On 26 June 2023, the government of Pakistan published the Finance Act 2023, which included changes to some of the measures that were proposed in the Budget announcement on 9 June 2023.

Some notable changes, in addition to those outlined in the Budget, are as follows:

• The definition of permanent establishment now includes a virtual business presence in Pakistan. This encompasses any business conducting transactions through the internet or other electronic means, irrespective of physical presence.
• The additional tax on windfall income, profit, or gains is now applicable only to companies, rather than all individuals. Furthermore, it is imposed for the three preceding tax years (instead of five) leading up to the tax year 2023 and beyond.
• Adjustable advance tax rates have been introduced for income generated from construction, sale of residential or commercial buildings, development, and sale of plots. The tax rates vary based on the size and location of the property, and are applicable on a project-by-project basis.
• The rate of advance tax on the sale/purchase of immovable property has been raised from 2% to 3%.
• Any transfer of immovable property cannot be registered, recorded, or attested unless the seller or transferor has fulfilled their tax obligations related to “deemed income” on capital assets under section 7E, and provides evidence of such compliance.
• Disposing of shares through an initial public offering during the listing process will not be subject to separate taxation under section 37A of the Income Tax Ordinance. However, if the disposal details are provided to the NCCPL (National Clearing Company of Pakistan Limited), capital gains and tax calculations will be conducted under section 37A.
• The tax rate on capital gains from securities acquired before July 1, 2013, has been reduced to zero.
• For non-salaried individuals and associations of persons, tax rates have been increased by 2.5 percentage points for each income slab exceeding PKR 600,000. The highest tax rate of 35% is applicable to incomes exceeding PKR 4 million. For salaried individuals, the tax rates are increased by 2.5 percentage points for each income slab exceeding PKR 2.4 million, with a top rate of 35% for incomes exceeding PKR 6 million.
• The rate of further sales tax, levied on taxable supplies made by a registered person to a non-registered or non-active taxpayer, has been raised from 3% to 4%.