Income tax readiness checklist

Check whether the records needed to prepare an annual income tax computation are to hand, from a few plain questions about the state of the books.

Answer a few plain questions about your accounting records and see what is ready, what still needs chasing, and what a preparer will want to look at directly. Nothing here needs a tax answer first.

This is a preparation aid, not a tax computation. It does not work out what any tax comes to, it does not determine whether any return or payment is required, and it states no rate, threshold or date. This tool does not save your answers; they are used only to draw the checklist on the page.

A few questions about your records

You do not need to calculate tax or interpret tax law to answer these questions. There is no wrong answer — "not sure" is genuinely useful, because it tells a preparer where to look first.

This tool does not save your answers. They are used only to work out the checklist shown on this page.

What kind of business is it?

This only decides which questions are worth asking. It is not used to reach any legal conclusion.

Which period are you preparing? (optional)

Anything that identifies the period to you — the year end you use, or a description such as "last financial year". It is echoed back on your checklist and used for nothing else. No date is read from it and none is calculated.

Have the annual accounts for the period been prepared?

A profit and loss account and balance sheet for the whole period, in final or near-final form.

Is a final trial balance or general ledger available for the period?

The list of every account balance the accounts were drawn from, rather than a summary. If you do not keep the books yourself, this is one for your bookkeeper or your accounting software.

Does the business hold inventory or stock?

Goods held for sale, raw materials, packaging or spares — anything counted as stock at the period end. Most service businesses hold none.

Have the bank accounts been reconciled to the end of the period?

Every account the business used, including any that were closed during the period.

Does the business hold fixed assets?

Property, vehicles, plant, equipment, fittings or similar.

Is the business registered for sales tax?

A plain fact about the business, not a question about whether it ought to be. This tool takes no view on that.

Are there complete records of tax the business deducted from its own payments?

The deduction records and the payment receipts for them. Choose "the business deducts none" if that is the position.

Are there certificates or records of tax deducted from the business's own receipts?

Tax withheld by customers, banks or others from amounts paid to the business.

Are the records of tax paid by the business during the period available?

Payment receipts for tax the business itself paid during the period. This tool does not ask what was due, or when.

Is this the business's first period?

If it is, there is no prior year to bring anything forward from.

Were there material provisions, accruals, write-offs or one-off transactions in the period?

For example a large provision, a bad debt written off, an asset disposal, or a transaction unlike the ordinary run of the business.

Next steps

Income Tax

Corporate and individual income tax — returns prepared from records that support them, and representation when a notice arrives.

Business Process Outsourcing

The finance function run from outside the business — bookkeeping, payroll, returns, and a month-end close that lands on the same date every month.

Other practical tools

Pakistan compliance calendar

See which selected FBR filing and payment deadlines may apply, from a few plain questions about what the business actually does.

Best for: knowing what falls due, and when.

Check FBR deadlines — Pakistan compliance calendar

SECP company compliance checklist

Check which selected recurring and event-driven Companies Act and SECP obligations may apply to a company.

Best for: seeing what a company owes the registrar.

Check SECP compliance — SECP company compliance checklist

Pakistan salary tax calculator

Estimate federal income tax on a taxable salary for a chosen tax year, with the average monthly figure and the rate it works out at.

Best for: working out tax on a salary figure.

Calculate salary tax — Pakistan salary tax calculator

Pakistan withholding tax rate finder

Find the withholding tax rate to review before making a payment, from a few plain questions about the payment and who is being paid.

Best for: knowing what to deduct on a payment.

Find a withholding rate — Pakistan withholding tax rate finder

Tell us what you are dealing with

You will get a plain answer on whether the practice can help, what it would involve, and what it would cost.

Call WhatsApp