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, 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.