In Pakistan during tax year 2026, if two companies with the same director and shareholders transfer an asset from one company to the other, the transaction is subject to specific income tax and sales tax implications as per relevant Pakistan tax laws and regulations.

Caveats

• The no-gain/no-loss group relief under Section 37A applies only to wholly-owned (100% ownership) group companies with SECP/SBP approval — not to companies that merely share the same director and shareholders.
• The 'specific sales tax implications' referenced in the claim are not well-supported by the evidence; available sources address general FBR invoicing compliance rather than distinct sales tax rules triggered by inter-company asset transfers between related companies.
• The income tax implications that do apply to this scenario derive from the general associate/arm's-length and transfer pricing framework for all related-party transactions, not from a bespoke statutory regime designed for companies sharing common directors and shareholders.