The standard corporate tax rate is 29%.

Other rates apply as follows:

• For banking companies, the standard corporate tax rate is 39% (increased from 35% effective 1 July 2022). Tax is levied at increased rates ranging from 39% to 55% on the taxable income of banks attributable to investment in Federal Government securities; and
• For small companies meeting certain conditions, the tax rate is 20% (reduced from 21% effective 1 July 2022).

In addition, a super tax applies at the following progressive rates:

For the tax year 2023, the super tax applies at a higher rate of 10% for banking companies where income exceeds PKR 300 million.

A minimum tax is payable at 1.25% of turnover. An alternate corporate tax (ACT) also applies, where the minimum tax liability of the company is determined as the higher of 17% on accounting income or the corporate tax liability including the minimum tax on turnover.

Capital gains from the sale of capital assets (including unlisted securities) are taxed at the standard corporate tax rate i.e., 29% (earlier if such assets or shares were held for more than 12 months, only 75% of the gains were subject to tax).

Capital gains from the sale of listed securities purchased on or after 1 July 2022 are taxed at the following rates depending on the holding period:  

For securities purchased on or before 30 June 2022, the rate is 12.5% irrespective of the holding period.