Karachi, December 1, 2025 – The Federal Board of Revenue (FBR) has announced that it will determine the cost of assets for tax purposes during the tax year 2026, in accordance with the Income Tax Ordinance, 2001. This move is aimed at providing clarity for taxpayers and businesses regarding asset valuation for taxation. Under Section 76 of the Ordinance, the cost of an asset is broadly defined to include not only the purchase price but also incidental and improvement-related expenditures, while excluding amounts already allowed as deductions under the law. The FBR said these rules will ensure uniformity and transparency in determining taxable asset values. Key points under Section 76 include: • Asset Acquisition: The cost includes total consideration, fair market value of any non-cash payment, and incidental expenditures for acquiring or disposing of the asset. • Asset Improvement: Expenses incurred to alter or enhance the asset are included unless fully deducted earlier. • Constructed Assets: The total production or construction costs plus incidental expenses are considered part of the asset cost. • Foreign Currency Loans: Any gain or loss due to currency fluctuations on loans used to acquire an asset will adjust the asset’s cost for depreciation purposes. •…