Effective from 1 July 2023, the government of Pakistan has announced new Income tax brackets and rates, as summarized below, along with the previous tax year rates:
| Annual Taxable Income (in PKR) | Income Tax Tax Year Ending on 30-06-2023 | Income Tax Tax Year Ending on 30-06-2024 |
|---|---|---|
| Up to 600,000 | Nil | Nil |
| 600,001 – 1,200,000 | 2.5% of excess over 600,000 | 2.5% of excess over 600,000 |
| 1,200,001 – 2,400,001 | 15,000 + 12.5% of excess over 1,200,000 | 15,000 + 12.5% of excess over 1,200,000 |
| 2,400,001 – 3,600,000 | 165,000 + 20% of excess over 2,400,000 | 165,000 + 22.5% of excess over 2,400,000 |
| 3,600,001 – 6,000,000 | 405,000 + 25% of excess over 3,600,000 | 435,000 + 27.5% of excess over 3,600,000 |
| 6,000,001 – 12,000,000 | 1,005,000 + 32.5% of excess over 6,000,000 | - |
| Over 6,00,001 | - | 1,095,000 + 35% of excess over 6,000,000 |
| Over 12,000,001 | 2,955,000 + 35% of excess over 12,00,000 | - |
The amended rates will apply to all wages and salaries earned after 1 July 2023.
Related Articles
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
Mercans Recommend
View PDF
Pakistan – New Income Tax Brackets and Rates
Size
397.93 KB
The post Pakistan Announces New Income Tax Brackets and Rates appeared first on Mercans Global Payroll & PEO.
