The procedure for grant of approval under section 2(36) of the Income Tax Ordinance, 2001 is governed by the relevant Income Tax Rules, 2002 (Rules 211-220B).
According to clause (g) of sub-rule (2) of Rule 211 (Income Tax Rules 2002), in order to obtain NPO status from Commissioner Inland Revenue,
Non-Profit Organizations including INGOs are required to furnish a detailed report with regard to
their performance for achieving their aims and objectives during the preceding financial year duly evaluated and certified by an independent
certification agency approved by an authority designated by the Government of Pakistan for this purpose. In this regard, the Federal Board of Revenue (FBR) via
notification S.R.O. No. 1116(1)/2003 dated December 18, 2003 has notified
the Pakistan Centre for Philanthropy (PCP) to act as a Certification Agency for the purposes of rules 211 to 220B of the Income Tax Rules 2002.
PCP certification is based on an examination of the INGO's functioning and performance during the last three years.
Moreover, the evaluation process examines the operations of organization in the light of objectives as stated in the governing document of
the organization and certifies that the organization meets the requirements as per the set standards
agreed with the FBR. Certification by PCP is voluntary and optional, does not guarantee non-profit status, as this is a matter to be dtermined by FBR, and the
relevant Commissioner of Inland Revenue. All INGOs are
subject to security clearance from the
Ministry of Interior and other concerned Ministries, Law Enforcement Agencies of the Government of Pakistan and other Provincial Governments.