Pakistan
Southern Asia · PK · 64 treaties
What are the main tax rates in Pakistan?
Pakistan has a top personal income tax rate of 35%, a corporate tax rate of 29%, and a standard VAT of 18%.
Tax profile
| Corporate income tax | 29% |
| Withholding — dividends | 15% |
| Withholding — interest | 0% |
| Withholding — royalties | 0% |
| VAT / GST (standard) | 18% |
| Personal income (top rate) | 35% |
| Capital gains | 15% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | No |
| CFC rules | Yes |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Common questions
- How is cryptocurrency taxed in Pakistan?
- Cryptocurrency is classified as a capital gain and is taxed at 15%, with no long-term exemption.
- What is the tax residency requirement in Pakistan?
- Tax residency in Pakistan is established after 183 days.
- Does Pakistan have tax treaties?
- Yes, Pakistan has 64 tax treaties.
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- Present in Pakistan for 183 days or more in the tax year
- Present in Pakistan for 120 days or more in the tax year AND present in Pakistan for 365 days or more in aggregate during the preceding four tax years
- Employee or official of the Federal Government or a Provincial Government posted abroad during the tax year
- Citizen of Pakistan who is not present in any other country for more than 182 days during the tax year or who is not a resident taxpayer of any other country
Ending tax residence generally requires reducing days in Pakistan below the statutory thresholds and, for Pakistani citizens, becoming resident or spending more than 182 days in another country; there is no domicile-based or lifelong citizenship tax, but the additional citizen-specific test makes cleanly breaking residence somewhat more involved than a simple day-count system.
Source: Federal Board of Revenue, Government of Pakistan
Tax treaty network (77)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Albania | — | — | — |
| United Arab Emirates | 15% | 10% | 12% |
| Austria | 15% | 15% | 10% |
| Australia | — | — | — |
| Azerbaijan | 10% | 10% | 10% |
| Bangladesh | 15% | 15% | 15% |
| Belgium | 15% | 15% | 20% |
| Bahrain | 10% | 10% | 10% |
| Canada | 20% | 25% | 20% |
| China | 10% | 10% | 12.5% |
| Cyprus | — | — | — |
| Czechia | 15% | 10% | 10% |
| Denmark | 15% | 15% | 12% |
| Egypt | 30% | 15% | 15% |
| Finland | 20% | 15% | 10% |
| France | 15% | 10% | 10% |
| Germany | 15% | 20% | 10% |
| Greece | — | — | — |
| Hungary | 20% | 15% | 15% |
| Indonesia | 15% | 15% | 15% |
| Iran | 5% | 10% | 10% |
| Ireland | 10% | 10% | 10% |
| Italy | 25% | 30% | 30% |
| Japan | 10% | 10% | 10% |
| Jordan | 10% | 10% | 10% |
| Kazakhstan | 15% | 12.5% | 15% |
| Kenya | — | — | — |
| North Korea | — | — | — |
| Kuwait | 10% | 10% | 10% |
| Lebanon | 10% | 10% | 7.5% |
| Sri Lanka | 15% | 10% | 20% |
| Luxembourg | — | — | — |
| Libya | — | — | — |
| Malaysia | 20% | 15% | 15% |
| Malta | 15% | 10% | 10% |
| Mauritius | 10% | 10% | 12.5% |
| Morocco | 10% | 10% | 10% |
| Nepal | 15% | 15% | 15% |
| Netherlands | 20% | 20% | 15% |
| New Zealand | — | — | — |
| Norway | 15% | 10% | 12% |
| Oman | 12.5% | 10% | 12.5% |
| Philippines | 25% | 15% | 25% |
| Poland | 15% | — | 20% |
| Portugal | 15% | 10% | 10% |
| Qatar | 10% | 10% | 10% |
| Romania | 10% | 10% | 12.5% |
| Russia | — | — | — |
| Saudi Arabia | 10% | 10% | 10% |
| Republic of Serbia | 10% | 10% | 10% |
| Singapore | 15% | 12.5% | 10% |
| South Africa | 15% | 10% | 10% |
| Spain | 10% | 10% | 7.5% |
| Sweden | 15% | 15% | 10% |
| Switzerland | 20% | 10% | 10% |
| Syria | 10% | 10% | 18% |
| Thailand | 25% | 25% | 20% |
| Turkey | 15% | 10% | 10% |
| Turkmenistan | 10% | 10% | 10% |
| Ukraine | 15% | 10% | 10% |
| United Kingdom | 20% | 15% | 12.5% |
| United States of America | 8.75% | — | — |
| Uzbekistan | 10% | 10% | 15% |
| Vietnam | 15% | 15% | 15% |
| Yemen | 10% | 10% | 10% |
| Belarus | 15% | 10% | 15% |
| Bosnia and Herzegovina | 10% | 20% | 15% |
| Brunei | 10% | 15% | 15% |
| Bulgaria | 12.5% | 10% | 12.5% |
| Estonia | 12.5% | 12.5% | 10% |
| Hong Kong S.A.R. | 10% | 10% | 10% |
| South Korea | 12.5% | 12.5% | 10% |
| Latvia | 12.5% | 10% | 10% |
| Nigeria | 15% | 15% | 15% |
| Tajikistan | 10% | 10% | 10% |
| Tunisia | 10% | 13% | 10% |
| Kyrgyzstan | 10% | 10% | 10% |