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, 900- 20,000 USD)||5% of the amount exceeding Rs. 1,200,000|
|Rs. 2,400,001 to Rs. 4,800,000(20,000- 39,400 USD)||Flat rate of Rs. 60,000 on annual salary exceeding Rs. 2,400,001.+ 10% of the amount exceeding Rs. 2,400,000|
|Exceeding Rs. 4,800,000||Flat rate of Rs. 300,000 on annual salary exceeding Rs. 4,800,00 + 15% of the amount exceeding Rs. 4,800,000|
The employer acts as the withholding agent, and deducts the tax from the salary.
The FBR requires submission of income taxes every month. As for the employee, he/she needs to report the withheld tax to the FBR annually.