Income Tax Rates in Pakistan 2023
What are the Tax and their Rates in a country? A compulsory contribution to state revenue, levied by the government on workers’ income and business profits or added to the cost of some goods, services, and transactions. In the Different Countries, Income Tax Rates in Pakistan and Burdens are different and fall on the difference on the Various groups. So here we are providing you the Tax rates around the world in different countries like VAT, GST, and Sales Tax.
Law concerning the taxation of income in Pakistan is confirmed in the Income Tax Ordinance, 2023, and the regulations framed thereunder viz, Income Tax Rules, 2023. The Ordinance is an essential statute and is, therefore, appropriate to the whole of Pakistan.
Under section 4 of the Ordinance, income tax is compulsory for each tax year at particular rates on every person who has payable income for the year. The tax to be paid is calculated by applying the rate of tax to the taxable income of the tax-payer for the year and any tax credit allowed to the tax-payer for that year is deducted from that amount.
income Tax Rates in Pakistan 2023 Salaries
Here we are providing you all type tax rates in Pakistan and also discuss it that that person whose coming in the circle of Tax (Payable People) what ratio will apply on them (What will be tax rates on them) because in Pakistan some various taxes apply on the various conditions like General Sells Tax, Value Added Tax, Income Tax, Property Tax, and taxes on Factories and companies.
One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes.
Here we are providing you the List of the Tax rates all over the world because every country have different Tax rates according to their rules and their different uses and spending the tax collection.
All over the world tax rates are different in the different countries and they use the Tax collection on the development of the country. For the Further Details about the Tax System of any country and its rates, you should stay with us because here we will provide you latest updates about the Tax Rules and Regulation and its rates up down in ay country and if you want to ask anything about it so you should comment us in below comment section.
Income Tax Rates in Pakistan in All Over The World
| Country/Region | Corporate | Individual (min) | Individual (max) | VAT / GST / Sales | |
| Afghanistan | 20% | 2% to 5% | |||
| Albania | 10% | 20% | |||
| Algeria | 19% | 0% | 35% | 17% or 14% or 7% | |
| Andorra | 10% | 0% | 0% | 4.5% or 1% | |
| Angola | 35% | 1% | 42.75% | 10% | |
| Argentina | 35% | 9% | 35% | 21% | |
| Armenia | 20% | 20% | |||
| Aruba | 28% | ||||
| Australia | 30% | 0% | 45%1.5% (Medicare levy) | 10% GST (0% on essential items) | |
| Austria | 25% | 21% | 50% | 20% | |
| Azerbaijan | 20% | 0% | 25% | 18% | |
| Bahamas | 0% | 0% | 0% | 0% | |
| Bangladesh | 0–45% | 0% | 25% | 15% | |
| Barbados | 25% | 25% | 35% | 15% (hotel accommodation 7.5%) | |
| Belarus | 18% | 12% | 12% | 20% or 10% | |
| Belgium | 33.99% | 25% | 50% | 21% (6% for essential and selected goods) | |
| Benin | 35% | 35% | 18% | ||
| Bhutan | 0% | 25% | |||
| Bolivia | 25% (IUE: on profits) – 3% (IT: income resulting from transactions) | 0% | 13% | 13% (VAT) – multiple rates (ICE: Consumption of specific products) | |
| Bosnia and Herzegovina | 10% FBiH, 10% RS | 5% FBiH, 0–15% RS | 17% FBiH and RS | ||
| Botswana | 15% (plus 10% surcharge) | 25% | 12% | ||
| Brazil | 34% | 0% | 27.5% | 17% to 25% | |
| Brunei | 23.5% | 0% | N/A | ||
| Bulgaria | 10% | 10% | 20% | ||
| Burkina Faso | 10–30% | 2% | 30% | 18% | |
| Burundi | 35% | 35% | 18% | ||
| Cambodia | 10% | ||||
| Cameroon | 38.5% | 10% | 35% | 19.25% | |
canada |
16%–31% (11%–15% federal + 5%–16% provincial) | 4% (0% federal + 4% provincial) | 15-29% (federal) 5-25.75% (provincial) | 5% (Federal GST) with exemptions for small-businesses0–10%(PST) | |
| Cape Verde | 15% | ||||
| The central African Republic | 19% | ||||
| Chile | 18.5% (on profit withdrawals) | 0% | 40% | 19% | |
| China | 25% | 5% | 45% | 17% with many exceptions | |
| Colombia | 33% | 0% | 33% | 16% | |
| Costa Rica | 30% (10% or 20% for small businesses) | 0% | 25% | 13% | |
| Croatia | 20% | 12% | 40% | 25% (0% on books and some foods) | |
| Cuba | 30% | 10% | 50% | 2.5% to 20% | |
| Cyprus | 10% | 0% | 35% | 17% (5% or 0% for certain goods) | |
| Czech Republic | 19% | 15% | 20% or 15% (certain goods) | ||
| Denmark | 25% | 36.56% | 59.5% | 25% | |
| Dominican Republic | 29% | 0% | 25% | 16% | |
| Egypt | 20% | 10% | 20% | 10% (standard), 25% (luxury goods), 0% (exports) | |
| El Salvador | 25/30% | 0% | 30% | 13% | |
| Estonia | 0% on profit retained in the company; flat 21% when earned profit is distributed to shareholders | 21% | 21% | 20% or 9% | |
| Finland | 26% | 6.5% national16% municipal | 30% national21% municipal | 24% 13% (food and fodder) 9% (e.g. accommodation and culture) |
|
| France | 33.33% | 0% | 75% (income tax) | 19.6% or 7% or 5.5% or 2.1% | |
| Gabon | 35% | 5% | 35% | 18% | |
| Germany | 29.8% (average) | 0% | 45% | 19% or 7% (e.g. food) | |
| Georgia | 15% | 20% | 18% | ||
| Gibraltar | 10% | 17% | 40% | 0% | |
| Greece | 22/25% | 0% | 45% | 23% or 11% | |
| Guatemala | 5% of Revenue or 31% of Net Income |
5% | 7% | 12% | |
| Guyana | 30%/40%/45% | 33?% | 16% or 0% | ||
| Hong Kong | 16.5% | 0% | 15% | N/A | |
| Hungary | 10% and 19% | 16% and 20.32% (2012) | 27%, 18% (milk, dairy products, flour, cereals, bakery products, etc.), 5% (medicines, books, etc.) | ||
| Iceland | 20% | 0% | 46% | 25.5% or 7% | |
| India | 30% | 0% | 33% | 5.5% – 14.5% | |
| Indonesia | 25% starting FY 2010 | 5% | 30% | 10% | |
| Iran | 25% | 0% | 35% | 1.5-10% depending on the item | |
| Ireland | 12.5%/25%/10% | 0% | 41% | 23% Goods 9%-13.5% Services 0% certain items of food |
|
| Israel | 24% | 14.5% | 46% | 17% | |
| Italy | 31.4% | 23% | 43% | 21% or 10% or 4% (food, books) | |
| Jamaica | 33.3% | 0% | 25% | 17.5% | |
| Japan | 40.69% | 5% | 50% (40% national + 10% local) | 5% (consumption) | |
| Jordan | 14/24/30% | 0% | 14% | 16% (GST) | |
| Kazakhstan | 17.5%, 15%(2011-) | 10% | 12% | ||
| South Korea | 10%,20%,22% | 6% | 38% | 10% | |
| Latvia | 15% | 23% | 21% | ||
| Lebanon | 15/4-21% | 2% | 20% | 10% | |
| Liechtenstein | 12.5% | 1.2% | 17.82% | 3.6-7.6%, (lodging services additional 2.4%) | |
| Lithuania | 15% | 0% | 15% | 21% | |
| Luxembourg | 29.63% | 6% | 38.95% | 15% | |
| Macau | 12% | ||||
| Macedonia | 10% | 10% | 18% or 5% | ||
| Malaysia | 25% | 0% | 26% | ||
| Maldives | 0-15% | 6% Since January 1, 2012 (Increased from 3.5% set on October 2, 2011) | |||
| Malta | 0-6.25% effective tax rate due to imputation system, following credits & refunds | 0% | 35% | 18% | |
| Mauritius | 15% | 15% | 15% | ||
| Mexico | 28% | 3–29% | 16% | ||
| Monaco | Companies do not pay any direct tax on their profits. However, if more than 25% of a company’s turnover is generated outside of Monaco, then the company is subject to a 33.33%, after various allowable deductions, this results in an effective corporate tax rate of under 6%. | 0% | 5.5 – 19.6% | ||
| Montenegro | 9% | 15% | 17% | ||
| Morocco | 30% | 0% | 38% | 20% | |
| Nepal | 5% | 10% | 25% | 13% | |
| Netherlands | 20/25% | 0% | 52% | 21% (6% for essential and selected goods) | |
| New Zealand | 28% | 10.5% | 33% | 15% GST | |
| New Caledonia | 30% | 0% | 25% on local income of non-residents40% | N/A | |
| Norway | 28% | 0% | 47.8% | 25% or 15% (food and drink in shops) or 8% (transportation, cinema, hotel rooms) |
|
| Pakistan | 35% | 7.5% | 35% | 16% (GST) | |
| Palestine | 15% | 5% | 15% | 14.5% (VAT) | |
| Panama | 30% | 0% | 27% | 7% or 0% | |
| Peru | 30% | 0% | 30% | 18% (16% VAT + 2% Municipal Promotional Tax) 0–118% ISC Impuesto Selective al Consumo (To some products like liquor, cigarettes, etc.) | |
| Philippines | 30% | 5% | 32% | 12% or 7% or 0%(in some cases, foreign investors are zero-rated) | |
| Poland | 19% | 0% | 32% (or optional 19% flat rate for self-employed) | 23% or 8% or 5% | |
| Portugal | 25% | 0% | 54% | Normal: 23% Intermediate: 13% Reduced: 6%Madeira, Açores: 15%, 9%, 4% | |
| Qatar | 10% (different rates for companies operating in the oil/gas sector). Qatari partners are not required to pay any tax on their share of profits. | 0% | 0% | ||
| Romania | 16% | 16% | 24% or 9% (medicines, books, newspapers, hotel …), or 4% | ||
| Russia | 20% (13% for SME, 0% for education and healthcare industries) | 13% | 13% | 0-18% (reduced rates for certain goods, no VAT for SME except for imports activities) | |
| Saudi Arabia | 20% (higher for oil/gas) | 0% (foreigners) Zakat (natives) |
0% (foreigners) Zakat (natives) |
0% | |
| Senegal | 25% | 0% | 50% | 20% | |
| Serbia | 15% | 12% | 20% | 20% or 8% or 0%(reduced rates are for certain goods) | |
| Singapore | 17% | 3.5% | 20% | 7% (GST) | |
| Slovakia | 19% | 19% | 20% 10% on medication and books | ||
| Slovenia | 20% (2012:18%, 2013:17%, 2014:16%, 2023+:15%) | 16% | 41% | 20% or 8.5% | |
| South Africa | 28% | 0% | 40% | 14% | |
| Spain | 25–30% | 0% | 52% | 21% or 10% or 4% | |
| Sri Lanka | 0-35% | 0% | 35% | 0% or 12% | |
| Sweden | 22% | 0% | 57% | 25% or 12% or 6% | |
| Switzerland | 13–25% | 0% | 13.2% (federal) | 8.0% or 3.8% or 2.5% | |
| Syria | 10–45% | 5% | 15% | ||
| Taiwan | 17% | 6% | 40% | 5% | |
| Tanzania | 30% | 15% | 30% | ||
| Thailand | 23% (20% from FY2013 onward) | 5% | 37% | 7% | |
| Tunisia | 30% | 0% | 35% | 18% or 12% or 6% | |
| Turkey | 20% | 15% | 35% | 18% | |
| Ukraine | 25% (16% from April 1, 2014) | 15% | 20% (17% from January 1, 2014) | ||
| United Arab Emirates | N/A | 0% | 0% | N/A | |
| United Kingdom | 20%-24% (decrease to 21% in 2014) | 0% | 45% | 20% Standard Rate; 5% Reduced Rate for home energy and renovations; 0% Zero Rate for life necessities – groceries, water, prescription medications, medical equipment and supplies, public transport, children’s clothing, books, and periodicals. |
|
| United States | 0–39% (federal) 0–12% (states) |
0% (federal) 0% (states) |
39.6% (federal) 0-13% (states) |
0-10.25% (states and local) | |
| Uruguay | 30% | 0% | 25% | 22% | |
| Uzbekistan | 9% | 5% | 22% | 0–20% | |
| Venezuela | 15/22/34% | 6% | 34% | 8–10%/12% | |
| Vietnam | 25% | 5% | 35% | 10% | |
| The British Virgin Islands | N/A | 0% | 0% | N/A | |
| Zambia | 35% | 10% | 30% | 17.5% |
