Whether you’re taxed on your worldwide income or only on your Pakistan-source income comes down to one test under the Income Tax Ordinance: how many days you spent physically present in Pakistan during the tax year. Overseas Pakistanis often assume their NICOP or overseas status automatically makes them a “non-resident” for tax purposes — it … Read more
FBR’s IRIS portal shows two different return forms for individuals — a salary return and a normal return — and picking the wrong one is one of the most common filing mistakes salaried taxpayers make. The choice isn’t optional or a matter of preference; it depends entirely on the composition of your income for the … Read more
Starting a business in Pakistan involves more decisions than most first-time entrepreneurs expect — structure, registration, tax setup, and compliance all interact. Here’s the real sequence. Step 1: Choose Your Business Structure Sole proprietorship, partnership, or company — each carries different liability exposure, tax treatment, and credibility with banks/investors. See our business structures comparison for … Read more
Salary tax is the one every salaried Pakistani deals with directly — yet the withholding mechanics behind your monthly payslip deduction are rarely explained clearly. How Salary Tax Actually Works Under Section 149 of the Income Tax Ordinance, your employer is required to withhold income tax from your salary every month, based on your annual … Read more
Bringing goods into Pakistan without paying customs duty is possible in specific, defined situations — travelers’ baggage allowances, diplomatic imports, and specific trade/industry exemptions. Here’s what actually qualifies. Traveler’s Baggage Allowance Passengers arriving in Pakistan can bring personal effects and a limited quantity of gifts/goods duty-free under the Baggage Rules, with specific limits on items … Read more
How to Use This Calculator Enter your annual taxable income to see an estimate of your income tax liability based on the current Section 149 salaried slabs notified by FBR. This is a quick estimate tool — for a precise figure, your actual liability depends on deductions, credits (like Zakat or approved donations), and whether … Read more
If you run a private limited company in Pakistan, your corporate tax bill isn’t a flat percentage of profit — it depends on what kind of company you are and whether the 17% Alternate Corporate Tax under Section 113C applies to you instead. Small companies registered with SECP get a preferential 20% rate; banking companies … Read more
Selling property in Pakistan? Capital Gains Tax on immovable property, as defined by the Federal Board of Revenue, is charged on a sliding scale based purely on how long you held it — the longer you wait, the less tax you pay, and after 6 years it drops to zero entirely. Open plots, constructed houses, … Read more
If you sold listed shares or other securities in Pakistan this year, the tax on your gain isn’t a flat rate — it’s set entirely by how long you held the security under Section 37A of the Income Tax Ordinance. Hold for over six years and the gain is tax-free; sell within a year and … Read more
Advance tax confuses people because it’s collected before you even file a return — here’s what it actually is and how it reconciles against your final liability. What Advance Tax Actually Is Advance tax is income tax collected in installments during the tax year, before your annual return is filed — rather than waiting for … Read more
