Income tax rates describing the percentage at which individuals, corporate entities or other organizations are taxed. In Pakistan the Federal Board of Revenue uses an unconventional tax rate system, in which the percentage of tax charged increases as the amount of the person’s or entity’s taxable income increases. A tax rate results in a higher rupee amount collected from taxpayers with greater incomes.
To help build and maintain the infrastructures used in a country, the government usually taxes its residents. The tax collected is used for the betterment of the nation, of society, and of all living in it. In Pakistan and many other countries around the world, a tax rate is applied to some form of money received by a taxpayer. The money could be income earned from salary, wages, investment income (dividends, interest), capital gains from investments, profits made from goods or services rendered, etc. The percentage of the taxpayer’s earnings or money is taken and remitted to the federal government.
When it comes to income tax, the tax rate is the percentage of an individual’s taxable income or a corporate entity’s earnings that is owed to federal government. The tax rate that is applied to an individual’s earnings depends on the marginal tax bracket that the individual falls under. The marginal tax rate is the percentage taken from the next rupee of taxable income above a pre-defined income limit.
TAX RATES | TAX YEAR 2022-2023
WITHHOLDING TAX RATES ON IMPORTS
Sec. 148, Part II, 1st Schedule | Part I-III, Twelfth Schedule
The rate of advance tax to be collected by the Collector of Customs:
| Serial No | Payment / Transaction | Withholding Tax Rates | |||||
| Part I of 12th Schedule | Part II of 12th Schedule | Part III of 12th Schedule | |||||
| Filer | Non-Filer | Filer | Non-Filer | Filer | Non-Filer | ||
| 01 | Imports (Minimum Tax except manufacture and listed companies) | 1% | 2% | 2% | 4% | 5.50% | 11% |
| 02 | Commercial Imports (Importing goods) | 3.5% | 7% | ||||
| 03 | Manufacturers Covered Under SRO 1125(I)/2011 | 1% | 2% | ||||
| 04 | Pharmaceutical Imported Finish Goods | 4% | 8% | ||||
| 05 | Importers of CKD Kits of Electric Vehicles for Small Cars (SUVs with 50 kwh battery and LCVs with 150 kwh battery) | 1% | 2% |
Table: Withholding Tax Rates on Imports
WITHHOLDING TAX ON IMPORT OF MOBILE PHONES
Sec. 148
| Serial No | C&F Value of Mobile Phone (US$) | Tax in Rupees | |
| Filer | Non-Filer | ||
| In CBU condition under PCT Heading 8517.1219 | |||
| 01 | Up to 30 except smart phones | 70 | 140 |
| 02 | Exceeding 30 and up to 100 and smart phones up to 100 | 100 | 200 |
| 03 | Exceeding 100 and up to 200 | 930 | 1,860 |
| 04 | Exceeding 200 and up to 350 | 970 | 1,940 |
| 05 | Exceeding 350 and up to 500 | 5,000 | 10,000 |
| 06 | Exceeding 500 | 11,500 | 23,000 |
| In CSK / SKD condition under PCT Heading 8517.1211 | |||
| 07 | Exceeding 350 and up to 500 | 3,000 | 6,000 |
| 08 | Exceeding 500 | 5,200 | 10,400 |
Table: Tax on Petroleum Products
TAX RATES FOR SALARIED INDIVIDUALS
Sec. 149, Division I, Part I, 1st Schedule
Where the income of an individual chargeable under the head “salary” exceeds seventy-five percent of his taxable income, the following rates of tax will apply, which are unchanged from the previous tax year:
| Serial No | Taxable Income | Rate of Tax |
| 01 | Where taxable income does not exceed Rs.600,000 | 0% |
| 02 | Where taxable income exceeds Rs.600,000 but does not exceed Rs.1,200,000 | 2.5% of the amount exceeding Rs.600,000 |
| 03 | Where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000 | Rs.15,000 plus 12.5% of the amount exceeding Rs.1,200,000 |
| 04 | Where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,600,000 | Rs.165,000 plus 20% of the amount exceeding Rs.2,400,000 |
| 05 | Where taxable income exceeds Rs.3,600,000 but does not exceed Rs.6,000,000 | Rs.405,000 plus 25% of the amount exceeding Rs.3,600,000 |
| 06 | Where taxable income exceeds Rs. 6,000,000 but does not exceed Rs.12,000,000 | Rs.1,005,000 plus 32.5% of the amount exceeding Rs.6,000,000 |
| 07 | Where taxable income exceeds Rs. 12,000,000 | Rs.2,955,000 plus 35% of the amount exceeding Rs.12,000,000 |
Table: Tax Rates for Salaried Individuals
TAX RATES FOR INDIVIDUALS & ASSOCIATION OF PERSONS
Division I, Part I, 1st Schedule
No change in the tax rates for individuals and association of persons has been made. the tax rates applicable for the Tax Year 2022 are set out in the following table:
| Serial No | Taxable Income | Rate of Tax |
| 01 | Where taxable income does not exceed Rs.600,000 | 0% |
| 02 | Where taxable income exceeds Rs.600,000 but does not exceed Rs.800,000 | 5% of the amount exceeding Rs.600,000 |
| 03 | Where taxable income exceeds Rs.800,000 but does not exceed Rs.1,200,000 | Rs.10,000 plus 12.5% of the amount exceeding Rs.800,000 |
| 04 | Where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000 | Rs.60,000 plus 17.5% of the amount exceeding Rs.1,200,000 |
| 05 | Where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,000,000 | Rs.270,000 plus 22.5% of the amount exceeding Rs.2,400,000 |
| 06 | Where taxable income exceeds Rs.3,000,000 but does not exceed Rs.4,000,000 | Rs.405,000 plus 27.5% of the amount exceeding Rs.3,000,000 |
| 07 | Where taxable income exceeds Rs.4,000,000 but does not exceed Rs.6,000,000 | Rs.680,000 plus 32.5% of the amount exceeding Rs.4,000,000 |
| 08 | Where taxable income exceeds Rs.6,000,000 | Rs.1,330,000 plus 35% of the amount exceeding Rs.6,000,000 |
Table: Tax Rates for Individuals & Association of Persons
TAX RATES FOR COMPANIES
Division II, Part I, 1st Schedule
Tax rates for a banking company, public & private company, small company, alternate corporate tax and modaraba are given in the following table:
| Serial No | Type | Rate of Tax |
| 01 | Banking Companies | 39% |
| 02 | Public / Private Companies | 29% |
| 03 | Small Companies | 20% |
| 04 | Alternate Corporate Tax (ACT) u/Sec. 113C | 17% of accounting profit |
| 05 | Modaraba | 25% |
Table: Tax Rates for Companies | Where the taxpayer is a small company , tax shall be payable at the rate of 20% for the Tax Year 2023 and onward.
SUPER TAX
Rate of Super Tax on high earning persons (Sec. 4C)
| Serial No | Description | Rate of Tax |
| 01 | Up to Rs.150 million | 0% |
| 02 | Exceeding Rs.150 million to Rs.200 million | 1% |
| 03 | Exceeding Rs.200 million to Rs.250 million | 2% |
| 04 | Exceeding Rs.250 million to Rs.300 million | 3% |
| 05 | Above Rs.300 million | 4% |
| 06 | For Banking Company Tax Year 2022 | 4% |
| 07 | For Banking Company Tax Year 2023 and onwards where income exceeds Rs.300 million. | 10% of the income |
| 08 | For Airlines, Automobiles, Beverages, Cement, Chemicals, Cigarette & Tobacco, Fertilizers, Iron & Steel, LNG Terminals, Oil Marketing, Oil Refining, Petroleum & Gas Exploration and Production, Pharmaceuticals, Sugar and Textiles. | 10% of the income where income exceeds Rs.300 million. |
Table: Super Tax
DIVIDEND TAX
Sec. 150
Person paying a dividend shall deduct tax from the gross amount of the dividend paid or collect tax from the amount of dividend in specie.
| Serial No | Description | Filer | Non-Filer |
| 01 | Dividend paid by Independent Power Producers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity. | 7.5% | 15% |
| 02 | In case of a person receiving dividend from a Company where no tax is payable by such Company, due to exemption of income or carry-forward of business losses under Part VIII of Chapter III or claim of tax credits under Part X of Chapter III. | 25% | 50% |
| 03 | Dividend received by a REIT scheme from Special Purpose Vehicle | 0% | – |
| 04 | Dividend received by others from Special Purpose Vehicle as defined under the Real Estate Investment Trust Regulations, 2015. | 35% | – |
| 05 | In mutual fund, Real Estate Investment Trusts and cases other than mentioned above. | 15% | 30% |
| 06 | Dividends declared by a Company as are “attributable” to profits and gains derived from a bagasse and biomass-based co-generation power project qualifying for exemption under clause (132C) of Part-I of 2nd Schedule. | 7.5% [Cl. 18C] | – |
Table: Dividend Tax
TAX ON PROFIT ON DEBT & RETURN ON INVESTMENT IN SUKUKS
Sec. 151, Division 1A & 1B, Part III, 1st Schedule
| Serial No | Description | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| Interest on Profit on Debt [Sec. 151] | |||
| 01 | Interest | 15% | 30% |
| 02 | National Saving Scheme (NSS) | ||
| 03 | Bank Account | ||
| 04 | Federal, Provincial & Local Government Bonds | ||
| 05 | Company Loans | ||
| 06 | Profit on debt from instrument, whether conventional or sharia compliant, issued by Federal Govt under Public Debt Act, 1944 and purchased by resident citizen of Pakistan who has declared all his foreign assets to the Board through a Foreign Currency Value Account (FCVA) maintained with authorized banks in Pakistan under the foreign exchange regulation issued by the State Bank of Pakistan. | 10% [Clause 5AB of Part II of 2nd Schedule] | – |
| 07 | Profit on debt paid, covered under clauses (78) and (79) of Part I of the 2nd Schedule | 0% [Clause 5AC of Part II of 2nd Schedule] | – |
| Interest on Investment in Sukuks from a Sukuk Holder [Sec. 151(1A)] | |||
| 01 | Sukuk Holder as a Company | 25% | 50% |
| 02 | Sukuk Holder as an Individual or an Association of Persons, if the Return on Investment is more than one million | 12.50% | 25% |
| 03 | Sukuk Holder as an Individual or an Association of Persons, if the Return on Investment is less than one million | 10% | 20% |
Table: Tax on Profit on Debt & Return on Investment in Sukuks
TAX ON NON-RESIDENTS
Sec 152, Division IV, Part I, 1st Schedule
| Serial No | Description | Companies / Individual / AOP | |||
| Filer | Non-Filer | ||||
| 01 | Royalty or Fee for Technical Services | 15% | 30% | ||
| 02 | Construction Services | 7% | 7% | ||
| 03 | Advertisement by TV Satellite Channels | ||||
| 04 | Media Person Advertisement Services | 10% | 10% | ||
| 05 | Fee for Offshore Digital Services | ||||
| 06 | Any Other Services | 20% | 40% | ||
| Companies | Individual / AOP | ||||
| Filer | Non-Filer | Filer | Non-Filer | ||
| 07 | Supply of Goods | 4% | 4% | 4.50% | 4.50% |
| 08 | Services | 8% | 16% | 10% | 20% |
| 09 | Contract | 7% | 14% | 7% | 14% |
| Filer | Non-Filer | ||||
| 10 | Sportsman | 10% | 20% | ||
| 11 | Foreign Produced Commercial | 20% | 40% | ||
| Companies | Individual / AOP | ||||
| Filer | Non-Filer | Filer | Non-Filer | ||
| 12 | Transport Services | 3% | 6% | 3% | 6% |
| 13 | Freight Forwarding Services | ||||
| 14 | Air Cargo Services | ||||
| 15 | Courier Services | ||||
| 16 | Manpower Outsourcing Services | ||||
| 17 | Hotel Services | ||||
| 18 | Security Guard Services | ||||
| 19 | Software Development Services | ||||
| 20 | IT Services & IT Enabled Services | ||||
| 21 | Tracking Services | ||||
| 22 | Advertising Services (Other than Print / Electronic Media) | ||||
| 23 | Share Registrar Services | ||||
| 24 | Engineering Services | ||||
| 25 | Car Rental Services | ||||
| 26 | Building Maintenance Services | ||||
| 27 | Services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited | ||||
| 28 | Inspection | ||||
| 29 | Certification | ||||
| 30 | Testing | ||||
| 31 | Training Services |
Table: Tax on Non-Residents
TAX ON GOODS, SERVICES & CONTRACTS
Sec. 153, Division III A, Part III, 1st Schedule
| Serial No | Description | Companies | Individual / AOP | ||
| Filer | Non-Filer | Filer | Non-Filer | ||
| 01 | Rice, Cotton Seed Oil, Edible Oils (If Annual Supplies > 75K) | 1.5% | 3% | 1.5% | 3% |
| 02 | Other Goods including Toll Manufacturing (If Annual Supplies > 75K) | 4% | 8% | 4.5% | 9% |
| 03 | Distributor, Wholesaler, Retailer, Dealer and Sub-Dealer of FMCG, Fertilizer, electronics excluding mobile phones, sugar, Cement and Edible Oil | 0.25% | 8% | 0.25% | 9% |
| 04 | Traders of Yarn | 0.5% | 1% | 0.5% | 1% |
| 05 | Services (If Annual Services > 30K) | 8% | 16% | 10% | 20% |
| 06 | Transport Services | 3% | 6% | 3% | 6% |
| 07 | Freight Forwarding Services | ||||
| 08 | Air Cargo Services | ||||
| 09 | Courier Services | ||||
| 10 | Manpower Outsourcing Services | ||||
| 11 | Hotel Services | ||||
| 12 | Security Guard Services | ||||
| 13 | Software Development Services | ||||
| 14 | IT Services & IT Enabled Services | ||||
| 15 | Tracking Services | ||||
| 16 | Advertising Services (Other than Print / Electronic Media) | ||||
| 17 | Share Registrar Services | ||||
| 18 | Engineering Services | ||||
| 19 | Warehousing Services | ||||
| 20 | Services rendered by Asset Management Companies | ||||
| 21 | Data Services Licensed by PTA | ||||
| 22 | Telecommunication Infrastructure (Tower) Services | ||||
| 23 | Car Rental Services | ||||
| 24 | Building Maintenance Services | ||||
| 25 | Services Rendered by Pakistan Stock Exchange Limited & Pakistan Mercantile Exchange Limited | ||||
| 26 | Inspection | ||||
| 27 | Certification | ||||
| 28 | Testing | ||||
| 29 | Training Services | ||||
| 30 | Oilfield Service | ||||
| 31 | Telecommunication Services | ||||
| 32 | Collateral Management Services | ||||
| 33 | Travel & Tour Services | ||||
| 34 | Electronic & Print Media Advertising Services | 1.5% | 3% | 1.5% | 3% |
| 35 | Contracts (If Annual Contract > 10K) | 7% | 14% | 7.5% | 15% |
| Filer | Non-Filer | ||||
| 36 | Sportsman | 10% | 20% | ||
| Companies / Individual / AOP | |||||
| Filer | Non-Filer | ||||
| 37 | Stitching, Dying, Printing & Embroidery etc. | 1% | 2% |
Table: Tax on Goods, Services & Contracts
TAX RATES ON EXPORTS & EXPORT OF SERVICES
Sec. 154 & 154A, Division IV, Part III, 1st Schedule
| Serial No | Description | Company / AOP / Individual |
| Filer / Non-Filer | ||
| 01 | Exports | 1% |
| 02 | Export of Goods | 1% |
| 03 | Export Commission | 5% |
| 04 | Inland Bank to Bank Letter of Credit | 1% |
| 05 | Export Processing Zone | 1% |
| 06 | Indirect Exporter; SPO | 1% |
| 07 | Clearing of Goods | 1% |
| 08 | Export of Services | 1% |
Table: Tax Rates on Exports & Export of Services
TAX ON RENT OF IMMOVABLE PROPERTY
Sec. 155, Division V, Part III, 1st Schedule
| Serial No | Gross Amount of Rent | Rate of Tax |
| 01 | Where the gross amount of rent does not exceed Rs.300,000 | Nil |
| 02 | Where the gross amount of rent exceeds Rs.300,000 but does not exceed Rs.600,000 | 5% of the gross amount exceeding Rs.300,000 |
| 03 | Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.2,000,000 | Rs.15,000 plus 10% of the gross amount exceeding Rs.600,000 |
| 04 | Where the gross amount of rent exceeds Rs.2,000,000 | Rs.155,000 plus 25% of the gross amount exceeding Rs.2,000,000 |
Table: Tax on Rent of Immovable Property | The rate of tax to be deducted u/Sec. 155, in case of company shall be 15% of the gross amount of rent.
TAX ON PRIZES & WINNINGS
Sec. 156, Division VI, Part III, 1st Schedule
| Serial No | Description | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | Prize Bonds | 15% | 30% |
| 02 | Prizes, Winning, Lottery and Raffles | 20% | 40% |
Table: Tax on Prizes & Winnings
TAX ON PETROLEUM PRODUCTS
Sec. 156A, Division VIA, Part III, 1st Schedule
| Serial No | Description | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | Petrol & Petroleum Products | 12% | 24% |
Table: Tax on Petroleum Products
ADVANCE TAX ON PURCHASE, REGISTRATION AND TRANSFER OF MOTOR VEHICLES
Sec. 231B & 234, Division VII, Part IV, 1st Schedule
| Serial No | Description | Engine Capacity | Filer | Non-Filer |
| 01 | At the time of Leasing of Motor Vehicle | Any Motor Vehicle | – | 4% |
| 02 | On Registration by Excise & Taxation Dept. and On Sale by Manufacturer (Car or Jeep) | Up to 850cc | 7,500 | 15,000 |
| 851cc to 1000cc | 15,000 | 30,000 | ||
| 1001cc to 1300cc | 25,000 | 50,000 | ||
| 1301cc to 1600cc | 50,000 | 100,000 | ||
| 1601cc to 1800cc | 75,000 | 150,000 | ||
| 1801cc to 2000cc | 100,000 | 200,000 | ||
| 2000cc to 2500cc | 150,000 | 300,000 | ||
| 2500cc to 3000cc | 200,000 | 400,000 | ||
| Above 3000cc | 250,000 | 500,000 | ||
| 03 | Transfer of Ownership (Tax rate shall be reduced by 10% each year from the date of 1st Registration) | Up to 850cc | – | – |
| 851cc to 1000cc | 5,000 | 10,000 | ||
| 1001cc to 1300cc | 7,500 | 15,000 | ||
| 1301cc to 1600cc | 12,500 | 25,000 | ||
| 1601cc to 1800cc | 18,750 | 37,500 | ||
| 1801cc to 2000cc | 25,000 | 50,000 | ||
| 2000cc 2500cc | 37,500 | 75,000 | ||
| 2500cc to 3000cc | 50,000 | 100,000 | ||
| Above 3000cc | 62,500 | 125,000 | ||
| 04 | Sold Locally Manufactured Motor Vehicles | Up to 1000cc | 50,000 | 100,000 |
| 1001cc to 2000cc | 100,000 | 200,000 | ||
| 2001cc and above | 200,000 | 400,000 | ||
| 05 | Private Motor Vehicles | Up to 1000cc | 800 | 1,600 |
| 1001cc to 1199cc | 1,500 | 3,000 | ||
| 1200cc to 1299cc | 1,750 | 3,500 | ||
| 1300cc to 1499cc | 2,500 | 5,000 | ||
| 1500cc to 1599cc | 3,750 | 7,500 | ||
| 1600cc to 1999cc | 4,500 | 9,000 | ||
| 2000cc and above | 10,000 | 20,000 |
Table: Advance Tax on Purchase, Registration & Transfer
TAX ON BROKERAGE AND COMMISSION
Sec. 233, Division II, Part IV, 1st Schedule
| Serial No | Description | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | Advertising agents | 10% | 20% |
| 02 | Life insurance agents where commission received is less than Rs.0.5 million per annum | 8% | 16% |
| 03 | Persons not covered in 1 and 2 above | 12% | 24% |
Table: Tax on Brokerage and Commission
TAX ON ELECTRICITY CONSUMPTION
Sec. 235, Division IV, Part IV, 1st Schedule
| Serial No | Gross Amount | Assessee | Companies / Individual / AOP | |
| Filer | Non-Filer | |||
| 1 | Up to Rs.500 | Commercial | Rs. 0 | |
| Industrial | Rs. 0 | Rs. 0 | ||
| 2 | Exceeds Rs.500 but does not exceed Rs.20,000 | Commercial | 10% | |
| Industrial | 10% | 20% | ||
| 3 | Exceeds Rs.20,000 | Commercial | Rs.1,950 plus 12% | |
| Industrial | Rs.1,950 plus 5% | Rs.1,950 plus 10% | ||
| 4 | Less than Rs.25,000 | Domestic Electricity Consumption | – | – |
| 5 | Exceeds Rs.25,000 | – | 7.5% |
Table: Tax on Electricity Consumption
TAX ON TELEPHONE AND INTERNET
Sec. 236, Division IV, Part IV, 1st Schedule
| Serial No | Description | Companies / Individual / AOP |
| 01 | In case of telephone subscriber (other than the mobile phone subscriber) where the amount of monthly bill exceeds Rs.1,000 | 10% of the exceeding amount of bill |
| 02 | In the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card | 10% for tax year 2022 and 8% onwards of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form. |
Table: Tax on Telephone and Internet
ADVANCE TAX AT THE TIME OF SALE BY AUCTION
Sec. 236A, Division VIII, Part IV, 1st Schedule
| Serial No | Description | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | Gross sale price of any property or goods sold by auction | 10% | 20% |
| 02 | Immovable property sold by auction | 5% | 10% |
Table: Advance Tax at the time of sale by auction
ADVANCE TAX ON SALE & PURCHASE OF IMMOVABLE PROPERTY
Sec. 236C & 236K, Division X & XVIII, Part IV, 1st Schedule
| Serial No | Description | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | On Sale of Property | 1% | 2% |
| 02 | On Purchase of Property and person responsible for collecting payments in instalment as per Fair Market Value | 1% | 2% |
Table: Advance Tax on Sale & Purchase of Immovable Property
ADVANCE TAX ON DISTRIBUTORS, DEALERS OR WHOLESALERS
Sec. 236G, Division XIV, Part IV, 1st Schedule
| Serial No | Category of Sale | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | Fertilizers | 0.25% | 0.7% |
| 02 | Other than fertilizers | 0.1% | 0.2% |
Table: Advance Tax on Distributors, Dealers or Wholesalers
ADVANCE TAX ON SALE TO RETAILERS
Sec. 236H, Division XV, Part IV, 1st Schedule
| Serial No | Gross amount of Sale | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | Sale to Retailers | 0.5% | 1% |
Table: Advance Tax on Sale to Retailers
COLLECTION OF ADVANCE TAX BY EDUCATIONAL INSTITUTIONS
Sec. 236I, Division XVI, Part IV, 1st Schedule
| Serial No | Gross amount of Fee | Companies / Individual / AOP | |
| Filer | Non-Filer | ||
| 01 | Education Expenses | – | 5% |
Table: Collection of Advance Tax by Educational Institutions
PAYMENT TO A RESIDENT PERSON FOR RIGHT TO USE MACHINERY & EQUIPMENT
Sec. 236Q, Division XXIII, Part IV, 1st Schedule
| Serial No | Description | Companies / Individual / AOP |
| 01 | Rent of Collection of Tax | 10% |
Table: Payment to Resident Person in using Machinery & Equipment
TAX FOR PROFIT ON DEBT – OTHER THAN A COMPANY
Sec. 7B, Division III A, Part I, 1st Schedule
| Serial No | Profit on Debt | Rate of Tax |
| 01 | Where profit on debt does not exceed Rs.5,000,000 | 15% |
| 02 | Where profit on debt exceeds Rs.5,000,000 but does not exceed Rs.25,000,000 | 17.5% of the amount exceeding Rs.5,000,000 |
| 03 | Where profit on debt exceeds Rs.25,000,000 but does not exceed Rs.36,000,000 | 20% of the amount exceeding Rs.25,000,000 |
Table: Tax for Profit on Debt | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List.
Profit on Debt exceeding Rs.36 million shall be subject to tax under normal law.
TAX ON SHIPPING OR AIR TRANSPORT INCOME OF A NON-RESIDENT PERSON
| Serial No | Description | Rate of Tax |
| 01 | In the case of shipping income | 8% of the gross amount received or receivable |
| 02 | In the case of air transport income | 3% of the gross amount received or receivable |
Table: Tax on Shipping or Air Transport Income
TAX ON RETURN ON INVESTMENT IN SUKUKS
Sec. 5AA, Division IB, Part III, 1st Schedule
| Serial No | Sukuk-holder | Rate of Tax |
| 01 | Company | 25% |
| 02 | Individual & AOP, if the return on investment is more than Rs.1,000,000 | 12.5% |
| 03 | Individual & AOP, if the return on investment is less than Rs.1,000,000 | 10% |
Table: Tax on Return on Investment | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List
TAX ON CERTAIN PAYMENTS TO NON-RESIDENTS
| Serial No | Category | Rate of Tax |
| 01 | Royalty (Sec. 6) | 15% of the gross amount |
| 02 | Fee for Technical Services (Sec. 6) | 15% of the gross amount |
| 03 | Offshore digital services (Sec. 6) | 5% of the gross amount |
| 04 | Shipping income (Sec. 7) | 8% of the gross amount received or receivables |
| 05 | Air transport income (Sec. 7) | 3% of the gross amount received or receivables |
Table: Tax on Certain Payments to Non-Residents | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers’ List
TAX ON INCOME FROM PROPERTY FOR INDIVIDUALS AND ASSOCIATION OF PERSONS
Sec. 15, Division V, Part I, 1st Schedule
| Serial No | Gross Amount of Rent | Rate of Tax |
| 01 | Where the gross amount of rent does not exceed Rs.200,000 | Nil |
| 02 | Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs.600,000 | 5% of the gross amount exceeding Rs.200,000 |
| 03 | Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.1,000,000 | Rs.20,000 + 10% of the gross amount exceeding Rs.600,000 |
| 04 | Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs.2,000,000 | Rs.60,000 + 15% of the gross amount exceeding Rs.1,000,000 |
| 05 | Where the gross amount of rent exceeds Rs.2,000,000 but does not exceed Rs.4,000,000 | Rs.210,000 + 20% of the gross amount exceeding Rs.2,000,000 |
| 06 | Where the gross amount of rent exceeds Rs.4,000,000 but does not exceed Rs.6,000,000 | Rs.610,000 + 25% of the gross amount exceeding Rs.4,000,000 |
| 07 | Where the gross amount of rent exceeds Rs.6,000,000 but does not exceed Rs.8,000,000 | Rs.1,110,000 + 30% of the gross amount exceeding Rs.6,000,000 |
| 08 | Where the gross amount of rent exceeds Rs.8,000,000 | Rs.1,710,000 + 35% of the gross amount exceeding Rs.8,000,000 |
Table: Tax on Income from Property
CAPITAL GAINS ON DISPOSAL OF SECURITIES
Sec. 37A, Division VII, Part I, 1st Schedule
| Serial No | Period | Tax Year 2015 | Tax Year 2016 | Tax Year 2017 | Tax Years 2018 to 2021 | Tax Year 2022 and onwards | |
| Securities acquired prior 01.07.2016 | Securities acquired after 01.07.2016 | ||||||
| 01 | Where holding period of a security is less than twelve months | 12.5% | 15% | 15% | 15% | 15% | 12.55% |
| 02 | Where holding period of a security is twelve months or more but less than twenty-four months | 10% | 12.5% | 12.5% | 12.5% | ||
| 03 | Where holding period of a security is twenty-four months or more but the security was acquired on or after 1st July, 2013 | 0% | 7.5% | 7.5% | 7.5% | ||
| 04 | Where the security was acquired before 1st July, 2013 | 0% | 0% | 0% | 0% | 0% | 0% |
| 05 | Future commodity contracts entered into by the members of Pakistan Mercantile Exchange | 0% | 0% | 5% | 5% | 5% | 5% |
Table: Capital Gains on Disposal of Securities | The rate of tax on cash settled derivatives traded on the stock exchange shall be 5% for the tax years 2018 to 2020.
A Mutual Fund or a Collective Investment Scheme or a REIT Scheme shall deduct Capital Gains Tax at the rates as specified below on Redemtion of Securities, as specified below:
| Serial No | Category | Rate of Tax | |
| 01 | Individual and Association of Persons | 10% for stock funds | 10% for other funds |
| 02 | Company | 10% for stock funds | 25% for other funds |
Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, then the rate of tax deduction shall be 12.5%. No capital gains tax shall be deducted, if the holding period of the security is more than 4 years.
CAPITAL GAINS ON DISPOSAL OF IMMOVABLE PROPERTY (CAPITAL ASSETS)
Sec. 37(1A), Division VIII, Part I, 1st Schedule
| Serial No | Period | Rate of Tax |
| 01 | Where the gain does not exceed Rs.5 million | 3.5% |
| 02 | Where the gain exceeds Rs.5 million but does not exceed Rs.10 million | 7.5% |
| 03 | Where the gain exceeds Rs.10 million but does not exceed Rs.15 million | 10% |
| 04 | Where the gain exceeds Rs.15 million | 15% |
Table: Capital Gains on Disposal of Immovable Property
CAPITAL GAINS ON DISPOSAL OF IMMOVABLE PROPERTY
Sec. 37(3A)
| Serial No | Holding Period | Rate of Tax |
| 01 | Where the holding period of an immovable property does not exceed one year | 100% |
| 02 | Where the holding period of an immovable property exceeds one year | 75% |
| 03 | Where the holding period of an immovable property exceeds two years but does not exceed three years | 50% |
| 04 | Where the holding period of an immovable property exceeds three years but does not exceed four years | 25% |
| 05 | Where the holding period of an immovable property exceeds four years | 0% |
Table: Capital Gains on Disposal of Immovable Property
TAX ON BUILDERS
Sec. 7C, Division VIII A, Part I, 1st Schedule
| Karachi, Lahore and Islamabad | Abbottabad, Faisalabad, Gujranwala, Hyderabad, Mardan, Multan, Peshawar, Quetta, Rawalpindi, Sahiwal and Sukkur | Urban Areas not specified in A and B | |||
| For Commercial Buildings | |||||
| Rs.210 / Sq Ft | Rs.210 / Sq Ft | Rs.210 / Sq Ft | |||
| For Residential Buildings | |||||
| Area Sq. ft | Rate Sq. ft | Area Sq. ft | Rate Sq. ft | Area Sq. ft | Rate Sq. ft |
| Up to 750 | Rs.20 | Up to 750 | Rs.15 | Up to 750 | Rs.10 |
| 751 to 1500 | Rs.40 | 751 to 1500 | Rs.35 | 751 to 1500 | Rs.25 |
| 1501 and more | Rs.70 | 1501 and more | Rs.55 | 1501 and more | Rs.35 |
Table: Tax on Builders
TAX ON DEVELOPERS
Sec. 7D, Division VIII B, Part I, 1st Schedule
| Karachi, Lahore and Islamabad | Hyderabad, Sukkur, Multan, Faisalabad, Rawalpindi, Gujranwala, Sahiwal, Peshawar, Mardan, Abbottabad and Quetta | Urban Areas not specified in A and B | |||
| For Commercial Plots | |||||
| Rs.210 / Sq Yd | Rs.210 / Sq Yd | Rs.210 / Sq Yd | |||
| For Residential Plots | |||||
| Area Sq. Yd | Rate Sq. Yd | Area Sq. Yd | Rate Sq. Yd | Area Sq. Yd | Rate Sq. Yd |
| Up to 120 | Rs.20 | Up to 120 | Rs.15 | Up to 120 | Rs.10 |
| 121 to 200 | Rs.40 | 121 to 200 | Rs.35 | 121 to 200 | Rs.25 |
| 201 and more | Rs.70 | 201 and more | Rs.55 | 201 and more | Rs.35 |
Table: Tax on Developers
MINIMUM TAX
Sec. 113, Division IX, Part I, 1st Schedule
| Serial No | Person(s) | Minimum Tax as percentage of the person’s turnover for the year |
| 01 | Oil marketing companies, Oil refineries, Sui Southern Gas Company Limited and Sui Northern Gas Pipeline Limited (for the cases where annual turnover exceeds rupees one billion);Pakistani Airlines; andPoultry industry including poultry breeding, broiler production, egg production and poultry feed production. | 0.75% |
| 02 | Oil refineries; andMotorcycle dealers registered under the Sales Tax Act, 1990 | 0.50% |
| 03 | Distributors of pharmaceutical products, fast moving consumer goods and cigarettes;Petroleum agents and distributors who are registered under the Sales Tax Act, 1990;Rice mills and dealers;Tier-1 retailers of fast moving consumer goods who are integrated with Board or its computerised system for real time reporting of sales and receipts;Person’s turnover from supplies through e-commerce including from running an online marketplace as defined in clause (38B) of Sec. 2;Persons engaged in the sale and purchase of used vehicles; andFlour mills | 0.25% |
| 04 | In all other cases | 1.25% |
Table: Minimum Tax
REDUCTION IN TAX LIABILITY FOR FULL TIME TEACHER
Clause (2), Part III of 2nd Schedule
| The tax payable by a fulltime teacher or a researcher, employed in a non-profit education or research institution duly recognised by HEC, a Board of Education or a University recognised by HEC including government research institution shall be reduced by an amount equal to 25% of the tax payable on his income from salary.Provided that this clause shall not apply to teachers of medical profession who derive income from private medical practice or who receive share of consideration received from patients. |
Table: Reduction in Tax Liability for Full Time Teacher
PAYMENT OF ADVANCE TAX
Sec. 147
| Installment | Quarter | Due Dates | |
| Individuals | AOPs / Companies | ||
| 01 | September | 15th September | 25th September |
| 02 | December | 15th December | 25th December |
| 03 | March | 15th March | 25th March |
| 04 | June | 15th June | 25th June |
Table: Payment of Advance Tax
ADVANCE TAX
| Serial No | Person(s) | Rate of Tax |
| 01 | Industrial undertaking importing re-meltable steel (PCT Heading 72.04) and directly reduced iron for its own use;Persons importing potassic fertilizers in pursuance of Economic Coordination Committee of the cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004;Persons importing urea;Manufacturers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O. 1125(I)/2011 dated the 31st December, 2011Persons importing Gold;Persons importing Cotton; andPersons importing LNG | 1% of the import value as increased by customs-duty, sales tax and federal excise duty |
| 02 | Persons importing pulses | 2% of the import value as increased by customs-duty, sales tax and federal excise duty |
| 03 | Commercial importers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated the 31st December, 2011. | 3% of the import value as increased by customs-duty, sales tax and federal excise duty |
| 04 | Persons importing coal | 4% |
| 05 | Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan | 4% |
| 06 | Ship breakers on import of ships | 4.5% |
| 07 | Industrial undertakings not covered under S. Nos 01 to 06 | 5.5% |
| 08 | Companies not covered under S. Nos. 01 to 07 | 5.5% |
| 09 | Persons not covered under S. Nos. 01 to 08 | 6% |
Table: Advance Tax
ADVANCE TAX ON DIVIDEND
| Serial No | Description | Rate of Tax |
| 01 | In case of dividends paid by Independent Power Purchasers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be re-imbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entoty. | 7.5% |
| 02 | Other than mentioned above | 15% |
Table: Advance Tax on Dividend
COLLECTION OF TAX BY A REGISTERED STOCK EXCHANGE IN PAKISTAN
| Serial No | Description | Rate of Tax |
| 01 | In case of purchase of shares as per clause (a) of sub-section (1) of Section 233A. | 0.02% of purchase value |
| 02 | In case of purchase of shares as per clause (b) of sub-section (1) of Section 233A. | 0.02% of sale value |
Table: Collection of Tax by a Stock Exchange in Pakistan
COLLECTION OF TAX ON PASSENGER TRANSPORT VEHICLES
| Serial No | Capacity | Rate per seat per annum |
| 01 | Four or more persons but less than ten persons. | Rs.50 |
| 02 | Ten or more persons but less than twenty persons. | Rs.100 |
| 03 | Twenty persons or more. | Rs.300 |
Table: Collection of Tax on Passenger Transport Vehicles
COLLECTION OF TAX ON TELEPHONE USERS
| Serial No | Description | Rate of Tax |
| 01 | In the case of a phone subscriber (other than cell phone subscriber) where the amount of monthly bill exceeds Rs.1,000 | 10% of the exceeding amount of bill |
| 02 | In the case of subscriber of internet, mobile telephones and pre-paid internet or telephone card | 12.5% of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form. |
Table: Collection of Tax on Telephone Users
TAX ON CASH WITHDRAWAL FROM A BANK
| Serial No | Description | Rate of Tax |
| 01 | Cash amount withdrawn, for the person whose name is not appearing in the active taxpayer’s list. | 0.6% of the amount withdrawn |
Table: Tax on Cash Withdrawal from a Bank
ADVANCE TAX ON TRANSACTIONS IN BANK [TRANSFEROR]
| Serial No | Description | Rate of Tax |
| 01 | The rate of tax to be deducted under Sec. 231AA for the person whose name is not appearing in the active taxpayers’ list. | 0.6% of the transaction |
Table: Advance Tax on Transactions in Bank
ADVANCE TAX ON BANKING TRANSACTIONS OTHERWISE THAN THROUGH CASH [RECEIVER]
| Serial No | Description | Rate of Tax |
| 01 | Banking Transaction (other than cash) at the time of sale of instrument, including demand draft, pay order, special deposit receipt, transfer of any sum through cheque, online transfer, ATM transfers or any other mode of electronic or paper based transfers. | 0.4% of the transaction amount |
Table: Advance Tax on Banking Transactions Otherwise Than Through Cash
TAX ON CABLE TELEVISION OPERATOR
| License Category as provided in PEMRA Rules | Tax on License Fee | Tax on Renewal |
| H | Rs.7,500 | Rs.10,000 |
| H-1 | Rs.10,000 | Rs.15,000 |
| H-2 | Rs.25,000 | Rs.30,000 |
| R | Rs.5,000 | Rs.12,000 |
| B | Rs.5,000 | Rs.40,000 |
| B-1 | Rs.30,000 | Rs.35,000 |
| B-2 | Rs.40,000 | Rs.45,000 |
| B-3 | Rs.50,000 | Rs.75,000 |
| B-4 | Rs.75,000 | Rs.100,000 |
| B-5 | Rs.87,500 | Rs.150,000 |
| B-6 | Rs.175,000 | Rs.200,000 |
| B-7 | Rs.262,500 | Rs.300,000 |
| B-8 | Rs.437,500 | Rs.500,000 |
| B-9 | Rs.700,000 | Rs.800,000 |
| B-10 | Rs.875,500 | Rs.900,000 |
Table: Tax on Cable Television Operator
ADVANCE TAX ON SALE TO DISTRIBUTORS, DEALERS OR WHOLESALERS
| Serial No | Category of Sales | Rate of Tax |
| 01 | Fertilizers | 0.7% |
| 02 | Other than Fertilizers | 0.1% |
Table: Advance Tax on Sale to Distributors, Dealers or Wholesalers
ADVANCE TAX ON DEALERS, COMMISSION AGENTS AND ARHATIS, ETC.
| Serial No | Group | Amount of Tax |
| 01 | Group or Class A | Rs.100,000 |
| 02 | Group or Class B | Rs.7,5000 |
| 03 | Group or Class C | Rs.5,0000 |
| 04 | Any Other Category | Rs.5,0000 |
Table: Advance Tax on Dealers, Commission Agents and Arhatis, etc.
ADVANCE TAX ON PURCHASE OF IMMOVABLE PROPERTY
| Serial No | Period | Rate of Tax |
| 01 | Where the value of immovable property is up to 4 million | 0% |
| 02 | Where the value of immovable property is more than 4 million | 2% |
Table: Advance Tax on Purchase of Immovable Property | The rate of tax to be collected under Sec. 236K shall be 1% of the fair market value.
ADVANCE TAX ON SALE OR TRANSFER OF IMMOVABLE PROPERTY
| Serial No | Description | Rate of Tax |
| 01 | The rate of tax to be collected under Sec 236K shall be in accordance with the fair market value. | 1% |
Table: Advance Tax on Sale or Transfer of Immovable Property
ADVANCE TAX ON INTERNATIONAL AIR TICKET
| Serial No | Type of Ticket | Rate of Tax |
| 01 | First / Executive Class | Rs.16,000 per person |
| 02 | Others excluding Economy | Rs.12,000 per person |
| 03 | Economy | 0 |
Table: Advance Tax on International Air Ticket
ADVANCE TAX ON FUNCTIONS AND GATHERINGS
| Serial No | Locations | Rate of Tax |
| 01 | For Islamabad, Lahore, Multan, Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Sheikhupura, Dear Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbotabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dear Murad Jamali and Turbat. | 5% of the bill ad valorem or Rs.20,000 per function, whichever is higher |
| 02 | For cities other than those mentioned above. | 5% of the bill ad valorem or Rs.10,000 per function, whichever is higher |
Table: Advance Tax on Functions and Gatherings
ADVANCE TAX ON INSURANCE PREMIUM
| Serial No | Type of Premium | Rate of Tax |
| 01 | General insurance premium | 4% |
| 02 | Life insurance premium if exceeding Rs. 0.3 million in aggregate per annum | 1% |
| 03 | Others | 0% |
Table: Advance Tax on Insurance Premium
ADVANCE TAX ON EXTRACTION OF MINERALS
| Serial No | Description | Rate of Tax |
| 01 | The rate of tax to be collected under Sec 236V as per value of the minerals. | 5% |
Table: Advance Tax on Extraction of Minerals