F-5 combines government offices, the Software Technology Park area and institutional buildings with a small residential section. Our F-5 clients are mainly IT companies, technology startups and professionals working in the sector's offices.
IT Companies and Startups
F-5's technology park has long hosted software houses and startups. Their foreign revenue follows the IT export rules, which depend on conditions such as receipt through banks and PSEB registration. Local revenue from Pakistani clients is taxed normally and may attract ICT sales tax on services.
Startups as Private Limited Companies
Most startups incorporate early to accept investment. A company files its own return by 31 December for a June year end, keeps audited accounts as the law requires and deducts tax on salaries and certain payments. Founders who draw salaries declare them in their personal returns.
Employee Stock Options and Bonuses
Some startups reward staff with stock options or performance bonuses. These are taxed under specific rules when options are exercised or benefits received, and should be reflected in the salary certificate.
Professionals in Government Offices
Employees of government bodies in F-5 file standard salaried returns and declare any other income such as rent or profit.
| Client | Main obligation |
|---|---|
| Software house | Export proceeds records, PSEB, company return |
| Startup | Company return, payroll withholding |
| Employee with options | Correct valuation on exercise |
Getting Started
Software houses should share bank realisation records for export receipts, PSEB certificates, payroll data and the previous year's accounts. Startups add their SECP documents and any investment agreements. Individual professionals need their salary certificates and bank statements. We work through each item and file once you approve the drafts.
Part of our Islamabad tax consultant guide. Nearby: F-9, F-10, F-11.
Frequently Asked Questions
Do F-5 software houses need PSEB registration?
It is generally needed for the reduced treatment of IT exports and is renewed annually.
When is a startup's company return due?
For a 30 June year end, by 31 December.
Are stock options taxable for employees?
They are taxed under specific rules, usually when exercised or when the benefit is received.
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