Tax Rate Chart – Tax Year 2020

Withholding tax for salary individuals u/s 149 Other important withholding tax rates
Salary income (Rupees) Tax rates Contacts u/s 153 Active Inactive
Up to 600,000 0% By company 7% 14%
600,001 to 1,200,000 5% exceeding 600,000 By individual and AOP 7.5% 15%
1,200,001 to 1,800,000 30,000 + 10% exceeding 1,200,000 Brokerage and commission u/s 233 Active Inactive
1,800,001 to 2,500,000 90,000 + 15% exceeding 1,800,000 Advertisement agents 10% 20%
2,500,001 to 3,500,000 195,000 + 17.5% exceeding 2,500,000 Life insurance (less than 0.5 M) 8% 16%
3,500,001 to 5,000,000 370,000 + 20% exceeding 3,500,000 Other cases 12% 24%
5,000,001 to 8,000,000 670,000 + 22.5% exceeding 5,000,000 Tax at import stage u/s 148 Filer Non-filer
8,000,001 to 12,000,000 1,345,000 + 25% exceeding 8,000,000 Coal Importers 4% 8%
12,000,001 to 30,000,000 2,345,000 + 27.5% exceeding 12,000,000 Industrial undertaking 5.5% 11%
30,000,001 to 50,000,000 7,295,000 + 30% exceeding 30,000,000 Other companies 5.5% 11%
50,000,001 to 75,000,000 13,295,000 + 32.5% exceeding Other tax payers 6% 12%
50,000,000 Profit on debt u/s 151 Active Inactive
Above 75,00,000 21,420,000 + 35% exceeding 75,00,000 Up to 500,000 10% 20%
Up to 5 M 15% 30%
Withholding of tax @ 20% against payment of directorship fee or fee From 5 M to 25 M 17.5% 35%
for attending board meeting u/s 149(3) Above 25 M 20% 40%
Dividend u/s 150 Active Inactive
Withholding tax for income from property u/s 155 Dividend paid by independent power 7.5% 15%
purchasers
Business income (Rs) Tax rates
General rate and rate for mutual funds 15% 30%
Individuals and AOPs Where company’s profit is exempt 15% 30%
Up to 200,000 Nil Immoveable property
200,001 to 600,000 5% exceeding 200,000 On seller u/s 236C 1% 2%
600,001 to 1,000,000 20,000 + 10% exceeding 600,000 On buyer u/s 236K 1% 2%
1,00,001 to 2,000,000 60,000 + 15% exceeding 1,000,000 On issue of bonus shares 0% 0%
2,000,001 to 4,000,000 210,000 + 20% exceeding 2,000,000 On sale by auctions u/s 236A 10% 20%
4,000,001 to 6,000,000 610,000 + 25% exceeding 4,000,000 Charge by local educational institutes 5% 5%
6,000,001 to 8,000,000 1,110,000 + 30% exceeding 6,000,000 u/s 236I
Above 8,000,000 1,710,000 + 35% exceeding 8,000,000 Charge by foreign educational institute 5% 5%
u/s 236R
Companies 15% of gross rent On non-resident royalty and technical 15% 15%
services u/s 152
Other important withholding tax rates Use of machinery & equipment u/s 236Q 10% 10%
Tax on sale – specified sectors Active Inactive On prize bonds u/s 156 15% 30%
Purchase of air ticket – domestic u/s 5% 5%
Sale to distributors, dealers and 0.7% 1.4%
236B
wholesalers – Fertilizers – 236G
Purchase of air ticket – international
Sale to distributors, dealers and 0.1% 0.2%
u/s 236L
wholesalers – others – 236G
Tax on sale to retailers – electronics – 1% 2% Economy class 0%
236H Executive/ first class Rs 16,000 per person
Tax on sale to retailers – others – 236H 0.5% 1% Others excluding economy Rs 12,000 per person
(Electronics, sugar, cement, iron and steel products, motorcycles, Mineral extraction u/s 236V 0% 5%
pesticides, cigarettes, glass, textile, beverages, paint or foam sector) Services/ contracts outside Pakistan 50% rebate on tax rates
under section 153
CNG Stations u/s 234A 4% 8%
Sale of goods u/s 153 Active Inactive General insurance premium u/s 236U 4%
By company 4% 8% Life insurance premium over 0.3M 1%
By individual and AOP 4.5% 9% Foreign payments through credit cards 1% 2%
Rice, cotton seed and edible oils 1.5% 3% u/s 236Y
Dealers and sub-dealers of sugar, 0.25% 0.5% Gain on sale of immovable property
cement, edible oil
Gain on sale of immoveable property Active
Fast moving consumer goods Company 2% 4%
Fast moving consumer goods others 2.5% 5% Where gain < 5,000,000 5%
Where gain > 5,000,000 < 10,000,000 10%
Services u/s 153 Active Inactive Where gain > 10,000,000 < 15,000,000 15%
By company 8% 16% Where gain > 15,000,000 20%
By individual and AOP 10% 20% Taxability of gain for open plots (sale price – cost)
Royalty to resident persons 15% 30% Where holding period is less than 1 year – 100%
Transport services, freight forwarding 3% 6% Where holding period is > 1 year < 8 years – 75%
services, air cargo services, courier Where holding period is > 8 years – 0%
services, manpower outsourcing services, Taxability of gain for constructed property (sale price – cost)
hotel services, security guard services, Where holding period is less than 1 year – 100%
software development services, IT Where holding period is > 1 year < 4 years – 75%
services, tracking services, advertising Where holding period is > 4 years – 0%
services, share registrar services, Where the property has sold in the same year, 1% is the minimum tax
engineering services, car rental services, of the sale consideration.
building maintenance services, Capital derived by original allottee of government servant, tax shall be
inspection, testing and training services. reduced by fifty percent. (9A Part-III, 2nd schedule)
Offshore digital services 152(1C) 5% 10% Due care has been exercised to prepare this document. However, where
Electronic/ print media for advertisement 1.5% 3% any error or omission is found, the same may please be communicated at
(non-filer company/ other) shahzad@princeps.com.pk

Disclaimer: The information contained in this chart is of a general nature for guidance of staff and clients of Princeps Consulting and is not intended to address the
circumstances of any particular individual or entity. Before making any decision or taking any action, please consult for a professional advice.