Sole proprietors in Pakistan - shop owners, traders, freelancers, consultants, contractors - are required to file an annual income tax return declaring all business income. Unlike salaried employees, sole proprietors must also maintain basic accounts and file their business income under the "business" category on FBR IRIS. Kamboh Associates handles sole proprietor tax returns from Rs 7,000.

What is a Sole Proprietor for Tax Purposes?

A sole proprietor is any individual running a business in their own name without incorporating a company or forming a partnership. This includes: shop owners, traders, doctors running clinics, lawyers in solo practice, architects, consultants, contractors, and freelancers. The business income and personal income are treated as one for tax purposes.

Important: If you run a business and have not registered an NTN, FBR can issue notices based on utility bills, rent agreements, bank accounts, and business activity data. Register your NTN and file proactively to avoid penalties.

Tax Obligations for Sole Proprietors

  • NTN Registration - Register on FBR IRIS as an individual with business income
  • Annual Income Tax Return - Declare gross business revenue, expenses, and net profit by 30 September
  • Wealth Statement - Declare all personal and business assets
  • Sales Tax Registration - Required if annual turnover exceeds Rs 10 million
  • Withholding Tax - Deduct and deposit WHT if you make payments to suppliers, contractors, or service providers above threshold
  • Advance Tax - Pay quarterly advance tax if last year liability exceeded Rs 100,000
Business Return
From Rs 7,000
Full business filing
Deadline
30 September
Each year
Sales Tax Threshold
Rs 10 Million
Annual turnover
NTN Registration
Rs 1,500
24-48 hours

Our Services for Sole Proprietors

  • NTN registration and profile setup
  • Annual business income tax return
  • Wealth statement preparation
  • Sales tax registration and monthly filing
  • WHT monthly return filing
  • FBR notice response

Pricing

ServicePriceTimeline
NTN RegistrationFrom Rs 1,50024-48 hours
Business Income Tax ReturnFrom Rs 7,0002-3 days
Sales Tax RegistrationFrom Rs 5,0007-14 days
Monthly Sales Tax ReturnFrom Rs 3,000/monthMonthly
WHT Monthly ReturnFrom Rs 2,000/monthMonthly

Sole Proprietor Tax Return - Handled Professionally

WhatsApp your CNIC and business details to 0328-4675162. We handle complete FBR compliance for your business.

Free Consultation 0328-4675162

Frequently Asked Questions

What income tax rate applies to sole proprietors in Pakistan 2026?
Sole proprietors pay income tax at the same progressive slab rates as individuals: 0% up to Rs 600,000, then 5% to 35% depending on net profit. The tax is on net profit after deducting allowable business expenses.
What expenses can a sole proprietor deduct from business income?
Allowable deductions include: rent, salaries paid to employees (with WHT deducted), utilities, vehicle running expenses, depreciation on business assets, professional fees, and other genuinely incurred business expenses. Personal expenses are not deductible.
Do I need to maintain accounts as a sole proprietor?
You must maintain basic business records: revenue records, expense receipts, and bank statements. FBR can ask to inspect records if a notice is issued. A simple Excel sheet is acceptable for small businesses; larger businesses may need formal accounts.