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The top threshold of the 19 per cent tax bracket will increase from 37 000 to 45 000.
Income tax relief 2020 pakistan. The low income tax offset will increase from 445 to 700 providing an additional 255 in tax relief. According to the income tax slabs for fy 2020 21 a certain amount of income tax will be deducted from the salaries of individuals earning more than pkr 600 000 per annum. The federal corporate tax rates on taxable income for tax year 2021 are as follows. Where the taxable salary income does not exceed rs.
Latest income tax slab rates in pakistan for fiscal year 2020 21 latest income tax slab rates in pakistan. Foreign tax relief and tax treaties. In exercise of powers conferred by sub section 2 of section 53 of the income tax ordinance 2001 xlix of 2001 the federal government is pleased. Government of pakistan revenue division federal board of revenue th islamabad the 10 april 2020.
When it announced the budget for fiscal year 2020 21 in june 2020 the pakistan tehreek i insaf led government had left income taxes unchanged from last year in a bid to avoid placing any. As per federal budget 2019 2020 presented by government of pakistan following slabs and income tax rates will be applicable for salaried persons for the year 2019 2020. Including income received or deemed to be received in pakistan or deemed to accrue or arise in pakistan. Rs56bn tax relief for small businesses in punjab budget.
The minimum income tax has also been waived for a resident company engaged in hotel business in pakistan in respect of turnover for the period starting on the first day of april 2020 and ending on. Statutory regulatory orders sros income tax sales tax federal excise customs. A resident company is taxed on its worldwide income. Notification income tax s r o.
Personal income tax rates. 2020 a withholding tax rate of 10 is applicable on payment of profit on debt to non resident individuals on debt instruments issued by the federal government under the. 600 000 the rate of income tax is 0.
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