Central & South Asia
Pakistan: tax at a glance
Residents are taxed on worldwide income. Salary tax is steeply progressive, with a surcharge on high incomes, and a federal sales tax of 18% applies to goods.
The taxes
- Personal income (top)
- 35%
- Corporate income
- 29%
- Capital gains
- Gains on securities are taxed at up to 15%. Gains on immovable property are taxed according to how long it was held.
- VAT / Sales Tax (GST)
- 18%
- Dividends (WHT)
- 15%
- Interest (WHT)
- 15%
- Royalties (WHT)
- 15%
- Social security (employee)
- 1%
- Social security (employer)
- 5%
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- A provincial property tax applies, along with capital value and deemed-rental levies.
- Other
- Employers contribute to EOBI and provincial social security, at about 6%. A super tax of up to 10% applies to high-income companies, while small companies pay a 20% corporate income tax.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Pakistan?
The top marginal personal income tax rate in Pakistan is 35%. The system is progressive. The top salary rate is 35% above PKR 4.1m, plus a 9% surcharge on tax for taxable income over PKR 10m.
What is the corporate tax rate in Pakistan?
The headline corporate income tax rate is 29%.
Does Pakistan tax capital gains?
Capital gains for individuals: Gains on securities are taxed at up to 15%. Gains on immovable property are taxed according to how long it was held..