Written by Akhter Syed in Taxation FBR clarifies the 17% Alternative Corporate Tax regime, carry-forward of excess tax and exclusions applicable to companies for tax year 2027. ISLAMABAD: The Federal Board of Revenue (FBR) has clarified the Alternative Corporate Tax (ACT) framework applicable for tax year 2027, covering the period from July 1, 2026 to June 30, 2027. The clarification was issued through the updated Income Tax Ordinance, 2001, incorporating amendments up to June 30, 2026. Under Section 113C, a company’s tax liability is determined by whichever is higher: Corporate Tax or Alternative Corporate Tax. The ACT is calculated at a rate of 17% of accounting income, after excluding amounts specified under the law. Accounting income refers to accounting profit before tax disclosed in financial statements, subject to prescribed adjustments. The FBR said the ACT mechanism applies to income subject to corporate tax under the relevant provisions or minimum tax under the Income Tax…