📌 Income Tax Card 2018 – Pakistan (01 July 2017 to 30 June 2018)
Updated According to Finance Act 2017
The Income Tax Card 2018 provides a complete summary of income tax rates applicable in Pakistan for the Tax Year 2018. This includes tax rates for salaried individuals, non-salaried individuals, companies, withholding taxes, advance taxes, and capital gains.
This guide is helpful for:
✔ Tax Consultants
✔ Salaried Persons
✔ Business Persons
✔ Lawyers
✔ Students of Taxation
✔ Anyone filing income tax in Pakistan
📌 1. Tax Rates for Individuals (Salaried & Non-Salaried)
🔹 Non-Salaried Individuals (Business Individuals)
| Taxable Income (PKR) | Rate |
|---|---|
| 0 – 400,000 | 0% |
| 400,001 – 500,000 | 7% |
| 500,001 – 750,000 | Rs.7,000 + 10% |
| 750,001 – 1,500,000 | Rs.32,000 + 15% |
| 1,500,001 – 2,500,000 | Rs.144,500 + 20% |
| 2,500,001 – 4,000,000 | Rs.344,500 + 25% |
| 4,000,001 – 6,000,000 | Rs.719,500 + 30% |
| Above 6,000,000 | Rs.1,319,500 + 35% |
🔹 Salaried Individuals
| Taxable Income (PKR) | Rate |
|---|---|
| 0 – 400,000 | 0% |
| 400,001 – 500,000 | 2% |
| 500,001 – 750,000 | Rs.2,000 + 5% |
| 750,001 – 1,400,000 | Rs.14,500 + 10% |
| 1,400,001 – 1,500,000 | Rs.79,500 + 12.5% |
| 1,500,001 – 1,800,000 | Rs.92,000 + 15% |
| 1,800,001 – 2,500,000 | Rs.137,000 + 17.5% |
| 2,500,001 – 3,000,000 | Rs.259,500 + 20% |
| 3,000,001 – 3,500,000 | Rs.359,500 + 22.5% |
| 3,500,001 – 4,000,000 | Rs.472,000 + 25% |
| 4,000,001 – 7,000,000 | Rs.597,000 + 27.5% |
| Above 7,000,000 | Rs.1,422,000 + 30% |
📌 2. Allowances & Tax Credits
Important tax credits include:
✔ Zakat
✔ Education Expenses
✔ Profit on Debt
✔ Investment in Shares
✔ Pension Fund
✔ Donations
✔ Senior Citizen (Age 60+, income up to 1M – 50% tax reduction)
✔ Full time teachers/researchers (40% reduction)
📌 3. Company Tax Rates (2018)
| Company Type | Rate |
|---|---|
| Banking Company | 35% |
| Public Company | 30% |
| Private Company | 30% |
| Small Company | 25% |
| Modaraba | 25% |
Super tax also applies based on income thresholds.
📌 4. Withholding Taxes (WHT)
Includes:
✔ Imports
✔ Dividend
✔ Profit on Debt
✔ Payments to Non-Residents
✔ Goods, Services & Contracts
✔ Exports
✔ Rental Income
✔ Prizes & Winnings
✔ Petroleum Commission
✔ CNG Stations
✔ Brokerage & Commission
📌 5. Motor Vehicle Tax – Filer vs Non-Filer
✔ Goods transport
✔ Passenger vehicles
✔ Private motor vehicle registration
✔ Vehicle transfer
✔ Leasing to non-filers
📌 6. Taxes on Banking Transactions
✔ Cash withdrawal
✔ Purchase of bank instruments
✔ Non-cash transactions by non-filers
📌 7. Advance Taxes (Section 236 Series)
Includes:
✔ Domestic & International Air Tickets
✔ Sale/Purchase/Transfer of Property
✔ Educational Institutions
✔ Functions & Gatherings
✔ Minerals Extraction
✔ Tobacco
✔ Dealers, Arhatis & Commission Agents
✔ Retailers & Distributors
📌 8. Capital Gain Tax
Immovable property (Real Estate)
✔ Holding period determines tax
✔ Properties held above 3 years = 0%
✔ Special relief for armed forces and govt employees
Securities (Shares)
✔ Depends on holding period
✔ Higher tax for non-filers
📌 9. Disclaimer
This information is compiled based on the Income Tax Ordinance, 2001 (updated up to Finance Act 2017).
Tax laws may change—always consult the latest FBR updates.
