Pakistan corporate tax rate
Standard rate of tax on the taxable income of a resident company other than a banking company or a small company, under Division II of Part I of the First Schedule to the Income Tax Ordinance, 2001, administered by the Federal Board of Revenue. Pakistan's tax year runs 1 July to 30 June and is named for the year in which it ends (tax year 2027 = FY2026-27).
| Current value | 29 percent |
|---|---|
| In force from | 2018-07-01 |
| Official source | Income Tax Ordinance, 2001, First Schedule Part I Division II ('Rates of Tax for Companies') — Table as substituted by the Income Tax (Amendment) Act, 2025 (Act No. XIII of 2025): Banking Company 44% (TY2025), 43% (TY2026), 42% (TY2027 and onwards); Small Company 20%; Any other company 29%. FBR consolidated text of the Ordinance |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
29% has been the headline rate for non-banking, non-small companies since TAX YEAR 2019, i.e. income years beginning 1 July 2018 (the earlier proviso to Division II stepped the rate down 35% -> 34% TY2014 -> 33% TY2015 -> 32% TY2016 -> 31% TY2017 -> 30% TY2018 -> '29% for tax year 2019 and onwards'); the Finance Act 2026 did not touch Division II. THE TWO LOOKALIKES YOU MUST NOT SERVE INSTEAD: (a) a BANKING company pays 42% from tax year 2027 (43% in TY2026, 44% in TY2025) under the Income Tax (Amendment) Act, 2025; (b) a SMALL COMPANY as defined in s.2(59A) pays 20%. SUPER TAX under section 4C (Division IIB) is charged ON TOP of the corporate rate and was substantially rewritten by the Finance Act 2026, which substituted the Division IIB table with effect from tax year 2027: 10% of the income for a banking company with income exceeding Rs150 million; 10% for a person whose income is computed under Part I of the Fifth Schedule (exploration and production) exceeding Rs150 million; 10% for a person deriving income from the sale of any kind of fertilizer exceeding Rs150 million; and 8% for any OTHER person with income exceeding Rs500 million. This replaced the graduated 1%-10% ladder that ran from Rs150 million upwards for tax years 2023 onwards — so the effective all-in burden on a large non-banking company is now 29% + 8% super tax where s.4C income exceeds Rs500 million, and 29% alone below that threshold. Also live alongside: minimum turnover tax (s.113), alternative corporate tax (s.113C) and the separate super tax in Division IIA. NOTE FOR THE SOURCE-WATCHER: FBR had not yet published a consolidated Income Tax Ordinance updated past 20 February 2026 at confirmation, so the post-Finance-Act-2026 position must be read off the Finance Act 2026 gazette itself (Act No. XLIII of 2026, assented 26 June 2026, Gazette of Pakistan Extraordinary, https://download1.fbr.gov.pk/Docs/20266291261044366FinanceAct2026.pdf, ~42MB).
Get it programmatically
curl https://asiaref.dev/v1/pk/corporate-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/pk/corporate-tax/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/pk/corporate-taxOther Pakistan series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · income tax rates