The Federal Board of Revenue (FBR) has introduced a significant clarification for builders and developers regarding advance tax under Section 236C. Taxpayers already covered under Section 7F, who have paid their fixed tax on gross receipts, are now eligible to apply for exemption from additional advance tax. This step aims to simplify the taxation process and reduce unnecessary financial burden on the real estate sector.

Previously, advance tax deductions created liquidity challenges, especially for developers with no other taxable income. With this new clarification, eligible taxpayers can avoid double taxation by applying through the IRIS system. The process has also been streamlined to ensure faster approvals and minimal delays.

Another key benefit is the automatic approval mechanism. If the FBR does not respond within 7 working days of a complete application, the exemption certificate will be issued automatically. This move supports ease of doing business and encourages transparency in Pakistan’s tax system.