Tax Rates in Pakistan

Tax Rates in Pakistan, normally change in annual financial budget, which normally announces in the month of June every year. Some times, tax rates amend during the financial year through special procedure / SRO.

Tax rates in Pakistan for the year 2016 is as under:-

 

Tax rates for Business Individual  / AOP / Firm (2016):-

Sr. Amount in Pak Rupees Percentage of Tax
1 Up to 400,000 0%
2 400,001 to 500,000 7%
3 500,001 to 750,000 7,000 + 10%
4 750,001 to 1,500,000 32,000 + 15%
5 1,500,001 to 2,500,000 144500 + 20%
6 2,500,001 to 4,000,000 344,500 + 25%
7 4,000,001 to  6,000,000 719,500 + 30%
8 Exceeding 6,000,000 1,319,500 + 35%

Tax rates for Salaried Persons (2016)

Sr. Amount in Pak Rupees Percentage of Tax
1 Up to 400,000 0%
2 400,001 to 500,000 2%
3 500,001 to 750,000 2,000 + 5%
4 750,001 to 1,400,000 14,500 + 10%
5 1,400,001 to 1,500,000 79,500 + 12.5%
6 1,500,001 to 1,800,000 92,000 + 15%
7 1,800,001 to  2,500,000 137,000 + 17.5%
8 2,500,001 to  3,000,000 259,500 + 20%
9 3,000,001 to  3,500,000 359,500 + 22.5%
10 3,500,001 to  4,000,000 472,000 + 25%
11 4,000,001 to  7,000,000 597,000 + 27.5%
12 Exceeding 7,000,000 1,422,000 + 30%

Tax rates for Companies (2016)

Sr. Amount in Pak Rupees Percentage of Tax
1 Banking Companies 35%
2 Public Limited / Private Limited companies 32%
3 Small Company 25%

Tax on Rental Income / Income tax on property rented out (2016)

Sr. Amount in Pak Rupees Percentage of Tax
1 Less Than 150,000 0%
2 150,000 to 1,000,000 10%
3 Exceeding 1,000,000 85,000 + 15%

Capital Gain Tax on Disposal of Immovable Property (2016)

Sr. Amount in Pak Rupees Percentage of Tax
1 Holding Period More than 2 years 0%
2 Holding period more than 1 year but less than 2 years 5%
3 Holding period Less than 1 year 10%

Capital Gain Tax on Disposal Securities  / Stock Market Shares (2016)

Sr. Amount in Pak Rupees Percentage of Tax
1 Holding Period More than 4 years 0%
2 Holding period more than 2 years but less than 4 years 7.5%
3 Holding period more than 1 years but less than 2 years 12.5%
3 Holding period Less than 1 year 15 %

Final Discharge of Tax (2016)

Nature of Payment Section Tax filer Non-tax filer
Imports of Remeltable Steel, fertilizer, Urea & Manufacturing under SRO 1125 148 1% 1.5%
Imports of Pulses 148 2% 3%
Imports Commercials under SRO 1125 148 3% 4.5%
Imports of ships by ship breakers 148 4.5% 6.5%
Imports (Companies / Indst. undertakings 148 5.5% 8%
Imports by all others 148 6% 9%
Dividends 150 7.5% to 25% 7.5% to 25%
Profit on debts (companies) 151 10% 10%
Profit on debts (other than companies) 151 10% 17.5%
Royalty or Fee for Technical services by non-residents 152(1) 15% 15%
Contracts by non-residents 152(1A) 6% 6%
Sale of goods by companies 153 (1) (a) 4% 6%
Sale of goods by all others 153 (1) (a) 4.5% 6.5%
Sale of Rice, Cotton Seeds, Edible Oils 153 (1) (a) 1.5% 1.5%
Supplies made to 5 Sectors (Textile, carpet, leather,  footwear, surgical & sports) 153 (1) (a) 1% 1%
Contracts (except listed companies) 153 (1) (c) 7% 10%
Contracts (other than companies) 153 (1) (c) 7.5% 10%
Services of stitching, dyeing, printing, embroidery, washing, sizing & weaving render to exporter or export house 153 (2) 1% 1%
Exports 154 1% 1%
Indenting Commission 154 (2) 5% 5%
Prize on Prize bonds, 156 15% 15%
Winnings on referral / lottery 156 20% 20%
Commission on Petroleum products 156A 12% 15%
Brokerage or Commission 233 (1) 12% 15%
Adverting Agents Commission 233 (1) 10% 15%
CNG Stations on Gas Bill 234A 4% 4%

Tax on services (2016)

Services (Companies) 153(1)(b) 8% 12%
Services (all others) 153(1)(b) 10% 15%
Transport Services 2% 2%

 

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