FBR Proposes Mandatory IRIS Filing for Company Financial Statements
The Federal Board of Revenue (FBR) in Pakistan has introduced a proposal mandating companies to submit their financial statements electronically through the IRIS portal starting from the tax year 2026. This move aims to modernize the filing process and enhance transparency in the submission of income tax returns.
Details of the New IRIS Filing Rules
Issued under SRO 1912(I)/2026, the proposed regulation introduces a new sub-rule (2F) in Rule 73 of the Income Tax Rules, 2002. Companies will be required to provide their financial statements in an electronically readable format that complies with specific technical requirements defined by the FBR. These include conforming to the data scheme, taxonomy, file structure, field mapping, validation rules, and other stipulations accessible via the IRIS portal or its website.
The FBR has also outlined that different classes of companies might be subject to varied reporting frameworks and taxonomies depending on the applicable financial reporting standards. Additionally, the draft modifies sub-rule (3) of Rule 73, emphasizing that all documents filed electronically — including returns, certificates, financial statements, and applications — must be verified digitally. Verification must occur by the concerned person or authorized e-intermediary, utilizing a digital signature or another secure electronic authentication linked to registered credentials.
Significance and Process Implications
Upon successful submission and verification, the IRIS platform will generate an electronic acknowledgment containing a unique reference number. This acknowledgment will serve as official proof of filing under the Income Tax Ordinance, 2001, and the relevant rules, streamlining the record-keeping process.
The FBR has invited feedback from stakeholders within seven days of the notification in the official Gazette, signaling readiness to incorporate suggestions before finalizing the regulations. These amendments are part of the Board’s broader efforts under Section 237(1) read with Section 114(2A) of the Income Tax Ordinance, 2001.
Why This Matters for Pakistan
This regulatory update is significant for businesses operating in Pakistan as it heralds greater digitization and standardization in tax compliance. For Pakistan’s corporate sector, electronic submission through IRIS simplifies the process and reduces paper-based errors or delays. It will potentially enhance data integrity and facilitate better enforcement by tax authorities.
Moreover, the move aligns Pakistan with global trends emphasizing digital governance and accountability. For taxpayers, adapting to this mandate will require updated systems and awareness but promises smoother interactions with the tax authorities in the long run.
According to the FBR, “the stringent digital verification process will ensure authenticity and secure filing,” underscoring the government’s commitment to modernizing tax administration.
