TAX RATES | TAX YEAR 2022-2023

WITHHOLDING TAX RATES ON IMPORTS

Sec. 148, Part II, 1st Schedule | Part I-III, Twelfth Schedule

The rate of advance tax to be collected by the Collector of Customs:

Table: Tax on Petroleum Products

TAX RATES FOR SALARIED INDIVIDUALS

Sec. 149, Division I, Part I, 1st Schedule

Where the income of an individual chargeable under the head "salary" exceeds seventy-five percent of his taxable income, the following rates of tax will apply, which are unchanged from the previous tax year:

Table: Withholding Tax Rates on Imports

WITHHOLDING TAX ON IMPORT OF MOBILE PHONES

Sec. 148

Table: Tax Rates for Salaried Individuals

TAX RATES FOR INDIVIDUALS & ASSOCIATION OF PERSONS

Division I, Part I, 1st Schedule

No change in the tax rates for individuals and association of persons has been made. the tax rates applicable for the Tax Year 2022 are set out in the following table:

Table: Tax Rates for Individuals & Association of Persons

TAX RATES FOR COMPANIES

Division II, Part I, 1st Schedule

Tax rates for a banking company, public & private company, small company, alternate corporate tax and modaraba are given in the following table:

Table: Tax Rates for Companies | Where the taxpayer is a small company , tax shall be payable at the rate of 20% for the Tax Year 2023 and onward.

SUPER TAX

Rate of Super Tax on high earning persons (Sec. 4C)

Table: Super Tax

DIVIDEND TAX

Sec. 150

Person paying a dividend shall deduct tax from the gross amount of the dividend paid or collect tax from the amount of dividend in specie.

Table: Dividend Tax

TAX ON PROFIT ON DEBT & RETURN ON INVESTMENT IN SUKUKS

Sec. 151, Division 1A & 1B, Part III, 1st Schedule

Table: Tax on Profit on Debt & Return on Investment in Sukuks

TAX ON NON-RESIDENTS

Sec 152, Division IV, Part I, 1st Schedule

Table: Tax on Non-Residents

TAX ON GOODS, SERVICES & CONTRACTS

Sec. 153, Division III A, Part III, 1st Schedule

Table: Tax on Profit on Debt & Return on Investment in Sukuks

TAX ON NON-RESIDENTS

Sec 152, Division IV, Part I, 1st Schedule

Table: Tax on Goods, Services & Contracts

TAX RATES ON EXPORTS & EXPORT OF SERVICES

Sec. 154 & 154A, Division IV, Part III, 1st Schedule

Table: Tax Rates on Exports & Export of Services

TAX ON RENT OF IMMOVABLE PROPERTY

Sec. 155, Division V, Part III, 1st Schedule

Table: Tax on Rent of Immovable Property | The rate of tax to be deducted u/Sec. 155, in case of company shall be 15% of the gross amount of rent.

TAX ON PRIZES & WINNINGS

Sec. 156, Division VI, Part III, 1st Schedule

Table: Tax on Prizes & Winnings

TAX ON PETROLEUM PRODUCTS

Sec. 156A, Division VIA, Part III, 1st Schedule

Table: Tax on Petroleum Products

ADVANCE TAX ON PURCHASE, REGISTRATION AND TRANSFER OF MOTOR VEHICLES

Sec. 231B & 234, Division VII, Part IV, 1st Schedule

Table: Tax on Telephone and Internet

ADVANCE TAX AT THE TIME OF SALE BY AUCTION

Sec. 236A, Division VIII, Part IV, 1st Schedule

Table: Advance Tax on Purchase, Registration & Transfer

TAX ON BROKERAGE AND COMMISSION

Sec. 233, Division II, Part IV, 1st Schedule

Table: Tax on Brokerage and Commission

TAX ON ELECTRICITY CONSUMPTION

Sec. 235, Division IV, Part IV, 1st Schedule

Table: Tax on Electricity Consumption

TAX ON TELEPHONE AND INTERNET

Sec. 236, Division IV, Part IV, 1st Schedule

Table: Advance Tax at the time of sale by auction

ADVANCE TAX ON SALE & PURCHASE OF IMMOVABLE PROPERTY

Sec. 236C & 236K, Division X & XVIII, Part IV, 1st Schedule

Table: Advance Tax on Sale & Purchase of Immovable Property

ADVANCE TAX ON DISTRIBUTORS, DEALERS OR WHOLESALERS

Sec. 236G, Division XIV, Part IV, 1st Schedule

Table: Advance Tax on Distributors, Dealers or Wholesalers

ADVANCE TAX ON SALE TO RETAILERS

Sec. 236H, Division XV, Part IV, 1st Schedule

Table: Advance Tax on Sale to Retailers

COLLECTION OF ADVANCE TAX BY EDUCATIONAL INSTITUTIONS

Sec. 236I, Division XVI, Part IV, 1st Schedule

Table: Collection of Advance Tax by Educational Institutions

PAYMENT TO A RESIDENT PERSON FOR RIGHT TO USE MACHINERY & EQUIPMENT

Sec. 236Q, Division XXIII, Part IV, 1st Schedule

Table: Tax for Profit on Debt | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers' List.

Profit on Debt exceeding Rs.36 million shall be subject to tax under normal law.

TAX ON SHIPPING OR AIR TRANSPORT INCOME OF A NON-RESIDENT PERSON

Table: Tax on Shipping or Air Transport Income

TAX ON RETURN ON INVESTMENT IN SUKUKS

Sec. 5AA, Division IB, Part III, 1st Schedule

Table: Payment to Resident Person in using Machinery & Equipment

TAX FOR PROFIT ON DEBT - OTHER THAN A COMPANY

Sec. 7B, Division III A, Part I, 1st Schedule

Table: Tax on Return on Investment | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers' List

TAX ON CERTAIN PAYMENTS TO NON-RESIDENTS

Table: Tax on Certain Payments to Non-Residents | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers' List

TAX ON INCOME FROM PROPERTY FOR INDIVIDUALS AND ASSOCIATION OF PERSONS

Sec. 15, Division V, Part I, 1st Schedule

Table: Tax on Income from Property

CAPITAL GAINS ON DISPOSAL OF SECURITIES

Sec. 37A, Division VII, Part I, 1st Schedule

Table: Capital Gains on Disposal of Securities | The rate of tax on cash settled derivatives traded on the stock exchange shall be 5% for the tax years 2018 to 2020.

A Mutual Fund or a Collective Investment Scheme or a REIT Scheme shall deduct Capital Gains Tax at the rates as specified below on Redemption of Securities, as specified below:

Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, then the rate of tax deduction shall be 12.5%. No capital gains tax shall be deducted, if the holding period of the security is more than 4 years.

CAPITAL GAINS ON DISPOSAL OF IMMOVABLE PROPERTY (CAPITAL ASSETS)

Sec. 37(1A), Division VIII, Part I, 1st Schedule

Table: Capital Gains on Disposal of Immovable Property

CAPITAL GAINS ON DISPOSAL OF IMMOVABLE PROPERTY

Sec. 37(3A)

TAX RATES | TAX YEAR 2022-2023

WITHHOLDING TAX RATES ON IMPORTS

Sec. 148, Part II, 1st Schedule | Part I-III, Twelfth Schedule

The rate of advance tax to be collected by the Collector of Customs:

Table: Tax on Petroleum Products

TAX RATES FOR SALARIED INDIVIDUALS

Sec. 149, Division I, Part I, 1st Schedule

Where the income of an individual chargeable under the head "salary" exceeds seventy-five percent of his taxable income, the following rates of tax will apply, which are unchanged from the previous tax year:

Table: Withholding Tax Rates on Imports

WITHHOLDING TAX ON IMPORT OF MOBILE PHONES

Sec. 148

Table: Tax Rates for Salaried Individuals

TAX RATES FOR INDIVIDUALS & ASSOCIATION OF PERSONS

Division I, Part I, 1st Schedule

No change in the tax rates for individuals and association of persons has been made. the tax rates applicable for the Tax Year 2022 are set out in the following table:

Table: Tax Rates for Individuals & Association of Persons

TAX RATES FOR COMPANIES

Division II, Part I, 1st Schedule

Tax rates for a banking company, public & private company, small company, alternate corporate tax and modaraba are given in the following table:

Table: Tax Rates for Companies | Where the taxpayer is a small company , tax shall be payable at the rate of 20% for the Tax Year 2023 and onward.

SUPER TAX

Rate of Super Tax on high earning persons (Sec. 4C)

Table: Super Tax

DIVIDEND TAX

Sec. 150

Person paying a dividend shall deduct tax from the gross amount of the dividend paid or collect tax from the amount of dividend in specie.

Table: Dividend Tax

TAX ON PROFIT ON DEBT & RETURN ON INVESTMENT IN SUKUKS

Sec. 151, Division 1A & 1B, Part III, 1st Schedule

Table: Tax on Profit on Debt & Return on Investment in Sukuks

TAX ON NON-RESIDENTS

Sec 152, Division IV, Part I, 1st Schedule

Table: Tax on Non-Residents

TAX ON GOODS, SERVICES & CONTRACTS

Sec. 153, Division III A, Part III, 1st Schedule

Table: Tax on Profit on Debt & Return on Investment in Sukuks

TAX ON NON-RESIDENTS

Sec 152, Division IV, Part I, 1st Schedule

Table: Tax on Goods, Services & Contracts

TAX RATES ON EXPORTS & EXPORT OF SERVICES

Sec. 154 & 154A, Division IV, Part III, 1st Schedule

Table: Tax Rates on Exports & Export of Services

TAX ON RENT OF IMMOVABLE PROPERTY

Sec. 155, Division V, Part III, 1st Schedule

Table: Tax on Rent of Immovable Property | The rate of tax to be deducted u/Sec. 155, in case of company shall be 15% of the gross amount of rent.

TAX ON PRIZES & WINNINGS

Sec. 156, Division VI, Part III, 1st Schedule

Table: Tax on Prizes & Winnings

TAX ON PETROLEUM PRODUCTS

Sec. 156A, Division VIA, Part III, 1st Schedule

Table: Tax on Petroleum Products

ADVANCE TAX ON PURCHASE, REGISTRATION AND TRANSFER OF MOTOR VEHICLES

Sec. 231B & 234, Division VII, Part IV, 1st Schedule

Table: Tax on Telephone and Internet

ADVANCE TAX AT THE TIME OF SALE BY AUCTION

Sec. 236A, Division VIII, Part IV, 1st Schedule

Table: Advance Tax on Purchase, Registration & Transfer

TAX ON BROKERAGE AND COMMISSION

Sec. 233, Division II, Part IV, 1st Schedule

Table: Tax on Brokerage and Commission

TAX ON ELECTRICITY CONSUMPTION

Sec. 235, Division IV, Part IV, 1st Schedule

Table: Tax on Electricity Consumption

TAX ON TELEPHONE AND INTERNET

Sec. 236, Division IV, Part IV, 1st Schedule

Table: Advance Tax at the time of sale by auction

ADVANCE TAX ON SALE & PURCHASE OF IMMOVABLE PROPERTY

Sec. 236C & 236K, Division X & XVIII, Part IV, 1st Schedule

Table: Advance Tax on Sale & Purchase of Immovable Property

ADVANCE TAX ON DISTRIBUTORS, DEALERS OR WHOLESALERS

Sec. 236G, Division XIV, Part IV, 1st Schedule

Table: Advance Tax on Distributors, Dealers or Wholesalers

ADVANCE TAX ON SALE TO RETAILERS

Sec. 236H, Division XV, Part IV, 1st Schedule

Table: Advance Tax on Sale to Retailers

COLLECTION OF ADVANCE TAX BY EDUCATIONAL INSTITUTIONS

Sec. 236I, Division XVI, Part IV, 1st Schedule

Table: Collection of Advance Tax by Educational Institutions

PAYMENT TO A RESIDENT PERSON FOR RIGHT TO USE MACHINERY & EQUIPMENT

Sec. 236Q, Division XXIII, Part IV, 1st Schedule

Table: Tax for Profit on Debt | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers' List.

Profit on Debt exceeding Rs.36 million shall be subject to tax under normal law.

TAX ON SHIPPING OR AIR TRANSPORT INCOME OF A NON-RESIDENT PERSON

Table: Tax on Shipping or Air Transport Income

TAX ON RETURN ON INVESTMENT IN SUKUKS

Sec. 5AA, Division IB, Part III, 1st Schedule

Table: Payment to Resident Person in using Machinery & Equipment

TAX FOR PROFIT ON DEBT - OTHER THAN A COMPANY

Sec. 7B, Division III A, Part I, 1st Schedule

Table: Tax on Return on Investment | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers' List

TAX ON CERTAIN PAYMENTS TO NON-RESIDENTS

Table: Tax on Certain Payments to Non-Residents | As per 10th Schedule, Tax Rate shall be increased by 100% in case the person is not appearing in Active Taxpayers' List

TAX ON INCOME FROM PROPERTY FOR INDIVIDUALS AND ASSOCIATION OF PERSONS

Sec. 15, Division V, Part I, 1st Schedule

Table: Tax on Income from Property

CAPITAL GAINS ON DISPOSAL OF SECURITIES

Sec. 37A, Division VII, Part I, 1st Schedule

Table: Capital Gains on Disposal of Securities | The rate of tax on cash settled derivatives traded on the stock exchange shall be 5% for the tax years 2018 to 2020.

A Mutual Fund or a Collective Investment Scheme or a REIT Scheme shall deduct Capital Gains Tax at the rates as specified below on Redemption of Securities, as specified below:

Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, then the rate of tax deduction shall be 12.5%. No capital gains tax shall be deducted, if the holding period of the security is more than 4 years.

CAPITAL GAINS ON DISPOSAL OF IMMOVABLE PROPERTY (CAPITAL ASSETS)

Sec. 37(1A), Division VIII, Part I, 1st Schedule

Table: Capital Gains on Disposal of Immovable Property

CAPITAL GAINS ON DISPOSAL OF IMMOVABLE PROPERTY

Sec. 37(3A)

Table: Capital Gains on Disposal of Immovable Property

TAX ON BUILDERS

Sec. 7C, Division VIII A, Part I, 1st Schedule

Table: Capital Gains on Disposal of Immovable Property

TAX ON BUILDERS

Sec. 7C, Division VIII A, Part I, 1st Schedule

Table: Tax on Builders

TAX ON DEVELOPERS

Sec. 7D, Division VIII B, Part I, 1st Schedule

Table: Tax on Developers

MINIMUM TAX

Sec. 113, Division IX, Part I, 1st Schedule

Table: Minimum Tax

REDUCTION IN TAX LIABILITY FOR FULL TIME TEACHER

Clause (2), Part III of 2nd Schedule

Table: Payment of Advance Tax

ADVANCE TAX

Table: Reduction in Tax Liability for Full Time Teacher

PAYMENT OF ADVANCE TAX

Sec. 147

Table: Advance Tax

ADVANCE TAX ON DIVIDEND

Table: Advance Tax on Dividend

COLLECTION OF TAX BY A REGISTERED STOCK EXCHANGE IN PAKISTAN

Table: Collection of Tax by a Stock Exchange in Pakistan

COLLECTION OF TAX ON PASSENGER TRANSPORT VEHICLES

Table: Collection of Tax on Passenger Transport Vehicles

COLLECTION OF TAX ON TELEPHONE USERS

Table: Collection of Tax on Telephone Users

TAX ON CASH WITHDRAWAL FROM A BANK

Table: Tax on Cash Withdrawal from a Bank

ADVANCE TAX ON TRANSACTIONS IN BANK [TRANSFEROR]

Table: Advance Tax on Transactions in Bank

ADVANCE TAX ON BANKING TRANSACTIONS OTHERWISE THAN THROUGH CASH [RECEIVER]

Table: Advance Tax on Banking Transactions Otherwise Than Through Cash

TAX ON CABLE TELEVISION OPERATOR

Table: Tax on Cable Television Operator

ADVANCE TAX ON SALE TO DISTRIBUTORS, DEALERS OR WHOLESALERS

Table: Advance Tax on Sale to Distributors, Dealers or Wholesalers

ADVANCE TAX ON DEALERS, COMMISSION AGENTS AND ARHATIS, ETC.

Table: Advance Tax on Dealers, Commission Agents and Arhatis, etc.

ADVANCE TAX ON PURCHASE OF IMMOVABLE PROPERTY

Table: Advance Tax on Purchase of Immovable Property | The rate of tax to be collected under Sec. 236K shall be 1% of the fair market value.

ADVANCE TAX ON SALE OR TRANSFER OF IMMOVABLE PROPERTY

Table: Advance Tax on Sale or Transfer of Immovable Property

ADVANCE TAX ON INTERNATIONAL AIR TICKET

Table: Advance Tax on International Air Ticket

ADVANCE TAX ON FUNCTIONS AND GATHERINGS

Table: Advance Tax on Functions and Gatherings

ADVANCE TAX ON INSURANCE PREMIUM

Table: Advance Tax on Insurance Premium

ADVANCE TAX ON EXTRACTION OF MINERALS

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