Tax Credit for FBR Integration: Section 64D and the New Rule 33U

Integrating with FBR's systems costs money: hardware, software, interfaces and testing. The Finance Act 2026 replaced the old point of sale machine credit in section 64D of the Income Tax Ordinance, 2001 with a wider tax credit for integration. On 26 October 2026 FBR issued the final rule 33U of the Income Tax Rules, 2002 by S.R.O. 1904(I)/2026, setting out who can claim, what counts and what records you need. The rule was first published in draft as S.R.O. 1692(I)/2026 on 6 October 2026.

What changed in section 64D

Before the Finance Act 2026, section 64D gave a credit only for point of sale machines used for real-time reporting of sales, limited to the amount invested or Rs 150,000 per machine, whichever was lower. The substituted section is much wider:

The new wording is not limited to point of sale machines, and on its face reaches other integrations FBR requires, such as electronic production monitoring and the Digital Invoicing integration. FBR has not issued separate guidance for each type, so confirm that your integration duty arises under one of the three statutes before you claim.

The conditions in rule 33U

To claim the credit, all of the following must be met:

1. you were required, under the Ordinance, the Sales Tax Act or the Federal Excise Act, to integrate with FBR's computerised system during the tax year;
2. the electronic resource was purchased, acquired, installed or implemented, and successfully installed, integrated and configured with FBR's system, during that tax year;
3. the equipment, hardware, software or other component is used directly and exclusively for the required integration;
4. the integration is evidenced by an integration, activation, commissioning or configuration record generated or confirmed by FBR's system, identifying you, the resource and the activation date; and
5. the claim is supported by a tax invoice, bill, agreement, licence or other acquisition document, evidence of payment or liability, and other evidence of the amount actually invested.

What counts as the amount actually invested

Included

• The acquisition or purchase price
• One-time costs directly attributable to installation, configuration, interface development, integration, testing and implementation needed to bring the resource into operation
• A separately identifiable component of a general-purpose system that is dedicated exclusively to the integration

Deducted or excluded

• Any discount, rebate, refund, grant or subsidy received or receivable is deducted
• Tax or duty that is refundable, adjustable or recoverable, such as input tax you can claim
• Operation, routine maintenance, repairs, annual maintenance, post-commissioning support and other recurring service charges
• Internet, telecommunication and utility charges, salaries, training, consumables and financing costs
• General-purpose systems not used directly and exclusively for the integration

A worked example

For illustration, a sales tax registered company goes live on FBR Digital Invoicing in the tax year. It pays Rs 900,000 for an e-invoicing software licence, Rs 400,000 for interface development and testing, and Rs 200,000 for a dedicated server used only for the integration, all net of recoverable sales tax. It also pays Rs 180,000 for annual maintenance and Rs 50,000 for staff training.

The credit is set against the company's normal tax under Division II of Part I of the First Schedule for the tax year in which the integration went live.

How to claim

• Claim the credit in your return of income for the tax year in which the resource is installed, integrated and configured with FBR's system. The same expenditure cannot be claimed more than once.
• Give the details in the return, or in a schedule made available on IRIS: a description of the resource, vendor or supplier particulars, the invoice or agreement reference, the date of acquisition or implementation, the amount actually invested, the integration or resource identification number, and the date of activation or commissioning.
• The credit is computed under section 64D(2) to (4) and is subject to verification by the Commissioner from the records you keep under section 174.

Checklist

• Confirm that your integration is required under the Ordinance, the Sales Tax Act or the Federal Excise Act, and note the provision
• Download and keep the activation or configuration record from FBR's system showing the date of activation
• Ask vendors to invoice one-time integration costs separately from maintenance, support and training
• Keep invoices, agreements, licences and proof of payment together in one file for each resource
• Net off any discounts, rebates or grants, and exclude recoverable sales tax
• Record the resource identification number and activation date ready for the IRIS schedule
• Claim in the return for the tax year in which the integration went live, and only once

For the Digital Invoicing rules themselves, see our complete guide to FBR Digital Invoicing and our comparison of e-invoicing routes.

Official sources

• FBR — S.R.O. 1904(I)/2026, rule 33U (conditions and restrictions for tax credit for integration), 26 October 2026
• FBR — S.R.O. 1692(I)/2026, draft of the new rules in Chapter VIIA, 6 October 2026
• FBR — Income Tax Ordinance, 2001, amended up to 30 June 2026 (section 64D and Part I of the First Schedule)