Tax Rates on Sole proprietorships in Pakistan
NTN is issued in name of the sole proprietor / owner.
Taxed for the profits only. Progressive tax based on the amount of profits. Slabs can be seen in the tax card below. Filing of annual income tax returns is mandatory. Tax returns for July 1 of the preceding year to June 30 of the current year have to be submitted by 30th September of every year.
Tax Rates on AOP / Partnerships in Pakistan
NTN is issued in the name of Partnership (in case of Registered Partnership with Registrar of Firms)
Taxed for the profits only. Progressive tax based on the amount of profits. Slabs can be seen in the tax card below. Filing of annual income tax returns is mandatory on Partnership / AOP. In a registered partnership, NTN is issued in name of the partnership and the individual partners are not taxed separately. However, in an unregistered partnership, each partner has to file his/her own personal tax returns. Tax returns for July 1 to June 30 have to be submitted by 30th September of every year.
Tax Rates on Limited Liability Partnerships (LLP) in Pakistan
NTN is issued in name of the LLP.
Taxed for the profits only. Progressive tax based on the amount of profits. Slabs can be seen in the tax card below. Filing of annual income tax returns is mandatory and individual partners are not taxed separately. Tax returns for July 1 of the preceding year to June 30 of the current year have to be submitted by 30th September of every year.
Tax Rates on Private Limited Companies in Pakistan
NTN is issued in name of the Company.
Filing of annual income tax returns is mandatory and directors and shareholders are taxed separately. Tax returns for July 1 of the preceding year to June 30 of the current year have to be submitted by December of every year.
Taxed for the profits at the following rates:
a) Small Company 24% (will decrease by 1% every year to 20% by the year 2023).
b) Other than small company 29% (will decrease by 1% every year to 25% by the year 2023).
c) Minimum Turnover Tax of 1.25% .
Tax Rates on Foreign Company Branch / Liaison Offices in Pakistan
NTN is issued in name of the Company.
Filing of annual income tax returns is mandatory and directors and shareholders are taxed separately. Tax returns for July 1 of the preceding year to June 30 of the current year have to be submitted by December of every year.
Taxed for the profits at the following rates:
a) 35% for Branch Office.
b) No Tax for Liaison Office as commercial activity not allowed.
FBR TAX CARD for 2019 as passed in 'mini-budget' by PTI Government on 18 September 2018
For individuals whose annual "salary income" exceeds 50% of total taxable income:
Annual Salary up to Rs400,000: (0%)
Rs400,001 to Rs800,000: (Rs1,000)
Rs800,001 to Rs1,200,000: (Rs2000)
Rs1,200,001 to Rs 2,500,000: (5% of the amount exceeding Rs1,200,000)
Rs2,500,001 to Rs4,000,000: (Rs65,000 + 15% of the amount exceeding Rs2,500,000)
Rs4,000,001 to Rs8,000,000: (Rs290,000 + 20% of the amount exceeding 4,000,000)
Rs8,000,000+ : (Rs1,090,000 + 25% of the amount exceeding Rs8,000,000)
For all others:
Annual Salary up to Rs400,000 - (0%)
Rs400,001 to Rs800,000: (Rs1,000)
Rs800,001 to Rs1,200,000: (Rs2000)
Rs1,200,001 to Rs 2,400,000: (5% of the amount exceeding Rs1,200,000)
Rs2,400,001 to Rs3,000,000: (Rs60,000 + 15% of the amount exceeding Rs2,400,000)
Rs3,000,001 to Rs4,000,000: (Rs150,000 + 20% of the amount exceeding Rs3,000,000)
Rs4,000,001 to Rs5,000,000: (Rs350,000 + 25% of the amount exceeding Rs400,000)
Rs5,000,000+ : (Rs600,000 + 29% of the amount exceeding Rs5,000,000)
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