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Income Tax Rate in Pakistan 2025
July 3, 2025 / 0 comment
Understanding the income tax rate in Pakistan is essential for everyone, whether you’re a salaried employee, a business owner, a freelancer, or a startup founder. Each year, the Federal Board of Revenue (FBR) updates tax slabs and rates for individuals and companies. Knowing your applicable tax rate helps ensure legal compliance, avoid FBR Notices and Appeals, and maximize financial planning.
This guide explains current income tax rates for 2025, differentiates between filer and non-filer status, and offers smart strategies to stay tax-compliant with the help of Efiling.
Income Tax Rate in Pakistan for Salaried Individuals (2025)
Annual Income (PKR) | Tax Rate (Filer) | Tax Rate (Non-Filer) |
0 – 600,000 | 0% | 0% |
600,001 – 1,200,000 | 2.5% | 5% |
1,200,001 – 2,400,000 | 12.5% | 25% |
2,400,001 – 3,000,000 | 20% | 35% |
3,000,001 and above | 35% | 45% |
Note: Non-filers are penalized with higher tax rates. Avoid this by registering as a filer through Income Tax & Sales Tax Reg & Returns with Efiling.
Income Tax Rate for Businesses in Pakistan
Sole Proprietors & Partnerships
Annual Profit (PKR) | Tax Rate (Filer) | Tax Rate (Non-Filer) |
Up to 600,000 | 0% | 0% |
600,001 – 1,200,000 | 7.5% | 15% |
1,200,001 – 2,400,000 | 17.5% | 30% |
2,400,001 and above | 25% | 35% |
Companies (Private Limited)
Flat Tax Rate: 29% (Filer) | 35% (Non-Filer)
Make sure your company is registered properly with the Company Registration and how to register a company in Pakistan to benefit from tax advantages and compliance support.
Why Filer Status Matters
Becoming a filer doesn’t just reduce your tax burden—it also improves your credibility, speeds up imports through Imp & Exp License / PSW / Weboc Registration, and strengthens your case in FBR Notices and Appeals.
Our blog on Filer and Non-Filer explains the full differences and benefits. Efiling ensures smooth filing of your returns, Sales Tax Registration, and Income Tax compliance.
Freelancers and Consultants: Tax Rate in Pakistan
Freelancers in Pakistan earning income via Upwork, Fiverr, or clients abroad are liable to pay income tax as per FBR regulations.
Annual Income (PKR) | Tax Rate (Filer) | Tax Rate (Non-Filer) |
0 – 600,000 | 0% | 0% |
600,001 – 1,200,000 | 5% | 10% |
1,200,001 and above | 15% | 25% |
Use Bookkeeping & Accounting Services from Efiling to maintain digital records for smooth audits and refunds.
Income Tax for Exporters & IT Companies
Exporters and IT companies registered with Pak Software Export Board Registration can benefit from reduced income tax under the Export IT Policy. However, registration, reporting, and compliance are critical.
You may also require:
- PEC Pak Engineering Council Registration (if offering engineering IT services)
- Bookkeeping and Accounting Services you stay financially organized, compliant with tax laws
- Chamber/Professional Tax Registration for trade legitimacy
Tax Penalties for Non-Filers
Non-filers face severe consequences including:
- Higher tax rates
- Restrictions in how to pay PTA tax online
- Exclusion from government contracts
- Delays in how to register a company in Pakistan
Efiling offers personalized help in becoming a filer and avoiding these penalties.
How to Become a Filer in Pakistan
E-filing helps you become a filer by:
- Registering you for Income Tax and Sales Tax Registration
- Filing your annual returns
- Resolving FBR Notices and Appeals
Maintaining compliance through Bookkeeping & Accounting Services
PTA Tax and Income Tax Connection
In Pakistan, your income tax status as a filer or non-filer plays a vital role in determining how much PTA tax you will pay when registering imported mobile devices. The Pakistan Telecommunication Authority (PTA), in collaboration with the Federal Board of Revenue (FBR), uses your filer status to calculate the Withholding Tax (WHT) that applies to your mobile registration. Non-filers are typically charged a significantly higher WHT, which makes the cost of registering devices via the how to pay PTA tax in Pakistan process more expensive. Additionally, non-filers may face more scrutiny and delays while processing device approvals.
In contrast, filers benefit from reduced tax rates, quicker PTA approvals through how to pay PTA tax online, and fewer FBR Notices and Appeals. Efiling assists both individuals and businesses by offering complete Income Tax and Sales Tax Registration solutions through our Income Tax & Sales Tax Reg & Returns service. Whether you are involved in Business/Firm Registration, require Imp & Exp License / PSW / Weboc Registration, or plan to import devices regularly, being a filer simplifies the PTA tax process and significantly reduces your financial burden.
FAQs About Income Tax Rate in Pakistan
Individuals earning below PKR 600,000 annually are exempt.
Yes, based on their annual earnings. Filer status reduces their tax burden.
You may face penalties, audits, and FBR Notices and Appeals.
Register through Efiling’s Income Tax & Sales Tax Reg & Returns services.
Conclusion
Understanding the current income tax rate in Pakistan is not just a matter of financial awareness it’s essential for compliance, business credibility, and sustainable growth. Whether you are a salaried individual, freelancer, entrepreneur, or managing a company, knowing your tax obligations and filer status can save you from unnecessary penalties, higher tax brackets, and legal complications. From Income Tax & Sales Tax Reg & Returns to Bookkeeping & Accounting Services, Efiling offers end-to-end solutions tailored to your profile. If you’re planning Chamber and Professional Tax Registration or need to handle FBR Notices and Appeals, our experts make tax compliance seamless. Don’t let tax complexities slow you down. E-filing is here to ensure you’re well-informed, legally compliant, and financially optimized every step of the way.
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