If you are a provincial sales tax (PST) registered person, it’s essential to know your obligations under Section 147A of the Income Tax Ordinance, 2001. For tax year 2026, the Federal Board of Revenue (FBR) has made it mandatory for PST-registered businesses to pay advance income tax, ensuring proper compliance and preventing penalties. Here’s an interactive guide to help businesses understand the rules. 💰 Who Is Liable to Pay Advance Tax? Under Section 147A(1): • Every provincial sales tax registered person must pay adjustable advance tax • The tax is 3% of the turnover declared to the provincial revenue authority 📌 This applies to all PST-registered businesses except those already on the Active Taxpayers List (ATL) on June 30 of the previous tax year. 🗓 When to Pay Advance Tax Under Section 147A(2): • Advance tax must be paid monthly • Payment coincides with the filing of your provincial sales tax return ✅ Timely payment ensures compliance and avoids penalties for late payment. 🔄 How Advance Tax Is Adjusted • Section 147A(3): Advance tax paid can be adjusted against tax payable under Section 147 • Section 147A(5): Tax credit is allowed for the amount of advance tax paid when calculating total taxable income • Section 147A(6): The credit is applied according to Section…