FBR Tax Clearance Certificate 2026: Section 145 Guide

Introduction

Leaving Pakistan permanently involves more than booking a flight. Under Pakistan's income tax law, anyone departing with no intention of returning must first settle their tax position with the Federal Board of Revenue (FBR). That means notifying the Commissioner Inland Revenue in advance, filing any outstanding returns, and clearing or securing every unpaid liability. The document that confirms all of this is the FBR Tax Clearance Certificate, issued under Section 145 of the Income Tax Ordinance, 2001 and Rules 221 and 222 of the Income Tax Rules, 2002.

At Baco Consultants, we help emigrating Pakistanis, expatriates and overseas Pakistanis through this process from start to finish. That includes filing final and pending income tax returns, reconciling the wealth statement, clearing dues through FBR PSID payments, and representing clients before the Commissioner. If you will keep earning income in Pakistan after you move abroad, our guide on tax rules for overseas Pakistanis explains your continuing obligations.

This guide covers what the certificate is, who needs it, the documents required, the 15-day notice rule, what happens if you owe tax, and the complete 2026 application procedure.

Quick Answer: How to Get an FBR Tax Clearance Certificate in Pakistan

An FBR Tax Clearance Certificate is issued by the Commissioner Inland Revenue under Section 145 of the Income Tax Ordinance, 2001 to a person leaving Pakistan permanently. To get it:

1. Notify the Commissioner of your tax jurisdiction (RTO, LTO or CTO) at least 15 days before your departure date.
2. File all outstanding returns on IRIS, including a return for the period from the end of your last tax year up to your departure date.
3. Pay all income tax dues through a PSID. If an assessment is pending, submit a guarantee from your employer or business associate instead.
4. Submit the Rule 221 application with your personal and travel details, income details and proof of tax payment.
5. Collect the certificate in the Rule 222 format, signed by the Commissioner, showing your departure date, destination and validity.

Tourists who earned no Pakistan-source income and stayed 90 days or less in a tax year do not need to apply. Need help? Speak to a tax consultant at Baco Consultants.

Key Takeaways

• The FBR Tax Clearance Certificate is issued by the Commissioner Inland Revenue under Section 145 of the Income Tax Ordinance, 2001, read with Rules 221 and 222 of the Income Tax Rules, 2002.
• It is meant for people leaving Pakistan permanently. It is not a routine travel document.
• You must notify the Commissioner at least 15 days before departure and attach your outstanding income tax return(s).
• You qualify if you have paid all income tax liabilities, or have made arrangements the Commissioner accepts, such as an employer's or business associate's guarantee.
• Short-stay tourists with no Pakistan-source income who stayed 90 days or less in a tax year fall outside the prescribed application.

Speak to a tax consultant at Baco Consultants.

What Is an FBR Tax Clearance Certificate?

An FBR Tax Clearance Certificate is an official document from the Commissioner Inland Revenue. It confirms that a person who is leaving Pakistan permanently either owes no income tax or has made satisfactory arrangements to pay it. The form prescribed under Rule 222 certifies that the person has no liability, or has made satisfactory arrangements for their liabilities, under the Income Tax Ordinance, 2001 or the repealed 1979 Ordinance.

In short, it is FBR's "exit clearance" for income tax purposes.

The legal basis: Section 145, Rule 221 and Rule 222

Three provisions govern the process:

Section 145 in plain English:

• If you are likely to leave Pakistan during a tax year, or shortly after it ends, with no intention of returning, you must give the Commissioner notice at least fifteen days before your probable departure date.
• The notice must be accompanied by return(s) of taxable income covering the period since your last assessed or filed tax year up to your departure date. That stub period is treated as a separate tax year of its own.
• The Commissioner may also issue a notice on their own initiative to anyone they believe is about to leave permanently, requiring returns within a set time.
• That income is taxed at the rates applicable to the relevant tax year.
• Where information from an offshore jurisdiction gives the Commissioner reason to believe the departing person may be involved in offshore tax evasion or is about to dispose of an asset, the Commissioner can freeze their domestic assets for up to 120 days, or until proceedings are finalised, whichever is earlier.

You can read the official text on FBR's Section 145 page and in the consolidated Income Tax Ordinance, 2001.

Expert note (interpretation): Section 145 makes the notice and return filing mandatory. Rule 221 says a departing person "may apply" for the certificate. In practice, the certificate is your documentary proof that FBR has cleared you, so we recommend obtaining it. Also note that Rules 221 and 222 refer to the certificate "under sub-section (3) of section 145". The current sub-section (3) deals with the Commissioner's own notice rather than the certificate, which suggests the Rules were not updated after later amendments. This does not change the practical procedure.

Speak to a tax consultant at Baco Consultants.

Why a Tax Clearance Certificate Matters in Pakistan

Leaving Pakistan does not end your income tax obligations. Liabilities, returns and pending assessments stay attached to your NTN after you board the plane. A tax clearance certificate is how you close that chapter properly. It matters for five practical reasons.

1. It shows you have met your legal duty under Section 145

Section 145 of the Income Tax Ordinance, 2001 requires anyone leaving Pakistan permanently to notify the Commissioner at least 15 days before departure and to file returns up to the departure date. The certificate is your documentary proof that the Commissioner has accepted your filings and payments. Without it, you have nothing official to show that your tax affairs were settled when you left.

2. It protects the assets you leave behind

Many emigrants keep property, bank accounts, shares or business interests in Pakistan. Unpaid tax remains recoverable under the Ordinance's recovery provisions, including against assets located in Pakistan. Section 145(5) goes further: where information from an offshore jurisdiction gives the Commissioner reason to suspect offshore tax evasion or an imminent asset disposal, the Commissioner can freeze your domestic assets for up to 120 days. Clearing your position before departure removes the ground for that kind of action. If you plan to sell property before you go, review capital gains tax on property and advance tax under Sections 236C and 236K first.

3. It prevents notices and assessments you cannot answer from abroad

A tax file left open invites FBR scrutiny, such as notices for unfiled returns, audit selection or amended assessments. These are far harder to deal with from another country, and ignoring them can lead to ex parte orders, penalties and default surcharge. Settling everything before you leave, and holding a certificate that confirms it, is much cheaper than responding to FBR notices later.

4. It keeps your records clean if you return or keep ties with Pakistan

Plans change. If you later return, inherit property, invest, or need to become an active filer again, a clean record from your departure year makes that easier. It also helps if you continue as a non-resident taxpayer with rental or investment income in Pakistan, because your pre-departure years will already be closed.

5. It gives employers and business associates certainty

Where an assessment is still pending, Rule 221 allows clearance on the strength of a guarantee from your employer or business associate. The certificate formally records that arrangement. Your employer's exposure is then clearly defined, and you avoid disputes after you have left. For employers of departing expatriates, this fits alongside their withholding tax compliance responsibilities.

Bottom line: The tax clearance certificate is not paperwork for its own sake. It is your evidence that you left Pakistan tax-compliant, and it protects your assets, your record and your peace of mind. Baco Consultants can manage the full process for you.

Who Needs a Tax Clearance Certificate in Pakistan?

The Section 145 certificate is relevant if you are:

• A Pakistani citizen emigrating permanently, for example on an immigrant visa, permanent residency or foreign citizenship, and intending to wind up your tax affairs here.
• A foreign national (expatriate) ending an assignment in Pakistan after earning Pakistan-source income such as salary, consultancy fees or business profits.
• An overseas Pakistani closing their Pakistan tax profile, for example after selling property and severing economic ties.
• Anyone who receives a Commissioner's notice under Section 145(3) because FBR believes they are about to leave permanently.

Who does not need it

• Short-term travellers: Ordinary travel for work, study, Hajj/Umrah or holidays with an intention to return is outside Section 145.
• Tourists with no Pakistan income: The prescribed application states that it is not for tourists who earned no Pakistan-source income, entered on a tourist visa, and stayed no more than 90 days in a tax year.

Speak to a tax consultant at Baco Consultants.

Tax Clearance Certificate for Overseas Pakistanis

Overseas Pakistanis fall into two very different situations. Which one applies to you decides whether you need a Section 145 certificate at all.

Situation 1: You are leaving Pakistan now, permanently

If you currently live in Pakistan and are emigrating, for example on an immigrant visa, permanent residency or a new citizenship, Section 145 applies to you directly. You must notify the Commissioner at least 15 days before departure, file your returns up to the departure date, and clear or secure your tax liabilities. The full procedure is explained in the step-by-step section below.

Situation 2: You already live abroad

If you left Pakistan years ago, Section 145 generally no longer applies, because its purpose is to settle liabilities before departure. Your concern now is ongoing compliance as a non-resident. If you still have Pakistan-source income, such as rent, bank profit, dividends or capital gains on property, you will usually need to keep filing returns. See our guides on income tax returns for overseas Pakistanis and filing from abroad.

Key issues for overseas Pakistanis

• Residency status: Once you leave permanently, your status for later tax years depends on the residence rules in the Ordinance. Our guide on becoming a non-resident taxpayer explains the tests.
• Property left in Pakistan: Rental income stays taxable in Pakistan. See rental income tax.
• Selling property after you leave: Capital gains and advance tax still apply. Check Sections 236C and 236K before any transaction.
• ATL status: Staying on the Active Taxpayer List can lower withholding tax on transactions in Pakistan. See how to check ATL status.

For a full overview, read our guide on tax rules for overseas Pakistanis.

Tax Clearance Certificate for Individuals vs. Companies

Section 145 is built around individuals. The prescribed application asks for domicile, date of arrival in Pakistan, probable date of departure, destination and mode of travel. None of these fit a company. Individuals and businesses therefore follow different routes when they exit Pakistan.

Practical cases

• Expatriate employee leaving: The individual applies under Section 145. The employer often supports the application with a guarantee if an assessment is still pending.
• Sole proprietor emigrating: The business income is the individual's own income, so Section 145 applies. File the final business return and close the sales tax registration if you have one. See our sole proprietor tax filing service.
• Director of a company emigrating: The director applies personally under Section 145. The company's own tax obligations continue separately. See corporate tax in Pakistan.
• Partner in an AOP emigrating: The partner clears their personal position, while the AOP continues filing. See our partnership and AOP tax filing service.

Tax Clearance Certificate vs Other FBR Certificates

People searching for "FBR tax certificate" often mean different documents. Mixing them up wastes time.

If a tender document or employer asks for a "tax clearance certificate", check exactly what they mean. The requirement is set by that document, and it often refers to ATL status or filed returns rather than a Section 145 certificate.

Tax Clearance Certificate for Visa Applications

A Section 145 tax clearance certificate is not a standard visa document. It concerns your permanent departure from Pakistan, not your eligibility for another country's visa.

However, many embassies and immigration authorities ask applicants for proof of tax compliance, especially for work, business, investor and immigrant visas. The exact requirement is set by each embassy's document checklist, so always check the current checklist for your destination country and visa category.

Tax documents visa applicants are commonly asked for

• Filed income tax returns for recent tax years. See how to file your income tax return.
• Proof of Active Taxpayer (ATL) status. See our ATL guide.
• Salary tax certificate from your employer. See salary tax certificates.
• Wealth statement, to show funds and assets.
• NTN certificate or registration proof. See NTN verification.

When the Section 145 certificate becomes relevant

If you are emigrating permanently on an immigrant visa, you will need to deal with Section 145 after the visa is granted and before you leave. Plan for the 15-day notice period when you fix your travel date.

Tip: If an embassy asks for a "tax clearance certificate", confirm what they actually mean. In most cases they want returns, ATL status or a tax certificate showing tax paid, not a Section 145 certificate. Being a filer also helps in other ways. See the benefits of becoming a tax filer.

Tax Clearance Certificate for Company Registration

You do not need a Section 145 tax clearance certificate to register a company in Pakistan. Section 145 deals with people leaving Pakistan permanently. Incorporation is handled by the Securities and Exchange Commission of Pakistan (SECP), followed by NTN registration with FBR.

This is a common point of confusion, because the phrase "tax clearance" is used loosely for several different documents.

What company registration actually involves

1. SECP incorporation: name reservation, filing incorporation documents, and receiving the certificate of incorporation. See the SECP company registration process.
2. NTN registration with FBR for the company. See our company NTN registration service.
3. Sales tax registration, if your business requires it. See sales tax registration in Pakistan.

Where tax compliance does come in

• Directors and shareholders are expected to have their own tax affairs in order. Being a filer helps with banking and other transactions.
• Government tenders and contracts often require the company to show ATL status and filed returns. Procuring agencies may call this "tax clearance", but it is not a Section 145 certificate.
• Foreign directors or shareholders may face additional documentation requirements. See registering a company with foreign directors.

To start a company, see our private limited company registration service or estimate costs with our SECP registration calculator.

Tax Clearance Certificate Requirements

To obtain an FBR Tax Clearance Certificate, you must meet the legal conditions in Section 145 and Rule 221, and support your application with the right information and documents. The requirements fall into four groups.

1. Legal conditions (Section 145 and Rule 221)

You must meet all of the following:

• Permanent departure: You are leaving Pakistan with no intention of returning. This applies whether you leave during the current tax year or shortly after it ends.
• 15-day advance notice: You have notified the Commissioner Inland Revenue with jurisdiction over your case at least 15 days before your probable departure date.
• Returns filed up to the departure date: Your notice is accompanied by return(s) of taxable income covering the period from your last assessed or filed tax year up to the departure date. This stub period is treated as a separate tax year.
• Liabilities settled or secured: You have either:
  • (a) paid all income tax liabilities, or
  • (b) made arrangements for payment that the Commissioner accepts.

Exclusion: Tourists who earned no Pakistan-source income, entered on a tourist visa and stayed 90 days or less in a tax year are outside the prescribed application.

2. Compliance Requirements Before You Apply

Before applying, make sure your FBR profile is in order:

• Active NTN and IRIS access. If you are not registered, see our NTN registration guide. If you cannot log in, see IRIS login problems and solutions.
• No unfiled returns for earlier tax years that are still within FBR's reach.
• Reconciled wealth statement, so that increases in assets are explained by declared income. See our wealth reconciliation guide.
• Withholding taxes claimed, including tax deducted on salary, bank profit, property and utilities.
• No unanswered FBR notices on your IRIS inbox.

If errors appear in returns you have already filed, fix them first through a revised return or rectification application.

3. Documents and Information Required

The Rule 221 application form asks for the following particulars. Prepare them before you apply.

Personal and travel details

1. Full name, in block letters
2. Domicile
3. Present address in Pakistan
4. Address in your home country or destination country
5. Date of arrival in Pakistan
6. Probable date of departure
7. Destination
8. Mode of travel (air, sea or land)

Income and tax details
9. Nature of your business, profession or vocation in Pakistan. If you were only a tourist and earned nothing, state that.
10. Place(s) where that business, profession or vocation was carried on
11. Name and address of your employer, or of the firm or company you represent
12. The Commissioner's office where your last assessment was made
13. Evidence of tax payment
14. The guarantee under Rule 158, where applicable

Supporting documents we recommend attaching (practice, not a legal checklist)

• Copy of CNIC or passport, visa or immigration document
• NTN and IRIS login access
• Filed return(s) of income, including the stub-period return, with acknowledgement
• Wealth statement. See our Section 116 wealth statement guide
• Paid challans (CPRs) for tax payments
• Employer salary certificate or withholding tax certificates
• Employer's or business associate's guarantee certificate (Route B only)

4. Supporting Documents Checklist

The Rules do not list attachments beyond payment evidence and the guarantee. In practice, however, a well-documented file is processed with fewer queries. We recommend attaching:

• ☐ Copy of CNIC or passport
• ☐ Visa, immigration or residency document for your destination country
• ☐ Acknowledgements of all filed returns, including the stub-period return
• ☐ Wealth statement(s)
• ☐ Paid challans (CPRs) for tax payments. See how to pay income tax online
• ☐ Employer's salary tax certificate and other withholding tax certificates
• ☐ Property sale deeds and related tax payment evidence, if you have sold property
• ☐ Copies of any pending appeal and stay order, if a demand is disputed

5. Guarantee Certificate If Tax Is Still Outstanding

If you are applying on the basis that payment has been arranged rather than completed, Rule 221(3) requires a guarantee certificate from your employer or business associate. In it, the guarantor:

1. Confirms that you are their employee, representative or associate.
2. States the outstanding tax demand, or that an assessment is pending.
3. Encloses a cheque for the tax due together with a computation of income.
4. Undertakes to pay any further tax liability once determined.

The guarantee must be signed, show the guarantor's address and designation, and carry the business seal. If a demand is under dispute, our guides on appealing a tax assessment and the tax appeal process explain how to protect your position while your clearance is processed.

Not sure whether you meet the requirements? Baco Consultants can review your IRIS profile, identify gaps and prepare a complete Rule 221 application before your departure date.

Eligibility: Legal Conditions Under Section 145 and Rule 221

Under Rule 221(1), a person leaving Pakistan permanently may apply to the Commissioner for a tax clearance certificate where they have either satisfied all income tax liabilities, or made arrangements the Commissioner accepts for paying them.

Route A: all liabilities satisfied

• All required returns are filed, including the stub-period return under Section 145(2).
• All assessed tax, default surcharge and penalties are paid.
• There is no outstanding demand on your IRIS profile.

Route B: satisfactory arrangements for payment
This route applies when an assessment is still pending or a demand is disputed. An application under this route must be accompanied by a guarantee certificate from the applicant's employer or business associate. The guarantor confirms the outstanding demand or pending assessment, encloses a cheque for the tax due with a computation of income, and undertakes to pay any liability once determined.

Tax Clearance Certificate Application Format and Sample Letter

The Income Tax Rules, 2002 prescribe both the application format (Rule 221) and the certificate format (Rule 222). Using the prescribed structure makes sure the Commissioner has everything needed, and reduces back-and-forth queries.

Sample application for tax clearance certificate under Section 145

Adapt the sample below to your own facts. Fields in square brackets must be completed.

To,
The Commissioner Inland Revenue,
[Zone], [RTO / LTO / CTO],
[City].
Subject: Application for Tax Clearance Certificate under Section 145 of the Income Tax Ordinance, 2001 read with Rule 221 of the Income Tax Rules, 2002
Respected Sir/Madam,
I intend to leave Pakistan permanently and hereby give notice under Section 145 of the Income Tax Ordinance, 2001. I request that a Tax Clearance Certificate be granted to me. My particulars are as follows:

1. Name (in block letters): [FULL NAME]
2. CNIC / Passport No.: [Number]
3. NTN: [Number]
4. Domicile: [Domicile]
5. Present address: [Address in Pakistan]
6. Address in home / destination country: [Address]
7. Nature of business, profession or vocation in Pakistan: [e.g. salaried employee / consultant / business]
8. Place(s) where it was carried on: [City / cities]
9. Name and address of employer, firm or company: [Details]
10. Commissioner's office where last assessed: [Office]
11. Date of arrival in Pakistan: [Date, if applicable]
12. Probable date of departure: [Date]
13. Destination: [Country / city]
14. Mode of travel: [Air / Sea / Land]

I have filed my return(s) of income up to my probable date of departure, as required by Section 145(2). [Either: All my income tax liabilities have been paid, and evidence of payment is enclosed. Or: A guarantee certificate from my employer / business associate under Rule 221(3) is enclosed.]
Enclosures:

• Copies of CNIC / passport and visa / immigration document
• Acknowledgements of filed returns, including the return up to the date of departure
• Wealth statement(s)
• Paid challans (CPRs) / evidence of tax payment
• Guarantee certificate (if applicable)

Yours faithfully,
[Signature]
[Name]
[Contact number and email]
Place: [City] Date: [Date]

Important: Submit this at least 15 days before your probable departure date. Leave out whichever option in the second-last paragraph does not apply.

Sample guarantee certificate (Rule 221(3))

This is needed only if tax is still outstanding or an assessment is pending. It must be issued on the letterhead of your employer or business associate:

Guarantee Certificate by Employer / Business Associate

1. Certified that [NAME IN BLOCK LETTERS] is our employee / representative / associate.
2. Certified that [Name] is leaving Pakistan and a tax demand of Rs. [amount] is outstanding against them / an assessment is pending that may result in tax liability.
3. A cheque for the amount of tax due, together with a computation of income, is enclosed.
4. We undertake to pay the tax liability, if any, when determined.

Signature: ________ Designation: ________
Address: ________ Seal of the business

Format of the tax clearance certificate (Rule 222)

The certificate issued by the Commissioner follows the Rule 222 format. It has a counterfoil kept by the tax office and a certificate given to you, and contains:

Can you print it online? The Rules prescribe a certificate signed by the Commissioner and received by the applicant or their representative. Returns and payments are handled on IRIS, but confirm with your tax office whether the certificate can be issued or downloaded electronically in your case.

Need help drafting the application? Our team can prepare it with the full supporting file. Contact Baco Consultants.

How to Get a Tax Clearance Certificate in Pakistan: Step-by-Step (2026)

Step 1: Fix your probable departure date.
Everything runs from this date. Section 145 requires notice at least 15 days beforehand.

Step 2: Identify your jurisdiction.
Check your tax office on your IRIS profile. It will be a Regional Tax Office (RTO), the Large Taxpayers Office (LTO), or the Corporate Tax Office (CTO). FBR lists its offices on its field office websites page.

Step 3: Bring your returns up to date.
File any missing returns for past tax years through IRIS. If you are unsure whether you are active, see late filer vs non-filer vs active filer.

Step 4: Prepare the stub-period return.
Under Section 145(2), the period from the end of your last filed or assessed tax year up to your departure date counts as a separate tax year. (See the worked example below.)

Step 5: Clear or arrange payment of all liabilities.
Check your IRIS profile for open demands. Pay through a PSID, or arrange a guarantee if an assessment is pending. See how to pay income tax online.

Step 6: Submit the notice and application to the Commissioner.
Address the Rule 221 application to the Commissioner of your zone and attach the returns, payment evidence and, where needed, the guarantee certificate. Ask your tax office whether it accepts submission through IRIS correspondence or requires physical submission, as practice differs between field offices.

Step 7: Respond to any queries.
The Commissioner may ask for explanations, for example on bank credits, property sales or wealth reconciliation. Answer promptly and in writing.

Step 8: Collect the certificate.
The Rule 222 certificate records your name, income tax office, address, nationality, nature of business, date of departure, destination and validity. It is signed by the Commissioner and acknowledged by you or by the person collecting it on your behalf.

Worked example: the "deemed tax year"

Pakistan's tax year runs from 1 July to 30 June. Suppose Ahmed filed his return for Tax Year 2026 (1 July 2025 to 30 June 2026) and plans to emigrate on 15 December 2026.

• Under Section 145(2), the period 1 July 2026 to 15 December 2026 becomes a separate deemed tax year.
• Ahmed must file a return for that period with his notice.
• His notice must reach the Commissioner by 30 November 2026 at the latest, which is 15 days before departure.
• The income is taxed at the rates applicable to that tax year (Tax Year 2027). Use our salary tax calculator for an estimate.

Location-Specific Guidance: Islamabad, Karachi, and Lahore

The legal procedure under Section 145 is the same across Pakistan. What changes is which office you deal with. You must apply to the Commissioner Inland Revenue with jurisdiction over your case, and that is decided by your registration on IRIS, not by where you live now.

How to find your jurisdiction

1. Log in to IRIS.
2. Check your registration profile for your assigned tax office and zone.
3. Your case will fall under one of these:
   • a Regional Tax Office (RTO), for most individuals and smaller businesses
   • the Large Taxpayers Office (LTO), for large taxpayers
   • the Corporate Tax Office (CTO), where applicable

If your jurisdiction is wrong, for example after a move between cities, have it corrected before you apply.

Islamabad and Rawalpindi

Individuals registered in Islamabad usually fall under RTO Islamabad, and those in Rawalpindi under RTO Rawalpindi. Large taxpayers may fall under LTO Islamabad. For help, see our FBR tax consultant in Islamabad and income tax consultant in Rawalpindi pages.

Karachi

Karachi has several RTOs as well as LTO and corporate offices, so confirming your exact zone on IRIS is especially important. See our income tax consultant in Karachi page.

Lahore

Lahore also has multiple tax offices, including an LTO. Check your zone on IRIS before addressing your application. See our income tax consultant in Lahore page.

Other cities

Taxpayers in Faisalabad, Multan, Sialkot and Peshawar follow the same process through their assigned RTO. See our Faisalabad tax consultant page, or contact us for support in any city.

Practical note: Whether an office accepts the Rule 221 application through IRIS correspondence or requires physical submission can differ between offices. Confirm with your tax office before you submit.

Where to Apply: Islamabad, Lahore, Karachi and Other Cities

You apply to the Commissioner Inland Revenue with jurisdiction over your case, not to any convenient office. Your jurisdiction is shown on IRIS.

• Islamabad and Rawalpindi: usually RTO Islamabad or RTO Rawalpindi, depending on your registered jurisdiction
• Lahore, Faisalabad, Multan, Sialkot: the relevant RTO, or LTO/CTO for large or corporate taxpayers
• Karachi, Peshawar: the relevant RTO, LTO or CTO

For local support, see our pages for Islamabad, Rawalpindi, Lahore, Karachi and Faisalabad.

What If You Have Outstanding Tax Liability or a Pending Assessment?

Having unpaid tax does not automatically bar you from clearance. It changes the route you take.

If a demand is final and undisputed: pay it, attach the CPR, and apply under Route A.

If an assessment is pending or a demand is disputed: use Route B. Your employer or business associate provides the prescribed guarantee, encloses a cheque for the computed tax, and undertakes to pay any liability once it is determined. If you have filed an appeal, keep a copy of the appeal and any stay order on file. Our guide on appealing a tax assessment explains the process.

If you receive a notice from FBR: do not ignore it. A notice under Section 145(3), or an audit or amendment notice, must be answered within the time given. See our FBR notice response guide.

Can the Commissioner refuse? The Rules grant the certificate only where liabilities are satisfied or arranged to the Commissioner's satisfaction. If neither condition is met, you should not expect clearance. Offshore-evasion concerns can also lead to an asset freeze under Section 145(5).

What to do if your application is delayed or refused

If your certificate is not issued before your planned departure, take these steps in order:

1. Ask for the reasons in writing. Find out exactly what the Commissioner considers missing: a return, a payment, a reconciliation or a guarantee.
2. Fix the deficiency quickly. File the missing return, pay the outstanding tax through a PSID, or arrange the Rule 221(3) guarantee.
3. Answer queries in writing. Reply to every notice within the time allowed and keep proof of submission. See our FBR notice response guide.
4. Challenge a wrong assessment through the proper forum. If the refusal rests on an assessment you dispute, you can appeal that assessment to the Commissioner (Appeals), and the guarantee route may allow clearance meanwhile. See how to appeal a tax assessment.
5. Raise undue delay. If the delay amounts to maladministration, a complaint can be made to the Federal Tax Ombudsman.
6. Get professional representation. A tax practitioner or advocate can deal with the Commissioner on your behalf, which is especially useful if you have already travelled.

Tax Clearance Certificate Fee in Pakistan

There is no government fee for a Section 145 tax clearance certificate. Neither the Income Tax Ordinance, 2001 nor the Income Tax Rules, 2002 prescribe any fee for applying for it or for its issue.

That does not mean clearance is free. Your real cost depends on the state of your tax affairs.

What you may actually pay

• Outstanding income tax: any tax due for past years and for the stub period up to your departure date.
• Default surcharge: on tax paid late.
• Penalties: for late or missing returns. Estimate these with our late filing penalty calculator, and see how to avoid late filing penalties.
• Tax on pre-departure transactions: for example, capital gains or advance tax if you sell property before leaving. Use our capital gains calculator.
• Professional fees: if you appoint a tax consultant or advocate to prepare returns and represent you before the Commissioner. These vary with the complexity of your case.

How to keep the cost down

• Keep your returns up to date every year, so there is no backlog when you leave.
• Claim all withholding tax already deducted, so you do not pay twice.
• Plan property sales with tax in mind before your departure date.

See our tax saving tips for individuals or ask us for a quote.

Tax Clearance Certificate Processing Time

The law does not set a deadline for the Commissioner to issue the certificate. The only fixed timeline in Section 145 is on your side: you must notify the Commissioner at least 15 days before your probable departure date.

What affects processing time

Recommended timeline

This is our practical recommendation, not a legal requirement:

• 6–8 weeks before departure: review your IRIS profile, file any missing returns, reconcile your wealth statement.
• 4 weeks before: prepare the stub-period return, pay outstanding tax, arrange a guarantee if needed.
• At least 15 days before (legal minimum): submit the notice and the Rule 221 application.
• Final days: answer any queries and collect the certificate.

Certificate validity

The certificate format under Rule 222 includes a validity field that the Commissioner completes. The Rules do not fix a standard validity period, so check the period written on your certificate and plan your travel within it. If your departure is delayed beyond that period, contact your tax office before you travel.

Short on time? If your departure date is close, Baco Consultants can prioritise your file, prepare the returns and handle the Commissioner's queries on your behalf.

Common Mistakes to Avoid

1. Filing the notice fewer than 15 days before departure.
2. Forgetting the stub-period return from 1 July up to your departure date.
3. Leaving old tax years unfiled and assuming the certificate will cover them.
4. Ignoring wealth statement gaps. Unexplained increases in wealth trigger queries. See source of income reconciliation under Section 111.
5. Selling property just before departure without planning for tax. Review capital gains tax and Sections 236C/236K first.
6. Applying to the wrong tax office.
7. Confusing this certificate with ATL status or an exemption certificate.

Expert Tips and Best Practices

• Download your IRIS records now: returns, wealth statements and payment history. They are harder to retrieve once you are abroad.
• Reconcile withholding tax from your salary, bank profit and utility bills so it is claimed in your final return.
• Brief your employer early if you may need their guarantee.
• Authorise a representative. If you will be abroad when queries arrive, a registered income tax practitioner or advocate can represent you before the Commissioner.
• Keep certified copies of the certificate, returns and CPRs for immigration, banking or future FBR queries.
• Check the penalty exposure on any late returns before you file. Use our late filing penalty calculator.

How Professional Tax Training Helps You Navigate FBR Processes

The Section 145 clearance process shows how much of FBR compliance depends on practical know-how. The law itself is short. What causes delays is everything around it: missing returns, unreconciled wealth statements, unclaimed withholding tax, wrong jurisdictions and unanswered notices. Professional tax training gives you the skills to handle these issues confidently, whether you are managing your own affairs, working in a finance team, or building a career in taxation.

What professional tax training teaches you

• Reading the law directly. You learn how to find and interpret provisions of the Income Tax Ordinance, 2001 and the Income Tax Rules, 2002, including sections such as 145 and rules such as 221 and 222, instead of relying on hearsay.
• Working confidently on IRIS. Registration, return filing, wealth statements and notice responses become routine rather than stressful. See our IRIS registration guide and IRIS 2.0 features explained.
• Reconciling wealth and income. You learn to prepare a wealth statement that matches declared income, which is one of the most common sources of FBR queries. See our wealth reconciliation guide.
• Handling withholding tax. You learn which taxes can be claimed as credits and how to avoid paying twice. See our withholding tax rate chart.
• Responding to notices and assessments. You learn to draft replies, understand audit selection, and know when an appeal is appropriate. See FBR audit under Sections 177 and 214C and the tax appeal process.
• Planning ahead. You learn to structure transactions such as property sales, business income and investments with their tax consequences in mind. See our tax planning strategies.

Who benefits most

• Individuals who want to manage their own returns and avoid costly mistakes.
• Accountants and finance staff handling payroll, withholding statements and corporate returns. See monthly tax compliance for businesses.
• Business owners who want to understand what their advisers are doing and ask the right questions.
• Aspiring tax practitioners building a career in advisory, compliance or litigation.

Training vs hiring a consultant

Training and professional help work together. Training helps you understand your obligations and handle routine compliance yourself. A consultant is still valuable for time-sensitive or contested matters, such as a Section 145 clearance with a pending assessment, a disputed demand, or representation before the Commissioner. Knowing the process also makes it easier to work efficiently with your adviser.

You can start building practical knowledge with our free resources: the Baco Consultants blog, and tools such as the salary tax calculator, withholding tax calculator and tax savings calculator. For guided learning or hands-on support, get in touch with our team.

Why Choose Baco Consultants for Your Section 145 Tax Clearance?

• Tax and legal expertise under one roof. Our work is led by a chartered accountant who is also an Advocate High Court, so return preparation and representation before the Commissioner are handled together.
• End-to-end handling. We file pending and stub-period returns, reconcile your wealth statement, generate PSIDs, draft the Rule 221 application and follow up with your RTO, LTO or CTO.
• Dispute support. If an assessment is pending, we can structure the guarantee route and handle any appeal alongside it.
• Support from abroad. If you have already relocated, we can continue to represent you before FBR.

Explore our full range of tax services or learn about us.

Frequently Asked Questions

What is a tax clearance certificate in Pakistan?
It is a certificate from the Commissioner Inland Revenue under Section 145 of the Income Tax Ordinance, 2001. It confirms that a person leaving Pakistan permanently has no income tax liability, or has made satisfactory arrangements to pay it.

What is Rule 221?
Rule 221 of the Income Tax Rules, 2002 sets out who can apply for a Section 145 tax clearance certificate, the application form, and the guarantee certificate required where tax is still outstanding.

Who needs a tax clearance certificate?
People leaving Pakistan permanently with no intention of returning, including emigrating Pakistanis and expatriates who earned Pakistan-source income.

Is tax clearance required for every trip abroad?
No. Section 145 applies only to permanent departure, not to ordinary travel.

Do tourists need a tax clearance certificate?
The prescribed application excludes tourists who earned no Pakistan-source income and stayed 90 days or less in a tax year.

How many days before departure must I apply?
You must notify the Commissioner at least 15 days before your probable departure date.

Which FBR officer issues the certificate?
The Commissioner Inland Revenue with jurisdiction over your tax case.

Can I get tax clearance with outstanding tax liability?
Yes, if you make arrangements the Commissioner accepts. This is normally a guarantee from your employer or business associate, with a cheque for the computed tax and an undertaking to pay any further liability.

Does FBR issue tax clearance certificates online?
Returns and payments are handled through IRIS. The Rules prescribe a written application addressed to the Commissioner, and submission practice varies by tax office, so confirm with your RTO, LTO or CTO.

How long is the certificate valid?
The Commissioner states the validity on the certificate. The Rules do not fix a standard period.

Is there a government fee?
No official fee for this certificate appears in the Income Tax Ordinance or the Income Tax Rules.

Do I need a tax clearance certificate for a visa application?
Usually not. A Section 145 certificate relates to permanent departure from Pakistan. Embassies normally ask for tax returns, ATL status or salary tax certificates instead. Check your embassy's document checklist.

Is a tax clearance certificate required for company registration in Pakistan?
No. Company registration is handled by SECP, followed by NTN registration with FBR. A Section 145 certificate is not part of that process.

How long does FBR take to issue a tax clearance certificate?
The law sets no deadline for the Commissioner. It depends on whether your returns are filed, your dues are cleared and your documents are complete. Apply at least 15 days before departure, and ideally start preparing 6–8 weeks ahead.

Can I print a tax clearance certificate online from FBR?
The Rules prescribe a certificate signed by the Commissioner and received by the applicant or their representative. Check with your tax office whether an electronic copy is available in your case.

I already live abroad. Do I need a Section 145 certificate?
Generally no, because Section 145 is meant to settle liabilities before departure. If you still earn income in Pakistan, you may need to keep filing returns as a non-resident.

Is there a sample application for a tax clearance certificate?
Yes. Rule 221 of the Income Tax Rules, 2002 prescribes the application format. A ready-to-use sample based on it is given in this guide.

Conclusion

Leaving Pakistan permanently closes one chapter of your tax life, and Section 145 requires you to close it properly. Give the Commissioner at least 15 days' notice, file every outstanding return including the stub period, clear or secure your liabilities, and obtain your Rule 222 certificate. Starting early is the simplest way to avoid last-minute problems at your tax office.

Need help with your FBR Tax Clearance Certificate? Book a Seat at Baco Consultants and our team will prepare your returns, handle the Commissioner and help you leave with your tax affairs in order.