TAX RATES TABLES - TAX YEAR 2023

Tax Rates for Non-Salaried Individuals / AOPs Minimum Tax Section 113

[Division I, Part I of the First Schedule] [Division IX, Part I of the First Schedule]
1 Upto Rs. 600,000 0% Individual & AOP’s (having annual turnover Rs.
1 1.25%
2 Rs. 600,000 to Rs. 800,000 5% 100 Million or more)
3 Rs. 800,000 to Rs. 1,200,000 Rs. 10,000 + 12.5% 2 For Companies 1.25%
4 Rs. 1,200,000 to Rs. 2,400,000 Rs. 60,000 + 17.5%
5 Rs. 2,400,000 to Rs. 3,000,000 Rs. 270,000 + 22.5% (a) Sui Southern Gas Company Limited and Sui
6 Rs. 3,000,000 to Rs.4,000,000 Rs. 405,000 + 27.5% Northern Gas Pipelines Limited (for the cases
where annual turnover exceeds rupees one
7 Rs. 4,000,000 to Rs. 6,000,000 Rs. 680,000 + 32.5% billion.)
8 Exceeding Rs. 6,000,000 Rs. 1,330,000 + 35% 3 (b) Pakistani International Airlines Corporation; 0.75%
and
(c) Poultry industry including poultry breeding,
Tax Rates for Salaried Persons broiler production, egg production and poultry
feed production;
“salary” exceeds seventy-five per cent of his taxable income
[Division I, Part I of the First Schedule] (a) Oil refineries
(b) Motorcycle dealers registered under the Sales
4 0.50%
1 up to Rs. 600,000 0% Tax Act, 1990
(c) Oil marketing companies
(a) Distributors of pharmaceutical products, fast
2 Rs. 600,000 to Rs. 1,200,000 2.5% moving consumer goods and cigarettes;
(b) Petroleum agents and distributors who are
registered under the Sales Tax Act, 1990;
3 Rs. 1,200,000 to Rs. 2,400,000 Rs. 15,000 + 12.5%
(c) Rice mills and dealers;
(d) Tier-1 retailers of fast moving consumer
4 Rs. 2,400,000 to Rs. 3,600,000 Rs. 165,000 + 20% goods who are integrated with Board or its
5 computerized system for real time reporting of 0.25%
sales and receipts;
5 Rs. 3,600,000 to Rs. 6,000,000 Rs. 405,000 + 25%
(e) Person’s turnover from supplies through
6 Rs. 6,000,000 to Rs.12,000,000 Rs. 1,005,000 + 32.5%
ecommerce including from running an online
marketplace as defined in clause (38B) of section
(f) Persons engaged in the sale and purchase of
7 Exceeding Rs. 12,000,000 Rs. 2,955,000 + 35% used vehicles; and
(g) Flour mills

Tax Rates for Companies Rate of Dividend Tax

[Division II, Part I of the First Schedule] [Division III, Part I of the First Schedule]
Type Rate Person
not
No. Nature of Payment Section Rate
Small Company 20% Appear in
ATL
Public / Private Companies 29% a IPP, (CPPA-G) 150 7.50% 15%
Mutual fund, (REIT) and other
Banking Companies 39% b 150 15% 30%
than a, c & d

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 TAX RATES TABLES - TAX YEAR 2023
REIT scheme from Special
150 0% 0%
Purpose Vehicle
Alternate Corporate Tax 17% c
Others from Special Purpose
150 35% 70%
Vehicle
Clause (c) of Division III of Part I
d 150 25% 50%
of the First Schedule

Rates for Super Tax Rate for Profit on Debt

[Division IIA, Part I of the First Schedule]

No. Nature of Payment Section Rate [Division IIIA, Part I of the First Schedule]
1 Banking Company 4B 4% Nature of Payment Section Rate

2 Other Companies 4B 0%
Profit on debt imposed under section 7B 151 15%

Capital Gain on Disposal of Securities

[Division VII, Part I of the First Schedule]

Under Section 37A
Tax Year
No Period 2023 and onwards

(1) (2) (3)

1 Where the holding period does not exceed one year 15%

2 Where the holding period exceeds one year but does not exceed two years 12.5%
3 Where the holding period exceeds two years but does not exceed three years 10%
4 Where the holding period exceeds three years but does not exceed four years 7.5%
5 Where the holding period exceeds four years but does not exceed five years 5%
6 Where the holding period exceeds five years but does not exceed six years 2.5%
7 Where the holding period exceeds six years 0%
8 Future commodity contracts entered into by members of Pakistan Mercantile Exchange 5%

Capital Gain on Disposal of Immovable Property

[Division VIII, Part I of the First Schedule]

Sub-Section (1A) of Section 37
Constructed
No Holding Period Open Plots Flats
Property
(1) (2) (3) (4) (5)
1 Where the holding period does not exceed one year 15% 15% 15%
2 Where the holding period exceeds one year but does not exceed two years 12.5% 10% 7.5%
3 Where the holding period exceeds two years but does not exceed three years 10% 7.5% 0%
4 Where the holding period exceeds three years but does not exceed four years 7.5% 5% -
5 Where the holding period exceeds four years but does not exceed five years 5% 0% -
6 Where the holding period exceeds five years but does not exceed six years 2.5% - -
Where the holding period exceeds six years
7 0 - -

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 TAX RATES TABLES - TAX YEAR 2023

Rate for Tax Collected at Import Stage

[Division IIIA, Part I of the First Schedule]

No. Persons Rate
Section
(1) (2) (3)
1 Persons importing goods classified in Part I of the Twelfth Schedule 1%
2 Persons importing goods classified in Part II of the Twelfth Schedule 148 2%
3 Persons importing goods classified in Part III of the Twelfth Schedule 5.5%
Manufacturers covered under Notification No. S.R.O. 1125(I)/2011 dated the 31st December, 2011 and
4 148 1%
importing items covered under S.R.O. 1125(I)/2011 dated the 31st December, 2011;
Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as
5 148 4%
certified by the Drug Regulatory Authority of Pakistan
In case of importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below
and LCVs with 150 kwh battery or below
6 148 1%

The rate of tax on value of import of mobile phone by any person shall be as set out in the following table: - Tax (in Rs.)
IN CKD/SKD
In CBU
condition
condition PCT
No. C & F Value of mobile phone (in US Dollar) under PCT
Heading
Heading
8517.1219
8517.1211
1 Up to 30 except smart phones 70 0
2 Exceeding 30 and up to 100 and smart phones up to 100 100 0
3 Exceeding 100 and up to 200 930 0
4 Exceeding 200 and up to 350 970 0
5 Exceeding 350 and up to 500 5,000 3,000
6 Exceeding 500 11,500 5,200

Payments to Non-Residents

[Division II, Part III of the First Schedule]

Person
Not
152 Nature of Payment Rate
Appear in
ATL
(1) Royalty & fee for technical services 15% 15%
a) Contract or sub-contract under a construction, assembly or installation project in Pakistan
including a contract for the supply of supervisory activities relating to such project.
(1A) b) Any other contract for construction or services rendered relating there to. 7% 7%

c) Contract for advertisement services rendered by TV Satellite Channels.

(1AA) Payment of insurance premium or re-insurance premium 5% 5%

(1AAA) Payment for advertisement services from non-resident person relaying from outside Pakistan 10% 10%

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 TAX RATES TABLES - TAX YEAR 2023
Tax shall be deducted on remittance outside Pakistan, of fee for off-shore digital services,
(1C) chargeable to tax u/s 6, to a non-resident person on behalf of any resident or a permanent 5% 5%
establishment of a non-resident in Pakistan
(2) All other payment to non- resident 20% 40%

Payment to Permanent Establishment of Non-Resident:

(a) For sale of goods

(i) In case of a company 4% 8%

(ii) In any other case 4.5% 9%

Transport services, freight forwarding services, air cargo services, courier services, manpower
outsourcing services, hotel services, security guard services, software development services, IT
services and IT enabled services as defined in section 2, tracking services, advertising services (other
than by print or electronic media), share registrar services, engineering services, car rental services, 3% 6%
building maintenance services, services rendered of Pakistan Stock Exchange Limited and Pakistan
(2A) Mercantile Exchange Limited inspection and certification, testing and training services, oilfield
services
(b) For services other than above:

(i) In case of a company 8% 16%

(ii) In any other case 10% 20%

(c) For execution of contracts, other than a contract for sale of goods for providing/ rendering of services

(i) In case of sportspersons 10% 20%

(ii) In case of any person 7% 14%

Payments for foreign produced commercials

152A
Payment to non-resident person directly to through an agent for foreign produced commercial for
20% 40%
advertisement on any Television Channel or any other Media.

Payments for Goods or Services

[Division III, Part III of the First Schedule]

Person
Not
153 Nature of Payment Rate
Appear in
ATL
Sale of Goods
(a) Rice, cotton seed or edible oil. 1.50% 3%
153(1)(a) (b) For sale of any other goods
In case of a company 4% 8%
In any other case 4.5% 9%
Rendering of Services
(i) Services
153(1)(b) Transport Services
Freight Forwarding Services
Air Cargo Services

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 TAX RATES TABLES - TAX YEAR 2023
Courier Services
Manpower Outsourcing Services
Hotel Services
Security Guard Services
Software Development Services
IT Services and IT enabled services as defined in section 2
Tracking Services
Advertising services (Other than by print or electronic media)
Share registrar services
Engineering services including architectural services
Warehousing services
Services rendered by asset management companies
Data services provided under license issued by the Pakistan Telecommunication Authority
Telecommunication infrastructure (tower) services 3% 6%
Car Rental services
Building maintenance services
Services rendered by PSX Limited and Pakistan Mercantile Exchange Limited
Inspection
Certification
Testing & training services
Oilfield services
Telecommunication services
Collateral management services
Travel and tour services
REIT management services
Services rendered by National Clearing Company of Pakistan Limited
(ii) All other services:
In case of a company 8% 16%
In any other case 10% 20%
Payments to electronic and print media for advertising services 1.5% 3%
Execution of Contracts
(i) In case of sportspersons 10% 20%
153(1)(c)
(ii) In case of a company 6.5% 13%
(iii) In any other case 7% 14%
Every Exporter or Export House shall deduct Tax on payments in respect of services of stitching, dying,
153(2) 1% 2%
printing etc.

Exports Proceeds Advance tax on Private Motor Vehicle

[Division IV, Part III of the First Schedule] Section 231B
Advance tax on Registration of private motor vehicle:
154 Nature of Payment Rate
[Division VII, Part IV of the First Schedule]
(1) Export proceeds realization 1% Up to 850 cc Rs. 10,000 Rs. 30,000
851 cc – 1000 cc Rs. 20,000 Rs. 60,000
Realization of commission due to an indenting agent
1001 cc – 1300 cc Rs. 25,000 Rs. 75,000
(2)
I. Non-export indenting agent 1% 1301 cc – 1600 cc Rs. 50,000 Rs. 150,000
II. Export indenting agent / export buying house 1% 1601 cc – 1800 cc Rs. 150,000 Rs. 450,000

On realization of proceeds under inland back-to-back 1801 cc – 2000 cc Rs. 200,000 Rs. 600,000
(3) 1%
LC 2001 cc – 2500 cc Rs. 300,000 Rs. 900,000
(3A) Industrial undertaking in EPZ 1% 2501 cc – 3000 cc Rs. 400,000 Rs. 1,200,000

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 TAX RATES TABLES - TAX YEAR 2023
(3B) Indirect exporters (DTRE rules, 2001) 1% above 3000 cc Rs. 500,000 Rs. 1,500,000
(3C) Clearance of goods exported 1% Section 231B (1A)
Export proceeds of Computer software or
IT services or IT Enabled services by
0.25% Leasing of Motor Vehicle to a Peron not appear in ATL.
154A persons registered with Pakistan
Software Export Board 4% of the value of Motor Vehicle
Any other services 1%

Section 231B (2)

Tax Rates of Rental Income

[Division VIA, Part I of the First Schedule] Transfer of registration or ownership of motor vehicle
In the case of Individual & AOP (Section 155) Up to 850 cc - -
1 up to Rs. 300,000 Nil 851 cc – 1000 cc Rs. 5,000 Rs. 15,000
2 Rs. 300,000 to Rs. 600,000 5% 1001 cc – 1300 cc Rs. 7,500 Rs. 22,500
3 Rs. 600,000 to Rs. 2,000,000 Rs. 15,000 + 10% 1301 cc – 1600 cc Rs. 12,500 Rs. 37,500
4 Exceeding Rs. 2,000,000 Rs. 155,000 + 25% 1601 cc – 1800 cc Rs. 18,750 Rs. 56,250

1801 cc – 2000 cc Rs. 25,000 Rs. 75,000

In the case of Company (Section 155) 15%

Prizes & Winnings 2001 cc – 2500 cc Rs. 37,500 Rs. 112,500

[Division VI, Part IV of the First Schedule] 2501 cc – 3000 cc Rs. 50,000 Rs. 150,000
above 3000 cc Rs. 62,500 Rs. 187,500
Person Section 231B (3)
Not
156 Nature of Payment Rate
Appear
Up to 850 cc Rs. 10,000 Rs. 30,000
in ATL 851 cc – 1000 cc Rs. 20,000 Rs. 60,000
1001 cc – 1300 cc Rs. 25,000 Rs. 75,000
Prizes on prize bonds or cross-word puzzle 15% 30% 1301 cc – 1600 cc Rs. 50,000 Rs. 150,000

Winning from a raffle, lottery, quiz, prize offered by 1601 cc – 1800 cc Rs. 150,000 Rs. 450,000
20% 40%
Companies for sale promotion 1801 cc – 2000 cc Rs. 200,000 Rs. 600,000

Petroleum Products 2001 cc – 2500 cc Rs. 300,000 Rs. 900,000

[Division VIA, Part IV of the First Schedule] 2501 cc – 3000 cc Rs. 400,000 Rs. 1,200,000
Person above 3000 cc Rs. 500,000 Rs. 1,500,000
Not
156A Nature of Payment Rate Section 231B (2A)
Appear
in ATL Up to 1000 cc Rs. 100,000 Rs. 300,000
1000 cc – 2000 cc Rs. 200,000 Rs. 600,000
Sale of petroleum products to petrol pump operators 12% 24%
above 2000 cc Rs. 400,000 Rs. 1,200,000

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 TAX RATES TABLES - TAX YEAR 2023

Brokerage & Commission Advance tax on Electricity

[Division V, Part IV of the First Schedule]

Person Not Gross amount of Electricity Bill of Commercial and
Nature of Payment Rate Appear in Industrial consumer
ATL Slabs (Rs.)
a) Up to Rs. 500 0
233 In case of advertising agents 10% 20% b) Rs. 501 to Rs. 20,000 10% of the amount
c) exceeds Rs.20,000 Rs. 1950 plus 12% of
Life Insurance Agents where 235 the amount exceeding
Commission received is less than Rs, 0.5 8% 16%
Rs.20,000 for
Million per annum
commercial consumers
In all other cases 12% 24% Rs. 1950 plus 5% of the
amount exceeding
Rs.20,000 for industrial
Tax on Motor Vehicles consumers
[Division III, Part IV of the First Schedule] Tax on Domestic electricity consumption if the
amount of monthly bill is
Tax on Motor Vehicles:
235A less than Rs.25,000 0% of bill amount
Rs. 2.50 per Rs. 5 per Kg.
(i) Goods transport vehicles Kg. of the of the laden 7.5% of bill amount, If
laden weight weight Rs,25,000/- or more the person not appear
in ATL.
Tax on electricity consumption from retailers other
1(A) Vehicle with laden weight of 8120
than Tier-I retailers
Kgs or more, tax after ten (10) years
Rs. 1,200 Rs. 2,400 a) Up to Rs. 30,000 Rs. 3,000
from first registration in Pakistan
passenger transport. b) Rs. 30,000 to Rs. 50,000 Rs. 5,000
99A
(2) In the case of Passenger transport Rupees (per Rupees (per c) Rs. 50,000 to Rs.100,000 Rs. 10,000
vehicles plying for hire, seating capacity seat per seat per d) Retailers and service
of: annum) annum) providers as notified by the
Up to Rs.200,000
Board in the income tax
i) 4 to 10 persons 500 1000
general order.

ii) 10 to 20 persons 1500 2000

Advance tax on Telephone Users
234 iii) 20 and above 2500 4000 [Division IV, Part IV of the First Schedule]

(3) Other Motor vehicles, including car, jeep, van, sport utility vehicle, pick- Telephone and internet, 10% of the exceeding
up trucks for private use, caravan automobile, limousine, wagon or any where the monthly bill amount of bill
other automobile used for private purpose: - exceeds Rs. 1,000

Annual collection of tax: (Rs. p.a.) (Rs. p.a.) In the case of subscriber of 15% of amount of bill
internet, mobile telephone or price of internet
up to 1000 cc 800 1600 and pre-paid internet or prepaid card or
telephone card prepaid telephone
1001cc to 1199cc 1,500 3,000 card or sale of units
236
1200cc to 1299cc 1,750 4,500 through any electronic
1300cc to 1499cc 2,500 5,000 medium or whatever
form
1500cc to 1599cc 3,750 7,500

1600cc to 1999cc 4,500 9,000

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 TAX RATES TABLES - TAX YEAR 2023

2000cc and above 10,000 20,000

Advance tax at the time of Sale by Auction
(4) where the motor vehicle tax is collected in lump sum [Division VIII, Part IV of the First Schedule]
Engine capacity lump sum Person
up to 1000 cc Not
Rs. 10,000 Rs. 20,000 Nature of Payment Rate
Appear
1001cc to 1199cc Rs. 18,000 Rs. 36,000 in ATL
1200cc to 1299cc Sale by public auction/
Rs. 20,000 Rs. 40,000 tender of any property or
1300cc to 1499cc goods shall deduct tax 10% 20%
Rs. 30,000 Rs. 60,000 including award of any
1500cc to 1599cc Rs. 45,000 Rs. 90,000 236A lease to any person
1600cc to 1999cc Rs. 60,000 Rs. 120,000 In case of immovable
5% 10%
2000cc and above property sold by auction
Rs. 120,000 Rs. 240,000

Advance tax on Purchase of Immovable

Advance tax on Sale of Immovable Property Property
[Division X, Part IV of the First Schedule] [Division XVIII, Part IV of the First Schedule]
Person Nature of Payment Person
Not Not
Section Nature of Payment Rate Section Rate
Appear in Appear in
ATL ATL
Registering or attesting the
236C 2% 4%
transfer of immovable property

Advance tax on Sale of distributors, dealers or

wholesalers
[Division XIV, Part IV of the First Schedule] Advance Tax on purchase of
236K(1) 2% 7%
immovable property

Every manufacturer or commercial importer shall has to

be collected advance tax from wholesaler, distributor &
dealers at the time of sales made to them (of
pharmaceuticals, poultry and animal feed, edible oil and
ghee, auto-parts, tyres, varnishes, chemicals, cosmetics, IT
equipment, electronics, sugar, cement, iron and steel
products, fertilizer, motorcycles, pesticides, cigarettes, Advance Tax on payment of
glass, textile, beverages, paint or foam sector): installment in respect of
236G
purchase of allotment of
immovable property where
transfer is to be effected after
making payment of all
236K(3) 2% 7%
Person installments:
Not
Nature of Payment Rate
Appear in
ATL

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TAX RATES TABLES - TAX YEAR 2023

Fertilizers 0.7% 1.4%

Other than fertilizers 0.1% 0.2% Advance tax on amount remitted abroad
through credit, debit or prepaid cards

[Division XXI, Part IV of the First Schedule]

Provided that the rate of advance tax on sale to
distributors, dealers or wholesalers of fertilizer shall be Nature of Payment Rate
0.25%, if they are already appearing on both the Active Section
Taxpayers’ Lists issued under the provisions of the Sales
Tax Act, 1990 and the Income Tax Ordinance, 2001 (XLIX
of 2001)

Advance tax on sales to retailers

[Division XV, Part IV of the First Schedule]

Sales to retailers by Person Advance tax on amount remitted
manufacturer, distributor, Not 236Y abroad through credit, debit or 1%
Rate prepaid cards
dealer, wholesaler or Appear in
commercial importer shall has ATL
to be collected advance tax
from (pharmaceuticals, poultry
and animal feed, edible oil and
236H ghee, auto-parts, tyres,
varnishes, chemicals, cosmetics,
IT equipment, electronics, 0.5% 1%
sugar, cement, iron and steel
products, fertilizer, motorcycles,
pesticides, cigarettes, glass,
textile, beverages, paint or
foam sector):

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