| Pakistan Income Tax In 2009, income from salary is charged to tax progressively at 20 different tax brackets (slabs) in Pakistan, rates ranging between 0% - 20%. Since income tax is progressive in nature, it tends to reduce economic disparity.
Pakistan Personal Income Tax Rates for 2009:
Slab No. / Taxable income / Rate of tax %
1. Where taxable income is below Rs. 180,000 0%
2. Where the taxable income is between Rs. 180,000 - Rs. 250,000 0.50%
3. Where the taxable income is between Rs. 250,000 - Rs. 350,000 0.75%
4. Where the taxable income is between Rs. 350,000 - Rs. 400,000 1.50%
5. Where the taxable income is between Rs. 400,000 - Rs. 450,000 2.50%
6. Where the taxable income is between Rs. 450,000 - Rs. 550,000 3.50%
7. Where the taxable income is between Rs. 550,000 - Rs. 650,000 4.50%
8. Where the taxable income is between Rs. 650,000 - Rs. 750,000 6.00%
9. Where the taxable income is between Rs. 750,000 - Rs. 900,000 7.50%
10. Where the taxable income is between Rs. 900,000 - Rs. 1,050,000 9.00%
11. Where the taxable income is between Rs. 1,050,000 - Rs. 1,200,000 10.00%
12. Where the taxable income is between Rs. 1,200,000 - Rs. 1,450,000 11.00%
13. Where the taxable income is between Rs. 1,450,000 - Rs. 1,700,000 12.50%
14. Where the taxable income is between Rs. 1,700,000 - Rs. 1,950,000 14.00%
15. Where the taxable income is between Rs. 1,950,000 - Rs. 2,250,000 15.00%
16. Where the taxable income is between Rs. 2,250,000 - Rs. 2,850,000 16.00%
17. Where the taxable income is between Rs. 2,850,000 - Rs. 3,550,000 17.50%
18. Where the taxable income is between Rs. 3,550,000 - Rs. 4,550,000 18.50%
19. Where the taxable income is between Rs. 4,550,000 - Rs. 8,650,000 19.00%
20. Where the taxable income is more than Rs. 8,650,000 20.00%
The basic exemption for male salaried person has been enhanced from Rs. 150,000 to Rs. 180,000. For the women taxpayers this limit will be Rs. 240,000.
Furnishing of Wealth Statement
Furnishing of wealth statement has been made obligatory for a person whose salary income is 500,000 or more and withholding statement has been treated as return of income. Now every salaried person whose income for the tax year or last tax year exceeds the prescribed limit of Rs. 500,000 shall be required to file wealth statement, irrespective of the fact that his employer has filed statement of deduction of tax and he is not obliged to file return of income.
Pakistan Corporate Tax RatesIn Pakistan, the corporate tax rate is 35%. An additional 2% Workers Welfare Fund (WWF) and 5% workers profit participation Fund (WPPF) is levied. This effectively makes the rate equal to 42% which is one of the highest corporate tax rates in the world.
Capital Value Tax
It is payable by individuals, firms and companies which acquire an asset by purchase or a right to use for more than 20 years.
Corporate Asset Tax
It is levied through section 12 of the Finance Act, 1991. This is one time levy payable by a company as defined in Companies Ordinance, 1984, on the value of fixed assets held by the company on the "specified date".
Pakistan Value Added Tax (VAT)The rate for sales tax is 16% of value of supplies. However, there are some items which are chargeable to sales tax at 18.5% or 21% of value of supplies.
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