Pakistan Corporate Income Tax
Detailed corporate income tax rates and rules for Pakistan in 2026.
Pakistan's standard corporate tax rate is 29%. Small companies (annual turnover below PKR 250 million) pay 20%. Banking companies pay 39% plus a super tax. A minimum tax of 1.25% of turnover applies if greater than the regular tax. The super tax at 1-10% applies depending on the sector and income level.
Standard Rate
29%
Small Business Rate
20%
Additional Notes
Pakistan's IT sector benefits from a reduced tax rate and exemptions on export income. Special Economic Zones offer tax holidays. The Alternative Corporate Tax (ACT) ensures companies pay at least 17% of accounting income.
How Pakistan Corporate Tax compares
Pakistan’s corporate tax rate of 29% is the 51st highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Asia’s regional average of 19.7%.
