Asia-Pacific

Pakistan

Corporate rate
29%
Top personal rate
35%
VAT / GST rate
18%
One-sentence summary Pakistan's corporate tax position: 29. Personal income tax: 35 salaried; 45 non-salaried (plus possible surcharge). VAT/consumption tax: 18 goods; 15-16 services (provincial).

Corporate Tax Rate

Pakistan's headline corporate income tax (CIT) rate is 29.

Personal Tax Rate

The headline personal income tax (PIT) rate is 35 salaried; 45 non-salaried (plus possible surcharge).

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 18 goods; 15-16 services (provincial). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

Under Pakistan's tax law, an individual is resident for a tax year (July 1 - June 30) if present in Pakistan for an aggregate of 183 days or more in that tax year, or if present for 120 days or more in the current tax year and 365 days or more in aggregate across the preceding four tax years, or if a federal/provincial government employee posted abroad. Residents are taxed on worldwide income; non-residents only on Pakistan-source income. A resident who is not a Pakistani citizen, and who is resident solely due to employment with presence not exceeding three years, may qualify for a foreign-source income exemption (subject to conditions).

CFC Rules

Pakistan's CFC regime attributes income to a Pakistan-resident shareholder holding more than 50% of the capital or voting rights of a non-resident company, where that company faces an effective tax rate below 60% of the applicable Pakistani rate. Attributed CFC income is included in the resident's taxable income and taxed as if earned directly in Pakistan, with attribution generally prorated by ownership percentage and subject to de minimis exemptions.

Thin Capitalization

Interest deductions for foreign-controlled resident companies are restricted where the foreign debt-to-foreign equity ratio exceeds 3:1 at any point in the tax year, combined with a fixed-ratio test. Financial institutions and banking companies are exempt from these rules.

Treaty Network

Pakistan has executed tax treaties with 68 countries per PwC.

Source: PwC Worldwide Tax Summaries - Pakistan (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 19 January 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.