Calculate Pakistan company income tax, minimum turnover tax, and export income tax for FY 2026-27. Covers general companies (29%) and small companies (20%) as per Finance Act 2026.
Corporate Tax Rates FY 2026-27
Company Type
Income Tax Rate
Minimum Turnover Tax
General Company
29%
1.25% of gross turnover
Small Company (turnover ≤ Rs. 250M, employees ≤ 250)
20%
1.25% of gross turnover
Every company must pay the higher of income-based tax or minimum turnover tax of 1.25%. These rates are unchanged from FY 2025-26.
Export Income Tax (FY 2026-27)
For FY 2026-27, FBR applies a simplified flat tax of 1.25% to export proceeds. This replaces the previous FY 2025-26 structure of 1% WHT plus 1% advance tax.
Frequently Asked Questions
What is the corporate tax rate in Pakistan for FY 2026-27?
General companies pay 29% on taxable profits. Small companies (turnover ≤ Rs. 250M, employees ≤ 250) pay 20%. These rates are unchanged from FY 2025-26.
What is minimum tax on turnover?
Every company must pay at least 1.25% of gross turnover as minimum tax, regardless of whether it has taxable profit. If income-based tax is higher, the income-based tax applies.
How is export income taxed for companies?
FY 2025-26: 1% WHT + 1% advance tax on export proceeds. FY 2026-27: 1.25% flat simplified mechanism. These are separate from the income tax on profits.
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