Income Tax Slabs in Pakistan for 2022-23
Income tax in Pakistan is calculated based on an individual’s taxable income over the course of a year. Taxpayers are divided into different income tax slabs depending on the amount of income earned. The government of Pakistan recently announced the tax slabs for salaried individuals for the fiscal year 2022-23. The minimum income tax rate is set at 2.5% for those earning up to Rs. 100,000 per month, while the maximum tax rate is set at 35% for individuals earning a monthly salary exceeding Rs.1million.
Income Tax Slabs for Salary Individuals
These Slabs will be applicable when Total Salary income is more than 75% of total Income earned during the year(July 2022-June 2023).
| S.No | Annual Income | Tax Rates |
|---|---|---|
| 1 | Where taxable income does not exceed Rs.600,000/- | Rs.0 |
| 2 | Where taxable income exceeds Rs.600,000 but does not exceed Rs.1,200,000 | 2.5% of the amount exceeding Rs.600,000 |
| 3 | Where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000 | Rs.15,000 + 12.5% of the amount exceeding Rs.1,200,000 |
| 4 | Where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,600,000 | Rs.165,000 + 20% of the amount exceeding Rs.2,400,000 |
| 5 | Where taxable income exceeds Rs.3,600,000 but does not exceed Rs.6,000,000 | Rs.405,000 + 25% of the amount exceeding Rs.3,600,000 |
| 6 | Where taxable income exceeds Rs.6,000,000 but does not exceed Rs.12,000,000 | Rs.1,005,000 + 32.5% of the amount exceeding Rs.6,000,000 |
| 7 | Where taxable income exceeds Rs.12,000,000 | Rs.2,955,000 + 35% of the amount exceeding Rs.12,000,000 |
If you are wondering what will be your Tax you can use Salary Tax Calculator that applies the salary slabs to calculate the Income Tax liability of Salaried Individuals. Tax Calculator is designed to help and ease the non technical person to understand their tax liability.
Income Tax Slabs for Non-Salaried/Business/AOP
| S.No | Annual Income | Tax Rates |
|---|---|---|
| 1 | Where taxable income does not exceed Rs.600,000/- | Rs.0 |
| 2 | Where taxable income exceeds Rs.600,000 but does not exceed Rs.800,000 | 5% of the amount exceeding Rs.600,000 |
| 3 | Where taxable income exceeds Rs.800,000 but does not exceed Rs.1,200,000 | Rs.10,000 + 12.5% of the amount exceeding Rs.800,000 |
| 4 | Where taxable income exceedsRs.1,200,000 but does not exceed Rs.2,400,000 | Rs.60,000 + 17.5% of the amount exceeding Rs.12,00,000 |
| 5 | Where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,000,000 | Rs.270,000 + 22.5% of the amount exceeding Rs.2,400,000 |
| 6 | Where taxable income exceeds Rs.3,000,000 but does not exceed Rs.4,000,000 | Rs.405,000 + 27.5% of the amount exceeding Rs.3,000,000 |
| 7 | Where taxable income exceeds Rs.4,000,000 but does not exceed Rs.6,000,000 | Rs.680,000 + 32.5% of the amount exceeding Rs.4,000,000 |
| 8 | Where taxable income exceeds Rs.6,000,000 | Rs.1,330,000 + 35% of the amount exceeding Rs.6,000,000. |
When These Taxes are Paid
In Pakistan due date for filing of returns and payment of taxes due by the individual is 30th September of each year. The tax period in Pakistan is accounted from July to June.It is important to file and pay taxes on time to avoid penalties and interest charges, which can accumulate quickly. Taxpayers may also be able to take advantage of certain deductions and credits if they file their returns on time.