FBR Tax Rates in Pakistan for Tax Year 2021

FBR Tax Rates in Pakistan for Tax Year 2021 – Complete Guide

Understanding the tax system in Pakistan can be challenging, especially when it comes to the detailed rates announced every year by the Federal Board of Revenue (FBR). To help individuals, businesses, and professionals, this blog provides a simple explanation of FBR tax rates for the year 2020–2021, based on the official tax rate card.

Whether you are a salaried person, business owner, filer, or importer, this guide breaks down the essential tax slabs and withholding rates for the year.

1. Income Tax Rates for Salaried Individuals (Tax Year 2021)

(Salary income must be at least 75% of total income)

  • Up to Rs. 600,000 – 0%

  • 600,001 – 1,200,000 – 5% of amount over 600,000

  • 1,200,001 – 1,800,000 – Rs. 30,000 + 10%

  • 1,800,001 – 2,500,000 – Rs. 90,000 + 15%

  • 2,500,001 – 3,500,000 – Rs. 195,000 + 17.5%

  • 3,500,001 – 5,000,000 – Rs. 370,000 + 20%

  • 5,000,001 – 8,000,000 – Rs. 670,000 + 22.5%

  • Above 8,000,000 – Higher progressive slabs up to 35%

2. Income Tax Rates for Non-Salaried Individuals & AOPs

  • 0 – 400,000 – 0%

  • 400,001 – 600,000 – 5%

  • 600,001 – 1,200,000 – 10%

  • 1,200,001 – 2,400,000 – 15%

  • Higher income slabs go up to 35% for income above Rs. 6 million

3. Corporate Tax Rates (Companies)

  • Corporate Tax Rate (2019 onward): 29%

  • Small Company Tax Rate (2021): 22%

4. Super Tax Rates

Super tax applies on high-income entities:

  • Banking Companies (2021): 4%

  • Others with income > Rs. 500 million: 0%

5. Tax on Capital Gains

a. Sale of Securities

  • Gains taxed at 15% depending on holding period

  • Special rules for shares acquired before 2013

b. Sale of Immovable Property

  • Up to Rs. 5 million gain → 2.5%

  • 5–10 million → 5%

  • 10–15 million → 7.5%

  • Above 15 million → 10%

  • CGT becomes 0% after 4 years of holding

6. Tax on Imports (Section 148)

  • Part I goods: 1%

  • Part II goods: 2%

  • Part III goods: 5.5%

  • Pharmaceutical raw materials: 4%

  • Mobile Phones (CBU): Tax based on dollar value, ranging from Rs. 70 to Rs. 5,200

7. Withholding Tax on Services & Contracts (Section 153)

  • Sale of goods by companies: 4%

  • Sale of goods by individuals/AOPs: 4.5%

  • FMCG distributors (companies): 2%

  • Services (specified): 3%

  • Other services:

    • Companies → 8%

    • Non-companies → 10%

  • Contracts:

    • Companies → 7%

    • Non-companies → 7.5%

8. Property-Related Taxes

Purchase of Property (236K)

  • 1% of fair market value

Sale/Transfer of Property (236C)

  • 1% advance tax

Vehicle Registration & Transfer

  • Tax ranges from Rs. 7,500 to Rs. 250,000 based on engine capacity

9. Dividend & Profit on Debt

Dividend Tax (Section 150)

  • Mutual funds and general cases: 15%

  • Company with losses or exempt income: 25%

Profit on Debt (Section 151)

  • Up to Rs. 500,000: 10%

  • Above Rs. 500,000: 15%

10. Tax for Non-Filers (Non-ATL)

In many sections, tax for non-filers is 100% higher than normal rates.
Common examples:

  • Imports

  • Dividends

  • Profit on debt

  • Contracts

  • Sale/purchase of vehicles

  • Property transactions

Being a filer significantly reduces tax costs.

11. Sales Tax Withholding (FBR, Sindh, Punjab, KP, Balochistan)

Different provinces apply different rules:

  • Federal: Up to 1/5th of sales tax

  • Punjab: 100% sales tax withholding for many categories

  • Sindh: 20% withholding for companies; 100% for certain services

  • KPK & Balochistan: 20% standard WHT with 100% on unregistered service providers

Final Thoughts

 The FBR tax rates for the financial year 2020–2021 introduced several important changes for individuals, companies, importers, and service providers. Understanding these rates helps taxpayers remain compliant and also plan their finances more effectively.


Taxation with Atif

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