Tax system in Pakistan
Pakistan taxes residents on worldwide income through July-to-June tax years. Salaried bands run 0% to 35% past PKR 4.1 million with a 9% surcharge above PKR 10 million.
Companies pay 29% standard or 39% for banks, small firms 20%, minimum turnover tax 1.25%, and tiered super tax to 10% at the very top. New property and securities gains pay a flat 15% for filers.
Dividends face 15% withholding generally, deemed rental of 5% on large property values still applies for 2026, estates face no federal duty, and federal sales tax is 18% on goods.
Tax rates at a glance
- Income tax
- 0% - 35%Salaried
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 15% flat
- Corporate tax
- 29%
- Dividend tax
- 15%
- Sales tax
- 18%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFoundersCross-border groups
Watch out for
- Pakistan is not low-tax for high salaries. The 35% top plus 9% surcharge makes large pay firmly taxed.
- Filer status decides rates everywhere. Non-filers face doubled withholding and slab-minimum gains — staying on the active list is the cheapest planning.
- Old holding tables are dead for new assets. Property and securities bought after July 2024 pay flat 15% regardless of holding length.
- Deemed rental still applies for 2026. Large property values face 5% deemed income taxed at 20% until the July 2026 abolition beds in.
Frequently asked questions
Is Pakistan a high-tax country?
For top salaries and banks, yes: 35% plus surcharge and 39% banking rate. But small firms, new assets and exports face gentler lanes.
Does Pakistan have a wealth tax?
No. The 1963 wealth tax was abolished in 2003, though deemed rental on large property applies through mid-2026.
Which taxes matter most in Pakistan?
The main ones are salaried bands with surcharge, 29% corporate tax plus super tax, flat 15% new-asset gains, 15% dividends and 18% sales tax.