Types of Income Tax and Their Details in Pakistan – Explained by Filernow
Understanding the different types of income tax in Pakistan is essential for individuals, salaried persons, freelancers, and business owners. The Federal Board of Revenue (FBR) collects income tax based on your income type and financial activity.
In this guide by Filernow, we break down the main categories of income tax and explain how they apply to you — with legal compliance and tax planning advice.
1. Salary Income Tax in Pakistan
Salary income tax in Pakistan is deducted by the employer under the Pay-As-You-Earn (PAYE) system. The income tax slabs 2025 Pakistan for salaried individuals vary each year in the Finance Bill.
Key points:
Applicable to full-time employees
Tax is withheld at source by the employer
Must be reported in your annual income tax return
Filernow can help you accurately file your salary-based tax return and claim any deductions such as education or insurance credits.
2. Business Income Tax in Pakistan
This tax applies to people running small businesses in Pakistan, sole proprietorships, partnerships, or registered companies. Tax is calculated based on net profits after expenses.
Key points:
Requires detailed financial records
Involves advance tax payments under Section 147
Must include wealth statement Pakistan
Filernow’s tax experts ensure your business income tax filing is accurate and aligned with FBR tax laws.
3. Capital Gains Tax Pakistan
Capital Gains Tax (CGT) in Pakistan is charged on profits from the sale of capital assets like:
Property
Shares/stocks
Mutual funds
Capital Gains Tax rates 2025 depend on the holding period and asset category.
Let Filernow help you calculate and file your CGT to avoid FBR notices or penalties.
4. Rental Income Tax in Pakistan
If you earn from property rental income in Pakistan, you must pay rental income tax. Tax is charged at progressive tax rates and can be deducted at source by the tenant.
Filernow assists with:
Declaring rental income
Claiming house maintenance expenses
Ensuring compliance with rental tax laws
5. Dividend Income Tax & Profit on Debt
You are required to pay tax on dividend income from stocks or profit on savings accounts and bonds. These are taxed at fixed withholding tax rates.
Filernow consolidates all such investment income tax under proper heads.
6. Freelance Income Tax Pakistan
Freelancers earning via:
Upwork
Fiverr
Foreign clients
…must declare their income under freelancer income tax laws in Pakistan.
Filernow specializes in freelancer tax return filing in Pakistan and ensures proper foreign income declaration.
7. Agriculture Income Tax in Pakistan
Though agriculture income is exempt federally, it is taxable by provinces. You must:
Declare land holdings
Show agriculture produce income
File provincial agriculture tax
Filernow helps with agriculture tax filing across Punjab, Sindh, and other provinces.
8. Other Sources of Income
This includes income from:
Royalty
Gift income
Prize bond winnings
Lottery earnings
Must be declared under Income from Other Sources Pakistan.
Why Choose Filernow for Tax Filing in Pakistan?
FBR registered tax consultants
Online income tax filing in Pakistan
Complete business tax solutions
Affordable income tax filing packages
24/7 customer support
Filernow ensures 100% accurate and FBR-compliant income tax returns for individuals, freelancers, and business owners across Pakistan.
Final Thoughts
Knowing the types of income tax in Pakistan empowers you to stay legally compliant, avoid penalties, and plan better. Whether you’re salaried, self-employed, or running a business — trust Filernow for expert support and fast, affordable income tax solutions in Pakistan.
File your tax return today with Filernow — Pakistan’s trusted tax advisory platform!