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How to report taxes in Pakistan?

How to report taxes in Pakistan?

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You need to report your taxes in Pakistan through Tax Returns. Sales taxes and withholding taxes must be reported on a monthly basis. Income tax is reported annually.   Tax reporting can be time-consuming especially in emerging markets like Pakistan. However, to keep your record straight, it is highly recommended to ensure your tax planning and outsource expertise from tax consultants. Emerhub covers services on accounting and tax compliance in Pakistan such as: Tax reporting and compliance Accounting and Bookkeeping Payroll…

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Other taxes for companies in Pakistan.

Other taxes for companies in Pakistan.

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Other taxes for companies in Pakistan The following are the major taxes the companies are subject to: Income Tax on Profits Sales Tax on Goods Sales Tax on Services Excise Duty Import Duty Note that a withholding tax can either be an income or sales tax.

Employee benefits in Pakistan

Employee benefits in Pakistan

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Employee benefits in Pakistan Pakistan employment laws set several benefits for employees, namely: Type of benefit Paid by the employer Deducted from the employee’s salary Employees Old Age Benefit 5% 1% Social Security 6% 0% GratuityorProvident Fund Based on the length of service and the latest salary 8.33% N/A 8.33% Bonus Paid once a year if the company has been profitable N/A #1 Employees Old-Age Benefits The Employees Old Age Benefit is a retirement plan for the employees paid by the employer…

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Pay-roll taxes in Pakistan

Pay-roll taxes in Pakistan

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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

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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

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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

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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

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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

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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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