How dividend tax works in Pakistan
Pakistani dividends face final withholding at source on filer versus non-filer scales. General payouts cost 15% for filers and 30% off-list, independent power producers 7.5% and 15%.
Mutual funds split by income mix: debt-heavy funds face 25% and 50%, equity portions 15% and 30%. Special vehicles to REIT schemes pay zero.
About 65 treaties trim inter-corporate dividends typically to 10% or 15% with active-list status and treaty documentation.
Tax rates at a glance
- General filer
- 15%Final
- General non-filer
- 30%
- IPP filer
- 7.50%
- Fund debt slice
- 25% / 50%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHolding companiesFamily officesHigh earnersCross-border shareholders
Watch out for
- Filer status doubles the bill. The 15% versus 30% gap makes active-list membership the highest-value dividend decision.
- Fund splits follow debt mix, not labels. A fund's profit-on-debt share decides 25% versus 15% treatment each year.
- Treaty trims need active status plus documents. Off-list holders cannot claim agreement rates.
- Special-vehicle rates swing wildly. REIT-scheme distributions pay zero while other SPV payouts reach 35% or 70%.
Frequently asked questions
Does Pakistan tax dividends?
Yes, at final withholding from 7.5% for power producers to 15% general for filers, doubling off-list, with fund splits by mix.
What withholding applies to dividends leaving Pakistan?
Domestic 15% for filers, trimmed by about 65 treaties typically to 10% or 15% with documentation.
Are fund dividends different?
Yes. Debt-heavy funds face 25% and 50% while equity portions pay 15% and 30% by filer status.