Get Tax Exemptions

Tax Exemption

Achieve lawful tax-exempt status and protect your NGO’s funds.

Tax exemption is a critical milestone for NGOs in Pakistan. Without formal tax-exempt status, donations may become taxable, withholding tax obligations may arise, and many donors—including corporates and institutions—may be unable to support your organization.

Advis provides structured, regulator-aligned support to help NGOs obtain and maintain tax exemption in accordance with Pakistan’s income tax laws.

What Is Tax Exemption for NGOs in Pakistan?

Tax exemption allows a nonprofit organization to:

Exempt eligible income from income tax
Receive donations without unnecessary tax leakage
Improve credibility with donors, banks, and regulators

Tax exemption is granted by the Federal Board of Revenue (FBR) under specific provisions of the Income Tax Ordinance, 2001, subject to eligibility and ongoing compliance.

Who Should Apply for Tax Exemption

Tax exemption is relevant for:

NGOs receiving donations or grants
Organizations planning CSR or institutional funding
Donor-funded and project-based nonprofits
NGOs seeking long-term financial sustainability

Newly registered NGOs should also plan for tax exemption early to avoid compliance and funding complications later.

Types of Tax Exemption for NGOs

Depending on the organization’s structure and activities, tax exemption may involve:

Recognition as a nonprofit organization under tax law
Income tax exemption for charitable or welfare activities
Withholding tax exemptions or reduced rates

The applicable route depends on registration type, governance standards, and compliance history.

Key Eligibility Considerations

When reviewing tax exemption applications, the FBR typically assesses:

Valid legal registration and renewal status
Charitable or welfare objectives
Non-profit distribution of income
Governance and board oversight
Proper accounting records and audit practices
PCP Evaluation Report

Tax exemption is not automatic—it is granted based on documented compliance.

Our Tax Exemption Support Process

Advis follows a compliance-first, regulator-aware approach:

Eligibility and readiness assessment
Review of legal, financial, and governance documentation
Identification and resolution of compliance gaps
Preparation and submission of the exemption application
Coordination with the FBR and response to queries
Post-approval guidance on ongoing tax compliance

This structured approach minimizes delays and reduces rejection risk.

Common Reasons for Delay or Rejection

Incomplete or outdated legal documents
Weak governance or unclear objectives
Accounting or audit deficiencies
Mismatch between stated objectives and actual activities
Absence of a satisfactory PCP Evaluation Report, or significant adverse observations in the PCP assessment

Most of these issues can be addressed before submission with proper preparation.

Timeframe & Cost (Overview)

Tax exemption is not immediate. Timelines depend on organizational readiness and FBR review cycles.

Indicative timelines and costs are shared after an initial assessment.

Most rejections are preventable with early preparation and structured review.

Why Obtain Tax Exemption with Advis

Specialized focus on nonprofit taxation
Strong understanding of FBR expectations
Proactive identification of compliance gaps
End-to-end handling of the exemption process
Ongoing advisory support after approval

We help organizations become tax-exempt—and remain compliant over time.

Secure Your NGO’s Tax-Exempt Status

Whether you are applying for tax exemption for the first time or addressing past non-compliance, Advis provides the clarity and structure needed to move forward with confidence.

Protect your funds. Strengthen donor trust. Operate lawfully.

We prepare organizations to meet PCP standards—not merely to submit applications.

→ Get advisory guidance

GET IN TOUCH

Have questions?

Find the best way to get help and connect with Advis Consultants Firm. We’re available every day of the week 24/7.

contact@advis.com.pk

advisconsultingfirm@gmail.com

03108315606 / 051-8748624

Office No. 24, Third Floor, Twin City Plaza, I-8 Markaz, Islamabad

Advis Consulting's expert team has vast experience in helping our clients meet their financial goals. We excel at helping the clients grow and reach their best financial position, which is why we have a robust client base of non-profit organizations, corporate and business entities, and individuals. Our specialties include audit, tax, outsourced accounting and risk advisory, but we also consult with our clients on all types of financial matters.

ADDRESS

Office No. 24, Third Floor,
Twin City Plaza, I-8 Markaz, Islamabad

PHONE

051-8748624

EMAIL

contact@advis.com.pk
advisconsultingfirm@gmail.com

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