Tax year 2027
Corporate Tax Calculator
A company pays one flat rate on the whole of its taxable profit. There are no bands and no exempt threshold, which is the main way company tax differs from every other calculator here.
We do this for clients:Financial Accounting Services in PakistanFinancial Advisory for Businesses in PakistanCompany Registration in Pakistan
Your company
For a registered company. Nothing you type here leaves your browser.
Profit chargeable to tax for the year.
Optional. Used for the section 113 minimum tax, which replaces the normal tax when it comes out higher.
A sole trader or partnership is taxed in steps instead. Use the business calculator.
Enter your company’s taxable profit and this works out the tax on it.
Where these figures come from
- Statutory basis
- Income Tax Ordinance, 2001, as amended by the Finance Act 2026, for tax year 2027 (1 July 2026 to 30 June 2027).
- Last checked against the statute
- by BarrioVibe, which files income tax returns through FBR IRIS.
These figures are an estimate computed from the rates above, not tax advice for your situation. Your return depends on facts a form cannot see, so treat the number as a starting point and speak to us before you file on it.
Read this first
What thisdoes not cover
It is accurate for what it models, and everything below changes the answer. None of it can be handled by a form with a few fields in it.
- What your taxable profit actually is, which is an accounting question rather than an arithmetic one
- Super tax under section 4C, which sits on top of this and has its own calculator
- Tax already paid: advance tax under section 147, and tax withheld by your customers
- Losses brought forward, depreciation and every other adjustment between accounting profit and taxable income
- Whether your company meets the small-company test, which has three conditions and needs all three
- Final tax regimes, exemptions and reduced rates that apply to particular sectors
Questions
The questionspeople ask
What is the company tax rate in Pakistan?
29% for a normal company, 20% for a small company, and 42% for a banking company. A company pays one flat rate on the whole of its taxable profit: there are no bands and no exempt threshold, which is the main difference from how an individual is taxed.
What counts as a small company?
Three conditions, and all three have to be met: capital and reserves not above fifty million rupees, not more than 250 employees, and annual turnover not above 250 million rupees. Failing any one of them puts the company on the normal rate, so this is worth checking rather than assuming from size alone.
Why is the banking rate coming down?
It is on a legislated path rather than changing year by year: 44% for tax year 2025, 43% for 2026, and 42% from 2027 onwards. A calculator quoting 44% is using a rate that is two years out of date.
Does a loss-making company pay tax?
Often yes, because of section 113. It sets a minimum tax computed on turnover rather than on profit, and a company with no profit still has turnover. That is the point of a minimum tax, and it is the part that most surprises companies in a bad year.
Is super tax on top of this?
Yes. Section 4C sits on top of ordinary company tax rather than replacing it, and it starts at very high income. It has its own calculator here. Section 113 works the other way: it replaces the company tax when it is higher rather than adding to it.
Is my accounting profit the same as my taxable income?
Almost never. Depreciation, provisions, disallowed expenses and losses carried forward all sit between the two, and the gap can be large. The figure to enter here is taxable income, which comes out of your tax computation rather than straight off your profit and loss account.
Also here
Other calculatorsfor this
Business & AOP Tax
Income tax for a sole trader, a partnership or a professional firm, on the non-salaried slabs, with the section 4AB surcharge where it applies.
Minimum Turnover Tax
The section 113 floor computed on sales instead of profit. You pay whichever is higher, which is why a loss-making business still pays it.
Super Tax (4C)
The extra tax on very high income under section 4C. It is a cliff rather than a slab: pass the threshold and the rate applies to the whole income.
Next step
Taxable income is the hard part.
The gap between accounting profit and taxable income is where a company return is won or lost. We prepare company computations, returns and the compliance around them.