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Types of Income Tax and Their Details in Pakistan – Explained by Filernow

In Pakistan, income tax is collected by the Federal Board of Revenue (FBR) based on the type of income you earn. Whether you’re a salaried person, a business owner, or run a company, understanding these tax types helps avoid fines and stay ATL-listed.

With FilerNow, you can file the correct type of income tax quickly and stress-free — all online.

1. Income Tax on Salary

Applied to salaried individuals based on income slabs. Tax is deducted at source by employers.
👉 See latest tax slabs
👉 File salaried return now

2. Business Income Tax

Applies to sole proprietors and partnerships (AOPs). Tax rate ranges from 7.5% to 35% based on annual income.
👉 Register your business
👉 NTN for Business

3. Corporate Income Tax

Paid by private limited companies registered with SECP. Standard rate is 29%.
👉 Company Registration
👉 Corporate Return Filing

4. Capital Gains Tax (CGT)

Charged on profits from sale of property or shares. Rate depends on asset type and holding period.

5. Property Income Tax

Applies to rental income. Tax deducted by tenants or paid annually by owners based on slabs.

6. Income Tax on Freelancers / Consultants

Applicable on self-employed individuals. FBR expects full disclosure of foreign remittances and bank deposits.
👉 Freelancer Tax Guide

FAQs – Types of Income Tax in Pakistan

1. How do I know which type of tax applies to me?

Depends on your income source — salary, business, freelance, or corporate. FilerNow helps you identify.

2. Can I pay tax if I have multiple income types?

Yes, and it’s important to declare all income to avoid penalties.

3. What if I’m a freelancer earning from abroad?

You must file return and disclose income. Read freelancer tax guide.

4. Is rental income taxable?

Yes. Property income must be declared, and tax paid annually or via withholding.

5. How do I reduce my income tax legally?

You can use deductions, rebates, and credits. FilerNow’s consultants will guide you.

Need more information? Contact us on WhatsApp.

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