Corporate taxes in Pakistan

Corporate taxes in Pakistan

Corporate Income Tax

Pakistan imposes three different rates of Corporate Income Tax, depending on the size and type of the company.

Corporate Income Tax (CIT) rates in Pakistan

Type of companyCIT in 2018CIT in 2019*CIT in 2023*
Banking company35%35%35%
Public and private company30%29%25%
Small company25%24%20%

What is a small company in Pakistan?

Since 1 July 2005, an entity needs to meet the following requirements to classify as a small company:

  • paid up capital and undistributed reserves don’t exceed PKR 25 million (~$US200,000)
  • has less than 250 employees
  • is not formed by splitting up or reconstruction of a company already in existence
  • annual turnover below PKR 250 million (~$US 2 million)

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