MUHAMMAD UMAIR ZEB

ACCA, CFE, ACPA, CICA-USA, ITP-FBR

MEMBER TAX BAR ASSOCIATION~KP

INCOME TAX CARD

| TAX YEAR 2023 |
APPLICABLE FROM JULY 01, 2022 TO JUNE 30, 2023
UPDATED VIDE THE FINANCE BILL, 2022
INCOME TAX CARD | TAX YEAR 2023 | MUHAMMAD UMAIR ZEB
APPLICABLE FROM JULY 01, 2022 TO JUNE 30, 2023 ACCA, CFE, ACPA, CICA-USA, ITP-FBR
UPDATED VIDE THE FINANCE BILL, 2022 MEMBER TAX BAR ASSOCIATION~KP

COMPRHENSIVE GUIDE FOR TAX RATES Tax Rate Nature of

Nature of Payment
The purpose of this document is to summarize Nature of Payment- wise rates Filer Non-Filer Tax
and treatment of withholding income tax, considering the proposed PROFIT ON DEBT |
amendments vide the Finance Bill, 2022. and I do neither warrant at any time Sec 151, Div. IA Part III 1st Sch. -151(1)(a) - 151(1)(b) - 151(1)(c) - 151(1)(d) - 151(1a)
the currency of the above details nor accept any responsibility to update the Received by Company
same. 15% 30% Final Tax
Received by AOP or individual
RETURN ON SUKUKS |
Sec 151, Div. IB Pt III 1st Sch.
Received by Company 25% 50%
Received by individuals or AOPs and the profit
Tax Rate 12.5% 25% Final Tax
Nature of Payment Nature of is above Rs. 1M
Filer Non-Filer Tax Received by individuals or AOPs and the profit
10% 20%
is up to Rs. 1M
IMPORTS |
Sec 148 & Part II First Schedule IMPORT OF MOBILE PHONES |
Persons importing items (Materials & Sec148 & Part II of First Sch.
machinery) goods classified in Part I of the 1% 2%
Twelfth Schedule C & F Value CBU CKD/ SKD
Persons importing items (Parts & Advance
Advance Bar phones up to USD 30 Rs. 70 NIL Tax |
components) classified in Part II of the 2% 4% Bar phones exceeding USD 30 and
Tax: | Rs. 100 NIL Industrial
Twelfth Schedule up to USD 100
Persons importing items (Parts & Industrial undertaki
under- Smart phones up to USD 100 Rs. 100 NIL
components) classified in Part II of the 3.5% 7% ng
taking Mobile phones exceeding USD 100 Rs. 930 NIL importing
Twelfth Schedule – Commercial Importer

importing and up to USD 200 items at

Persons importing goods (all others) Mobile phones exceeding USD 200 Rs. 970 NIL
classified in Part III of the Twelfth items at 1% 1% or 2%
5.5% 11% and up to USD 350
Schedule or 2% for its for its own
own use Mobile phones exceeding USD 350 Rs. 3,000* Rs. 5,000* use
Manufacturers covered rescinded under SRO. and up to USD 500
1125(I)/2011 importing items covered under 1% 2% Minimum
Minimum Mobile phones exceeding USD 500 Rs. 5,200* Rs. 11,500* Tax | All
SRO. 1125(I)/2011
Tax | All other
Persons importing finished pharma other cases cases
products, not manufactured locally as 4% 8%
certified by the DRAP *Rates to be increased by 100% for Non-Filers
Import of CKD Kits of electrical vehicles for PAYMENTS TO NON -RESIDENTS |
small cars or SUVs with 50 kwh battery and 1% 2% Sec 152, Div. IV Pt. I, Div. II Pt. III 1st
LCVs with 150 kwh battery Sch. & Cl. 5AA Part II 2nd Sch.
No tax to be collected on the import of items covered in Clauses (12F) to (12M) of Royalty/ fee for technical services 15% 30%
Part IV Second Schedule Construction Services 7% 7%
Advertisement services (TV Satellite Channels) 7% 7% Final Tax
Foreign produced commercials for Adv 20% 40%
TAX RATES FOR SALARIED CLASS Fee for offshore digital services 10% 10%
SALARY | Sec 149, Div. I Part I 1st Schedule Contracts or related services 7% 14% Minimum
Insurance/ re-insurance premium 5% 10% Tax
Taxable Income Other payments 20% 40% Adv. Tax
Rate of Tax
From To
Up to 600,000 0% - Nil Tax Rate
600,001 1,200,000 2.5% on amount exceeding Rs.600,000 Nature of
Nature of Payment Non-
1,200,001 2,400,000 Filer Tax
15,000 12.5% on amount > Rs.1.2M Filer
2,400,001 3,600,000 165,000 P 20% on amount > Rs.2.4M PAYMENTS TO PE OF NON -RESIDENTS |
3,600,001 6,000,000 405,000 L 25% on amount > Rs.3.6M Sec 152, Div. II Pt III 1st Sch.
U
6,000,001 12,000,000 1,005,000 S 32.5% on amount > Rs.6M For supplies by PE of N/R Companies Advance
4% 8%
12,000,00 1 & Above 2,955,000 35% on amount > Rs.12M being Manufacturer Tax
S -149(3) BOD Meeting 20% on Gross Amount to Director For supplies by PE of N/R Companies 4% 8%
For supplies by PE of other N/R 4.5% 9%
DIVIDEND | For services by PE of N/R Companies 8% 16%
S 150, Div. I Pt III 1 st Sch. & Cl. 11B Part IV 2 nd Sch. For services by PE of other N/R 10% 20%
Dividend from Independent Power
Transport, freight forwarding, air cargo,
Purchasers, being a pass-through item under
Implementation/ Power/ Energy Purch. courier, manpower outsourcing, hotel,
Agreement, required to be 7.5% 15% security guard, software development, IT
reimbursed by CPPA-G & IT enabled services IT and IT enabled Minimum
services [as defined u/s (65F) ], Tracking Tax
Dividend from company covered under clause 3% 6%
nd
132C Part I 2 Schedule services, Advertising (other than by print
Dividend if no tax is payable by the Co. due to Final Tax or electronic media), Share registrar
exemption, c/f loss, tax credits 25% 50% services, Car rental, Building
Cash Dividend maintenance, Inspection, Certification,
15% 30%
Testing, Training services
Other cases, including mutual funds, stock
funds, Money market fund, income fund & 15% 30% Execution of contract by sports persons 10% 20%
repatriation of after-tax profits by branches of For other contracts 7% 7%
foreign companies
Dividend in specie (Shares of Group Company) 15% 30% Air Transport Income (On Gross 3% 6%
Inter-company dividend under group Amount)
taxation Not Applicable Shipping Income (On Gross Amount) 8% 16%
INCOME TAX CARD | TAX YEAR 2023 | MUHAMMAD UMAIR ZEB
APPLICABLE FROM JULY 01, 2022 TO JUNE 30, 2023 ACCA, CFE, ACPA, CICA-USA, ITP-FBR
UPDATED VIDE THE FINANCE BILL, 2022 MEMBER TAX BAR ASSOCIATION~KP

Tax Rate Nature of Tax Rate Nature of

Nature of Payment Nature of Payment
Filer Non-Filer Tax Filer Non-Filer Tax

SUPPLY OF GOODS INCLUDING TOLL MANUFACTURING|

st nd EXPORTS |
Sec 153(1)(a), Div. III P III 1 Sch, Cl 24A, 24C, 45A P II 2 Sch
Sale of rice, cottonseed & edible oil 1.5% 3% Sec 154 & 154A Div IV & IVA Pt III 1 st Sch, Cl. 47C Pt IV
Advance 2nd Sch
Sale of cigarettes, pharma products, 1% 2%
gold, silver & articles thereof Tax for Realization of export proceeds
Sale of FMCG, fertilizer, electronics Listed [Exemption to cooking oil or vegetable
excluding mobile phones, sugar, companies ghee exported to Afghanistan if tax u/s
cement, steel & edible oil by 0.25% 0.5% and 148 is paid]
distributors, dealers, sub-dealers, Companies Inland back-to-back LC by exporter on
wholesales & Engaged in sale of goods under an arrangement 1%
retailers Manu- prescribed by FBR
Sale of other goods by companies facturing. Export of goods by EPZ units Final Tax
4% 8%
including toll manufacturers Payment for a firm contract by direct
Sale of other goods by AOPs & Ind. Minimum exporters reg. under DTRE Rules, 2001,
4.5% 9% Tax for
including toll manufacturers to indirect exporters
Local sales, supplies and services made other Realization of proceeds on account of
1% 2% cases.
by export-oriented sector commission to indenting agent
Local supplies by yarn traders to export- Export of services including computer
0.5% 1%
oriented sector software or IT services or IT enabled
Note: No tax to be withheld in case of (a) where aggregate annual services (where no tax credit available
payment is below Rs 75,000/-. AND (c) purchase of asset under lease u/s 65F), Technical services, Royalty 0.25%
& buy back agreement by modarabas, leasing/ banking companies or fees or Commission, construction
financial institutions. contracts and other services notified by
FBR.
All Other Cases 1%
PAYMENTS FOR SERVICES |
Sec 153(1)(b), 153(2), Div. III & Div IV P III
st
1 Sch.
PROPERTY INCOME/ RENTALS | Sec 155, Div V Pt III 1st Sch
Advertising services (elec. & print For
1.5% 3% 15% Filer – 30% Non-Filer
media) companies
Transport, Freight forwarding, Air cargo ANNUAL RENT
services, Courier, Manpower FROM TO
outsourcing, Hotel, Security guard, Upto 300,000 NIL
Software development, IT and IT 300,001 600,000 5% Of Above
enabled services [as defined u/s 65F], Advance
300,000
Tracking services, Advertising (other Other Tax
600.001 2,000,000 15,000+10%
than by print or electronic media), Share 3% 6% cases Of Above
registrar services, Car rental, building Minimum 600,000
maintenance, Services of PSX & PMEL, Tax Above 2,000,000 155,000+25%
Inspection, Certification, Testing & Of Above
Training, Oilfield, Telecommunication, 2,000,000
Collateral management, travel and tour Non-Filer Double Tax
services, REIT Mgmt Services,
Services rendered by National Clearing PRIZES AND WINNINGS |
Company of Pakistan Ltd. Sec 156, Div VI Pt III 1st Sch
Companies providing other services 8% 16% On prize bonds & crossword puzzle 15% 30%
AOPs & Ind. providing other services 10% 20% Raffle, lottery, winning quiz & prizes on Final Tax
20% 40%
Stitching, dying, printing, embroidery, sales promotion schemes
1% 2%
washing, sizing & weaving for Exporters
Note: No tax to be withheld for payments in case where payments PETROLEUM PRODUCTS | Sec 156A, Div VIA Pt III 1st Sch
made against services rendered is less than Rs. 30,000/ - in aggregate, Commission/ discount to petrol pump
during a financial year. 12% 24% Final Tax
operators on petroleum prod.

EXECUTION OF CONTRACTS |
Sec 153(1)(c), Div III Pt III 1st Sch
Received by Listed Companies Adv. Tax
6.5% 13%
Received by Other Companies
Received by sportspersons 10% 20% Minimum
Tax
Received by others 7% 14%
INCOME TAX CARD | TAX YEAR 2023 | MUHAMMAD UMAIR ZEB
APPLICABLE FROM JULY 01, 2022 TO JUNE 30, 2023 ACCA, CFE, ACPA, CICA-USA, ITP-FBR
UPDATED VIDE THE FINANCE BILL, 2022 MEMBER TAX BAR ASSOCIATION~KP

Tax Rate Nature of Tax Rate Nature of

Nature of Payment Nature of Payment
Filer Non-Filer Tax Filer Non-Filer Tax

TAX ON MOTOR VEHICLES |

COMMERCIAL ELECTRICITY CONNECTIONS FROM
Sec 231B & 234, Div VII & III Pt IV 1st
Sch RETAILERS OTHER THAN TIER-I RETAILERS AS DEFINED IN
Leasing on Vehicle | Based on value N/A 12% SALES TAX ACT, 1990 |
On Registration by Excise and Taxation S235 (1A)
Department & on Sale by Manufacturer
(Car or Jeep) Gross Bill Amount
FIXED
Up to 850cc Nil Nil From To TAX
851cc to 1,000cc 5,000 15,000 Amount does not exceed PKR PKR 3,000
1001cc to 1300cc 7,500 22,500 30,000
Where the Amount exceed
1301cc to 1600cc 12,500 37,500 PKR 30,000 but does not PKR 5,000
1601cc to 1800cc 18,750 56,250 exceed PKR 50,000
1801cc to 2000cc 25,000 75,000
Where the Amount exceed PKR PKR 10,000
2001cc to 2500cc 37,500 112,500 50,000 but does not exceed
2501cc to 3000cc 50,000 150,000 PKR 100,000
3000cc and above 62,500 187,500
Retailers and Service Providers
Sold Locally Manufactured Vehicles Up to PKR 200,000
as notified by the board in the
Up to 1,000cc income tax general order
100,000 300,000
1001cc to 2000cc 200,000 600,000
TELEPHONE & INTERNET USERS|
Sec 236, Div. V Pt.IV 1 st Sch.
400,000 1,200,000
2001cc and above Landline bills exceeding Rs. 1,000 15%
Advance
Mobile Phone bills & Prepaid cards
15% Tax
Section 234 Motor vehicle Internet Bills
800 1600 Postpaid Internet & Prepaid net cards
Up to 1000cc
SALE BY AUCTION |
1,500 3,000 Sec 236A, Div VIII Pt IV 1st Sch
1001cc to 1199cc
Sale of property, goods or lease of right Advance
1,750 3,500 by public auction or tender 10% 20% Tax
1200cc to 1299cc
Sale of lease of right to collect tolls
2,500 5,000 Final Tax
1300cc to 1499cc Sale-immovable property by auction 5% 10%
Advance Tax on Transfer and Sale of 2% 4% Advance
3,750 7,500 Immovable Property Tax
1500cc to 1599cc
4,500 9,000 PURCHASE OF IMMOVABLE PROPERTY | S236K, Div XVIII Pt IV
1600cc to 1999cc st
1 Sch
10,000 20,000 On fair market value 2% 7% Adv. Tax
2000 and Above
SALE/ TRANSFER OF IMMOVABLE PROPERTY | S236C, DvX PIV
1st Sch
BROKERAGE & COMMISSION | Holding Period - Unlimited
Sec 233, Div II Pt IV 1st Sch 2% 4% Adv. Tax
Advertising commission 10% 20% (2022-2023)
Minimum Tax Under Section 236c shall be
Life Insurance Commission up to
8% 16% Tax collected independent from the
Rs. 0.5M p.a.
time of sale with respect to time
Other Commissions 12% 24% of purchase
TAX ON SALES TO DISTRIBUTORS, DEALERS &
WHOLESALERS BY MANUFACTURERS & COMMERCIAL
COMMERCIAL & INDUSTRIAL ELECTRICITY CONSUMERS | IMPORTERS | Sec 236G,
S235, S235(1A) - Div. IV P IV 1 st Sch., Cl 66 P IV 2 nd Sch. Div XIV Pt IV 1st Sch
Gross Bill Amount Fertilizers 0.7% 1.4%
Tax Fertilizers (if appearing on ATL
From To 0.25% 0.5%
Up to 500 NIL
under ITO 2001 & ST Act 1990)
500 20,000 10% of amount Electronics | Sugar | Cement |
Iron & steel products | Advance
Comm Cons. | Rs. 1,950 + 12% above 20,000
Above 20,000 Ind. Cons. | Rs. 1,950 + 5% above 20,000 Motorcycles | Pesticides | Tax
Cigarettes | Glass | Textile |
0.1% 0.2%
Exceeding 25,000 - 7.5% Non-Filer Beverages | Paint or foam |
Domestic/Residential- Pharmaceuticals | Poultry &
animal feed | Edible oil & ghee |
Battery | Tyres | Varnishes |
Chemicals |
Cosmetics | IT equipment
INCOME TAX CARD | TAX YEAR 2023 | MUHAMMAD UMAIR ZEB
APPLICABLE FROM JULY 01, 2022 TO JUNE 30, 2023 ACCA, CFE, ACPA, CICA-USA, ITP-FBR
UPDATED VIDE THE FINANCE BILL, 2022 MEMBER TAX BAR ASSOCIATION~KP

Tax Rate Nature of Tax Rate Nature of

Nature of Payment Nature of Payment
Filer Non-Filer Tax Filer Non-Filer Tax

TAX ON SALES TO RETAILERS & WHOLESALERS BY SUPER TAX HIGH EARNING PERSONS
ST
MANUFACTURERS, DISTRIBUTORS, DEALERS, WHOLESALERS – SEC 4C & 1 SCHEDULE
& COMMERCIAL IMPORTERS | Sec 236H, Div XV Pt IV 1st Sch
Electronics | Sugar | Cement | Iron & BANKING COMPANIES TAX RATES
Steel products | Motor cycles | Where Income does not exceed Rs. 150 0% of The Income
Pesticides | Cigarettes | Glass | Million
Textile | Beverages | Paint or foam | Advance Where Income exceed Rs. 150 Million but 1% of The Income
0.5% 1%
Pharmaceuticals | Poultry & animal Tax does not exceed Rs. 200 Million
feed | Edible oil & ghee | Battery |
Where Income exceed Rs. 200 Million but 2% of The Income
Tyres | Varnishes | Chemicals | does not exceed Rs. 250 Million
Cosmetics | IT equipment
Where Income exceed Rs. 250 Million but 3% of The Income
does not exceed Rs. 300 Million
COLLECTION OF TAX BY EDUCATIONAL INSTITUTIONS Where Income exceed Rs. 300 Million 4% of The Income
WHERE FEE EXCEEDS RS. 200,000/- | TY-22 Business Engaged in Airlines, Automobiles, Beverages, Cement,
Sec 236I, Div XVI Pt IV 1st Sch Chemicals, Cigarette & Tobacco, Fertilizer, Iron, Steel, LNG Terminal, Oil
From residents Omitted Marketing, Oil Refining, Petroleum and Gas, Exploration & Production,
From non-residents Omitted Pharmaceutical, Sugar and Textile –Rate of Tax Shall be 10% Exceeds
PKR 300 Million
RENT OR PAYMENT FOR RIGHT TO USE MACHINERY TY-23 Banking Companies – Rate of Tax Shall be 10% Exceeds PKR 300
& EQUIPMENT | Million
Sec 236Q, Div XXIII Pt IV 1ST Sch
To be collected for industrial, commercial Minimum CAPITAL GAIN ON SALE OF IMMOVABLE PROPERTY |
Omitted SEC 37, 1ST SCHEDULE
and scientific equipment & machinery Tax PARTICULARS Open Constructed Flat
Plot Property
Where Holding Period Does Not Exceed One Year 15% 15% 15%
ON AMOUNT REMITTED ABROAD THROUGH CREDIT, DEBIT OR Where Holding Period Exceed One Year but Does 12.5% 10% 7.5%
PRE-PAID CARD | Sec 236Y Not Exceed Two Years
Where Holding Period Exceed Two Years but Does 10% 7.5% 0%
Not Exceed Three Years
On amount remitted abroad through Where Holding Period Exceed Three Years but 7.5% 5% 0%
credit, debit or pre-paid card 0.5% 1% Advance Does Not Exceed Four Years
Tax Where Holding Period Exceed Four Years but Does 5% 0% 0%
Not Exceed Five Years
Where Holding Period Exceed Five Years but Does 2.5% 0% 0%
TAX RATES AOP & BUSINESS INDIVIDUALS OTHER THAN SALARIED CLASS Not Exceed Six Years
Where Holding Period Exceed Six Years 0% 0% 0%
BUSINESS| Sec 18, 1st Schedule
CAPITAL GAIN ON SALE OF SECURITIES |
Taxable Income
Rate of Tax SEC 37A – 1ST SCHEDULE
From To Where Holding Period Does Not Exceed One Year 15%
Up to 600,000 0% - Nil Where Holding Period Exceed One Year but Does 12.5%
Not Exceed Two Years
600,001 800,000 5% on amount exceeding Rs.600,000 Where Holding Period Exceed Two Years but 10%
Does Not Exceed Three Years
800,001 1,200,000 10,000 12.5% on amount > Rs.0.8M Where Holding Period Exceed Three Years but 7.5%
1,200,001 2,400,000 60,000 P 17.5% on amount > Rs.1.2M Does Not Exceed Four Years
L Where Holding Period Exceed Four Years but 5%
2,400,001 3,000,000 270,000 22.5% on amount > Rs.2.4M Does Not Exceed Five Years
U Where Holding Period Exceed Five Years but 2.5%
3,000,001 4,000,000 405,000 27.5% on amount > Rs.3M
S Does Not Exceed Six Years
4,000,001 6,000,000 680,000 32.5% on amount > Rs.4M
Where Holding Period Exceed Six Years 0%
6,000,00 1 & Above 1,330,000 35% on amount > Rs.6M

COMPANIES – SEC 18, 100A, 1ST SCHEDULE, 2ND SCHEDULE & 7TH
SCHEDULE

BANKING COMPANIES TAX RATES

If Asset to deposit ratio as on last 55%
day of the tax year is 40%
If Asset to deposit ratio as on last day of 49%
the tax year exceed 40% but not exceed
50%
If Asset to deposit ratio as on last day of 39%
the tax year exceed 50%
Taxable Income arising from additional 20%
advance to micro, small and medium DISCLAIMER
enterprises
The above details have been compiled from the Finance Bill, 2022. I have
.
SMALL COMPANIES 20% exercised due professional care in compiling the above details. As Tax
OTHER COMPANIES 29% laws are subject to change from time to time, so I expressively disclaim
any responsibility relying on the details mentioned above.