ISLAMABAD: The Federal Board of Revenue (FBR) has tightened compliance protocols by mandating quarterly return filings from couriers and payment intermediaries responsible for collecting or deducting withholding tax.

The revenue authority issued draft amendments to the Income Tax Rules, 2002, through SRO 1634 of 2025. The draft will be finalised after receiving feedback from stakeholders.

The proposed protocols will only apply to domestic e-commerce outfits and couriers.

Under the proposed amendments, in line with Sub-Section 2 of Section 165 and Sub-Section 1 of section 165C, any courier or payment intermediary tasked with tax collection or deduction under Division II or Division III of Part V of Chapter X of the Ordinance, or under Chapter XII, must submit a quarterly statement. These are to be filed electronically using the format prescribed in Part X of the Second Schedule to the rules.

The deadlines for filing are set as April 20 for the quarter ending March 31, July 20 for the quarter ending June 30, Oct 20 for the quarter ending Sept 30, and Jan 20 for the quarter ending Dec 31.

In a parallel move aimed at strengthening oversight of digital commerce, the FBR has also imposed a monthly reporting requirement on online marketplaces handling digitally ordered goods and services.

According to Sub-Section 2 of Section 165C, digital platforms must submit detailed monthly statements covering both transactional and aggregate data of registered sellers.

Additionally, if an online marketplace provides courier services, it will also be required to file statements under Sub-Rule 2 of Rule 44, read with Part X of the Second Schedule. The FBR has specified that these filings must be submitted using two designated formats: Form A1 and Form A2.

Published in Dawn, August 29th, 2025