Glossary

Tax and business terms, explained simply.

96 terms you will meet in tax, corporate, HR and finance across Pakistan, the UAE, the UK and Saudi Arabia — from ATL to ZATCA.

ACA: Associate Chartered Accountant — the designation used by members of a chartered accountancy institute, such as the Institute of Chartered Accountants of Pakistan (ICAP). Fellows use FCA (not to be confused with the UK's Financial Conduct Authority).
ACCA: The Association of Chartered Certified Accountants, a global professional accountancy body based in the United Kingdom. Its members use the designation ACCA (FCCA for fellows).
Active Taxpayer List (ATL): FBR's list of persons who filed their income tax return for the latest tax year. People and businesses on it ("filers") pay lower withholding tax on many transactions.
ADGM: Abu Dhabi Global Market — an international financial centre and free zone in Abu Dhabi with its own common-law-based legal framework, courts, registration authority and financial regulator.
Advance receipt invoice: An invoice, in the format FBR notifies, issued when payment is received before the supply is made (section 2(1AA) of the Sales Tax Act, inserted by the Finance Act 2026). It must carry an FBR invoice number from the date FBR notifies.
Advance tax: Income tax paid in instalments during the year (for example under section 147), adjusted against the final liability in the return.
AFRS for SSEs: The Accounting and Financial Reporting Standard for small-sized entities — the simplified framework for small companies under the Companies Act, 2017.
AGM: Annual General Meeting of a company's members, held within the period set by the Companies Act, 2017 to lay the financial statements and conduct annual business.
Annex-A: The purchases annex of the monthly sales tax return, populated from suppliers' Annex-C. It decides how much input tax a buyer can claim.
Annex-C: The sales annex of the monthly sales tax return, now fed by digital invoices reported to FBR.
Annual return: The yearly filing with SECP giving a company's members, shareholdings, directors and officers.
AOP: Association of Persons — a partnership or other body of persons taxed as a separate unit under the Income Tax Ordinance, 2001.
ATIR: Appellate Tribunal Inland Revenue — the appellate forum above the Commissioner (Appeals) for income tax, sales tax and federal excise disputes.
Audit trail: A complete, tamper-evident record of who did what and when in a system. Required of e-invoicing systems under rule 150R(4).
Authorised representative: A qualified person (such as a chartered accountant, cost and management accountant, advocate or income tax practitioner) who represents a taxpayer before tax authorities.

Beneficial owner: The natural person who ultimately owns or controls a company, whose details must be recorded and disclosed to SECP.
BOI: Board of Investment — the federal body that promotes investment and grants permission for foreign companies' branch and liaison offices.
BRA: Balochistan Revenue Authority — collects sales tax on services in Balochistan.

CAMLP: A certification in anti-money laundering and countering the financing of terrorism (AML/CFT) awarded by the Institute of Financial Markets of Pakistan (IFMP).
CbCR (Country-by-Country Reporting): An annual report in which large multinational groups (generally those with consolidated revenue of EUR 750 million or more, or the local equivalent) show their revenue, profit, tax paid and activities in each jurisdiction. It follows OECD BEPS Action 13.
CNIC: Computerised National Identity Card issued by NADRA. For individuals, the 13-digit CNIC also serves as the tax registration number.
Commissioner (Appeals): The first appellate authority for disputes with Inland Revenue assessments and orders.
Companies Act, 2017: The law governing incorporation, management, reporting and winding up of companies in Pakistan, administered by SECP.
Companies House: The United Kingdom's registrar of companies. It incorporates companies and LLPs and keeps their public records, including accounts, confirmation statements and the register of people with significant control.
COSO: The Committee of Sponsoring Organizations of the Treadway Commission, whose Internal Control and Enterprise Risk Management frameworks are used worldwide.
CUIN: Corporate Unique Identification Number — the number SECP assigns to each company.

DEWS: DIFC Employee Workplace Savings — the funded savings plan that replaced end-of-service gratuity for most employees of DIFC entities, with monthly contributions paid by the employer.
DIFC: Dubai International Financial Centre — a financial free zone in Dubai with its own common-law-based legal system, courts and financial regulator, the Dubai Financial Services Authority (DFSA).
Digital Invoicing (DI): FBR's system for reporting every sales tax invoice in real time. Each accepted invoice receives an FBR invoice number and QR code.
Due diligence: An investigation of a business's finances, tax, legal and operational position before a transaction or investment.

EOBI: Employees' Old-Age Benefits Institution — the federal pension scheme to which employers and employees contribute.
ESR (Economic Substance Regulations): Rules requiring entities that carry on specified "relevant activities", such as holding, financing, headquarters or IP activities, to show adequate economic substance in the jurisdiction. The UAE abolished ESR reporting for financial years starting after 31 December 2022, but substance still matters under UAE Corporate Tax.
Exempt supply: A supply on which no sales tax is charged (Sixth Schedule). Input tax relating to exempt supplies is generally not recoverable.

FATOORA: Saudi Arabia's e-invoicing regime, administered by ZATCA. Electronic invoices have been required since December 2021, and taxpayers' invoicing systems are being integrated with ZATCA's platform in waves since January 2023. See our KSA guide.
FBR: Federal Board of Revenue — Pakistan's federal tax authority for income tax, sales tax on goods, federal excise and customs.
FCA: Financial Conduct Authority — the United Kingdom's regulator of financial services firms and financial markets. (In accountancy, FCA also denotes a Fellow Chartered Accountant.)
FED: Federal excise duty, levied on specified goods and services under the Federal Excise Act, 2005.
Filer / non-filer: Everyday terms for persons on or not on the Active Taxpayer List.
Final tax: Tax deducted on certain income that discharges the liability on that income, without adjustment in the return.
Finance Act: The annual law that gives effect to the federal budget, amending tax laws usually from 1 July.
FTA (UAE): Federal Tax Authority — the UAE authority that administers Corporate Tax, VAT and excise tax, through its EmaraTax portal. See our UAE Corporate Tax and VAT guide.
Further tax: An additional sales tax (currently 4%) on taxable supplies to persons who are not registered, with exclusions.

GOSI: General Organization for Social Insurance — Saudi Arabia's social insurance body. Employers register all employees: for Saudi nationals, employer and employee contribute to pensions (annuities) and SANED unemployment insurance, and the employer pays for occupational hazards; for non-Saudi employees, the employer pays the occupational hazards contribution only.

HMRC: HM Revenue & Customs — the United Kingdom's tax authority for Corporation Tax, VAT, PAYE, Self Assessment and customs.
HS code / PCT code: The Harmonized System (Pakistan Customs Tariff) code that classifies goods. FBR requires it on every digital invoice line.

ICAP: The Institute of Chartered Accountants of Pakistan, which regulates chartered accountants and audit firms.
IFMP: The Institute of Financial Markets of Pakistan, which offers certifications and training for financial-sector professionals, including AML/CFT certification.
IFRS: International Financial Reporting Standards, adopted in Pakistan through SECP notifications for public-interest and large companies.
IFRS 18: IFRS 18 Presentation and Disclosure in Financial Statements — the IASB standard that replaces IAS 1 for annual periods beginning on or after 1 January 2027. It introduces defined categories and subtotals in the income statement and disclosure of management-defined performance measures. In Pakistan it applies as notified by SECP. See our IFRS 18 guide.
IFRS for SMEs: A simplified version of IFRS used by medium-sized companies under the Companies Act, 2017.
IFRS S1 and S2: The IFRS Sustainability Disclosure Standards: general sustainability-related disclosures (S1) and climate-related disclosures (S2). SECP is phasing them in from 1 July 2025 for listed companies and, from 1 July 2027, for SECP-licensed non-listed public interest companies. See our IFRS S1 and S2 guide.
Input tax: Sales tax paid on purchases, which a registered person may deduct from output tax, subject to the law.
Internal audit: An independent, objective review of an organisation's risks, controls and governance that helps management improve operations.
IRIS: FBR's online portal for registration, returns, withholding statements, Digital Invoicing registration and correspondence.

KPRA: Khyber Pakhtunkhwa Revenue Authority — collects sales tax on services in Khyber Pakhtunkhwa.

LLP: Limited Liability Partnership — a body corporate under the Limited Liability Partnership Act, 2017 combining partnership flexibility with limited liability.

Making Tax Digital (MTD): HMRC's programme requiring digital records and submissions through compatible software. It has applied to all VAT-registered businesses since April 2022 and, from 6 April 2026, to sole traders and landlords with qualifying income above £50,000 (above £30,000 from April 2027 and £20,000 from April 2028). HMRC has confirmed that MTD will not be extended to Corporation Tax.
Minimum tax: Tax payable at a set rate on turnover or receipts even where computed tax on profit is lower.
MISA: Ministry of Investment of Saudi Arabia (formerly SAGIA). Under the Investment Law in force since February 2025, foreign investors register with MISA instead of obtaining an investment licence.
MOHRE: Ministry of Human Resources and Emiratisation — the UAE federal ministry for private-sector employment, including work permits, employment contracts, the Wage Protection System and Emiratisation.

NICOP: National Identity Card for Overseas Pakistanis.
NTN: National Tax Number — the registration number issued by FBR to companies, AOPs and individuals.

Output tax: Sales tax charged by a registered person on taxable supplies.

PDPL: Personal Data Protection Law — the name of both the UAE federal data protection law (Federal Decree-Law No. 45 of 2021) and Saudi Arabia's data protection law (Royal Decree M/19). Each governs how personal data is collected, used and transferred.
PRA: Punjab Revenue Authority — collects sales tax on services in Punjab.
PRAL: Pakistan Revenue Automation (Private) Limited — FBR's technology company, and a licensed integrator for Digital Invoicing free of cost.
PSEB: Pakistan Software Export Board — registers IT and IT-enabled services companies and supports the technology export sector.
PSW: Pakistan Single Window — the national platform for import, export and transit trade documentation and registrations.

QR code (FBR): The code printed on each digital invoice that encodes its FBR invoice number, so buyers can verify the invoice.
Qualifying Free Zone Person (QFZP): Under UAE Corporate Tax, a free zone entity that meets conditions such as adequate substance, earning qualifying income, compliance with transfer pricing rules and audited financial statements. It pays 0% on qualifying income and 9% on other taxable income.

Return of income: The annual income tax return filed on IRIS, with a wealth statement for individuals.

Sales Tax Act, 1990: The federal law that levies sales tax on goods. Services are taxed under provincial laws and, in Islamabad Capital Territory, under a separate federal ordinance.
Sandbox: FBR's test environment where each taxpayer's e-invoicing system passes assigned scenarios before production.
SECP: Securities and Exchange Commission of Pakistan — the regulator of companies, capital markets and non-bank financial sector.
Section 42 company: A not-for-profit company licensed by SECP under section 42 of the Companies Act, 2017.
Security token: The credential FBR issues for a taxpayer's e-invoicing system to call the Digital Invoicing API, for sandbox and production.
Show-cause notice: A notice from the tax authority asking a taxpayer to explain why an action, such as an assessment or penalty, should not be taken.
Simulated invoice: An invoice issued without an actual supply. Since the Finance Act 2026, the issuer faces a penalty equal to the invoice's face value and listing on a public register of simulated invoice issuers, and buyers lose the related input tax (section 33, Table, S. Nos. 29–31).
SMC: Single-Member Company — a private company with one member.
SRB: Sindh Revenue Board — collects sales tax on services in Sindh.
SRO: Statutory Regulatory Order — a notification by which FBR or the government issues rules, rates and exemptions.
Statutory audit: The annual external audit of a company's financial statements required by the Companies Act, 2017, performed by an ICAP-registered audit firm.
STGO: Sales Tax General Order — an instruction issued by FBR on sales tax procedure.
Stock transfer note: The prescribed document that accompanies goods moved to a registered person's own warehouse under the same STRN (STGO 25 of 2026).
STRN: Sales Tax Registration Number. For registered persons it is now usually the same as the NTN.

Tax year: The twelve months ending 30 June, named after the calendar year in which it ends (Tax Year 2027 runs from 1 July 2026 to 30 June 2027).
Third Schedule: In the Sales Tax Act, 1990, the schedule listing goods taxed on their printed retail price. The Third Schedule of the Companies Act, 2017 is different: it classifies companies by size and sets their financial reporting framework.
Tier-1 retailer: A retailer in a category listed in section 2(43A) of the Sales Tax Act — for example a unit of a national or international chain, a retailer in an air-conditioned mall or, since the Finance Act 2026, a retailer or wholesaler-cum-retailer with annual turnover above Rs 200 million — who must integrate point-of-sale systems with FBR.

UAE Corporate Tax: The federal tax on business profits under Federal Decree-Law No. 47 of 2022, for financial years starting on or after 1 June 2023: 0% on taxable income up to AED 375,000 and 9% above it, with special rules for Qualifying Free Zone Persons.

Wealth statement: A statement of an individual's assets, liabilities and reconciliation of wealth, filed with the income tax return.
Withholding agent: A person required by law to deduct tax from payments and deposit it with the government.
Withholding tax: Tax deducted at source on payments such as salary, contracts, profit on debt, rent and imports.
WPS (Wage Protection System): The UAE system, overseen by MOHRE, through which private-sector employers pay salaries electronically so that timely payment can be monitored. Saudi Arabia runs a similar wage protection programme.

Zakat: An Islamic obligation on wealth. In Saudi Arabia, ZATCA collects Zakat at about 2.5% of the Zakat base from Saudi- and GCC-owned businesses; the share of a company owned by other foreign investors is generally subject to income tax instead.
ZATCA: Zakat, Tax and Customs Authority — Saudi Arabia's authority for Zakat, VAT, income tax, withholding tax, excise, customs and the FATOORA e-invoicing regime.
Zero-rated supply: A taxable supply charged at 0% (Fifth Schedule), such as exports, where related input tax can be refunded.

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