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.
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