Sole trader / Proprietor or Business Individual

The business individual is taxed for the profits only unless turnover exceed 10 million rupees. In case exceed 10 million rupees, 1.25% of total turnover is payable.

Form of Taxation: Slab rates are applied.
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.

Partnership Firm

The partnership firm is taxed for the profits only unless turnover exceed 10 million rupees. In case exceed 10 million rupees, 1.25% of total turnover is payable. While partners are not taxed separately.

Form of Taxation: Slab rates are applied.
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.

Limited Liability Partnership

The partnership firm is taxed for the profits only unless turnover exceed 10 million rupees. In case exceed 10 million rupees, 1.25% of total turnover is payable. While partners are not taxed separately.

Form of Taxation: Slab rates are applied.
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.

Private Limited Company

The company is taxed at higher of

  1. a) taxable income @ below given rates,
  2. b) turnover @ 1.25%
  3. c) profits @ 17% Shareholders are taxed at 15% on dividends.

Form of Taxation/Rates: Small Company: 25%. Other than small company: 29%
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.

Public Limited Company

The company is taxed at higher of

  1. a) taxable income @ 30%,
  2. b) turnover @ 1.25%
  3. c) profits @ 17% Shareholders are taxed at 15% on dividends.

Form of Taxation: 0.29
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.

Not for Profit Organization

If approved than zero, otherwise taxation of private limited company will be applicable.

Form of Taxation: Exempt if approved by tax department
Tax Return Filing: For this type, filing of annual income tax returns is a requirement.

Liaison / Branch Office

No tax is applicable.

Form of Taxation: Not applicable as commercial activity is not allowed
Tax Return Filing: For this type, filing of annual income tax returns is NOT a requirement.

_____

For any expert advice for #Free, contact us here https://clarity.pk/contact.  For tax filing and other related #ProfessionalServices, clarity connects you with experts #WithDiscount.

Check Also

Types of Business Registrations in Pakistan – All you need to know

Whichever business registration requirements you have, here you can find all the important…