Corporate Branch Income Tax in Pakistan

With the sole exception of banking companies, the tax rate for a company branch that operates outside of the country is the same as the rate for local companies. Besides the companies that work in the gas and oil production and exploration business. All other branches of other companies have to give a tax of 15% on the transference of post-tax profits to their respective head office.

At the source, a deduction of tax on the payments made to an outlet in Pakistan of a nonlocal company will be applied on the basis similar to a local company in the circumstance of rendering of specialized services, sale of goods, and the implementation of contracts. If the withholding tax is not under the minimum tax regime, a reduced or zero percent withholding tax certificate will be up for collection from the Commissioner of Income-tax.

Currently, Pakistan has made agreements regarding the evasion of double taxation with as many as 66 other countries.