising the non-banking finance sector, capital markets, and corporate sector in Pakistan. If you’re planning on starting a business in Pakistan, you’ll need to register with the SECP.
Registering with SECP is a relatively simple process that can be completed entirely online. Just contact team Befiler and you’ll have your business up and running in no time!
The main functions of the SECP are as follows:
Registration of different type of companies such as Private Limited, Public Limited, SMC Private Limited and Limited Liability Partnership.
To approve prospectuses for public companies, private placement memorandums, and offer documents for Collective Investment Schemes;
To register and regulate stock exchanges, brokers, dealers, modarabas, mutual funds, asset management companies, investment advisers, investment banks and residential property managers;
To promote fair dealing in securities by investigating complaints against listed companies as well as complaints of insider trading and other forms of market manipulation;
To take action against rigging, fraud and corruption in the securities market;
To keep the government informed about conditions in the securities market;
And to take measures to ensure stability of the securities market
The SECP also has a number of development functions aimed at promoting investor education and awareness, enhancing market infrastructure and developing new products. The SECP strives to create an environment for corporate growth while protecting investors’ interests through active regulation
How to register company in Pakistan with SECP?
The company registration/incorporation process in Pakistan is governed by the Companies Act 2017. The law provides information on how to form a new business and maintain its operations, with offices controlled under Securities & Exchange Commission of Pakistan (SECP). At present there are eight CROs that offer services throughout Islamabad, Karachi Lahore Peshawar Quetta Multan Faisalabad Gilgit .
Process of SECP registration
Step 1: Decide status of your company
Limited liability companies in Pakistan come with two different types of status: private and public. A company can be either type, but it is important to know the difference before making your decision so that you don’t end up regretting later on down the line when things go wrong due to lack of information about how these companies function here legally! The best way for me as someone who wants my business venture kept close family members or friends? Private Company.
Step 2: SECP name search
Choose a name for your new company that will represent the values you want to promote. Make sure it’s available before registration! Click here for SECP name search
Step 3: Submission of company registration documents
In order to register a company, you must obtain all the required identity documents from yourself and your partners. In addition, there are two other items that need signing: The Memorandum of Association and Articles-of Association and Form 29 and 21. Once these have been completed then simply take them into any local registering office within 60 days for confirmation; otherwise they will no longer allow access rights in regard to this particular name, once again making sure not miss out on using its potential!
Step 4: Company incorporation
Once the documents are submitted and the concerned officer at the CRO satisfies himself, he will issue you a Certificate of Incorporation. The certification will mention the name of the company, date of Incorporation, a Unique Identification Number (UIN), and fees charged. This will be the proof that your company registration process is complete.
The role of the Securities and Exchange Commission is vital to the proper functioning of Pakistani markets. Additionally, by taking measures to ensure stability in markets, the SECP promotes an environment that is conducive to business growth while also providing protection for those working within it. Ultimately, the goal of the SECP is to ensure that everyone involved in Pakistani markets can do so with confidence, knowing that there is a strong regulatory presence looking out for their best interests.
Taxes are always complex and contentious, no matter what country you’re doing business in. In Pakistan, small and medium-sized enterprises (SMEs) face several unique taxation issues that can be difficult to navigate. In this article, we’ll look at the most common tax issues faced by SMEs in Pakistan and offer some advice on how to deal with them.
Corporate Tax Rates are High
One of the biggest complaints from Pakistani businesses is that the corporate tax rate is simply too high. The standard corporate tax rate in Pakistan is 29%, which is higher than the average rate in other countries. This puts Pakistani businesses at a competitive disadvantage and makes it difficult for them to grow and expand. There are a few different ways to lower your corporate tax liability. Still, it’s essential to work with a qualified tax professional like Befiler to ensure you’re taking advantage of all the opportunities available.
Lack of Consistency in Tax Laws
Another big problem for businesses in Pakistan is the lack of consistency in tax laws. The tax code is constantly changing, and there is often little guidance from the government on how these changes will impact businesses. This lack of clarity creates uncertainty and can make it difficult for businesses to comply with the law. It’s essential to keep up-to-date on changes in the tax code and consult with a professional if you have any questions about how these changes will affect your business.
Difficulties With Tax Collection
The third major issue businesses face in Pakistan is difficulties with tax collection. The government has struggled to effectively collect taxes from businesses, leading to a large amount of unpaid taxes. This issue is compounded by the fact that there are often delays in refunds owing to businesses, which can create cash flow problems. If you are having trouble paying your taxes, it’s essential to contact Befiler so that you can negotiate a payment plan.
SMEs in Pakistan face several unique taxation issues that can be difficult to navigate. In this article, we’ve looked at the three most common tax issues faced by SMEs in Pakistan and offered some advice on how to deal with them. Suppose you’re running a business in Pakistan. In that case, it’s essential to stay up-to-date on changes in the tax code and consult with a qualified professional like Befiler if you have any questions about how these changes will impact your business.
Every business needs a tax identification number and same goes for individuals also. There are two types of tax identification numbers in US. The first type is Social Security number (SSN). These are for all US citizens, permanent resident and temporary residents who are allowed to work through work permit. The second type is Individual Tax Number (ITIN).
WHAT IS AN ITIN?
Individual Tax Identification Number (ITIN) is issued by Internal Revenue Services (IRS), which is a US tax collection agency. IRS issues ITIN to help individuals comply with US tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for a Social Security Number (SSN). Unlike other forms and ID, ITIN only has one purpose which is tax filing and reporting. Having an ITIN doesn’t mean you are eligible for benefits such as social security or earned income credits that provide refunds to some of the low-income filers.
ITIN ELIGIBILITY CRITERIA
Both US residents and non-residents are eligible to apply for ITIN regardless of their immigration status. Both US residents and non-residents can apply for ITIN if they are not eligible for SSN.
WHO NEEDS ITIN
Non-residents who are required to file an income tax return.
Residents who are required to file an income tax return due to the number of days they reside in the US.
Dependents or the spouse of US citizen or resident.
Dependents or spouse of non –resident visa holders.
HOW BEFILER CAN HELP YOU TO GET YOUR ITIN?
Step 1: Sign in to your Befiler mobile App or visit our website www.befiler.com through your browser. Step 2: Scroll down to USA Services then select ITIN registration Services. Step 3: Provide the required information that is your name and other related information. Step 4: Befiler representative will call you and guide you about the whole registration process and documents required for registration.
We do not even need your physical presence at all rather you can send your scanned passport application and get your ITIN number as soon as possible.
Befiler is here to serve you through its professional and reliable service. Now you do not even need to think about your tax related problems, as we will manage all your issues related to incorporation of your company in US.
Several taxes may apply to business transactions, depending on the nature of the transaction. As per law, taxes on income, whether personal or corporate, sales tax on goods, and customs duties fall under the federal government’s domain. The Federal Board of Revenue (FBR) is the tax collection body of the federal government. Whereas the provinces collect sales tax on services. The revenue collection bodies for sales tax on services are:
Punjab Revenue Authority
Sindh Revenue Board
Balochistan Revenue Authority
KPK Revenue Authority.
Sales tax on services in the Islamabad capital territory is collected by the FBR.
The tax year in Pakistan starts from July 1st and ends at June 30th. Any year other than this is considered as special tax year. Which needs prior approval from FBR.
Income tax for Business in Pakistan
Sole Proprietor or Business Individual
Sole Proprietorship is the most common type of business. It is an unincorporated business owned and managed by one individual. This simply means that all profits earned by the business and all business debts, losses and liabilities incurred by the business belongs to that individual.
In Pakistan, for taxation purposes sole proprietorship is considered as pass-through business. Which means business profit and losses will pass through to the owner. Income tax slabs for sole proprietor in Pakistan are as follows;
S.No
Taxable Income
Rate of Tax
1
Where taxable income does not exceed Rs. 600,000
0%
2
Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000
5% of the amount exceeding Rs. 600,000
3
Where taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000
Rs. 10,000 + 12.5% of the amount exceeding Rs. 800,000
4
Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000
Rs.60,000 + 17.5% of the amount exceeding Rs. 1,200,000
5
Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000
Rs. 270,000 + 22.5% of the amount exceeding Rs. 2,400,000
6
Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000
Rs. 405,000 + 27.5% of the amount exceeding Rs. 3,000,000
7
Where taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000
Rs. 680,000 + 32.5% of the amount exceeding Rs. 4,000,000
8
Where taxable income exceeds Rs. 6,000,000
Rs. 1,330,000 + 35% the amount exceeding Rs. 6,000,000
Association of Persons (AOP) / Partnership
Partnership is also considered a pass-through entity for tax purposes. In other words, the partnership itself is not taxed, but each partner is responsible for reporting their own profits and losses from the business on their individual tax returns.
Income tax slabs for partnership firm are same as above.
Corporate taxes in Pakistan
In Pakistan, resident company is taxed on its worldwide income. Whereas, Non-resident companies are taxed on their Pakistani Source of Income. Corporate tax rates for the tax year 2022, 2023 and onwards are as follows;
Company Type
Tax Rate %
2022
2023
2024 & onwards
Banking company
35
39
39
Public company other than a banking company
29
29
29
Any other company
29
29
29
Small company
21
20
20
Sales Tax for business in Pakistan
In Pakistan, the General Sales Tax (GST) is considered a principal indirect tax and is charged on taxable goods under the Sales Tax Act 1990. GST is a Value Added Tax (VAT) in which a value-added component is taxed at each stage of a business transaction. Sales tax on services is also levied in Pakistan. However, it is charged and collected by the provincial governments in different provinces under their respective provincial legislations.
Sales is ordinarily levied at 17% on the value of goods, unless specifically exempt or subject to sales tax at a reduced rate.
Sales tax on services is levied by all four provinces, Islamabad Capital Territory, Gilgit-Baltistan, Azad Jammu, and Kashmir at rates ranging from 13% to 16%. Reduced rates have been prescribed for certain specific services. Input tax adjustment is generally not allowed in case of a reduced rate.
Tax Compliance Chart
S.No
Description
Frequency
Date
1
Filing of Income tax return for individuals, sole proprietor / AOP
Annual
30th September
2
Filing of Income tax withholding Statements
Quarterly
20th of the month after the end of each quarter
3
Filing of Annual withholding tax Statements (In case of salaries only)
Annual
31st July
4
Filing of Annual withholding tax Statements (In case of other than salaries )
Annual
30th July
5
Filing of Monthly Sales Tax Returns under the Federal and Provincial Sales Tax Laws
