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Pakistan Corporate Tax Calculator 2026-27
Pakistani companies pay the highest of normal tax (29%, or 20% for small companies), 1.25% minimum tax on turnover and 17% Alternative Corporate Tax, plus any super tax. Work out which applies to you.
Rates last checked:
Business income after tax adjustments. Enter 0 for a loss.
Excluding sales tax and federal excise. Used for minimum tax.
From your financial statements. Used for Alternative Corporate Tax.
Such as dividends, capital gains or profit on debt. Counts for super tax only.
Advance tax and adjustable withholding tax for the year.
Estimates use published rates and fee schedules, which change regularly. They are general guidance — not tax, legal or accounting advice. Confirm figures with a qualified adviser before filing or deciding.
How Corporate Tax Is Calculated in Pakistan for Tax Year 2027
A company in Pakistan pays the highest of three amounts. Normal tax is 29% of taxable income, or 20% for a small company. Minimum tax under section 113 is generally 1.25% of turnover, and it applies even if the company made a loss. Alternative Corporate Tax under section 113C is 17% of accounting profit, after excluding exempt income and income taxed separately.
Super tax under section 4C is then added. For Tax Year 2027, it is 8% where income exceeds Rs 500 million, and 10% above Rs 150 million for fertilizer sellers. It applies to the whole income, not only the part above the limit. Below those limits there is none.
Advance tax and adjustable withholding tax paid during the year are deducted from the total to give the balance due with the return.
| Type of company | Rate on taxable income | Super tax |
|---|---|---|
| Any other company | 29% | 8% above Rs 500 million |
| Small company | 20% | 8% above Rs 500 million |
| Banking company (not covered by this calculator) | 42% | 10% above Rs 150 million |
| Business | Rate |
|---|---|
| All other businesses | 1.25% |
| SSGC and SNGPL (turnover above Rs 1 billion), PIA, poultry industry | 0.75% |
| Oil refineries, oil marketing companies, motorcycle dealers (sales tax registered) | 0.5% |
| Petroleum agents and distributors, rice mills and dealers, flour mills, integrated Tier-1 FMCG retailers, e-commerce, used vehicle dealers | 0.25% |
Worked examples: a company with taxable income of Rs 10,000,000, turnover of Rs 100,000,000 and accounting profit of Rs 12,000,000 compares normal tax of Rs 2,900,000, minimum tax of Rs 1,250,000 and Alternative Corporate Tax of Rs 2,040,000, so it pays Rs 2,900,000. A low-margin trader with Rs 1,000,000 of taxable income on Rs 200,000,000 of turnover pays minimum tax of Rs 2,500,000 instead of normal tax of Rs 290,000. A company with taxable income of Rs 600,000,000 pays normal tax of Rs 174,000,000 plus super tax of Rs 48,000,000.
Source: Income Tax Ordinance 2001, as amended up to 30 June 2026 (Finance Act 2026): First Schedule, Part I, Divisions II, IIB and IX; sections 2(59AB), 4C, 113 and 113C; Second Schedule, Part IV, clause (104B).
Good to Know
- Enter taxable income after tax adjustments, not accounting profit. They usually differ.
- Banks, insurers and petroleum exploration and production companies are not covered: they compute income under separate Schedules.
- Small and medium manufacturers taxed under the SME regime, and income under final tax, are not covered either.
- Credits, and minimum tax or Alternative Corporate Tax carried forward from earlier years, are not deducted.
Common Questions
What is the corporate tax rate in Pakistan?
29% of taxable income for most companies, 20% for a small company and 42% for a banking company. Minimum tax, Alternative Corporate Tax and super tax can increase what a company actually pays.
What counts as a small company?
A company registered on or after 1 July 2005 with paid-up capital plus undistributed reserves of no more than Rs 50 million, no more than 250 employees at any time in the year and annual turnover of no more than Rs 250 million. It must not have been formed by splitting up or reconstituting an existing company, and it must not be a small and medium enterprise as defined in section 2.
Does a company in a loss still pay tax?
Usually, yes. Minimum tax applies where the tax payable is below the minimum, including where there is a loss, generally at 1.25% of turnover. Any excess over normal tax can generally be carried forward for two tax years and adjusted against normal tax.
How does Alternative Corporate Tax work?
It is 17% of accounting profit, after excluding items such as exempt income and income taxed separately. The company pays it if it is higher than both normal tax and minimum tax. The excess can be carried forward for up to ten tax years. It does not apply to taxpayers under the Fourth, Fifth and Seventh Schedules.
Who pays super tax in Pakistan?
For Tax Year 2027, any person with income above Rs 500 million pays 8%. Banks, fertilizer sellers and income computed under Part I of the Fifth Schedule pay 10% above Rs 150 million. A person whose export proceeds are more than 80% of turnover is exempt.
Official Sources
Check current rates and rules with the authority before you file — we last checked this tool’s rates in .
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