Pakistan Tax Hub — FBR Calculators & Tax Reference

SALARY TAX

A1 — Salary Tax Calculator

Tax Year Salary Type Gross Salary (PKR) Provident Fund % (optional) Taxpayer Status

A2 — Tax Slabs 2025-26

Income Range (PKR)	Rate
0 – 600,000	0%
600,001 – 1,200,000	1% excess over 600K
1,200,001 – 2,200,000	PKR 6,000 + 11%
2,200,001 – 3,200,000	PKR 116,000 + 23%
3,200,001 – 4,100,000	PKR 346,000 + 30%
4,100,001 – 10,000,000	PKR 616,000 + 35%
Above 10,000,000	35% + 9% surcharge

Finance Act 2025-26. Verify with FBR for official rates.

A3 — 7-Year Tax Comparison

Compare your tax across all years since 2020-21.

Monthly Salary (PKR)

A4 — Reverse Salary Calculator

Enter desired NET salary → get required gross.

Tax Year Desired Net Monthly Take-Home (PKR)

INVESTMENTS

B1 — Dividend Tax (Section 150)

Source Dividend Amount (PKR) Status

B2 — Profit on Debt (Section 151)

Type Profit Amount (PKR) Status

B3 — Capital Gains on Securities

Purchase Price (PKR) Sale Price (PKR) Holding Period (months) Status

PROPERTY

C1 — Rental Income Tax (Section 155)

Annual Gross Rent (PKR) Status

C2 — Property Transaction Tax

Property Value (PKR) Holding Period (months) Status

BUSINESS WHT & MISCELLANEOUS

E1 — Goods/Services/Contracts (Sec 153)

Payment Type Amount (PKR) Recipient Status

E2 — Brokerage & Commission (Sec 233)

Gross Commission (PKR) Status

F1 — Cash Withdrawal WHT (Sec 231A)

0.6% WHT on withdrawals above PKR 50,000.

Withdrawal Amount (PKR)

F2 — Motor Vehicle Tax (Sec 231B)

Engine Capacity Status

F3 — Prize & Winnings (Sec 156)

Prize Amount (PKR) Status

G1 — FBR Sales Tax (GST 18%)

Amount Exclusive of Tax (PKR)

NEXIVOL EXCLUSIVE

H1 — Freelancer Tax Calculator

Monthly USD Earnings PKR/USD Exchange Rate

H2 — Overseas Pakistani Tax

Annual Rental Income in Pakistan (PKR) Annual Business Income in Pakistan (PKR) Other Pakistan-Source Income (PKR)

H3 — Zakat vs Income Tax

Annual Income (PKR) Zakatable Assets (PKR)

COMPLETE WHT REFERENCE CARD — FINANCE ACT 2025-26

Section	Nature of Payment	Filer Rate	Non-Filer Rate	Tax Type	Threshold
149	Salary	Slab rates	Slab +10%	Adjustable	Per slab
150	Dividend — Listed Company	15%	30%	Final	—
150	Dividend — Unlisted Company	25%	30%	Final	—
150	Dividend — Mutual Fund (Stock)	15%	30%	Final	—
151	Profit on Debt — Bank/Savings	15%	35%	Adjustable	—
151	Profit on Debt — NSS	15%	30%	Adjustable	—
153	Supply of Goods — Company	4%	8%	Adjustable	—
153	Supply of Goods — Ind/AOP	4.5%	8%	Adjustable	—
153	Services — Company	8%	20%	Adjustable	—
153	Services — Individual/AOP	10%	20%	Adjustable	—
153	Contracts — Company	7%	15%	Adjustable	—
153	Contracts — Individual/AOP	7.5%	15%	Adjustable	—
154	Export of Goods	1%	Higher	Final	—
155	Rental Income	Slab rates	+10%	Final	PKR 300,000 exempt
156	Prize Bond / Lottery / Winning	15%	25%	Final	—
231A	Cash Withdrawal from Bank	0.6%	0.6%	Adjustable	PKR 50,000
231B	Motor Vehicle Purchase — up to 850cc	PKR 10,000	PKR 30,000	Adjustable	—
231B	Motor Vehicle Purchase — 851-1000cc	PKR 20,000	PKR 60,000	Adjustable	—
231B	Motor Vehicle Purchase — 1001-1800cc	PKR 40,000	PKR 120,000	Adjustable	—
231B	Motor Vehicle Purchase — 1801-3000cc	PKR 100,000	PKR 300,000	Adjustable	—
231B	Motor Vehicle Purchase — above 3000cc	PKR 250,000	PKR 600,000	Adjustable	—
233	Brokerage and Commission	12%	20%	Adjustable	—
235	Electricity Bill	Varies by slab	Varies	Adjustable	By slab
236	Telephone / Mobile Bill	15%	15%	Adjustable	—
236C	Sale of Immovable Property	4%	8%	Adjustable	—
236K	Purchase of Property — up to PKR 50M	3%	10.5%	Adjustable	—
236K	Purchase of Property — PKR 50M-100M	3.5%	10.5%	Adjustable	—
236K	Purchase of Property — above PKR 100M	4%	10.5%	Adjustable	—
236G	Sales to Distributors	0.1%	0.2%	Adjustable	—
236H	Sales to Retailers	0.5%	1%	Adjustable	—
148	Import — Industrial Undertaking	5.5%	8%	Adjustable	—
148	Import — Commercial Importer	6%	9%	Adjustable	—

Rates per Finance Act 2025-26. Verify at fbr.gov.pk. Consult Nexivol for advice specific to your situation.

INCOME TAX ORDINANCE 2001 — KEY SECTIONS

Section 1-2 — Preliminary & Definitions

Defines key terms including: Person (individual, company, AOP, trust), Company, Resident, Non-Resident, Tax Year (July 1 to June 30), Taxable Income, and the territorial scope. Pakistan taxes residents on worldwide income and non-residents on Pakistan-source income only.

Full text on FBR website →

Section 4 — Charge of Tax

Tax is imposed for each tax year on every person with taxable income at the rates in the First Schedule. The First Schedule contains salary slabs, dividend rates, CGT rates, and all other income tax rates.

Section 12 — Salary Income

Salary includes wages, pay, leave pay, overtime, bonus, commission, fees, gratuity, perquisites, and profits in lieu of salary. All employer-to-employee payments are salary unless explicitly excluded. Medical allowance up to 10% of basic salary and conveyance allowance up to PKR 10,000/month are standard exempt items.

Section 15 — Income from Property

Rent received from immovable property in Pakistan. Annual rent above PKR 300,000 is taxable after a 20% standard deduction. Taxed at specific rental income slabs (not salary slabs).

Section 18 — Business Income

Profits and gains from business, profession, or vocation. Business income is taxed at corporate rates for companies and individual slab rates for sole proprietors and AOPs after deducting allowable business expenses.

Section 37 — Capital Gains

Capital gains on disposal of capital assets in Pakistan. Separate CGT rates apply for securities (listed shares) based on holding period. Property gains are taxed at rates based on holding period (0% after 4 years for immovable property).

Section 53 + 2nd Schedule — Exemptions

Key exemptions include: agricultural income (provincial), foreign remittances received through banking channels, income of approved charitable and religious organizations, certain allowances within limits, and pension from government service.

Section 60 — Zakat Deduction

Zakat paid under the Zakat and Ushr Ordinance 1980 to eligible recipients is deductible from taxable income in the year it was paid. This reduces your taxable income before applying the slab rates.

Section 61 — Charitable Donations Tax Credit

Tax credit for donations to approved charitable organizations under Section 2(36). Credit is the lesser of: 30% of taxable income or actual donation amount. This is a direct credit against tax liability, not a deduction from income.

Section 114 — Return of Income

Every person with taxable income above the threshold, every company, and every registered person must file an annual return by September 30 each year. The return covers the tax year ending June 30. Late filing results in penalties and loss of ATL status.

Section 147 — Advance Tax

Individuals and companies with latest assessed income above PKR 1 million must pay advance tax in quarterly installments (September 25, December 25, March 25, June 25). The advance tax is based on 25% of the previous year's tax each quarter. Adjusted against final liability in the return.

Section 149 — Salary Withholding Tax

Every employer paying salary must deduct tax at source based on the estimated annual salary. The employer calculates annual tax on estimated annual salary, divides by 12, and deducts monthly. The employer deposits this with FBR by the 15th of the following month.

Section 150 — Dividend WHT

Every company paying a dividend must deduct WHT before payment. Listed company dividends: 15% for filers (final tax). Unlisted company dividends: 25% for filers. Non-filer rate: 30% for all categories. The deducting company deposits with FBR within 7 days.

Section 153 — Goods, Services & Contracts WHT

Prescribed persons making payments for goods supply (4-4.5%), services (8-10%), and contracts (7-7.5%) must deduct WHT for filers. Non-filer rates are 8%, 20%, and 15% respectively. Adjustable tax — credited against annual liability.

Section 182 — Penalties

Penalty for failure to file return: 0.1% of tax payable per week or part of week, minimum PKR 20,000 for individuals and PKR 40,000 for companies. Additionally, late filers lose their ATL status for the year, resulting in higher WHT rates on all transactions — often more costly than the direct penalty.

Income Tax Schedules Summary

1st Schedule: All tax rates — salary slabs, dividend rates, CGT, withholding rates
2nd Schedule: Complete list of exempt income categories
3rd Schedule: Depreciation rates by asset class (initial and normal allowance)
4th Schedule: Special provisions for life insurance companies
6th Schedule: Special provisions for banking companies

Download full Income Tax Ordinance 2001 from FBR.gov.pk →

FILER vs NON-FILER

Active Taxpayer Status — Why It Matters

A filer is on FBR's Active Taxpayer List (ATL). Key financial benefits:

Property purchase tax: 3-4% vs 10.5% for non-filers
Vehicle purchase tax: 1/3 of non-filer rate
Dividend income: 15% vs 30%
Bank profit: 15% vs 35%
Services WHT: 8-10% vs 20%

Check ATL status: SMS ATL [CNIC] to 9966 — or visit fbr.gov.pk

NTN Registration — Step by Step

Documents needed: CNIC/NICOP + mobile number registered with CNIC + email address.

Visit iris.fbr.gov.pk
Click "Registration for Unregistered Person"
Enter CNIC and date of birth
Verify via OTP to your registered mobile
Complete profile: income details and address
NTN issued instantly on portal

Nexivol completes NTN registration for AED 40. Contact us →

Annual Tax Return Guide

Deadline: September 30 annually (for tax year ending June 30).
Late penalty: 0.1% of tax payable per week, minimum PKR 20,000 + loss of ATL status.

Documents for salaried individuals:

Employer salary certificate with annual salary and tax deducted
Bank statements for all accounts
Property details (address, size, value if owned)
Vehicle details (make, model, year, registration)
Investment details: stocks, mutual funds, NSS certificates
Previous year return (if any)

TAX GLOSSARY

Tax Year

Pakistan's tax year runs July 1 to June 30. Tax year 2025-26 = July 1, 2025 to June 30, 2026. Different from calendar year.

Withholding Tax (WHT)

Tax deducted at source by the payer before making payment. Can be final tax (no further filing) or adjustable (credited against annual return).

Final Tax

WHT that fully settles the tax liability on that income. No need to include in annual return. Example: dividends from listed companies (15%), prize bonds (15%).

Adjustable Tax

WHT credited against annual tax liability. Taxpayer must file return; if actual tax is higher, the difference must be paid. If lower, excess is refundable.

Tax Credit vs Deduction

A deduction reduces taxable income before calculating tax. A credit directly reduces the tax payable. Credits (Section 61, 62, 63) are more valuable than deductions.

Advance Tax

Quarterly tax payments by persons with income above PKR 1 million. Due: Sep 25, Dec 25, Mar 25, Jun 25. Adjusted against final annual tax.

Super Tax

Additional levy on high-income taxpayers above specified thresholds. Introduced FY 2022-23. Calculated on income above threshold in addition to regular income tax.

NTN

National Tax Number — unique 7-digit identifier issued by FBR. Required for all tax transactions, bank accounts, property registration, and vehicle registration.

FBR IMPORTANT LINKS

IRIS Portal

File returns, NTN registration, sales tax, and all FBR compliance online.

iris.fbr.gov.pk →

FBR Website

ATL checker, tax laws, circulars, and official FBR notifications.

fbr.gov.pk →

FBR Helpline

Taxpayer facilitation for returns, NTN, and compliance queries.

051-111-772-772

TaxAsaan App

FBR mobile app for simplified filing and ATL verification.

Search "TaxAsaan FBR" on App Store or Play Store

FREQUENTLY ASKED QUESTIONS

Pakistan tax — straight answers

When is the tax return filing deadline in Pakistan?

September 30 each year, covering the tax year ending June 30. Penalty for late filing: 0.1% of tax payable per week, minimum PKR 20,000 for individuals. Late filers also lose ATL status, resulting in higher WHT rates on all transactions throughout the following year.

What is the difference between filer and non-filer?

A filer is on FBR's Active Taxpayer List (ATL) — someone who filed their return. Non-filers pay significantly higher WHT rates: typically double on property transactions, 3x on vehicle purchases, and higher rates on dividends and bank profits. The financial saving from filer status almost always exceeds the effort of filing.

How do I register for NTN?

Visit iris.fbr.gov.pk and click "Registration for Unregistered Person". You need your CNIC, a mobile number registered against your CNIC, and an email address. The NTN is issued instantly online. Nexivol can complete this registration for you for AED 40.

Can overseas Pakistanis file tax returns?

Yes — and they should. Pakistan-source income (rental income, business income, dividends from Pakistani companies) is taxable in Pakistan regardless of where you live. Filing ensures ATL status, which significantly reduces WHT on Pakistan transactions. Nexivol specializes in filing returns for overseas Pakistanis — we handle everything electronically with no need to visit Pakistan.

What income is exempt from tax in Pakistan?

Key exemptions include: agricultural income (provincial matter), foreign remittances received through official banking channels, income of approved charitable and religious organizations, certain allowances within limits (medical up to 10% of basic salary, conveyance up to PKR 10,000/month), and pension from government service. The 2nd Schedule of the Income Tax Ordinance 2001 contains the complete list.

What is withholding tax and who deducts it?

Withholding tax (WHT) is tax deducted at source before payment is made. The person making the payment (employer, bank, company) is the withholding agent and is legally responsible for deducting and depositing with FBR. WHT is either final tax (complete liability) or adjustable (credited against annual liability).

What is the penalty for late tax return filing?

0.1% of the tax payable for each week or part of a week of delay, with a minimum of PKR 20,000 for individuals and PKR 40,000 for companies. Additionally, late filers cannot appear on the ATL for that year, which means higher withholding tax rates on all transactions — often far more costly than the direct penalty itself.

How is freelancer income taxed in Pakistan?

Freelancers are taxed under business income slabs. Freelancers earning in foreign currency who are registered with PSEB (Pakistan Software Export Board) or P@SHA may qualify for a reduced WHT of 1% on export proceeds, which is a final tax. Nexivol can advise on PSEB registration and the most efficient tax structure for your freelance income.

What is Super Tax?

An additional levy on high-income individuals and companies above specified income thresholds, introduced from FY 2022-23. It is calculated on income above the threshold in addition to regular income tax. The applicable threshold and rate have varied across budget years — verify current rates with FBR or consult Nexivol.

What is the Active Taxpayer List (ATL)?

FBR's annual list of persons who have filed their income tax return. Updated every Monday. Check your CNIC status by sending SMS: ATL [space] your CNIC number to 9966. Being on the ATL qualifies you as a filer with significantly reduced withholding tax rates across all categories of income and transactions.