How corporate tax works in Pakistan
Pakistan taxes resident companies on worldwide income at 29% of net profit. Banking companies pay 39%, and small firms with limited capital and turnover pay 20%.
Minimum turnover tax of 1.25% applies where profits are nil or lost. Super tax tiers from 1% past PKR 150 million to 10% past PKR 500 million sit on top of corporate tax.
Mid-band super rates were trimmed half a point in 2025 while the 10% summit stayed. About 65 treaties cushion cross-border payments.
Tax rates at a glance
- Standard rate
- 29%Flat
- Banking rate
- 39%
- Small rate
- 20%
- Minimum turnover
- 1.25%
- Super summit
- 10%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- Super tax applies on total income, not just the excess. Crossing PKR 500 million jumps the whole base to 10% extra.
- Small-company 20% needs capital plus turnover tests. Paid-up capital with reserves above PKR 50 million forfeits the lane.
- Minimum turnover tax hits loss years. Early-stage companies budget 1.25% of sales regardless of profit.
- Banking, energy and fertilizer face 10% super from lower lines. Sectoral floors remove the relief mid-bands give others.
Frequently asked questions
Does Pakistan have corporate tax?
Yes, 29% standard and 39% for banks, with 20% for small firms, 1.25% minimum turnover tax and tiered super tax.
What is super tax in Pakistan?
An extra 1% to 10% on total company income by size, from PKR 150 million to past PKR 500 million, on top of corporate tax.
What do small companies pay in Pakistan?
20% with paid-up capital plus reserves to PKR 50 million and turnover to PKR 250 million.