The standard corporate tax rate is 29%.
Other rates apply as follows:
- For banking companies, the standard corporate tax rate is 39% (increased from 35% effective 1 July 2022). Tax is levied at increased rates ranging from 39% to 55% on the taxable income of banks attributable to investment in Federal Government securities; and
- For small companies meeting certain conditions, the tax rate is 20% (reduced from 21% effective 1 July 2022).
In addition, a super tax applies at the following progressive rates:
Income | Tax Rate |
Income not exceeding PKR 150 million | 0% |
Income exceeding PKR 150 million up to 200 million | 1% |
Income exceeding PKR 200 million up to 250 million | 2% |
Income exceeding PKR 250 million up to 300 million | 3% |
Income exceeding PKR 300 million up to 350 million | 4% |
Income exceeding PKR 350 million up to 400 million | 6% |
Income exceeding PKR 400 million up to 500 million | 8% |
Income exceeding PKR 500 million | 10% |
For the tax year 2023, the super tax applies at a higher rate of 10% for banking companies where income exceeds PKR 300 million.
A minimum tax is payable at 1.25% of turnover. An alternate corporate tax (ACT) also applies, where the minimum tax liability of the company is determined as the higher of 17% on accounting income or the corporate tax liability including the minimum tax on turnover.
