G GHAUS & COMPANY

C MANAGEMENT CONSULTANTS INCOME TAX RATES FOR TAX YEAR 2023

(AMENDED UP TO 16-08-2022)

TAX RATES FOR SALARIED INDIVIDUALS (U/S 149) NATURE OF PAYMENT SECTION ATL NON ATL
S.No. Taxable Income Rate of Tax IMPORTS (U/S 148)
1 Where taxable income does not exceed Import of Re-meltable Steel, Fertilizer, Urea &
0% 148 1% 2%
Rs. 600,000 Manufacturer Under SRO 1125
Where taxable income exceeds Rs.600,000 2.5% of the amount exceeding Import of Pulses 148 2% 4%
2
but does not exceed Rs.1,200,000 Rs. 600,000 Import-Commercial Under SRO 1125 148 3% 6%
Where taxable income exceeds Rs.1,200,000 Rs. 15,000 + 12.5% of the amount Import-Coal 148 4% 8%
3
but does not exceed Rs.2,400,000 exceeding Rs.1,200,000
Import-Finished Pharmaceutical Products 148 4% 8%
Where taxable income exceeds Rs.2,400,000 Rs. 165,000 + 20% of the amount
4 but does notexceed Rs.3,600,000 exceeding Rs.2,400,000 Import of Ship by Ship Breakers 148 4.5% 9%
Where taxable income exceeds Rs.3,600,000 Rs. 405,000 + 25% of the amount Import-(Companies/ Inds. Undertakings) 148 5.5% 11%
5 but does not exceed Rs.6,000,000 exceeding Rs.3,600,000 Import-commercial of plastic raw material 148 4.5% 9%
Where taxable income exceeds Rs.6,000,000 Rs. 1,005,000 + 32.5% of the Import of Plastic raw Material by inds. Undertaking 148 1.75% 3.5%
6 but does not exceed Rs.12,000,000 amount exceeding Rs.6,000,000 Import-(by all Others) 148 6% 12%
Where taxable income exceeds Rs.12,000,000 Rs. 2,955,000 + 35% of the amount
7
exceeding Rs. 12,000,000
Note: Directorship fee or fee for attending board meeting u/s 149(3) WHT @ 20%
PROFIT ON DEBTS (U/S 151)
TAX RATES FOR NON-SALARIED INDIVIDUALS/AOP Profit on debt upto Rs. 500,000/- Ind/Aop 151 10% 20%
Division 1 Part 1 of First Schedule (Section 18)
Profit on debt exceeding Rs. 500,000/- Ind/Aop 151 15% 30%
S.No. Taxable Income Rate of Tax
1 Where taxable income does not exceed
0%
Rs. 600,000
Where taxable income exceeds Rs. 600,000 5% of the amount exceeding NON RESIDENTS (U/S 152)
2
but does not exceed Rs. 800,000 Rs. 600,000 Services-Royalty /Fee of Technical Services 152(1) 15% 30%
Where taxable income exceeds Rs. 800,000 Rs. 10,000 + 12.5% of the Contracts 152(1A) 7% 7%
3
but does not exceed Rs. 1,200,000 amount exceeding Rs.800,000 Insurance 152(1AA) 5% 10%
Where taxable income exceeds Rs. 1,200,000 Rs.60,000 + 17.5% of the Services-Media Person Advertisement 152(1AAA) 10% 10%
4 but does not exceed Rs. 2,400,000 amount exceeding Rs.1,200,000 Any Other Case 152(2) 20% 40%
Where taxable income exceeds Rs.2,400,000 Rs. 270,000 + 22.5% of the Supply of Goods- Companies 152(2A) 4% 4%
5 but does not exceed Rs. 3,000,000 amount exceeding Rs.2,400,000
Supply of Goods- IND/AOP 152(2A) 4.5% 4.5%
Where taxable income exceeds Rs.3,000,000 Rs.405,000 + 27.5% of the Services- Companies 152(2A) 8% 8%
6 amount exceeding Rs.3,000,000
but does not exceed Rs. 4,000,000
Services-IND/AOP 152(2A) 10% 10%
Where taxable income exceeds Rs.4,000,000 Rs. 680,000 + 32.5% of the Contracts -IND/AOP/Coy 152(2A)
7 7% 7%
but does not exceed Rs. 6,000,000 amount exceeding Rs.4,000,000
Contracts-Sports Persons 152(2A) 10% 20%
Where taxable income exceeds Rs.6,000,000 Rs. 1,330,000 + 35% of the
8 Foreign Produced Commercials- Coy/IND/AOP 152(2A) 20% 40%
amount exceeding Rs.6,000,000.
S.No. INCOME FROM PROPERTY (U/S 15 & 155)
Gross Amount Tax Rates
GOODS SERVICES & CONTRACTS (U/S 153)
1 Upto 300,000 0%
Supply of Goods- Companies 153(1)(a) 4% 8%
2 300,000 to 600,000 5% of the amount exceeding Rs. 300,000
Supply of Goods- IND/AOP 153(1)(a) 4.5% 9%
3 600,001 to 2,000,000 Rs. 15,000 plus 10% of the amount exceeding Rs. 600,000
Sale of Rice Cotton Seed Edible Oil Coy/Ind/Aop 153(1)(a) 1.5% 3%
4 Exceeding Rs. 2,000,000 Rs. 155, 000 plus 25% of the amount exceeding Rs. 2,000,000
Distributors of FMCG- Companies 153(1)(a) 0.25% 0.50%
5 In case of company 15%
Distributors of FMCG- IND/ AOP 153(1)(a) 0.25% 0.50%
TAX ON DEEMED RENTAL INCOME U/S 7E Services- Companies 153(1)(b) 8% 16%
Value of Property to be Taxed Tax Rates Services-IND/AOP 153(1)(b) 10% 20%
Fair market value of the property(s), in aggregate exceeding Rs. 25 million 5% Services Electronic & Print Media Ad- COY/IND/AOP 153(1)(b) 1.5% 3%
CAPITAL GAIN ON SALE OF IMMOVABLE PROPERTY (U/S 37(1A)) Transport services, freight forwarding services, air cargo
services, courier services, manpower outsourcing
Constructed
Holding Period Open Plots Flats services, hotel services, security guard services, software
Property development services, IT services and IT enabled
Where the holding period does not exceed one year 15% 15% 15% services as defined in section 2, tracking services,
Where the holding period exceeds one year advertising services (other than by print or electronic
12.5% 10% 7.5% media), share registrar services, engineering services
but does not exceed two years 153(1)(b) 3% 6%
including architectural services, warehousing services,
Where the holding period exceeds two years services rendered by asset management companies,
10% 7.5% 0% data services provided under license issued by the
but does not exceed three years
- P a k i s t a n Te l e c o m m u n i c a t i o n A u t h o r i t y,
Where the holding period exceeds three years
7.5% 5% - telecommunication infrastructure (tower) services, car
but does not exceed four years rental services, building maintenance services, services
Where the holding period exceeds four years rendered by Pakistan Stock Exchange Limited and
5% 0% - Pakistan. Mercantile Exchange Limited, inspection,
but does not exceed five years
certification, testing and training services, oilfield
Where the holding period exceeds five years services, telecommunication services, collateral
2.5% - -
but does not exceed six years management services, travel and tour services 1 [, REIT
management services, services rendered by National
Where the holding period exceeds six years 0% - - Clearing Company of Pakistan Limited.]
Note: Capital derived by original allottee of government servant, tax shall be reduced by 50%. (9A Part-III, 2nd Schedule) Contracts - Companies 153(1)(c) 6.5% 13%
SALE AND PURCHASE OF IMMOVEABLE PROPERTY-RESIDENT Contracts -IND/AOP 153(1)(c) 7% 14%
Sale of Property 236C 2% 4% Contracts-Sports Persons 153(1)(c) 10% 20%
Purchase of Property 236K 2% 7% Every Exporter on payment to Stitching,
153(2) 1% 2%
Dying, Printing, Embroidery etc.
SALE AND PURCHASE OF IMMOVEABLE PROPERTY-NON RESIDENT
Goods: No deduction of tax where payment is less than Rs. 75,000/- in aggregate
Sale of Property 236C 2% 2% during a financial year [S.153(1)(a)]
Purchase of Property 236K 2% 2% Services: No deduction of tax where payment is less than Rs. 30,000/- in aggregate
Note: Non-Residents with NICOP or POC during a financial year [S.153(1)(b)]
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G GHAUS & COMPANY
C MANAGEMENT CONSULTANTS INCOME TAX RATES FOR TAX YEAR 2023
(AMENDED UP TO 16-08-2022)
NATURE OF PAYMENT SECTION ATL NON ATL NATURE OF PAYMENT SECTION ATL NON ATL

PRIZE AND WINNINGS (U/S 156) MOTOR VEHICLES

Prize Bonds 156 15% 30%
On Registration by Excise & 231B(1)& (3)
Other Prizes, Winning Lottery , Raffles 156 20% 40%
Taxation and on Sale by
Manufacturer
EXPORTS Up to 850cc 10,000 20,000
Exports 154 1% of proceeds
851cc to 1000cc 20,000 40,000
Export proceeds of Computer software
or IT services or IT Enabled services by 1001 to 1300cc 25,000 50,000
154A 0.25% of proceeds
persons registered with Pakistan 1301cc to 1600cc 50,000 100,000
Software Export Board
1601cc to 1800cc 150,000 300,000
Any other case 154A 1% of proceeds
1801cc to 2000cc 200,000 400,000
2001cc to 2500cc 300,000 600,000
BROKERAGE AND COMMISSION
2501cc to 3000cc 400,000 800,000
Advertising Agents 233 10% 20%
Above 3000cc 500,000 1,000,000
Life Insurance Agents (if <0.5Million) 233 8% 16%
Other Commissions 233 12% 24% Advance Tax on Purchase of 231B(2)
Private Motor Vehicle
PHONE AND INTERNET Up to 850cc - 5,000
Telephone Bill exceeding Rs.1,000 236(a) 10% 851cc to 1000cc 5,000 10,000
Telephone Bill/ Phone Cards 236(b) 15% 1001cc to 1300cc 7,500 15,000
Internet Bill 236(d) 15% 1301cc to 1600cc 12,500 25000
1601cc to 1800cc 18,750 37,500
TAX RATES FOR COMPANIES 1801cc to 2000cc 25,000 59,000
Banking Companies 39%
All other Companies 2001cc to 2500cc 37,500 75,000
29%
Small Companies 20% 2501cc to 3000cc 50,000 100,000
Alternate Corporate Tax (ACT) 17% Above 3000cc 62,500 125,000
Super Tax-Banking Companies 4%

Advance Tax on Motor Vehicle 234

SUPER TAX ON HIGH EARNING PERSONS (U/S 4C Division IIB) Up to 1000cc 800 1,600
S.No. Income Under Section 4C Rate of Tax
1001cc to 1199cc 1,500 3,000
1 Where income does not exceed Rs.150 million 0% of the income 1200cc to 1299cc 1,750 3,500

2
Where income exceeds Rs. 150 million
1% of the income 1300cc to 1499cc 2,500 5,000
but does not exceed Rs. 200 million
1500cc to 1599cc 3,750 7,500
Where income exceeds Rs. 200 million
3 2% of the income 1600cc to 1999cc 4,500 9,000
but does not exceed Rs. 250 million
Where income exceeds Rs. 250 million 2000cc & Above 10,000 20,000
4 3% of the income
but does not exceed Rs. 300 million
5 Where income exceeds Rs. 300 million 4% of the income
Where income exceed Rs 300 Million for the tax year 2022, who DISTRIBUTORS, DEALERS AND WHOLESALERS
are engaged, whether partly or wholly in the bussiness of Air line, All Except Fertilizer 236G 0.1% 0.2%
automobiles, beverages, cement, chemicals, cigarette and tobacco,
6 10% of the income
fertilizer,iron and steel, LNG terminal,Oil marketing, oil refinng, Fertilizers 236G 0.7% 1.4%
petroleum and gas exploration and production, pharmaceuticals,
Sugar, Textiles.
Sale to Retailers / Wholesalers by
236H 0.50% 1%
Distributors/Dealers
Where income exceed Rs 300 Million for the tax year 2023,
7 10% of the income
in case of Banking Company
OTHERS
MINIMUM TAX (U/S 113) Petrol & Petroleum Products 156A 12% 24%
(a) Sui Southern Gas Company Limited and Sui Northern Gas Pipelines
Limited (for the cases where annual turnover exceeds rupees one billion.) Auctions 236A 10% 20%
(b) Pakistani International Airlines Corporation; and 0.75% Auctions in case of immoveable property 236A 5% 10%
(c) Poultry industry including poultry breeding, broiler production, egg Commercial Meter Electricity
production and poultry feed production;
Gross Amount of Bill Tax
(a) Oil refineries
(b) Motorcycle dealers registered under the Sales Tax Act, 1990 0.5% Up to Rs. 500 0
(c) Oil marketing companies Exceeds Rs. 500 but dose not exceed
235 10% of the amount
(a) Distributors of pharmaceutical products, fast moving consumer goods and cigarettes; Rs. 20,000
(b) Petroleum agents and distributors who are registered under the Sales Tax Act, 1990; Rs. 1950 plus 12% for commercial consumers
(c) Rice mills and dealers; Exceeds Rs. 20,000
Rs. 1950 plus 5% for industrial consumers
(d) Tier-1 retailers of fast moving consumer goods who are integrated with Board or its
computerized system for real time reporting of sales and receipts; 0.25%
(e) Person’s turnover from supplies through e commerce including from running an online Notes:
marketplace as defined in clause (38B) of section 2. (1) Filing of Wealth statement along with Wealth Reconciliation U/S 116(2)
(f) Persons engaged in the sale and purchase of used vehicles; and is Compulsory for all Individual Taxpayers.
(g) Flour mills (2) Reduction of 25% tax for full time Teacher or Researchers, employed
In all other cases 1.25% in Non Profit Education or Recognized Research Institution.
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G GHAUS & COMPANY
C MANAGEMENT CONSULTANTS SALES TAX WITHHOLDING RATES-TAX YEAR 2023
(AMENDED UP TO 16-08-2022)

SALES TAX WITHHOLDING - FBR

Eleventh Schedule & Sub-Section 7 of Section 3
S.No. Withholding Agent Supplier Category Rate of Tax to be withheld
(a) Federal and provincial government departments;
autonomous bodies; and public sector organizations.
1 Active Taxpayers 1/5th of Sales Tax as shown on invoice
(b) Companies as defined in the Income Tax Ordinance,
2001 (i.e. FTN holders)
(a) Federal and provincial government departments;
autonomous bodies; and public sector organizations. Active Taxpayers registered as a
2 1/10th of Sales Tax as shown on invoice
(b) Companies as defined in the Income Tax Ordinance, wholesaler, dealer or distributor
2001 (i.e FTN holders)
Federal and provincial government departments; Whole of the tax involved or as applicable to
3 Person other than Active Taxpayer
autonomous bodies; and public sector organizations supplies on the basis of gross value of supplies
Companies as defined in the Income Tax Ordinance, 2001 Person other than Active Taxpayer 5% of gross value of supplies
4
excluding companies exporting surgical instruments
5 Registered persons as recipient of advertisement services Person providing advertisement Services Whole of sales tax applicable
6 Registered persons purchasing cane molasses. Person other than Active Taxpayer Whole of sales tax applicable
Persons supplying any kind of lead
under chapter 78 (PCT Headings:
7801.1000, 7801.9100, 7801.9900,
7802.0000, 78.03, 7804.1100,
7 Registered persons manufacturing lead batteries 75% of the sales tax applicable
7804.1900, 7804.2000, 78.05,
7806.0010, 7806.0020, 7806.0090)
or scrap batteries under chapter 85
Respective headings
1% of gross value of supplies Provided
that the provisions of this entry shall
8 Online market place Person other than Active Taxpayer
be effective from the date as notified
by the Board.
Note: The above sales tax withholding rate shall not be applicable to the goods and supplies specified below
a. Electrical energy
b. Natural Gas;
c. Petroleum Products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high speed diesel.
d. Vegetable ghee and cooking oil.
e. Telecommunication services.
f. Goods specified in the Third Schedule to the Sales Tax Act, 1990.
g. Supplies made by importers who paid value addition tax on such goods at the time of import.
h. Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another registered persons with exception of advertisement services.
I. Supply of sand, stone, gravel/crush and clay to low cost housing schemes sponsored or approved by Naya Pakistan Housing and Development Authority.
j. Electric vehicles (4 wheelers) CKD kits for small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below till 30th June, 2026.
k. Electric vehicles (4 wheelers) small cars/SUVs, with 50 kwh battery or below and LCVs with 150 kwh battery of below in CBU condition till 30th June, 2026.
l. Electric vehicles (2-3 wheelers and heavy commercial vehicles) in CBU condition till 30th June, 2025.
m. Motor cars of cylinder capacity upto 850cc.

SALES TAX WITHHOLDING - KPRA

Sales Tax Withholding Rules & Section 30 of the Act
S.No. Withholding Agent Supplier Category Rate of Tax to be withheld
a) All Federal Government Departments and The Departments of the Ministry of Defense. (a) Advertisement Services.
(b) All Departments of the KPK and other provincial Government including District Govt. Departments. (b) Services proviced by
(c) Environment Department of Government and All Divisional Engineers of the Departments or Irrigation, unregistered/inactive Person.
'(c) Services Provided to Govt.
Public Health Engineering and Communication & Works. Organisations / Institutions.
(d) All public sector organizations, corporations, universities bodies, boards, projects, (d) Services provided in the 100% of Sales Tax
ventures entities, enterprises, Institutions authorities of the Federal, Provincial, District or Province from other province
1 Local Government including special purpose institutions. if such service provider is not
(e) Companies as defined under sub-section (12) of section 2 of the Act including those registered with the authority.
located in the jurisdiction of or registered with any other tax authority for the purposes of (e) Serviced liable to tax at
reduced rate (Less than 15%
payment of sales tax in respect of goods or services rendered or provided in the province
of Khyber Pakhtunkhwa. (a) All other cases not
(f) Any other person declared as Withholding Agent for the purpose of this act. covered above 50% of Sales Tax
Exemptions :
a. The telecommunication services (other than such services as are provided / received by telecome companies to or from each other) Page # 3
b. Insurance Companies except re-insurance c. Port, Airport, Terminal Operator and Airport Ground Services.
G GHAUS & COMPANY
C MANAGEMENT CONSULTANTS SALES TAX WITHHOLDING RATES-TAX YEAR 2023
(AMENDED UP TO 16-08-2022)

SALES TAX WITHHOLDING - SRB

Sales Tax Withholding Rules & Section 13 of the Act
S.No. Withholding Agent Rate of Tax to be withheld
(a) Federal and provincial government departments; autonomous bodies; and public sector organizations or any of
1 its accounting office. 20% of Sales Tax
(b) Organizations funded by Federal Government (Fully / Partially)
2 (a) Companies defined under sub section 28 of Section 2. 20% of Sales Tax
(a) Recipient of advertisement services (other than advertisement in newspapers and periodicals), renting of immovable
property, service of auctioneers, Service of intercity transport or carriage of goods by road (other than those through
3 pipeline or conduit), advertising agent services from agents who issue release order or book advertisements space in 100% of Sales Tax
relation to advertisement services.
(a) SRB-registered persons receiving or procuring taxable service from un-registered persons
(b) SRB-registered persons or insurers receiving or procuring the services provided or rendered by insurance agents or insurance brokers.
(c) Persons or passengers using the services of a cab aggregator required to deduct or withhold the tax in relation to the services provided
or rendered by the owners or drivers of the motor vehicles using the services of the cab aggregators.
4 100% of Sales Tax
(d) Persons receiving or procuring such of the services of contractors and construction as are liable to reduced rate of tax at 2% or 5%
under notification No. SRB-3-4/9/2017 dated 2nd June, 2017 or are liable to reduced rate of tax at 5% under notification SRB-3-4/3/2018
dated 6th February, 2018 and No. SRB-3-4/8/2013 dated lst July, 2013.
(e) Persons receiving taxable services from SRB registered persons where the amount of sales tax is not indicated on the invoice.
Exemptions :
a. Telecommunication, Banking Companies and Financial Institutions & Courier Companies. b. Insurance Companies relating to Life and Health Insurance except re-insurance
c. Port, Airport, Terminal Operator and Airport Ground Services.

SALES TAX WITHHOLDING - PRA

Sales Tax Withholding Rules & Section 14 of the Act
S.No. Withholding Agent Rate of Tax to be withheld
(a) Federal and provincial government departments; autonomous bodies; and public sector organizations or any
1 of its accounting office. 100% of Sales Tax
(b) Organizations funded by Federal Government (Fully / Partially)
2 (a) Recipient of advertisement services registered with PRA or FBR 100% of Sales Tax
(a) Company resident in Punjab.
3 (b) Company having place of business in Punjab 100% of Sales Tax
(c) Registered persons receiving services from unregistered persons
Exemptions :
a. Telecommunication, Banking & Courier Companies b. Insurance Companies except re-insurance
c. Companies being active companies except Advertisement services companies

SALES TAX WITHHOLDING - Balochistan

Sales Tax Withholding Rules & Section 14 of the Act
S.No. Withholding Agent Rate of Tax to be withheld
(a) Federal and provincial government departments; autonomous bodies; and public sector organizations or any of its
1 accounting office. (Including FBR Registered) 20% of Sales Tax
(b) Organizations funded by Federal Government (Fully / Partially (Including FBR Registered)
2 (a) Companies defined under sub section 28 of Section 2 (Including FBR Registered) 20% of Sales Tax
(a) advertisement services (other than advertisement in newspapers and periodicals)
(b) Auctioneers
(c) Renting of immovable property
3 100% of Sales Tax
(d) Intercity transport or carriage of goods by road
(e) Services received from Inactive/ Unregistered/ Non-Resident
(f) Services received without sales tax invoice
Exemptions : a. Telecommunication, Banking Companies & Courier Companies.
Note : We have prepared this document just for overview, for details please consult relevant Provision of law. This document has been
prepared with due care , in case of any error or omission please inform us for improvement. Your suggestions will be highly appreciated.

Office # 09, 2nd Floor, Gohar Centre, Main Wahdat Road, Lahore. 042-35912744, 042-35912755 ghaus.co@live.com
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