Pay-roll taxes in Pakistan

Pay-roll taxes in Pakistan

Personal Income Tax Personal Income Tax rates are progressive in Pakistan, varying based on the annual income of the individual. Personal Income Tax (PIT) rates in Pakistan Annual salary Tax rate Up to Rs. 400,000(3,300 USD) 0% Rs. 400,001 to 800,000(3, 300- 6,600 USD) Flat rate of Rs. 1,000 on the excess amount above Rs, 400,001 Rs. 800,001 to Rs. 1,200,000(6,600- 9,900 USD) Flat rate of Rs. 2,000 on the excess amount above Rs. 800,001 Rs. 1,200,001 to Rs. 2,400,000(9,…

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Sales Tax in Pakistan

Sales Tax in Pakistan

Sales Tax is a charged tax to consumers. The basis of it is the purchase price of goods and services. Since 2014, the standard rate for Sales Tax is 17%. Under the Sales Tax Act, 1990, all locally produced and imported goods not including computer software, poultry feeds, medicines and unprocessed agricultural produce of Pakistan are chargeable to Sales Tax. These sectors need to get registration and charge Sales Tax on their supplies and services: Manufacturing Import Services Distribution, Wholesale…

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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 company CIT in 2018 CIT in 2019* CIT in 2023* Banking company 35% 35% 35% Public and private company 30% 29% 25% Small company 25% 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…

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Tax year in Pakistan

Tax year in Pakistan

The Normal Tax Year in Pakistan is from 1 July to 30 June. Any income year ending other than on 30 June is considered a Special Tax Year and needs permission from the Federal Board of Revenue beforehand. The due date for filing an income tax return for the Normal Tax Year is 31 of December. If your tax year ends between 1 July and 31 December, the due date for filing a tax return for the preceding tax year…

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Tax laws in Pakistan

Tax laws in Pakistan

The regulatory body for taxes in Pakistan is the Federal Board of Revenue, a department of the Ministry of Finance in Pakistan. The main charges companies are subject to corporate income tax and sales tax. In Pakistan, the Sales Tax is a form of the Value-Added Tax. The Sales Tax Act, 1990 regulate sales tax on goods. Provincial tax laws govern the sales tax.  The Income Tax Ordinance, 2001 governs the income tax in Pakistan. Income tax differs for types of legal…

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The Danish Pakistani Business Council arranged a meeting between the educated youth of Pakistani descents in Denmark and H.E. Ambassador Ahmad Farooq

The Danish Pakistani Business Council arranged a meeting between the educated youth of Pakistani descents in Denmark and H.E. Ambassador Ahmad Farooq

The Danish Pakistani Business Council arranged a meeting between the educated youth of Pakistani descents in Denmark and H.E. Ambassador Ahmad Farooq & Madam Aisha.Among others lawyers, doctors and pharmacists were represented, hoping to establish a closer relationship between the attendees.As such the DPBC has built a bridge between them and has made the foundation of a greater network for the Ambassador of Pakistan and the local Danish youth of Pakistani descents. Ambassador Ahmad Farooq expressed his joy over the future cooperation with the 2nd…

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Alternatives to Company registration in Pakistan

Alternatives to Company registration in Pakistan

Alternatives to Company registration in Pakistan Branch Office A branch office is a suitable alternative to company registration if your company wants to have a presence in Pakistan without setting up a separate legal entity. Branches carrying out a contract in Pakistan can be established. However, a branch office cannot take part in any commercial or trading activities of whatever nature. Therefore, your activities depend on the contract you signed. The contract restricts your activities. The parent company owns 100% of…

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How to register a company in Pakistan!

How to register a company in Pakistan!

The Step by Step Procedure of Private Limited Liability Company Registration in Pakistan The procedure of registering a public limited company is same as above. However, they may require you to submit more documents. Step 1: Approval of Company Name This is the first step of company registration in Pakistan is choosing the company’s name. It is important to devise a unique company name that would set you apart from the rest in the industry. You must follow the restrictions…

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Types of Legal Entities in Pakistan.

Types of Legal Entities in Pakistan.

More and more foreign investors recognize Pakistan as a market to invest in. In March 2018, for example, foreign investment in Pakistan increased by USD 152.7. It is expected to grow by 17.2% by 2020. If you are planning to invest in Pakistan, here are the types of legal entities that you can choose from. #1 Private Limited Company Foreign investors can set up fully foreign-owned private limited companies (LLCs) in Pakistan. The minimum number of shareholders needed in order…

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Overview of Legal Entities in Pakistan

Overview of Legal Entities in Pakistan

Type of Entity Minimum No. of Shareholders Minimum Capital Requirement Standard Time of Incorporation Private Limited Company 2 PKR 100,000(~USD 823) 6 weeks Single Member Company 1 PKR 100,000(~USD 823) 4 weeks Public Listed Company (Listed) 3 200 million(~USD 1.6M) 6 weeks Public Listed Company (Unlisted) 3 PKR 100,000(~USD 823) 6 weeks Branch Office No shareholders N/A 7 weeks Liaison Office/Representative Office No shareholders N/A 7 weeks Allowed Foreign Ownership in Pakistan Unlike many other similar markets, Pakistan is very…

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