INCOME TAX

Income tax is levied generally on the net income of a taxpayer earned during a tax year computed by applying the specified tax rates as applicable to the respective taxpayer. For the charge of tax and the computation of total income, all income is classified under the following heads:

• Salary
• Income from property
• Income from business
• Capital gains
• Income from other sources

Filing Requirements

Income Tax Returns	Annually
Withholding Tax Statements	Monthly/Biannually
Advance Tax	Quarterly

SALES TAX

Sales tax is levied at various stages of economic activity @17 percent on:

• All goods imported into Pakistan, payable by the importers
• All supplies made in Pakistan by a registered person in the course or furtherance of any business carried on by him

There is an in-built system of input tax adjustment and a registered person can adjust tax paid at earlier stages against the tax payable by him on his supplies. Thus, the tax paid at any stage does not exceed 17% of the total sales price of the supplies.

SERVICES/SALES TAX

Services taxes are charged on the province-level provision of services. The rate of tax is different from one province to another and from one nature of service to other nature of service.