Lahore 28°C
Islamabad 24°C
Scientific research expenditure
(1) A person shall be allowed a deduction for scientific research expenditure incurred in Pakistan in a tax year wholly and exclusively for the purpose of deriving income from business chargeable to tax.
(2) In this section — scientific research means any activity undertaken in Pakistan in the fields of natural or applied science for the development of human knowledge; scientific research expenditure means any expenditure incurred by a person on scientific research undertaken in Pakistan for the purposes of developing the person’s business, including any contribution to a scientific research institution to undertake scientific research for the purposes of the person’s business, other than expenditure incurred –
(a) in the acquisition of any depreciable asset or intangible;
(b) in the acquisition of immovable property; or (c) for the purpose of ascertaining the existence, location, extent or quality of a natural deposit; and scientific research institution means any institution certified by the Board as conducting scientific research in Pakistan.
(2) In this section — scientific research means any activity undertaken in Pakistan in the fields of natural or applied science for the development of human knowledge; scientific research expenditure means any expenditure incurred by a person on scientific research undertaken in Pakistan for the purposes of developing the person’s business, including any contribution to a scientific research institution to undertake scientific research for the purposes of the person’s business, other than expenditure incurred –
(a) in the acquisition of any depreciable asset or intangible;
(b) in the acquisition of immovable property; or (c) for the purpose of ascertaining the existence, location, extent or quality of a natural deposit; and scientific research institution means any institution certified by the Board as conducting scientific research in Pakistan.
Amendment history (4)
- The word “activities” substituted by the Finance Act, 2002
- Inserted by the Finance Act, 2003.
- The words “Central Board of Revenue” substituted by the Finance Act, 2007.
- The words “local authority” substituted by the Finance Act, 2008.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 79
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.