Taxes in Pakistan

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Below are the different types of taxes in Pakistan.

  • Personal TaxA fee imposed by a government on personal or corporate incom... More: All individuals, unregistered firms, associations of persons, etc., are liable to taxA fee imposed by a government on personal or corporate incom... More, at the rates randing from 10 to 35 per cent.
  • Business TaxA fee imposed by a government on personal or corporate incom... More: TaxA fee imposed by a government on personal or corporate incom... More on the dividends received by a public companyA company whose shares are traded on the Stock Market. from a Pakistan company is payable at the rate of 5% and at the rate of 15% in case dividends are received by a foreign company. Inter-corporate dividends declared or distributed by power generation companies is subject to reduced rate of taxA fee imposed by a government on personal or corporate incom... More i.e, 7.5%. Other companies are taxed at the rate of 20%. Dividends paid to all non-company shareholders by the companies are subject to with holding taxA fee imposed by a government on personal or corporate incom... More of 10% which is treated as a full and final discharge of taxA fee imposed by a government on personal or corporate incom... More liability in respect of this source of income.
  • Inter-Corporate Dividend TaxA fee imposed by a government on personal or corporate incom... More: TaxA fee imposed by a government on personal or corporate incom... More on the dividends received by a public companyA company whose shares are traded on the Stock Market. from a Pakistan company is payable at the rate of 5% and at the rate of 15% in case dividends are received by a foreign company. Inetr-corporate dividends declared or distributed by power generation companies is subject to reduced rate of taxA fee imposed by a government on personal or corporate incom... More i.e., 7.5%. Other companies are taxed at the rate of 20%.
  • Treatment of Dividend Income: Dividend income received as below enjoys taxA fee imposed by a government on personal or corporate incom... More exemption, provided it does not exceed Rs. 10,000:
    • dividend received by non-resident from the state enterprises Mutual Fund set by the InvestmentMoney or capital that is invested in a business or in an acc... More CorporationA large company or a group of companies which is legally aut... More of Pakistan;
    • dividends received from a domestic company out of income earned abroad provided it is engaged abroad exclusively in rendering technical services in accordance with an agreement approved by the Central Board of Revenue.
  • Unilateral Relief: A person resident in Pakistan is entitled to a relief in taxA fee imposed by a government on personal or corporate incom... More on any income earned abroad, if such income has already been subjected to taxA fee imposed by a government on personal or corporate incom... More outside Pakistan. Proportionate relief is allowed on such income at an average rate of taxA fee imposed by a government on personal or corporate incom... More in Pakistan or abroad, whichever is lower.
  • Customs: Goods imported and exported from Pakistan are liable to rates of Customs duties as prescribed in Pakistan Customs TariffA government tax on imported and exported goods.. Customs duties in the form of import duties and export duties constitute about 37% of the total taxA fee imposed by a government on personal or corporate incom... More receipts. The rate structure of customs dutyA tax which must be paid on imported, and sometimes exported... More is determined by a large number of socio-economic factors.
  • Excise: Excise duties are leviable on a limited number of goods produced or manufactured, and services provided or rendered in Pakistan. On most of the items Central Excise duty is charged on the basis of value or retail priceThe amount of money required to purchase something or to bri... More. Some items are, however, chargeable to duty on the basis of weight or quantity.
  • Sales TaxKnown as VAT (Value Added Tax) in the UK. A tax based on the... More: Sales TaxKnown as VAT (Value Added Tax) in the UK. A tax based on the... More is levied at various stages of economic activity at the rate of 15% on:
    • all goods imported into Pakistan, payable by the importers;
    • all supplies made in Pakistan by a registered person in the course of furtherance of any business carried on by him;