Understanding KPRA’s Tax Rates for Your Services

Attention all users of phone services, internet, messaging, and other related technologies in Khyber Pakhtunkhwa! This article explains the KPRA’s tax rates applicable to your activities and helps you stay compliant.

What Services are Taxed?

The KPRA taxes a wide range of telecommunication and similar services, including:

  • Fixed line, mobile, and wireless phone services (including pre-paid, post-paid, and pay phone cards)
  • Messaging services (SMS, MMS, and others)
  • Internet services (including dial-up, broadband, and data)
  • Data communication services (VPN, digital signatures, etc.)
  • Long-distance international calls
  • Audiotext, paging, and voice paging services
  • Facility rentals on towers and structures
  • Internet-based cable TV services

Important Note: Incoming international calls are taxed differently. Only the portion shared or received by domestic providers within Khyber Pakhtunkhwa is taxed, using a specific formula.

What’s the Tax Rate?

Currently, the KPRA applies a 19.50% tax rate on all the listed services.

Staying Informed:

  • Consult a tax advisor for specific guidance based on your individual situation and business activities.
  • Keep yourself updated on any changes or clarifications issued by the KPRA.

By understanding these tax regulations, you can ensure compliance and navigate the telecommunication landscape in Khyber Pakhtunkhwa with ease.

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