Strategic Tax Services

Corporate Tax Planning & Optimization

Proactive tax planning is the difference between paying what you legally owe and overpaying. TS Legal's corporate tax planning service designs tax-efficient structures for groups, holdings, subsidiaries, and joint ventures operating in Pakistan.

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What We Do

Our Corporate Tax Planning Services

Comprehensive coverage across every aspect of corporate tax planning in Pakistan.

Group Tax Structuring

Optimal corporate structure design for business groups — holding companies, subsidiaries, and inter-company transactions to minimize group-level tax.

Transfer Pricing

Transfer pricing documentation, benchmarking studies, and compliance with FBR's transfer pricing rules for related-party transactions.

Holding Company Strategy

Tax-efficient holding company structures to manage dividend flows, capital gains, and inter-group financing.

Tax-Efficient Financing

Structuring debt vs equity financing to maximize tax deductions on financial costs within FBR's thin capitalization rules.

Sector-Specific Exemptions

Identifying and applying all available tax exemptions, SRO reliefs, and reduced rate benefits applicable to your sector.

Tax Provision & Reporting

IFRS-compliant current and deferred tax computation for financial statements and board reporting.

Our Process

How We Work

A structured, transparent process that delivers results — every time.

Tax Health Check

Review current structure, effective tax rate, and compliance status.

Opportunity Mapping

Identify lawful planning opportunities, exemptions, and efficiency gains.

Strategy Design

Develop a customized tax optimization roadmap with implementation steps.

Implementation

Execute structural changes, documentation, and ongoing compliance monitoring.

FAQ

Frequently Asked Questions

What is the difference between tax avoidance and tax evasion in Pakistan?

Tax avoidance means legally reducing tax liability using permitted exemptions, deductions, and structures — this is lawful and encouraged. Tax evasion means concealing income or making false statements to reduce tax — this is a criminal offense under the Income Tax Ordinance 2001 with penalties including imprisonment. TS Legal practices only lawful tax planning.

Can a Pakistani company reduce tax by setting up a holding company?

Yes. A properly structured holding company can reduce withholding tax on inter-company dividends (from 15% to 0% for 100% held subsidiaries under certain conditions), manage capital gains, and create efficient profit repatriation structures. TS Legal designs these structures with full FBR compliance.

What is transfer pricing and when does it apply in Pakistan?

Transfer pricing applies to transactions between related parties (e.g., parent-subsidiary, common ownership). FBR requires that such transactions be priced at arm's length (as if between unrelated parties). Non-compliance can result in income additions and penalties. TS Legal prepares transfer pricing documentation and benchmarking studies.

How often should corporate tax planning be reviewed?

Tax planning should be reviewed annually (before year-end) and whenever: the Finance Act introduces changes, the business structure changes, major transactions occur (M&A, new investments), or FBR issues new circulars/SROs. TS Legal provides ongoing advisory support as part of corporate retainer packages.