Tax in Pakistan
- FBR Oversight: The Federal Board of Revenue (FBR) is the primary tax regulatory authority in Pakistan, responsible for overseeing and implementing tax policies.
- Types of Taxes: Pakistan imposes various taxes, including Income Tax, Sales Tax, Federal Excise Duty, and Customs Duty.
- Income Tax: Income tax is levied on individuals, corporations, and associations of persons. The tax rates vary based on income levels and the nature of income.
- Sales Tax: Sales tax is imposed on the sale of goods and services. It is collected at various stages of the supply chain.
- Customs Duty: Customs duty is levied on the import and export of goods. Rates may vary depending on the nature of the goods.
- Tax Identification Number (NTN): Individuals and businesses are required to obtain a National Tax Number (NTN) for tax purposes.
- Tax Return Filing: Individuals and companies are required to file annual tax returns with the FBR, providing details of their income, expenses, and tax payments.
- Withholding Tax: Certain transactions are subject to withholding tax, where a portion of the payment is deducted at the source and remitted to the government.
- Tax Credits and Incentives: The government may offer tax credits and incentives to encourage investment in specific sectors or for certain types of expenditures.
- Tax Year: The tax year in Pakistan runs from July 1st to June 30th of the following year.
