Income Tax Ordinance 2001

The Second Division of the first schedule of the Income Tax Ordinance provides the tax rates for the companies. Companies can be divided into three types i.e. Small Companies, Banking Companies, and Any other Companies. The rate of tax for small companies is 20%, for banking companies 39%, and for any other companies 29%. However, certain types of companies may be eligible for a super tax, for a reduced tax rate or exemption, depending on their business activities. For example, companies engaged in the export of goods or services may be eligible for a reduced tax rate of 25% or less of the total income. Similarly, companies involved in IT & IT-enabled services and exporting them are only liable to pay 1% of their income as final tax in Tax year 2022-23. The tax rate for super tax is 4% of the taxable income, in addition to the regular income tax rate. However, for banks, the tax rate is 3% of the taxable income. It is increased from 4% to 10% for those individuals, Association of P...

The First Schedule of Income Tax Ordinance can be divided into 27 Divisions. Division 1 provides the rates of tax imposed on the taxable income of every individual and Association of Persons (AOP). If the income of an individual under the head of Salary does not exceed 50% of his taxable income (it may have multiple sources of income), the tax rates to be applied shall be as set out in the following table. If the income of an individual under the head of Salary does exceed 50% of his taxable income  (it may have multiple sources of income), the tax rates to be applied shall be as set out in the following table.      3. If the income of an individual except for salary income and Association of Persons (AOP) shall apply the tax on the following rates. Note: These Rates are not updated. Please see Tax Card for the relevant period.

 Income Tax Ordinance 2001 can be divided into 13 Chapters. These Chapters are Preliminary Charge of Tax Tax on Taxable Income Common Rules Provisions Governing Persons Special Industries International Anti Avoidance Minimum Tax Procedure Administration Transitional Advance Tax Provisions Miscellaneous Income Tax Ordinance 2001 has 14 schedules of Income.