As per Lawkidunya, Pakistan’s income tax rules are governed by the Income Tax Ordinance, 2001. Here are the key aspects:

– Taxable Income in Pakistan

Taxable income includes income from five main sources:
– Salary
– Property
– Business
– Capital Gains
– Income from Other Sources (including dividends, royalties, and interest)
– Residency: An individual is considered a resident if they’ve been present in Pakistan for at least 183 days in a tax year. Companies are considered resident if they’re incorporated in Pakistan or have their control and management situated in Pakistan.

– Tax Rates: Tax rates vary based on income level and residency status. For resident individuals, the tax rates range from 5% to 35%. For non-resident individuals, the tax rate is 20%.

– Tax Year: Pakistan’s tax year runs from July 1 to June 30. Tax returns must be filed by September 30 for individuals and December 31 for companies.

– Filing Requirements: Taxpayers must file their tax returns electronically through the Federal Board of Revenue (FBR) portal. A tax return must be filed even if no tax is due.

– Withholding Tax: Withholding tax is applicable on various types of income, including salary, dividends, and interest. The withholding tax rates vary depending on the type of income and the taxpayer’s residency status.