Tax year 2027
Minimum Turnover Tax Calculator
Section 113 sets a floor under your tax, worked out from turnover rather than from profit. It replaces your normal tax when it comes out higher, and it is never added on top of it.
We do this for clients:Tax Advisory and FBR Representation in PakistanFinancial Advisory for Businesses in Pakistan
Your turnover
Section 113 is computed on sales rather than profit. Nothing you type here leaves your browser.
Every business not listed below.
Total sales for the year, before any expense.
Optional. The tax on your profit, so the two can be compared. Section 113 replaces it when higher.
Enter your annual turnover and this works out the tax floor section 113 sets 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.
- Your normal income tax, which has to be worked out before the two can be compared
- Which sector rate applies to you, which is a question about your business rather than your figures
- Whether the conditional distributor rate is available, which needs active status on two separate taxpayer lists
- Turnover already subject to a final tax regime, which is excluded from the section 113 base
- How much carried-forward minimum tax you can actually use, which depends on later years
Questions
The questionspeople ask
What is minimum tax under section 113?
A floor under your income tax, computed from turnover rather than from profit. You pay the higher of your normal tax and this figure. It is never added on top: it replaces the normal tax when it exceeds it.
Do I pay it if my business made a loss?
Yes, if you are within the section. A loss-making business has no profit to tax but still has turnover, and section 113 is computed on turnover. That is what a minimum tax is for, and it is the part businesses most often do not budget for in a bad year.
What is the minimum turnover tax rate?
The general rate is 1.25% of turnover. Reduced rates apply by sector: 0.75% for gas utilities above a billion rupees of turnover, PIA and poultry; 0.5% for oil refineries, oil marketing companies and registered motorcycle dealers; and 0.25% for rice and flour mills, petroleum agents, online marketplaces, used-vehicle sellers and large retailers integrated with FBR. Distributors and wholesalers of listed goods moved from 0.25% to 0.5% for 2026-27.
Who has to pay it?
Every resident company and every Pakistan branch of a foreign company, whatever its size. An individual or association of persons is only caught once turnover reaches one hundred million rupees.
Can I get the extra back?
Partly, and later. Where minimum tax exceeds your normal tax, the excess carries forward for up to two years and can be set against the normal tax of those years. If those years are also minimum-tax years, the carried-forward amount goes unused.
Why is the distributor rate conditional?
The reduced 0.5% rate for distributors and wholesalers of listed goods requires active status on the taxpayer lists under both the Sales Tax Act 1990 and the Income Tax Ordinance 2001. Falling off either list puts the business back on the general 1.25% rate.
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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.
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
A minimum tax year needs planning, not arithmetic.
Which sector rate applies, what turnover is excluded, and how much carried-forward tax you can actually use are questions your accounts have to answer. We prepare company and business returns.