All Tier 1 retailers are required to integrate with Board’s Point of Sale online real time reporting system. In order to encourage integration with point of sale real time reporting system of FBR, tax credit for POS machines has been introduced through introduction of new section 64D of Income Tax Ordinance, 2001 inserted through Finance Act 2021.

Value of Tax Credit for Point of Sales Machines to Tier- Retailers

Tax credit of Rs.150,000 or the cost of the machine whichever is lower shall be extended to the Tier 1 retailers installing and integrating machines with Board’s system.

Explanation Under Section 64D of Income Tax Ordinance, 2001 – Tax Credit for Point of Sales Machine

Section 64D. Tax credit for point of sale machine.—

(1) Any person who is required to integrate with Board’s computerized system for real time reporting of sale or receipt, shall be entitled to tax credit in respect of the amount invested in purchase of point of sale machine.

(2) The amount of tax credit allowed under sub-section (1) for a tax year in which point of sale machine is installed, integrated and configured with the Board’s computerized system shall be lesser of—
(a) amount actually invested in purchase of point of sale machine; or
(b) rupees one hundred and fifty thousand per machine.

(3) For the purpose of this section, the term point of sale machine means a machine meant for processing and recording the sale transactions for goods or services, either in cash or through credit and debit cards or online payments in an internet enabled environment.