Business Income Tax Rates for Tax Year 2025

This article outlines the business income tax rates applicable in Pakistan for individuals and associations of persons (AOPs) as per the latest Budget 2024-25. The tax rates are presented in a clear tabular format for easy reference.

Tax Slabs and Rates:

Taxable Income (PKR)Tax on Amount Up To (PKR)Tax Rate on Excess Over
Up to 600,0000N/A
600,001 – 1,200,00015%
1,200,001 – 1,600,00090,00020.0%
1,600,001 – 3,200,000170,00030.0%
3,200,001 – 5,600,000650,00040.0%
5,600,001 & Above1,610,00045.0%

Important Notes:

  • Here is a simplified overview of business income tax rates.
  • The actual tax calculations can be more complex and may involve additional deductions and exemptions.
  • It’s recommended to consult a qualified tax advisor for personalized guidance on your specific business tax situation.
  • The tax rate for income exceeding Rs. 5,600,000 is charged at 45%.

Additional Considerations:

  • Businesses registered under different legal structures (e.g., companies) may have specific tax filing requirements and regulations.
  • Staying informed about the latest tax updates and government policies is crucial for businesses to ensure proper tax compliance.

Understanding business income tax rates is essential for responsible financial management in Pakistan. By referring to this table and consulting a tax professional, businesses can ensure they are fulfilling their tax obligations accurately.

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