Karachi Tax Bar Association seeks IRIS change for returning taxpayers in Pakistan

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IRIS change for returning taxpayers

Highlights

Karachi Tax Bar Association urges Federal Board of Revenue to let returning taxpayers adjust opening wealth balance in IRIS for Tax Year 2026.
Current IRIS setup automatically carries forward pre-non-resident wealth amounts, creating reconciliation mismatches for taxpayers reestablishing residency after years abroad.
KTBA requests immediate IRIS changes so returning individuals can accurately file Wealth Statements and comply with section 116(2) for Tax Year 2026.

IRIS validation issue for Tax Year 2026

As reported by Business Recorder, the Karachi Tax Bar Association has urged the Federal Board of Revenue to modify the IRIS system so individuals returning to Pakistan after a period of non-residence can enter the correct opening wealth balance for Tax Year 2026.

In a letter sent on Friday to the FBR Member Inland Revenue, Operations, the association says the current restriction in the Wealth Reconciliation Statement creates difficulties for people who become tax residents again after intervening years as non-residents. Under the present setup, IRIS automatically carries forward the opening wealth balance from the last Wealth Statement filed and does not allow taxpayers to edit that field.

The association says this means the system continues to reflect the wealth balance reported before the non-residence period, which prevents affected individuals from accurately reconciling their wealth in the relevant tax year. KTBA illustrates the issue with a taxpayer who remained a Pakistani tax resident up to Tax Year 2023, then stayed non-resident during Tax Years 2024 and 2025 and declared only Pakistan-source income without filing Wealth Statements in those years.

Compliance impact for overseas Pakistanis

After returning to Pakistan and becoming a resident for the period relevant to Tax Year 2026, that individual is required to furnish a Wealth Statement and Wealth Reconciliation Statement under section 116(2) of the Income Tax Ordinance, 2001. KTBA argues that the non-editable opening balance carried forward from June 30, 2023 creates a mismatch for taxpayers who were not required to file wealth statements during their non-resident years.

The association maintains that, within the self-assessment and declaration framework of income tax law, taxpayers should be allowed to declare their opening wealth balance on the basis of relevant information and records, subject to applicable legal provisions. It says the proposed IRIS adjustment would let affected individuals reconcile wealth for Tax Year 2026 without having to complete a reconciliation for the intervening years of non-residence.

KTBA also says the IRIS 2.0 filing utility should facilitate compliance with section 116(2) without broadening the statutory obligation. The association has requested an urgent resolution so affected taxpayers can correctly complete and submit their Wealth Statements and Wealth Reconciliation Statements for Tax Year 2026.

Our earlier coverage of calls to extend Pakistan’s Tax Year 2026 filing deadline explained how tax experts and business groups pressed the FBR for more time after the final return form notification, arguing taxpayers should be given a full statutory filing window. That report also highlighted persistent IRIS portal glitches and pending extension applications on the system, which stakeholders said were undermining timely compliance with returns and wealth statement submissions.

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