Rate Card for Tax Year 2025 – Pakistan
Individuals or entities not listed on the Active Taxpayers List are required to pay double the standard withholding tax rates, as outlined in the First Schedule of the Income Tax Ordinance, 2001. However, certain exceptions to this rule are provided in the Tenth Schedule of the Ordinance.
1 – Collection of Tax at Imports
| Section | Type of Payment | Rate % | Active / In-Active | Individual & AOP | Company | Status of Tax Collected / Deducted |
|---|---|---|---|---|---|
| i. | Persons importing goods classified in part I of the Twelfth Schedule | 1 / 2 | Minimum / not minimum in the hands of industrial undertaking | Minimum / not minimum in the hands of industrial undertaking | Advance Tax Collection by Collector of Customs |
| ii. | Persons importing goods classified in part II of the Twelfth Schedule other than commercial importer | 2 / 4 | Minimum / not minimum in the hands of industrial undertaking for its own use | Minimum / not minimum in the hands of industrial undertaking for its own use | Advance Tax Collection by Collector of Customs |
| iii. | Persons importing goods classified in part III of the Twelfth Schedule other than commercial importer | 5.5 / 11 | Minimum / not minimum in the hands of industrial undertaking for its own use | Minimum / not minimum in the hands of industrial undertaking for its own use | Advance Tax Collection by Collector of Customs |
| iv. | Import by manufacturers covered under rescinded SRO. 1125(I)2011 dated 31 December 2011 | 1 / 2 | Adjustable | Adjustable | Advance Tax Collection by Collector of Customs |
| v. | Persons importing finished pharmaceutical products that are not manufactured in Pakistan as certified by DRAP | 4 / 8 | Minimum | Minimum | Advance Tax Collection by Collector of Customs |
| vi. | Import of Mobile Phones | Varying rates | Minimum | Minimum | Advance Tax Collection by Collector of Customs |
| vii. | Import of CKD kits of electric vehicles for small cars or SUVs with battery upto 50 kwh and LCVs with battery upto 150 kwh | 1 / 2 | Minimum | Minimum | Advance Tax Collection by Collector of Customs |
| viii. | Import by commercial importer of goods classified in part II of Twelfth Schedule Import by commercial importer of goods classified in part III of Twelfth Schedule | 3.5 / 7 6 / 12 | Minimum Minimum | Minimum Minimum | Advance Tax Collection by Collector of Customs Advance Tax Collection by Collector of Customs |
| ix. | Import by every person of edible oil, packaging material, paper and paper board; or plastics | 1, 2, 3.5, 5.5, 6 / 2, 4, 7, 11, 12 | Minimum | Minimum | Advance Tax Collection by Collector of Customs |
2 – Salary
| Section | Type of Payment | Rate % | Active / In-Active | Individual & AOP | Company | Status of Tax Collected / Deducted |
|---|---|---|---|---|---|
| Where the taxable income does not exceed Rs. 600,000 | 0 | Adjustable | N/A | Person responsible for paying salary | |
| Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 5% of amount exceeding Rs. 600,000 | Adjustable | N/A | ||
| Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000 | Rs. 30,000 plus 15% of the amount exceeding Rs. 1,200,000 | Adjustable | N/A | ||
| Where taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000 | Rs. 180,000 plus 25% of the amount exceeding Rs. 2,200,000 | Adjustable | N/A | ||
| Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000 | Rs. 430,000 plus 30% of the amount exceeding Rs. 3,200,000 | Adjustable | N/A | ||
| Where taxable income exceeds Rs. 4,100,000 | Rs. 700,000 plus 35% of the amount exceeding Rs. 4,100,000 | Adjustable | N/A | ||
| Where taxable income exceeds Rs. 10 million | In addition to the rates applicable Sr.VI, a surcharge at the rate of 10% of normal income tax rate will be applied | Person responsible for paying Salary will also be required to withhold the amount of surcharge | |||
| Director fee | 20 | Adjustable | N/A |
3 – Dividend payment or dividend in specie
| Section | Type of Payment | Rate % | Active / In-Active | Individual & AOP | Company | Status of Tax Collected / Deducted |
|---|---|---|---|---|---|
| i. | Independent Power Producers where such dividend tax is a pass-through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity | 7.5 / 15 | Final | Final | Tax Deduction by the payer of dividend |
| ii. | Company where no tax is payable due to exemption of income or carry forward business losses or claim of tax credit | 25 / 50 | Final | Final | Tax Deduction by the payer of dividend |
| iii. | – Dividend received by a REIT scheme from Special Purpose Vehicle – In case of dividend received by others from Special Purpose Vehicle as defined under the Real Estate Investment Trust Regulations, 2015 | 0, 35 / 70% | Final | Final | Tax Deduction by the payer of dividend |
| iv. | Mutual fund or real estate investment trust – Provided that where mutual funds deriving fifty percent or more income from profit on debt | 15 / 30 – 25 / 50 | Final | Final | Tax Deduction by the payer of dividend |
| v. | Any other case | 15 / 30 | Final | Final | Tax Deduction by the payer of dividend |
3 – Profit on Debt
| Section | Type of Payment | Rate % | Active / In-Active | Individual & AOP | Company | Status of Tax Collected / Deducted |
|---|---|---|---|---|---|
| i. | Yield on an account, deposit or a certificate under the National Savings Scheme or Post office saving account | 15 / 35 | Minimum / Adjustable (if more than 5 million) | Adjustable | Tax Deduction by the payer of the profit |
| ii. | Profit on a debt, being on an account or deposit maintained with a banking company or a financial institution | 15 / 35 | Minimum / Adjustable (if more than 5 million) | Adjustable | Tax Deduction by the payer of the profit |
| iii. | Profit on any security issued by Federal Government, a Provincial Government or a local Government other than profit on National Saving Scheme or Post Office Saving account to any person | 15 / 35 | Minimum / Adjustable (if more than 5 million) | Adjustable | Tax Deduction by the payer of the profit |
| iv. | Profit on any bond, certificate, debenture, security or instrument of any kind (excluding loan agreement between a borrower and a banking company or a development finance institution) issued by a banking company, a financial institution, company or a finance society, to any person other than a financial institution | 15 / 35 | Minimum / Adjustable (if more than 5 million) | Adjustable | Tax Deduction by the payer of the profit |
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