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Tax Slab Rates For Sole-Proprietor & AOP Business

This article is about tax slab rates for the Sole Proprietor & AOP business In Pakistan. These taxes are charged at the source with the name of Withholding tax rates in Pakistan 2019-20. These taxes are charged at the source with the name of Withholding tax rates in Pakistan 2019-20. Mostly over the globe, there is two types of taxes direct and indirect, one is Income Tax known as direct tax, whereas the other is General Sales Tax (also known as GST) known as indirect tax. Income tax is collected by the Federal Government (FBR) and is applicable on taxable income and profits. Whereas GST on services is collected by Provincial Revenue Authorities like Balochistan Revenue Authority (BRA), Khyber Pakhtunkhwa Revenue Authority (KPRA), Punjab Revenue Authority (PRA), Sindh Revenue Board (SRB), and Federal Board of Revenue (for ICT and Federal Areas). GST that is collected on services has to be filed with the respective Provincial Revenue Authority where the services were provided, whereas the GST collected on the supply of all goods has to be filed with FBR. GST has to be filed with the respective provincial tax authority by the 15th of every month. Whereas Income tax has to be filed once a year at the close of the Financial Year.

Income tax slab 2019-20 Pakistan issue by FBR Pakistan through finance bill. The tax rate in Pakistan are applicable when your annual income exceeds from 400,000/- threshold. Income tax is the liability of the salaried individual, AOP, or company. It is payable on the taxable income. National Tax Number (NTN) is issued by FBR in name of the sole proprietor, AOP, or company and income tax are paid against this NTN.

Sales tax is the liability of the client or person receiving services or the supply of goods from the individual sole proprietorship, AOP, or company. Sales Tax Registration Number (STRN or GST Number) is issued by FBR (for ICT & Federal Areas), BRA, KPRA, PRA, and SRB. GST is collected by the business and deposited against this number with the relevant provincial tax authority. · We can help you in registering with FBR as well as BRA, KPRA, PRA, and SRB.

Income tax slab 2019-20 Pakistan has confirmed by FBR that Tax Rate in Pakistan on Sole proprietors, AOP, and others are the same from last tax year 2020 to the tax year 2021.

Withholding tax rates in Pakistan 2019-20 are unchanged. Similarly, NTN is issued in name of the sole proprietor/owner. In the case of AOP NTN are an issue with the partnership name. Progressive tax based on the number of profits. Slabs can be seen in the tax card below. Filing of annual income tax returns is mandatory. Tax returns for July 1 of the preceding year to June 30 of the current year have to be submitted by 30th September of the current year. Therefore if the current Financial Year is 2021 then that means the FY started on July 1, 2020, and ends on June 30, 2021, and that tax returns have to be filed by or before September 30, 2021.

Tax Slab Rates For Sole Proprietor & AOP Business

Income up to PKR 400,000 – (Zero 0%)
PKR 400,001 to PKR 600,000: (5% of the amount above 400,000)
PKR 600,001 to PKR 1,200,000: (10,000 + 10% of the amount above 600,000)
PKR 1,200,001 to PKR 2,400,000: (70,000 + 15% of the amount above 1,200,000)
PKR 2,400,001 to PKR 3,000,000: (250,000 + 20% of the amount above 2,400,000)
PKR 3,000,001 to PKR 4,000,000: (370,000 + 25% of the amount above 3,000,000)
PKR 4,000,001 to PKR 6,000,000: (620,000 + 30% of the amount above 4,000,000)
Above PKR 6,000,000: (1,220,000 + 35% of the amount above 6,000,000)
Withholding tax rates in Pakistan 2019-20

Peoples in develop Societies pay taxes. You should also read the Benefits for Filler section articles. Which describes well about the benefits being a responsible resident of Pakistan.