🇵🇰 Pakistan Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 45.0% effective 49.5%

Corporate tax 29.0%

Sales Tax 18.0% standard rate

Tax residency 183 days 66 tax treaties

Pakistan tax profile

Data year: 2027

Tax system: Worldwide Worldwide income taxation for residents. Non-residents are taxed on Pakistan-source income, including amounts received or deemed received in Pakistan.
Top PIT rate: 45.0% (eff. 49.5%)
Corporate tax rate: 29.0%
Sales Tax: 18.0%
Capital gains tax: 15.0% Listed securities acquired on or after 1 July 2024: 15% for active taxpayers (minimum 15% for non-filers). Older holdings follow holding-period slabs (for example 15% under one year, 12.5% for one to two years, tapering to 0% after six years for securities bought 1 July 2022–30 June 2024). Immovable property acquired on or after 1 July 2024 is generally taxed at 15% for active taxpayers; pre-2024 acquisitions use holding-period slabs by property type. Other movable assets are taxed at normal income slabs.
Social security (employee): 1.0%
Social security (employer): 5.0%
Dividend withholding: 15.0%
Interest withholding: 20.0%
Royalty withholding: 15.0%
Treaty count: 66

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
PKR 0	and above	29.0%	$0 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
PKR 0	PKR 600,000	0.0%	$0 – $2,143
PKR 600,001	PKR 1,200,000	1.0%	$2,143 – $4,286
PKR 1,200,001	PKR 2,200,000	11.0%	$4,286 – $7,857
PKR 2,200,001	PKR 3,200,000	20.0%	$7,857 – $11,429
PKR 3,200,001	PKR 4,100,000	25.0%	$11,429 – $14,643
PKR 4,100,001	PKR 5,600,000	29.0%	$14,643 – $20,000
PKR 5,600,001	PKR 7,000,000	32.0%	$20,000 – $25,000
PKR 7,000,001	and above	35.0%	$25,000 +

Special regimes
Name	Type	Rate/amount	Duration	Status
Returning expatriate foreign income exemption Foreign-source income of Pakistani citizens returning after four years of non-re...	Exemption	No rate or amount recorded	2yr	Active

Days threshold: 183 days
Residency rules: Resident if present in Pakistan for 183 days or more in the tax year (1 July–30 June), if a federal or provincial government employee posted abroad, or if a Pakistani citizen who is not present in any other country for more than 182 days in the year and is not tax resident elsewhere.
Exit tax: No
CFC rules: Yes Attributable undistributed income of controlled foreign companies may be taxed at 15% when Pakistani residents hold more than 50% of capital or voting rights (or a single resident holds more than 40%), foreign tax is less than 60% of the Pakistan tax on that income, the company does not earn active business income, and shares are not listed on a recognised exchange. De minimis relief applies below 10% holdings or PKR 10 million CFC income; no further tax on later distribution.

Finance Act 2026 (Income Tax Ordinance amendments) (accessed Oct 9, 2026) Effective 1 July 2026; removal of 9% income-tax surcharge above PKR 10 million; other ITO amendments
FBR Circular No. 02 of 2026-27 (Income Tax) (accessed Oct 9, 2026) Explanatory circular on Finance Act 2026 income tax changes
PwC Worldwide Tax Summaries — Pakistan (accessed Oct 9, 2026) PIT slabs, CIT, super tax, sales tax, WHT, capital gains, residency, CFC, filing

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%