Lahore 22°C
Group Taxation
(1) Holding companies and subsidiary companies of 100% owned group may opt to be taxed as one fiscal unit. In such cases, besides consolidated group accounts as required under the Companies Act, 2017 (XIX of 2017) , computation of income and tax payable shall be made for tax purposes.
(2) The companies in the group shall give irrevocable option for taxation under this section as one fiscal unit.
(3) The group taxation shall be restricted to companies locally incorporated under the Companies Act, 2017 (XIX of 2017) .
(4) The relief under group taxation would not be available to losses prior to the formation of the group.
(5) The option of group taxation shall be available to those group companies which comply with such corporate governance requirements and group designation rules or regulations as may be specified by the Securities and Exchange Commission of Pakistan from time to time and are designated as companies entitled to avail group taxation.
(6) Group taxation may be regulated through rules as may be made by the Board .
(2) The companies in the group shall give irrevocable option for taxation under this section as one fiscal unit.
(3) The group taxation shall be restricted to companies locally incorporated under the Companies Act, 2017 (XIX of 2017) .
(4) The relief under group taxation would not be available to losses prior to the formation of the group.
(5) The option of group taxation shall be available to those group companies which comply with such corporate governance requirements and group designation rules or regulations as may be specified by the Securities and Exchange Commission of Pakistan from time to time and are designated as companies entitled to avail group taxation.
(6) Group taxation may be regulated through rules as may be made by the Board .
Amendment history (7)
- Inserted by the Finance Act, 2007.
- The expression “Companies Ordinance, 1984 (XLVII of 1984)” substituted by the Finance Act, 2021.
- Inserted by the Finance Act, 2013.
- The words “Central Board of Revenue” substituted by the word “Board” by the Finance Act. 2014.
- Section 59B substituted by the Finance Act, 2007. The substituted section 59B
- The word “of” substituted by the Finance Act, 2021
- Inserted by the Finance Act, 2016.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 114
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.