Hi guyz,

What is the income tax rate in pakistan? Like on wht salary band does a specific percentage apply.

I heard the max is 25%. So lets say I am earning 60K, what percentage would apply? Also what is the tax free income amount?

Thanks guyz..

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it varies between 0.5% to 25%
For income up to 1,00,000 Rs you don't have to pay any tax.

Also, it's wrong Group you should be posting it here -
Business, Economics, Personal Finance & Equity Markets

For salaried men it is 180,000 exemption now. Do you want exact calculation on 60K per month?

mo bhai, i didnt get it... u get an exmeption if u make less than 180K? also what about the withholdings they were going to introduce?

Income up to 180,000 is exempt. For example if you earn 250,000 in a year, 180,000 will be exempt from income tax and you have to pay income tax for rest of the 70,000.

Withholding tax and deduction of tax at source is already here in Pakistan since (at least) President Zia's governement.

Hi, Thanks for the info ppl...

But is there any site or anyone coud tell me exacltly what bands does what figure apply. Like if I earn 60K a month = 720K a year, out of that 180K would be tax free but the remaining 540K would be taxed at what %? I am guessing the highest 25%?

No its not the max rate for that income. Please send me your email address and I would send you the excel file to calculate tax on salary.

Annual tax liabitlity for 60K per month would be Rs.39,500.00.

http://www.fbr.gov.pk/newdt/circular...circluar06.pdf


This circular gives clear instructions to calculate tax on salary for current year.

Originally Posted by Mostar95

Income up to 180,000 is exempt. For example if you earn 250,000 in a year, 180,000 will be exempt from income tax and you have to pay income tax for rest of the 70,000.

Little correction. Income up to 180,000 is exempt but if it is 180,001 then whole of the 180,001 becomes taxable at .5% up to 250,000.