Pakistan Tax Tables 2020 - Tax Rates and Thresholds in Pakistan
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This page contains the tax table information used for the calculation of tax and payroll deductions in Pakistan in 2020. These tax tables are used for the tax and payroll calculators published on iCalculator™ PK, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Pakistan or would like to add to or suggest amendments to the information herein then please contact us.
2020 Tax Tables [Quick Links]
Related Calculators
Pakistan Personal Income Tax Tables in 2020
The Income tax rates and personal allowances in Pakistan are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Pakistan Tax Calculator 2020.
Pakistan Residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from $ 0.000.00 | to | $ 600,000.00 |
| 5% | Income from $ 600,000.01 | to | $ 1,200,000.00 |
| 10% | Income from $ 1,200,000.01 | to | $ 1,800,000.00 |
| 15% | Income from $ 1,800,000.01 | to | $ 2,500,000.00 |
| 17.5% | Income from $ 2,500,000.01 | to | $ 3,500,000.00 |
| 20% | Income from $ 3,500,000.01 | to | $ 5,000,000.00 |
| 22.5% | Income from $ 5,000,000.01 | to | $ 8,000,000.00 |
| 25% | Income from $ 8,000,000.01 | to | $ 12,000,000.00 |
| 27.5% | Income from $ 12,000,000.01 | to | $ 30,000,000.00 |
| 30% | Income from $ 30,000,000.01 | to | $ 50,000,000.00 |
| 32.5% | Income from $ 50,000,000.01 | to | $ 75,000,000.00 |
| 35% | Income from $ 75,000,000.01 | | and above |
Pakistan Non-residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from $ 0.000.00 | to | $ 600,000.00 |
| 5% | Income from $ 600,000.01 | to | $ 1,200,000.00 |
| 10% | Income from $ 1,200,000.01 | to | $ 1,800,000.00 |
| 15% | Income from $ 1,800,000.01 | to | $ 2,500,000.00 |
| 17.5% | Income from $ 2,500,000.01 | to | $ 3,500,000.00 |
| 20% | Income from $ 3,500,000.01 | to | $ 5,000,000.00 |
| 22.5% | Income from $ 5,000,000.01 | to | $ 8,000,000.00 |
| 25% | Income from $ 8,000,000.01 | to | $ 12,000,000.00 |
| 27.5% | Income from $ 12,000,000.01 | to | $ 30,000,000.00 |
| 30% | Income from $ 30,000,000.01 | to | $ 50,000,000.00 |
| 32.5% | Income from $ 50,000,000.01 | to | $ 75,000,000.00 |
| 35% | Income from $ 75,000,000.01 | | and above |
Pakistan Social Security and Payroll Deduction Rates in 2020
Pakistan Social Security in 2020: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Employees’ Old-Age Benefits Institution (EOBI) | 1% | 5% | 6% |
| Workers Welfare Fund | 0% | 2% | 2% |
| Employees’ Social Security Institutions (ESSI) | 0% | 6% | 6% |
Pakistan Social Security and Payroll Deduction in 2020: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Employees’ Old-Age Benefits Institution (EOBI) | n/a | n/a | n/a | n/a |
| Workers Welfare Fund | n/a | n/a | n/a | n/a |
| Employees’ Social Security Institutions (ESSI) | n/a | n/a | n/a | n/a |
Pakistan VAT Rates in Pakistan
Pakistan has a Value Added Tax (VAT) system, which is a consumption-based tax levied on the value added to goods and services at each stage of production and distribution. It was introduced in 1992, replacing the Sales Tax system. VAT is applicable to all goods and services in Pakistan, with some exemptions such as essential food items, educational services, and medical supplies, as well as zero-rated supplies like exports and supplies to Special Economic Zones (SEZs). Businesses with a regular turnover are required to register for VAT, maintain proper records, and file regular returns. The implementation of VAT has increased government revenue, simplified the tax system, and helped reduce tax evasion by enhancing transparency and accountability
VAT rates for Pakistan are reviewed annually, you can use the VAT Calculator to calculate VAT due in Pakistan or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Pakistan VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | Zero Rated |
| 14% | Service Rate 1 |
| 15% | Service Rate 2 |
| 16% | Service Rate 3 |
| 17% | Standard Rate |
Historic Tax Tables supported for Pakistan
The following tax tables are supported by iCalculator™ PK as part of the suite of free tax tools we provide for Pakistan.