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    Taxation Structure in Pakistan

    Uploaded by

    Ikra Malik
    Direct taxes include income tax on salaries, interest, property income, and business income. Indirect taxes include sales tax, customs duty, and federal excise duty. Personal income tax rates range from 10-35% while corporate tax rate is 39%. A unilateral relief allows taxpayers to receive proportionate tax relief in Pakistan for income taxes paid abroad. Customs duty is paid on imports, while central excise duty is levied on certain domestic goods and services. Sales tax of 15% applies to imports, supplies by registered persons, and various stages of economic activity, with input tax adjustment allowing deduction of prior taxes paid.

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    Taxation Structure in Pakistan

    Uploaded by

    Ikra Malik
    94 views8 pages
    Direct taxes include income tax on salaries, interest, property income, and business income. Indirect taxes include sales tax, customs duty, and federal excise duty. Personal income tax rates range from 10-35% while corporate tax rate is 39%. A unilateral relief allows taxpayers to receive proportionate tax relief in Pakistan for income taxes paid abroad. Customs duty is paid on imports, while central excise duty is levied on certain domestic goods and services. Sales tax of 15% applies to imports, supplies by registered persons, and various stages of economic activity, with input tax adjustment allowing deduction of prior taxes paid.

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    Direct taxes include income tax on salaries, interest, property income, and business income. Indirect taxes include sales tax, customs duty, and federal excise duty. Personal income tax rates range from 10-35% while corporate tax rate is 39%. A unilateral relief allows taxpayers to receive proportionate tax relief in Pakistan for income taxes paid abroad. Customs duty is paid on imports, while central excise duty is levied on certain domestic goods and services. Sales tax of 15% applies to imports, supplies by registered persons, and various stages of economic activity, with input tax adjustment allowing deduction of prior taxes paid.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    94 views8 pages

    Taxation Structure in Pakistan

    Uploaded by

    Ikra Malik
    Direct taxes include income tax on salaries, interest, property income, and business income. Indirect taxes include sales tax, customs duty, and federal excise duty. Personal income tax rates range from 10-35% while corporate tax rate is 39%. A unilateral relief allows taxpayers to receive proportionate tax relief in Pakistan for income taxes paid abroad. Customs duty is paid on imports, while central excise duty is levied on certain domestic goods and services. Sales tax of 15% applies to imports, supplies by registered persons, and various stages of economic activity, with input tax adjustment allowing deduction of prior taxes paid.

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    © All Rights Reserved
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    of 8

    Pakistan - Tax Structure

    Taxation System
    classified into two broad categories, viz.,
    direct
    and indirect taxes.
    Direct Taxes
    Direct taxes primarily comprise income tax, alongwith supplementary
    role of wealth tax. For the purpose of the charge of tax and the
    computation of total income, all income is classified under the
    following heads:
    1. Salaries
    2. Interest on securities;
    3. Income from property;
    4. Income from business or professions
    5. Capital gains; and
    6. Income from other sources.

    Personal Tax
    All individuals, unregistered firms, associations of persons, etc., are
    liable to tax, at the rates randing from 10 to 35 per cent.

    Tax on Companies All public companies (other than banking


    companies) incorporated in Pakistan are assessed for tax at corporate
    rate of 39%. However, the effective rate is likely to differ on account of
    allowances and exemptions related to industry, location, exports, etc.

    Inter-Corporate Dividend Tax search


    Unilateral Relief
    A person resident in Pakistan is entitled to a relief in tax on any income
    earned abroad, if such income has already been subjected to tax outside
    Pakistan. Proportionate relief is allowed on such income at an average
    rate of tax in Pakistan or abroad, whichever is lower.
    What is Customs Duty, and Why Does it Matter?
    Customs duty is a type of duty that is paid to the Government when any
    good or service is imported from outside the country. In Pakistan, this is
    usually paid at the time of Customs Clearance.

    Central Excise
    Central Excise duties are leviable on a limited number of goods
    produced or manufactured, and services provided or rendered in
    Pakistan. On most of the items Central Excise duty is charged on the
    basis of value or retail price. Some items are, however, chargeable to
    duty on the basis of weight or quantity.
    All exports are exempted from Central Excise Duty.
    Sales Tax
    https://fbr.gov.pk/sales-tax-basics/51148/101149

     Sales Tax is levied at various stages of economic activity at the rate


    of 15 per cent on:
     All goods imported into Pakistan, payable by the importers;
     All supplies made in Pakistan by a registered person in the course of
    furtherance of any business carried on by him;
     There is an in-built system of input tax adjustment and a registered
    person can make adjustment of tax paid at earlier stages against the tax
    payable by him on his supplies. Thus the tax paid at any stage does not
    exceed 15% of the total sales price of the supplies;

    Problems and Hurdles with tax advisors and authorities search


    Capital gains tax
    Income tax
    Sales tax
    Value added tax
    Direct and indirect taxes are classified into two broad categories.
    Direct taxes include salaries, interest on securities, income from
    property, and income from the business whereas indirect taxes
    include sales taxes custom duty federal excise duty. Unfortunately,
    only 5 per cent of people in Pakistan pay taxes directly
    Every person registered under the Sales Tax Act,1990, or the
    Federal Excise Act, 2005, is required to file a Sales Tax Return.
    A Sales Tax return is the taxpayer’s document of declaration
    through which taxpayer not only furnishes the details of
    transactions during a tax period but also deposits his Sales Tax
    liability.

    Where a Sales Tax Return is not filed within a period of six


    months after the due date, the same shall be filed only after
    approval of the Commissioner Inland Revenue having the
    appropriate jurisdiction.
    https://fbr.gov.pk/categ/file-sales-tax-return/51148/50849/101159
    https://fbr.gov.pk/sales-tax-basics/51148/101149

    https://www.fbr.gov.pk/categ/register-income-
    tax/51147/30846/71149
    income tax
    for sales tax
    GST  Goods and Sevice Tax, 

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