Generated from the document text · 19 Aug 2026
SRO 590(I)/2017 is a Statutory Regulatory Order issued by the Federal Board of Revenue (FBR) in 2017 that grants sales tax exemption on the export of Information Technology (IT) and Information Technology Enabled Services (ITeS). This exemption removes the sales tax burden on exported IT and ITeS services, effectively making Pakistani IT companies more competitive in international markets. The document provides the legal framework for zero-rating sales tax on these exports, which is significant for the growth of Pakistan's IT and software export industry.
Key questions answered
What services are covered under the sales tax exemption in SRO 590(I)/2017?
The exemption covers exports of Information Technology (IT) services and Information Technology Enabled Services (ITeS). This typically includes software development, IT consulting, digital services, call center operations, and other technology-enabled business processes exported to foreign clients.
Does this exemption apply to both goods and services or only services?
Based on the title and nature of the SRO, the exemption specifically applies to IT and ITeS services exports. Physical IT goods may be subject to separate tax treatment under different provisions of the Sales Tax Act, 1990.
What are the compliance requirements to claim this sales tax exemption?
Exporters of IT/ITeS services must comply with the relevant provisions of the Sales Tax Act, 1990, including proper documentation of exports, adherence to export procedures prescribed by FBR, and maintenance of records to substantiate their exemption claims during audit.
Is this exemption a permanent provision or was it time-limited?
As a statutory regulatory order, SRO 590(I)/2017 was issued under the authority of the Sales Tax Act, 1990. The permanence of such exemptions depends on subsequent amendments or repeal by FBR or the federal government through subsequent SROs or finance acts.
How does this exemption benefit IT companies in Pakistan?
The sales tax exemption reduces the tax burden on exported IT and ITeS services, improving the cost competitiveness of Pakistani IT companies in the global marketplace. It effectively places these exports at zero-rate for sales tax purposes, allowing companies to focus on international business development without sales tax liabilities on exports.
Questions are queued and answered against the document's extracted text. Answers appear below once processed.
Questions and briefs are generated by an AI model from the official document text — verify against the primary source before relying on them for compliance decisions.
