Asia-Pacific · PKR
Pakistan
Reviewed 2026-06-21
Top income tax
45%
Self-employed SS
No
VAT
18%
Capital gains
15%
Exit tax
No
Nomad visa
No
53
/ 100
Tax efficiency41
Ease to enter42
Ease to exit81
Cost of living99
Internet1
English60
Pakistan taxes resident individuals on worldwide income with steeply progressive rates that reach 45 percent for higher-earning non-salaried people, plus an income surcharge on the largest incomes, while sales tax sits at 18 percent. There is no wealth, inheritance, or exit tax, capital gains on listed securities are generally taxed at a flat 15 percent, and the country operates CFC rules that can tax retained foreign company income. Pakistan has no dedicated digital nomad or entrepreneur visa, mandatory social security (EOBI) effectively covers only formal employees rather than the self-employed, and broadband speeds and ease of company setup remain weak relative to regional peers.
Personal income tax
Income tax structureProgressive
Top income tax rate45%
Entry income tax rate0%
Top rate threshold$20,000
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityNo
Employee SS rate1%
Employer SS rate5%
Indirect & other taxes
VAT standard rate18%
Capital gains rate15%
Long-hold CGT exemptionYes
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate29%
WHT on dividends15%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaNo
Ease of setup2 / 5
Lifestyle
Cost of living index19.6
Internet speed18 Mbps
English proficiencyMedium
Civil liberties33
Sources
- PwC Worldwide Tax Summaries — Pakistan Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Pakistan Corporate Taxes on corporate income
- PwC Worldwide Tax Summaries — Pakistan Individual Other taxes (sales tax, social security, inheritance)
- PwC Worldwide Tax Summaries — Pakistan Individual Income determination (capital gains, dividends)
- Numbeo — Cost of Living Index by Country 2026 (Pakistan)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.