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Income Tax

Individual and corporate income tax in Pakistan.

Progressive tax rates for individuals from 0% to 35%. Corporate tax rate is 29% for most companies. Tax year runs July 1 to June 30.

Calculators

Guides

Frequently Asked Questions

What is the tax-free limit for salary in Pakistan?

The tax-free limit for salaried individuals in Pakistan is PKR 600,000 per year for the 2024/25 tax year.

What are the FBR tax slabs for salaried individuals?

FBR tax slabs range from 0% to 35% on annual taxable income. The exact slab depends on your total income after deductions.

How is monthly salary tax calculated in Pakistan?

Monthly tax is calculated by dividing annual taxable income by 12 and applying the applicable FBR tax slab. Employers deduct tax at source under Section 159.

Are medical and house rent allowances taxable?

Medical allowance and house rent allowance are generally taxable as part of salary income, though certain exemptions may apply.

What is the penalty for non-filing tax in Pakistan?

FBR may impose penalties up to PKR 100,000 or more for non-filing. Non-filers also face higher withholding tax rates on banking, property, and vehicle transactions.

Who qualifies as a Salaried Individual for FBR?

Any person receiving income from employment, pension, or annuity qualifies as a salaried individual for FBR purposes.

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