Tax in Pakistan: VAT, income tax, company tax, capital gains
18%
Pakistan charges 18% VAT on most goods and services. The rate is verified against Federal Board of Revenue (FBR) on 19 August 2026; the top personal income-tax rate is 35% (2026-27 tax year, Federal Board of Revenue (FBR) — Finance Act 2026), and the headline company tax rate is 29% (OECD Corporate Tax Statistics).
VAT in Pakistan
Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 18%
- Local name
- VAT — Value Added Tax
- Type
- VAT
- Reduced rates
- None on record
- Filing
- Quarterly / Monthly / Annual
- Authority
- Federal Board of Revenue (FBR)
- Current rate since
- 1 January 2000
Income tax in Pakistan
The top personal income-tax band is 35% for the 2026-27 tax year.
Company tax in Pakistan
The headline corporate income tax rate is 29%. In effect since 1 January 2026.
Indicative only: confirm with Pakistan's national tax authority. OECD 2026: central statutory CIT 29%, combined (central+sub-central) 29%
Capital gains tax in Pakistan
- Shares
- Securities acquired on or after 1 July 2024: flat 15% for persons on the Active Taxpayers' List (ATL) at acquisition and disposal; non-ATL individuals taxed at normal Division I slab rates with a minimum of 15%
- Property
- Immovable property acquired on or after 1 July 2024: flat 15% for ATL persons regardless of holding period; non-ATL individuals at Division I slab rates with a minimum of 15% of the gain
- Holding period
- No holding-period relief for securities acquired from 1 July 2024. Legacy schedule for securities acquired 1 Jul 2022 - 30 Jun 2024: 15% (<=1 yr), 12.5% (1-2), 10% (2-3), 7.5% (3-4), 5% (4-5), 2.5% (5-6), 0% (>6 yrs). Acquired 1 Jul 2013 - 30 Jun 2022: 12.5%; acquired before 1 Jul 2013: 0%
Ask your AI assistant about tax in Pakistan
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the VAT rate in Pakistan, and what is the source?”
- “Estimate income tax in Pakistan on PKR 60,000 for 2026-27.”
- “What is the company tax rate in Pakistan and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Pakistan, answered
Questions about tax in Pakistan
- What is the VAT rate in Pakistan?
- The standard VAT (Value Added Tax) rate in Pakistan is 18%, verified against Federal Board of Revenue (FBR) on 19 August 2026. Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the top income tax rate in Pakistan?
- The top personal income-tax band in Pakistan is 35% for the 2026-27 tax year, verified against Federal Board of Revenue (FBR) — Finance Act 2026 on 6 October 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
- What is the company tax rate in Pakistan?
- The headline corporate income tax rate in Pakistan is 29%, as published by OECD Corporate Tax Statistics (checked 6 October 2026, verification pending). Indicative only: confirm with Pakistan's national tax authority. OECD 2026: central statutory CIT 29%, combined (central+sub-central) 29%
- How is capital gains tax charged in Pakistan?
- In Pakistan, gains are taxed at their own rate, separate from income, verified against Federal Board of Revenue (FBR) - Income Tax Ordinance 2001, amended up to 30 June 2026 on 6 October 2026. On shares: Securities acquired on or after 1 July 2024: flat 15% for persons on the Active Taxpayers' List (ATL) at acquisition and disposal; non-ATL individuals taxed at normal Division I slab rates with a minimum of 15% Holding period: No holding-period relief for securities acquired from 1 July 2024. Legacy schedule for securities acquired 1 Jul 2022 - 30 Jun 2024: 15% (<=1 yr), 12.5% (1-2), 10% (2-3), 7.5% (3-4), 5% (4-5), 2.5% (5-6), 0% (>6 yrs). Acquired 1 Jul 2013 - 30 Jun 2022: 12.5%; acquired before 1 Jul 2013: 0%
- Can an AI assistant look up tax rates for Pakistan?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the VAT rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
Sources
- Federal Board of Revenue (FBR)
- Federal Board of Revenue (FBR) — Finance Act 2026
- OECD Corporate Tax Statistics
- Federal Board of Revenue (FBR) - Income Tax Ordinance 2001, amended up to 30 June 2026
Last checked 6 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
See every rate side by side in the tax rates table, put Pakistan next to another country in the comparison tool, or read the tax facts.
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