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 company||CIT in 2018||CIT in 2019*||CIT in 2023*|
|Public and private company||30%||29%||25%|
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)