Pakistan Business Tax Calculator
Calculate business income tax for sole proprietors, partnerships, private limited, and public limited companies. Apply FBR corporate tax rates instantly.
Salaries, rent, utilities, marketing, etc.
Enter business details above to calculate tax
Get tax liability breakdown for your business type
โ ๏ธ Disclaimer: This calculator provides estimates based on FBR tax rates for tax year 2025-26. Actual tax liability may vary based on specific industry, location, tax credits, and other factors. Consult a qualified tax professional for accurate tax advice.
Corporate & Business Tax Rates
Applicable tax rates for different business entity types
๐ค Sole Proprietor & Partnership (Progressive)
๐๏ธ Corporate Tax Rates (Flat)
* Turnover up to PKR 250 million
Frequently Asked Questions
What is the difference between normal tax and minimum tax?โผ
Normal tax is calculated on taxable income. Minimum tax is 1.25% of turnover. Companies must pay the higher of the two amounts. This ensures that profitable companies pay at least some tax even after deductions.
What qualifies as a small company for the 20% rate?โผ
A small company must have turnover up to PKR 250 million, paid-up capital up to PKR 25 million, and not be formed by splitting an existing company. Small companies enjoy reduced 20% tax rate.
Can sole proprietors claim business expenses?โผ
Yes, sole proprietors can claim legitimate business expenses including rent, utilities, salaries, marketing, travel, and depreciation. These deductions reduce taxable income and overall tax liability.
What is the tax treatment for startup companies?โผ
Startups registered with PSEB may qualify for tax credits and reduced rates. IT startups may also benefit from the 0.25% rate on export income if registered with PSEB.
How is tax calculated for partnerships?โผ
Partnerships file tax returns as a firm. The firm pays tax on its income at progressive rates (0-25%), and partners are taxed on their share of profits separately in their individual returns.