Other Corporate Taxes in Pakistan

Value Added Tax

Sales tax, also known as value added tax is usually demanded at a rate of 17 percent on the total worth of goods. This rate may change in special cases like exceptions or a condensed rate.

Each province has its own sales tax rates, Kashmir, Islamabad, Gilgit Baltistan, Capital Territory, and Azad Jammu all have rates around 13 percent to 16 percent.

Aside from a few exemptions, the sales tax required on things like federal excise duty, services, and federal tax on goods is adjustable against one another.

If supplies are made by some specific people and sectors, retail price or fixed tax regime may apply to the goods being supplied, a reduced rate of sales tax might also apply on these goods.

A value added tax of 3% will be applied to goods that have been commercially imported, as well as the standard sales tax imposed on goods at the import stage.

Imports and Custom Duties

At the import stage, various duties such as customs and import duties will be collected. The different rates have been specified in the Harmonized System Code.

Excise Duty

On the import of merchandises, certain forms of manufacturing, and rendering of services, federal excise duty is imposable at differing rates. The sales tax applied on serviced, which acts as a substitute of the Federal Excise Duty, is to be collected and imposed by all provinces on any services provided under their jurisdiction.

Property Taxes

The owners of all properties have to pay a property tax which is imposed and gathered together by the relevant provincial government at differing rates.

Stamp Duty

If an immovable property is sold or transferred, a stamp duty tax will be applied to the property. The rates will vary according to the property’s location.

Payroll Taxes

Employers are only required to pay for social security assistances with respect to their employees. Other than this, no other tax on their staffs or on their salary is required from them.

Social Security Contributions

A small amount of Employees Old Age Benefit and Social Security contribution is taken from both the employees and the employer. The responsibility of their collection falls on the employers who are required to gather and pay it on a regular basis.