You may experience delays in filing your return for a number of reasons, including busy audits, group accounts and unavailability of key personnel.
The Income Tax Ordinance, 2001 allows for extensions. A taxpayer can request the Commissioner to extend the time you have to file your return (Section 119).
This article will cover who can apply, what deadline applies to you, and how to apply for a Corporate Income Tax Return Extension on the FBR Iris Portal.
What Deadline Applies To Me?
There are a lot of businesses that don’t get deadlines.
Associations of persons / Partnerships
If you are an Association of Persons, your deadline for Tax Year 2026 was 30th September.
However this has been extended by the FBR twice. The final deadline is today, 31st October 2026.
If you are an AOP and unable to file today, you should apply for an extension before midnight.
Companies
Most companies will fall under Section 118.
- If your tax year ends between 1st Jan and 30th June, you’ll need to file by 31st December in the following year.
- If your year ends 30th June 2026, your deadline for Tax Year 2026 is 31st December 2026.
- If your tax year is special and ends between July to December, you’ll need to file by 30th September in the following year. These were included within the FBR extension to 31st October.
Most companies that end their tax year in June will have plenty of time to file, with a deadline of 31st December.
What happens if I miss the deadline?
Penalty for delay in filing (Section 182)
If you miss your deadline, you will get punished.
This will be for each day you defaulted. Minimum penalty to be applied.
If you’re not a mainly salaried taxpayer, you’ll pay a significant minimum. See the Section 182 rules.
Active Taxpayer List Surchage (Section 182A)
If you miss your deadline, you won’t be added to the Active Taxpayer List until you’ve paid the surcharge.
This has been increased to PKR 50,000 for AOPs and PKR 100,000 for companies by the Finance Act 2026.
Non-filer Rates
You’ll be taxed at nonfiler rates by your bank and other agents until you’re back on the list. This can become a huge expense if you have significant inflows.
If you get an extension under Section 119, you’ll be deemed to have filed on time.
Who Can Apply And Why?
Requirements
- Your extension must be submitted in writing through Iris.
- Before your deadline.
- The Commissioner must be satisfied your return couldn’t be filed on time due to absence from Pakistan, illness or other misadventure or reasonable cause.
How Long?
- Extensions are normally up to 15 days.
- Longer extensions may be granted in extraordinary circumstances.
Common Reasons
- Statutory audit not complete.
- Group/Consolidated accounts not reconciled.
- Key Officer (CFO, Principal Officer etc.) unwell or overseas.
- No access to records due to fire/flood/system failure.
- Issues with the portal – include screenshots.
Each case will be assessed by the Commissioner. It’s much better to have a clear reason for your extension.
How To Apply For An Extension On Iris
The titles on Iris can vary slightly. Generally speaking it’ll be…
Login To Business Iris Account
- Go to iris.fbr.gov.pk.
- Login to your Company/AOP Iris profile. Not a director/partners personal account.
Click On The Extension Application
- Go to the Declaration section.
- Click on ‘Application for extension of time for filing of return of income’ under section 119.
Select Tax Year
- Select Tax Year 2026.
- This will bring up a draft application.
Enter Reason
- Give a brief explanation as to why you cannot file your return on time.
- Be precise. You may mention for example that you expect the statutory audit to be finished by a certain date.
- Include how long you’d like your extension to be.
- Attach any evidence to support your application. For example an email/letter from your auditors.
Example:
“The statutory audit for the company for the year ended 30th June 2026 is currently in its final stages. As shown in the attached letter, the audited financial statements will be issued by [date]. The company would therefore like to request an extension of 15 days.”
Sign And Submit
- Ensure your application is going to the correct Regional Tax Office / Corporate Tax Office / Large Taxpayers Office.
- Enter your PIN.
- Confirm and click Submit.
- Download your acknowledgement.
After Submitting
- Your application will be assessed by an officer in your tax office, usually under the authority of the commissioner.
- Regularly check your Iris inbox for updates on your application.
- Orders will be shown in your Iris inbox.
- Some applications will be processed quickly and some will take a few days.
If Approved
- File your return within your new deadline.
- Save your order as part of your tax records.
If Rejected Or No Decision
- File as soon as possible to avoid penalties.
- Save your acknowledgement as it proves you applied on time.
- If you think your application was declined in error get advice.
Top Tips For Corporate Extensions
- Apply early! Don’t leave it until the last minute as Iris can be very slow.
- Be realistic with your extension. Normally extensions are up to 15 days so only request longer if you have very good reasons.
- Have evidence to support. A letter from your auditor will carry weight.
- Don’t guess. There is no guarantee that you will obtain it just because you apply.
- Do not forget to pay your advance tax. An extension only means you have additional time to file.
Let us take care of your corporate deadlines!
Corporate tax deadlines can be hectic with audits, board meetings and year end.
Our corporate tax team can handle…
- Section 119 Extension Applications with proper evidence.
- Company & AOP Income Tax Returns.
- Working with your auditors to produce financial statements.
- Restoring you to the ATL if you’re late.
