Accounting, Tax & Payroll in Pakistan
Accounting, Tax & Payroll in Pakistan
Pakistan tax compliance runs through the FBR’s IRIS portal, and it’s not just one filing, income tax, sales tax, and a separate turnover-based minimum tax all apply, sometimes even when a company hasn’t turned a profit.
What This Covers
- Bookkeeping and financial reporting
- Corporate income tax registration and filing (29% standard rate, 20% for small companies)
- Sales tax registration and filing (18% standard rate)
- Minimum tax compliance under Section 113, applies even to loss-making companies
- Payroll processing
FAQ
Frequently Asked Questions
Do loss-making companies still owe tax in Pakistan?
Often yes. Section 113’s minimum tax is based on turnover, not profit, so it can apply even in a year the company recorded a loss.
What’s the difference between the standard and small-company corporate tax rate?
29% is the standard corporate income tax rate; qualifying small companies are taxed at 20% instead.