Get Pk Brochure Ir-it-04 2013-2026

The income tax rate in Pakistan ranges from 5% to 35% depending on the individual's or company's income bracket. The income tax is calculated on the basis of the taxable income, which is the income earned after deducting expenses and exemptions.

Foreign remittances exceeding Rs 5 million do not attract any addition to income chargeable to tax.

The applicable WHT rate on such payments ranges from 5% to 20%, subject to any relief available under the DTT. The tax withheld is deemed to be the final tax liability of the non- resident.

The Federal Government of Pakistan (the Pakistani Government) has increased the general Sales Tax rate to 18% effective 14 February 2023. A 25% higher rate of Sales Tax applies to a wide range of goods imported and supplied in Pakistan and for some locally manufactured vehicles effective 8 March 2023.

RelatedLastReferencePersonal Income Tax Rate35.00Dec 2023Corporate Tax Rate29.00Dec 2023Sales Tax Rate17.00Dec 2023

4.5% of the import value as increased by Custom-duty, sales tax and federal excise duty Collector of Customs Importer of goods At the same time and manner as the custom duty is payable in respect of the goods imported In case of Federal / provincial Government on the day the tax is deducted.

Adjustable advance tax on cash withdrawals by non-filers has been reintroduced through FA 2023 at the rate of 0.6% where the sum of the payments for cash withdrawal in a day exceeds Rs 50,000.

Salary Slabs For Income Tax July 2022 Updated Taxable IncomeRate of TaxSalary Under Rs. 50,000 Per MonthNo TaxMore than Rs. 50,000 but fewer than Rs. 100,000 per month2.5% of amount after 50,000 RsHigher than PKR 100,000 but under 200,000 per monthPKR 15,000 + 12.5% of the amount exceeding Rs. 1,200,0004 more rows

The minister said the rate of tax to be deducted is 0.3 percent of the cash amount withdrawn for filers and 0.6 percent of the cash amount withdrawn for non-filers.