Cryptocurrency Tax Pakistan 2026: FBR's Stance, Reporting & Compliance Guide

Cryptocurrency is not legal tender in Pakistan, and its regulatory status has been changing quickly. For income tax, though, the position is simpler than the legal debate suggests: FBR taxes income, and gains from crypto are treated as taxable under the existing rules of the Income Tax Ordinance, 2001. If you are resident, your holdings, whether on a local or foreign platform, belong in your wealth statement. This guide sets out what can be said with confidence for tax year 2026 (1 July 2025 to 30 June 2026), what is still unsettled, and how to report crypto so that it doesn't cause a notice.

Legal status: what is settled and what is moving

This area is changing fast, so check the current position before relying on any summary, including this one.

• Not legal tender. The State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have both issued advisories warning the public about virtual currencies, and neither treats them as legal tender.
• A regulatory framework is now in law. The Virtual Assets Ordinance, 2025 was promulgated in July 2025, and Parliament has since passed the Virtual Assets Act, 2026, putting the framework on a permanent statutory footing. The Act provides for the Pakistan Virtual Assets Regulatory Authority (PVARA) to license and regulate virtual asset service providers, including exchanges. Check PVARA's own announcements (pvara.gov.pk) for which providers, if any, have been licensed.
• Tax doesn't wait for regulation. Whatever the regulatory status, FBR's position is that income from crypto activity is taxable, and that holdings are assets you must declare.

Holding crypto and having to declare it are separate questions. Declaring an asset on your wealth statement is a tax obligation. It is not an admission that you did anything unlawful.

How crypto gains are taxed

We could not confirm any crypto-specific tax rate, so treat any figure you see quoted with caution until FBR publishes one. Until FBR issues specific rules, crypto income falls under the general heads of income:

Which head applies depends on frequency, volume and intent. The head matters because it affects the rate, which expenses you can deduct, and how losses can be used. Once your crypto income is classified, it is taxed at the rates for that category. See our tax slabs page.

Events that are likely to be taxable

• Selling crypto for rupees or another currency: the gain is the sale price minus your cost basis.
• Swapping one coin for another (for example, BTC for ETH): this is generally treated as disposing of the first coin at its market value at the time of the swap.
• Mining: the value of coins at the time you receive them.
• Staking, lending or yield rewards: the value when you receive them.
• Airdrops and hard forks: the market value when received, if it can be established. That value also becomes your cost basis for a later sale.
• NFT sales: a capital gain or other income, depending on how often you sell and why.
• Receiving crypto as payment: its PKR value when received.

Working out your gain

Gain = sale price (in PKR) − cost basis (in PKR)

Your cost basis is what you paid for the coins plus fees, such as exchange and transaction costs. For example, if you bought 1 BTC for Rs 5,000,000 and sold it for Rs 6,000,000, your gain is Rs 1,000,000 before any fees.

If you buy the same coin at different times, you need a method to decide which coins you sold, such as first-in, first-out. FBR has not issued crypto-specific guidance on this, so pick a reasonable method, record it, and apply it consistently.

Losses

How crypto losses can be used depends on which head of income your activity falls under, and that is not settled. Get advice before assuming a loss can reduce other income or be carried forward.

Declaring crypto in your return and wealth statement

In the income tax return

Declare crypto income under the head that fits your activity: capital gains, income from other sources, or business income. Add it to your other income for the year. If you earn crypto income, file a return so that you stay on the Active Taxpayer List. See our return filing guide.

In the wealth statement

Your crypto holdings are assets and must appear in your wealth statement at the end of the tax year.

• Where to enter them: if the form has no dedicated field for digital assets, the usual approach is to enter them under "other assets", or under investments if that fits better. Describe them clearly, for example "Bitcoin held on [exchange]" or "ETH in self-custody wallet".
• Local or foreign: holdings on an international exchange, or in wallets managed outside Pakistan, are foreign assets and should be declared as such. See our guide to declaring foreign income and assets.
• What value to use: the sources we reviewed don't settle whether crypto should be shown at cost or at market value on 30 June, and FBR has not issued crypto-specific valuation guidance. Choose a basis with your adviser, note how you worked out the figure (which platform and on what date), and use the same basis every year.
• Reconciliation: buying crypto moves money from your bank balance into another asset. Your net assets change only through gains, losses and new money. Every purchase, sale and swap has to fit the reconciliation. See wealth statement reconciliation.

Source of funds

Under section 111 of the Income Tax Ordinance, 2001, FBR can tax assets or investments whose source you can't explain. Because crypto draws extra scrutiny, be ready to show where the money came from:

• Taxed income: salary slips, bank statements, and your returns.
• Gifts: a gift deed, the bank transfer, and evidence of the donor's source.
• Inheritance: a succession certificate or other legal document.
• Loans: loan agreements and bank records.
• Sale of other assets: sale deeds and brokerage statements.
• Crypto earned through mining, trading or payments: timestamps, wallet addresses, and the matching fiat transactions.

Records to keep

Keep records for at least six years:

• full transaction history exports from every exchange you have used, local and international: buys, sells, swaps, dates, amounts and PKR values
• transfers to and from self-custody wallets, with wallet addresses and transaction IDs
• dates and values of mining, staking and airdrop receipts
• fees paid
• bank statements showing money moving in and out of exchanges
• the KYC documents you used to open exchange accounts

Keeping crypto-related money in a separate bank account makes all of this easier to trace.

Why undeclared crypto gets noticed

Blockchain activity itself can be hard to trace, but the points where rupees move in and out are not. Bank transfers to and from exchanges are visible, and Pakistan receives foreign financial account information under the Common Reporting Standard. A pattern of large exchange-related bank flows, or wealth growing faster than declared income, is the kind of mismatch FBR's data matching looks for. See why FBR sends notices. Concealing income or assets can lead to penalties under section 182, tax on unexplained assets under section 111, an audit, and in serious cases prosecution.

Frequently asked questions

Is cryptocurrency legal in Pakistan?

It is not legal tender, and the SBP and SECP have warned against it. The Virtual Assets Ordinance, 2025 was promulgated in July 2025, and Parliament has since passed the Virtual Assets Act, 2026, so check PVARA's site for the current licensing position. For tax purposes, gains are treated as taxable and holdings must be declared either way.

Is there a special crypto tax rate?

We have not been able to confirm one. Crypto income is taxed under the existing heads of income (capital gains, other sources or business), depending on your activity.

Do crypto-to-crypto swaps count?

They are generally treated as a disposal of the coin you give up, valued at market value at the time of the swap. Record the PKR value of both sides.

Do I declare crypto held on a foreign exchange?

Yes. If you are resident, declare it in your wealth statement as a foreign asset, and declare any income from it in your return.

Is Zakat deducted on crypto?

Crypto is not subject to a government Zakat deduction. Whether you owe Zakat on it as a religious matter depends on scholarly views, which differ.

To see how crypto income would change your total tax for the year, try the TaxWizard income tax calculator.

This is general information. Rules change, so check FBR's current notifications or consult a tax adviser about your case.