Updated September 2026 An Employer Identification Number (EIN) is a nine-digit federal tax identification number issued by the IRS. It identifies an LLC or another entity for federal tax filing and reporting. Not every LLC is legally required to obtain an EIN. The answer depends on the LLC’s federal tax classification, employees, tax filings, and…
Collection of Income Tax from individuals and businesses by Federal Board of Revenue is one of the major sources of revenue of the Federal Government. Filing annual return of income commonly known as income tax return is a statutory obligation on certain persons. And non compliance of this obligation is an offence punishable under Income Tax Ordinance…
There seems to be a popular growing belief that one can avoid taxes through different strategies including income splitting. Largely people believe that they can save on taxes through splitting their income. It is nothing but a misconception largely caused by lack of knowledge and faulty advice by consultants possessing imperfect knowledge. Age Old Saying…
Filing sales tax return is mandatory in Pakistan. The question is who is required to file sales tax return and how often. Curious to know more? well, in this post, we are going to explain it in detail for you. keep reading! Who Should File Sales Tax Return Every person who has obtained sales tax…
Sales Tax is an indirect tax; also known as Value Added Tax (VAT). VAT is charged and collected by manufacturer from distributers who keep on passing this to retailers. Similarly, retailers pass this on to buyer in the chain down below. Ultimately, the end user has to bear the burden of sales tax. The reason is…
Generally, majority of us are not very well aware of withholding agent’s legal obligations about collecting advance income tax under various provisions of Income Tax Ordinance (ITO), 2001. There are many provisions of Income Tax Ordinance, 2001 which deal with collection of Advance Income Tax at source. These provisions make it compulsory for a withholding agent…
Tax is a very complex subject. It takes an immense effort to understand the intricacies of tax laws. In Pakistan taxation, subject of Withholding Agent, is one such instance. Therefore, it is appropriate that we dwell upon the meaning of “Withholding” so that we can understand the concept of withholding Agent with ease. Meaning of…