Tax Clearance Certificate Application (Pakistan)
Date: [Application Date]
To:
The Commissioner Inland Revenue (Withholding / Enforcement)
[Tax Office Name]
Federal Board of Revenue, Government of Pakistan
APPLICATION FOR INCOME TAX CLEARANCE CERTIFICATE
Under Section 138 of the Income Tax Ordinance 2001 | Rule 43 of Income Tax Rules 2002
1. APPLICANT DETAILS
Name: [Applicant Name]
CNIC / NICOP: [Applicant CNIC]
NTN: [Applicant NTN]
Address: [Applicant Address]
Phone: [Applicant Phone]
Email: [Applicant Email]
2. TAX COMPLIANCE STATUS
Last Income Tax Return Filed: [Last Return Year]
Outstanding Tax Demand: [Outstanding Demand]
3. PURPOSE OF CERTIFICATE
Purpose: [Certificate Purpose]
Requiring Authority / Institution: [Destination Authority]
4. REQUEST
I, [Applicant Name], holding CNIC/NICOP No. [Applicant CNIC] and NTN [Applicant NTN], respectfully request the issuance of an Income Tax Clearance Certificate in my favour for the purpose stated above.
I confirm that I am an active filer in the FBR Active Taxpayer List, have filed all required income tax returns under the Income Tax Ordinance 2001, and have no outstanding undisputed tax demands as on the date of this application.
I enclose herewith the following documents in support of this application:
(i) Copy of CNIC / NICOP;
(ii) Copy of NTN certificate / FBR IRIS printout;
(iii) Copies of income tax returns for the last three tax years;
(iv) Proof of payment of all tax dues (challans / payment receipts);
(v) Supporting document from requiring authority (if any).
DECLARATION
I solemnly declare that the information given in this application is true and correct. I understand that any false statement constitutes an offence under Section 182 of the Income Tax Ordinance 2001.
Yours faithfully,
[Applicant Name]
NTN: [Applicant NTN]
Date: [Application Date]
Place: [City]
Applicant
________________
Signature
What Is a Tax Clearance Certificate Application (Pakistan)?
A Tax Clearance Certificate Application in Pakistan records the details required for the process it supports, providing a clear written account that can be relied on.
Section 141(1) of the Income Tax Ordinance 2001 provides that the Commissioner Inland Revenue must issue a tax clearance certificate if satisfied that the applicant has either paid all taxes, interest, and penalties due under the Income Tax Ordinance 2001, or has made satisfactory arrangements for payment thereof, or that no such amount is payable. The Commissioner Inland Revenue has authority to refuse issuance of the certificate if there are outstanding liabilities, active audit proceedings under Section 177 of the Income Tax Ordinance 2001, or any ongoing investigation by the Directorate of Intelligence and Investigation — Inland Revenue.
FBR administers tax clearance certificate applications through Regional Tax Offices (RTOs) and Large Taxpayer Offices (LTOs) across Pakistan — RTO-I Karachi, RTO-II Karachi, LTO Karachi, RTO Lahore, LTO Lahore, RTO Islamabad, RTO Rawalpindi, RTO Faisalabad, RTO Multan, RTO Peshawar, and RTO Quetta. The application must be filed at the RTO or LTO where the applicant's tax affairs are registered, which is determined by the address on the applicant's National Tax Number (NTN) certificate issued by FBR.
The Tax Clearance Certificate is distinct from Active Taxpayer List (ATL) status — the ATL is an automated list published weekly by FBR under Section 181A of the Income Tax Ordinance 2001 showing taxpayers who have filed their income tax returns for the last tax year, while a Tax Clearance Certificate is a formal document issued on application confirming the absence of outstanding liabilities and is valid for a specific period (typically three months or six months from the date of issue).
A Tax Clearance Certificate issued by FBR carries significant weight in commercial and regulatory transactions across Pakistan. The Public Procurement Regulatory Authority (PPRA) under the Public Procurement Rules 2004 requires bidders for government contracts to produce a valid Tax Clearance Certificate as part of the technical bid documentation. The Directorate General of Immigration and Passports requires a Tax Clearance Certificate from certain categories of persons — particularly those with outstanding FBR notices — before issuing or renewing a Pakistani passport under the Passports Act 1974.
The Securities and Exchange Commission of Pakistan (SECP) requires a Tax Clearance Certificate for approval of certain corporate transactions — including the amalgamation of companies under Section 284 of the Companies Act 2017, the winding up of companies, and certain foreign investment approvals. Exporters applying for duty drawback from the Customs authorities under the Customs Act 1969 and applicants for reduced withholding tax rates under Section 153 of the Income Tax Ordinance 2001 may also be required to produce a valid Tax Clearance Certificate.
When Do You Need a Tax Clearance Certificate Application (Pakistan)?
A Tax Clearance Certificate Application in Pakistan is required across government procurement, emigration, corporate, and financial contexts where proof of clean tax status is mandated.
A Tax Clearance Certificate Application is required when a contractor, supplier, or service provider bids for a government contract under the Public Procurement Rules 2004. Rule 13 of the Public Procurement Rules 2004 requires bidders to submit documentary evidence of financial soundness and legal compliance, and most federal and provincial procuring agencies — including the National Highway Authority (NHA), Pakistan Electric Power Company (PEPCO), and water and sanitation authorities — specifically require a Tax Clearance Certificate as part of the bidding documents for contracts above PKR 10 million.
A Tax Clearance Certificate Application is needed when a Pakistani citizen applies to emigrate or relocate abroad and the Directorate General of Immigration and Passports or a foreign embassy requires confirmation of clean tax status. Certain foreign embassies in Islamabad and Karachi require Pakistani applicants for long-term visas or immigration permits to produce a FBR-issued Tax Clearance Certificate.
A Tax Clearance Certificate Application is required when a company applies to the Securities and Exchange Commission of Pakistan (SECP) for approval of a corporate amalgamation under Section 284 of the Companies Act 2017, a scheme of arrangement, or a voluntary winding up — SECP requires the Tax Clearance Certificate to confirm that the company has settled all FBR liabilities before the corporate restructuring is approved.
A Tax Clearance Certificate Application is needed when a taxpayer applies to FBR for a reduced withholding tax rate certificate under Section 153(4) of the Income Tax Ordinance 2001, which allows businesses to apply for exemption from or reduction of withholding tax deducted by payers under Section 153. FBR typically requires the applicant to demonstrate clean tax compliance — including no outstanding liabilities — before granting a reduced-rate certificate.
A Tax Clearance Certificate Application is required when a taxpayer seeks refund of excess withholding tax under Section 170 of the Income Tax Ordinance 2001, or applies for an Advance Tax credit adjustment — FBR's refund processing section often requires confirmation that no other liabilities are outstanding before processing a refund claim, and a Tax Clearance Certificate from the relevant RTO or LTO provides this assurance.
What to Include in Your Tax Clearance Certificate Application (Pakistan)
A valid Tax Clearance Certificate Application in Pakistan under Section 141 of the Income Tax Ordinance 2001 must contain the following essential elements to enable the Commissioner Inland Revenue to process and issue the certificate promptly.
Applicant Identity and Registration Details: Full legal name of the applicant (individual, company, or AOP), NADRA CNIC number (for individuals) or SECP company registration number (for companies), National Tax Number (NTN) issued by FBR — a mandatory requirement as the Commissioner Inland Revenue searches for outstanding liabilities using the NTN, and the registered address corresponding to the NTN certificate. The NTN can be verified at any RTO or through FBR's online verification portal.
Purpose of the Certificate: The application must clearly state the purpose for which the Tax Clearance Certificate is required — government tender submission under PPRA rules, emigration or passport renewal, SECP corporate approval, bank financing, or court proceedings. The stated purpose determines the validity period and any additional conditions the Commissioner may impose on the certificate.
Tax Year Coverage: The application should specify the tax years for which clearance is sought. The Commissioner Inland Revenue will check the applicant's filing history under Section 114 of the Income Tax Ordinance 2001 for each specified tax year and confirm whether returns have been filed, taxes assessed under Section 120, and all assessed taxes, default surcharge under Section 205, and penalties under Section 182 paid.
Declaration of Outstanding Assessments: The application must disclose any pending assessments, audit proceedings under Section 177 of the Income Tax Ordinance 2001, appeals before the Commissioner Inland Revenue (Appeals) under Section 127, the Appellate Tribunal Inland Revenue (ATIR) under Section 131, or the High Court under Section 133 of the Income Tax Ordinance 2001. Failure to disclose pending proceedings may result in the certificate being issued on the basis of incomplete information and subsequently cancelled.
Confirmation of Return Filing: The application should confirm that the applicant is on the Active Taxpayer List (ATL) published under Section 181A of the Income Tax Ordinance 2001, which requires filing of an income tax return for the immediately preceding tax year. Non-filers are not on the ATL and face higher withholding tax rates under various provisions of the Income Tax Ordinance 2001, and the Commissioner Inland Revenue may decline to issue a Tax Clearance Certificate to a non-filer with outstanding returns.
Sales Tax and Federal Excise Duty Clearance: Where the applicant is also registered for Sales Tax under the Sales Tax Act 1990 or Federal Excise Duty under the Federal Excise Act 2005, the application should request clearance under all applicable tax statutes — Income Tax, Sales Tax, and Federal Excise Duty — as government procuring agencies and banks often require an omnibus clearance certificate covering all federal taxes administered by FBR.
Required Annexures: The application must be accompanied by copies of the NTN certificate, CNIC (for individuals) or SECP incorporation certificate (for companies), filed tax returns for the last three tax years with filed copies of IRIS-generated returns, paid challans (CPRs) evidencing payment of assessed taxes, and any orders of the Commissioner Inland Revenue or ATIR relating to settled assessments.
Forms-legal.com provides this Tax Clearance Certificate Application (Pakistan) template as a practical starting point. The Commissioner Inland Revenue of the relevant RTO or LTO typically processes the application within 7 to 30 days — expedited processing can be requested for urgent cases such as imminent tender bid deadlines. Tax practitioners — Chartered Accountants registered with ICAP or tax lawyers enrolled at the relevant High Court Bar — can assist with preparing the application and following up with the RTO.
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title = {Tax Clearance Certificate Application (Pakistan) (Pakistan)},
year = {2026},
howpublished = {\url{https://forms-legal.com/pakistan/government/declarations/tax-clearance-certificate-application-pakistan}},
note = {Free legal document template}
}Also available for these jurisdictions:
Frequently Asked Questions
The time required to obtain a Tax Clearance Certificate from FBR in Pakistan depends on the completeness of the application and the workload of the relevant Regional Tax Office (RTO) or Large Taxpayer Office (LTO). Under Section 141 of the Income Tax Ordinance 2001, the Commissioner Inland Revenue is required to issue the certificate once satisfied that no liabilities are outstanding — there is no statutory deadline, but standard processing at most RTOs takes 7 to 21 working days if the taxpayer's records are clean and all returns are filed. For taxpayers with straightforward compliance histories — all returns filed on time, all assessed taxes paid, no pending audit or assessment proceedings under Section 177 of the Income Tax Ordinance 2001 — the RTO may issue the certificate within 7 to 10 working days of application. For corporate taxpayers registered at LTO Lahore or LTO Karachi, processing may take 15 to 30 days due to the volume of applications. Taxpayers facing government procurement deadlines or urgent SECP filings should apply well in advance and request expedited processing by submitting a covering letter explaining the urgency. Tax practitioners with established relationships at the RTO can sometimes facilitate faster processing through proper channels.
The documents required with a Tax Clearance Certificate Application at FBR's Regional Tax Office (RTO) or Large Taxpayer Office (LTO) typically include: a copy of the applicant's National Tax Number (NTN) certificate issued by FBR; a copy of the applicant's NADRA CNIC (for individuals) or SECP incorporation certificate and company NTN (for companies); copies of filed income tax returns for the last three to five tax years — the IRIS portal generates a filed return copy that can be downloaded and printed; copies of paid tax challans (CPRs — Computerised Payment Receipts) confirming payment of all assessed taxes and withholding taxes for the relevant tax years; if the applicant is also registered for Sales Tax under the Sales Tax Act 1990, copies of filed Sales Tax returns and paid Sales Tax challans; any assessment orders, amendment orders under Section 122 of the Income Tax Ordinance 2001, or ATIR appellate orders showing final settled tax positions; and a covering letter on the applicant's letterhead (for companies and firms) explaining the purpose of the certificate request. For corporate applicants, some RTOs also require the latest audited financial statements and a board resolution authorising the tax representative to make the application. Individual applicants should check with the specific RTO for its current document checklist, as requirements can vary between RTOs.
No. The Active Taxpayer List (ATL) and a Tax Clearance Certificate issued under Section 141 of the Income Tax Ordinance 2001 serve different purposes and are not interchangeable. The ATL is an automated list published weekly by FBR under Section 181A of the Income Tax Ordinance 2001 that shows taxpayers who have filed their income tax returns for the immediately preceding tax year. ATL status entitles taxpayers to lower withholding tax rates under various sections of the Income Tax Ordinance 2001 — for example, Section 153 withholding on contracts is 7% for ATL filers versus 14% for non-ATL filers. ATL status does not confirm the absence of outstanding tax liabilities — a taxpayer can be on the ATL while having unpaid assessed taxes, penalties, or default surcharge from prior years. A Tax Clearance Certificate, by contrast, is a formal document issued after the Commissioner Inland Revenue has reviewed the taxpayer's entire liability position and confirmed that no amounts are outstanding. Government procuring agencies, SECP, and foreign embassies specifically require a Tax Clearance Certificate — not merely ATL confirmation — when formal evidence of tax compliance is needed. Taxpayers should maintain both ATL status and a current Tax Clearance Certificate for comprehensive compliance documentation.
A company in Pakistan with a pending tax appeal before the Commissioner Inland Revenue (Appeals) under Section 127 of the Income Tax Ordinance 2001, the Appellate Tribunal Inland Revenue (ATIR) under Section 131, or a High Court under Section 133 may still be able to obtain a Tax Clearance Certificate if it has deposited the required percentage of disputed tax as a condition of the stay of recovery granted by the appellate authority. Under Section 127(5) of the Income Tax Ordinance 2001, the Commissioner Inland Revenue (Appeals) may grant a stay of recovery of tax pending an appeal if the taxpayer deposits 25% of the disputed tax demand. Similarly, the ATIR may grant a stay subject to deposit conditions. If the taxpayer has complied with all stay conditions and the balance of the disputed amount is sub judice before an appellate forum, some Commissioners Inland Revenue are willing to issue a conditional Tax Clearance Certificate — noting that certain amounts are in dispute and subject to the outcome of pending appeals. The wording of such conditional certificates is important — some procuring agencies and regulatory bodies will not accept conditional certificates. The taxpayer should discuss the specific requirements of the receiving institution with the Commissioner Inland Revenue before applying, to ensure the certificate format will be acceptable.
A Tax Clearance Certificate issued by FBR under Section 141 of the Income Tax Ordinance 2001 is not universally required for all property transactions in Pakistan, but is often demanded in specific contexts. For immovable property transactions, the relevant provincial revenue authorities — particularly the Punjab Board of Revenue administering the Punjab Registration Act and the Sindh Board of Revenue administering the Sindh Registration Act — and the sub-registrar offices in each district require the seller and purchaser to produce their FBR ATL status (via CNIC verification on FBR's portal) but do not uniformly require a formal Tax Clearance Certificate. However, where a property transaction involves a seller who has received an FBR notice regarding undisclosed property assets, or where the transaction value exceeds certain thresholds, the sub-registrar or the district collector may require a Tax Clearance Certificate or an NOC from the relevant Commissioner Inland Revenue before registering the transfer deed. For housing authority plots — DHA (Defence Housing Authority), CDA (Capital Development Authority), and LDA (Lahore Development Authority) — the relevant authority may require a tax compliance certificate as part of the transfer approval process. Buyers should verify requirements with the specific registry office before the transaction to avoid delays on the date of registration.
A Tax Clearance Certificate issued by FBR's Commissioner Inland Revenue under Section 141 of the Income Tax Ordinance 2001 does not have a statutorily prescribed validity period — the Income Tax Ordinance 2001 does not specify how long the certificate remains valid. In practice, most RTOs and LTOs issue Tax Clearance Certificates with an explicit validity period stated on the face of the certificate — commonly three months (90 days) or six months (180 days) from the date of issue. After expiry, a fresh application must be filed. Procuring agencies under the Public Procurement Rules 2004 and regulatory bodies such as SECP typically require that the Tax Clearance Certificate submitted with an application was issued within the last three to six months, so applicants should plan their application timing accordingly. For recurring compliance needs — such as a contractor who regularly bids for government tenders — it is advisable to maintain a valid Tax Clearance Certificate at all times by applying for a fresh certificate as soon as the current one approaches expiry. Some FBR field offices have introduced electronic issuance of Tax Clearance Certificates through the IRIS portal, reducing processing times and enabling online verification by receiving institutions.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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