Section 64D Integration Credit: Eligible Costs and the 10% Calculation

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An invoice for a new computer does not automatically earn the integration tax credit. Section 64D ties the relief to a legal integration requirement and to equipment or software used directly and exclusively for that integration.

Start with the obligation

The substituted section covers a person required under the Income Tax Ordinance, Sales Tax Act or Federal Excise Act to integrate with FBR's computerized system for real-time production monitoring or recording or reporting sales or receipts. General office digitisation is not enough.

Separate installation from running costs

Eligible expenditure concerns the purchase, acquisition, installation or implementation of dedicated equipment, hardware, software or other electronic components. The credit is 10% of the actual investment in the electronic resource for the tax year in which it is installed, integrated and configured. Operation and maintenance costs are expressly excluded.

For example, Rs. 500,000 of qualifying dedicated installation investment produces a Rs. 50,000 credit calculation. A separate Rs. 60,000 maintenance bill does not increase that qualifying investment. This illustration assumes the statutory requirements and any prescribed conditions are met.

Where the credit can be used

It is available only against normal tax under Division I or II of Part I of the First Schedule. It is not described in section 64D as a cash rebate or a universal offset against every withholding or minimum tax liability.

Evidence to keep

Retain the integration requirement, itemized supplier invoices, payment evidence and records showing installation, configuration and connection to FBR. Allocate mixed-purpose costs carefully and check any Board limitations, conditions or restrictions before claiming.

Legislation checked

Finance Act 2026, PDF pages 34-34. Source-text review: 14 October 2026. The Act generally commences on 1 July 2026, subject to express exceptions. Any required implementing notification must also be checked before applying a concession.