The Pakistan Government has presented to parliament the nation’s 2014-2015 Budget, which includes proposals aimed increasing tax compliance rates, increasing progressive direct taxes, and lowering the burden of indirect taxes. The 2014 budget set the corporate tax rate at 33% for the year to 30 June 2015 (previously 34%). The rate is 25% for small companies. From 2014/15 and alternative corporate tax is to be charged at 17% on accounting profits where companies declare continuing losses or very low profits for tax purposes. Generally the same tax rate that applies to other categories of income. Assets held for more than one year are taxed on 75% of the capital gain. There is no indexation allowance.
Related Posts

Pakistan introduces mandatory e-invoicing for businesses
Pakistan's Federal Board of Revenue (FBR) announced new rules requiring all registered businesses to electronically link their fiscal devices with the tax agency on 29 January 2025. Pakistan has rolled out a new electronic invoicing system,
Read More
Cambodia, Pakistan considers negotiating for income tax treaty
Officials from Cambodia and Pakistan held discussions on bilateral relations, including the negotiation and signing of an income tax treaty on 20 January 2025. The agreement shall prevent double taxation between the two nations while also
Read More
Pakistan promulgates Income Tax (Amendment) Ordinance 2024, increases corporate tax rate on banks
President Asif Ali Zardari has enacted the Income Tax (Amendment) Ordinance 2024 on 28 December, which establishes new corporate tax rates for banks. Under the ordinance, banks will face a 44% tax rate for the 2025 tax year (from 39%), gradually
Read More
Pakistan: Proposed Tax Laws (Amendment) Bill 2024 strengthens measures against non-filers
Pakistani Finance Minister Muhammad Aurangzeb presented the Tax Laws (Amendment) Bill, 2024, to the National Assembly on 18 December 2024 to strengthen measures against non-filers. The proposed bill introduces strict measures targeting
Read More
Pakistan to cut power tariffs this winter
Pakistan will be introducing reduced electricity tariffs this winter according to an interview of Power Minister Awais Leghari on Saturday, 9 November 2024. Business and citizens are likely to benefit from a 7-8% reduction in power
Read More
Pakistan publishes new returns forms for tax year 2024
Pakistan's Federal Board of Revenue (FBR) published a Notification S.R.O. 949(I)/2024 on 3 July 2024, which includes new returns forms available for companies, salaried persons, and business individuals for the tax year 2024. The forms are
Read More