Income Tax Slab Rates in Pakistan for Company Owners 2025
Running a company in Pakistan comes with exciting opportunities—and some tax responsibilities. Every year, the Federal Board of Revenue (FBR) updates the income tax slab rates to ensure fair taxation for individuals and businesses.
If you’re a company owner or entrepreneur, understanding these tax slabs helps you plan better, stay compliant, and avoid penalties.
Understanding Income Tax in Pakistan
Income tax is a mandatory charge on the income earned by individuals, associations, and companies. The FBR collects this tax to fund public services like healthcare, education, and infrastructure.
For companies, income tax rates differ based on the type of company and income level. Knowing your slab rate helps calculate how much tax your business owes each year.
Income Tax Slab Rates 2025 for Companies
Below is the updated corporate income tax structure for the tax year 2025 according to FBR’s recent notifications.
| Type of Company | Tax Rate (2025) | Remarks |
| Public Company | 29% | Listed on Pakistan Stock Exchange |
| Private Limited Company | 29% | Applies to unlisted companies |
| Small Company | 20% | For SMEs under Section 2(59A) of Income Tax Ordinance |
| Banking Company | 39% | Includes commercial and Islamic banks |
| Insurance Company | 29% | Applies to both life and general insurance firms |
Note: These rates can vary if the government introduces new amendments in the Finance Bill 2025.
Key Points for Company Owners
- Corporate tax is charged on net taxable income after deducting expenses.
- Withholding tax applies to dividends, contracts, and payments.
- Minimum tax may apply even if your company reports a loss.
- Filing on time via IRIS FBR prevents late payment penalties.
- Small companies benefit from lower tax rates and exemptions.
Important Definitions
How to File Company Tax Returns via IRIS FBR
Filing your company tax returns is simple using FBR’s IRIS portal.
Here’s a quick guide:
- Visit FBR’s IRIS portal.
- Log in with your NTN and password.
- Select “Return of Income” from the dashboard.
- Enter your business income, deductions, and tax withheld.
- Submit and download your acknowledgment receipt.
Filing through IRIS FBR ensures your company remains compliant and avoids penalties.
Recent Tax Reforms and Changes
The Finance Bill 2025 introduced several important updates:
These reforms aim to simplify taxation and encourage entrepreneurship in Pakistan.
Tax Planning Tips for Entrepreneurs
Smart tax planning can help you save significantly each year.
Maintain digital records of all business expenses.
Claim deductions for salaries, rent, and utilities.
Invest in R&D or exports to enjoy tax credits.
Register your startup properly to access exemptions.
To learn more about the registration process, check out this detailed guide on online company registration in Pakistan.
Related Resources
Here are some helpful reads to boost your business and compliance knowledge:
These internal links cover trending topics and help readers explore more government-related updates and programs. For the most recent and official tax updates, visit the Federal Board of Revenue (FBR) website.
It’s always best to confirm slab rates and filing deadlines directly from the source before submitting your company tax return.
Final Thoughts
Understanding income tax slab rates in Pakistan 2025 is essential for every company owner. Staying updated with FBR rules ensures compliance and helps you avoid unnecessary penalties.
Whether you run a small business or a large corporation, smart planning and timely filing can keep your business financially healthy.
By using IRIS FBR, keeping proper records, and following the Companies Act 2017, you can confidently manage your company’s tax obligations.