🇵🇰 Pakistan
Middle East, North Africa, Afghanistan & Pakistan · ISORA participant ·
Pakistan has statutory provisions in place for controlled foreign companies, interest limitation rules, and country-by-country reporting. However, the jurisdiction does not utilize automated bulk data matching. In 2022, tax revenue accounted for 10.0% of the country's GDP.Auto-generated summary of the verified data below; every fact traces to a source on this page.
10.0%
tax-to-GDP, general govt (2022, OECD)
5/11
enforcement powers assessed
Where the tax bite lands (2022)
Tax revenue by category, % of GDP, general government — OECD Revenue Statistics (Global).
Who collects it (2022)
| Level of government | % of GDP |
|---|---|
| Central government | 9.2% |
| State/regional government | 0.8% |
Tax-to-GDP over time
| 2019 | 2022 |
|---|---|
| 10.0% | 10.0% |
General government, OECD Revenue Statistics (Global).
Headline statutory rates
As stated in PwC Worldwide Tax Summaries’ territory overview (fetched 2026-08-20) — the wording is PwC’s; source.
| Tax | Headline rate as stated |
|---|---|
| Headline PIT rate | For salaried individuals: 35*; For non-salaried individuals: 45*; * Surcharge may also be applicable. See Taxes on personal income section for details. |
| Headline CIT rate | 29 |
| Standard VAT rate | For goods:18 For services: Ranges from 15% to 16% depending on the province. |
| Headline individual capital gains tax rate | See Pakistan's individual tax summary for capital gain rates. |
| Headline corporate capital gains tax rate | See Pakistan's corporate tax summary for capital gain rates. |
| WHT rates (%) (Dividends/Interest/Royalties) | Resident: 15 / 20 / 0; Non-resident: 15 / 10 / 15 |
| Headline net wealth/worth tax rate | 1 |
| Headline inheritance tax rate | NA |
| Headline gift tax rate | NA NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement) NP stands for Not Provided (i.e. the information is not currently provided in this chart) |
Enforcement powers
Automated bulk data matching No — power absent
Self-reported to ISORA (International Survey on Revenue Administration), FY2022.
“ISORA indicator "Administration undertakes fully automated compliance checks based on data matching/analysis" — value: No”
Source: IMF ISORA — International Survey on Revenue AdministrationOECD / IMF survey data · derived from the administration’s own survey answer
Citizenship-based taxation No — power absent
Pakistan taxes individuals by residence, not citizenship (PwC Worldwide Tax Summaries).
“Pakistan levies tax on its residents on their worldwide income. A non-resident individual is taxed only on Pakistan-source income, including income received or deemed to be received in Pakistan or deemed to accrue or arise in Pakistan.”
Source: PwC Worldwide Tax Summaries — PakistanProfessional / legal analysis · quote machine-verified 2026-08-25
Controlled foreign company (CFC) rules Yes — statutory power
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026).
“OECD Corporate Tax Statistics: "Is there a controlled foreign company rule in place? · Not applicable" — Yes”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Interest limitation rules Yes — statutory power
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026).
“OECD Corporate Tax Statistics: "Is there an interest limitation rule in place? · Regime 1" — Yes”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Country-by-country reporting Yes — statutory power
Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (0).
“OECD Corporate Tax Statistics: "Is there a country-by-country reporting law in place?" — Yes”
Source: OECD Corporate Tax StatisticsOECD / IMF survey data · derived from the administration’s own survey answer
Anti-avoidance regime detail (OECD Corporate Tax Statistics)
OECD-curated descriptions of this jurisdiction’s CFC, interest-limitation, CbCR and IP-regime rules.
CFC rules — 4 data points
| Is there a controlled foreign company rule in place? · Regime 1 | Yes |
| Is there a controlled foreign company rule in place? · Not applicable | Yes |
| Year of introduction of the controlled foreign company rule · Regime 1 | 2019 |
| Year of introduction of the controlled foreign company rule · Not applicable | 2019 |
Interest limitation — 18 data points
| Do any loss carry-back or carry-forward provisions apply? · Regime 1 | No |
| Do any loss carry-back or carry-forward provisions apply? · Rule 1 | No |
| Financial accounting measure applied to rule · Regime 1 | Debt-to-equity |
| Financial accounting measure applied to rule · Rule 1 | Debt-to-equity |
| Is there a group ratio rule or similar type of rule in place? · Regime 1 | No |
| Is there a group ratio rule or similar type of rule in place? · Rule 1 | No |
| Is there an interest limitation rule in place? · Regime 1 | Yes |
| Is there an interest limitation rule in place? · Rule 1 | Yes |
| Is the rule applicable to related party debt? · Regime 1 | Yes |
| Is the rule applicable to related party debt? · Rule 1 | Yes |
| Type of interest limitation rule · Regime 1 | Thin cap |
| Type of interest limitation rule · Rule 1 | Thin cap |
| Financial ratio referenced · Regime 1 | 0.12569444444444444 |
| Financial ratio referenced · Rule 1 | 3:1 |
| Is the rule is applicable to third party debt? · Regime 1 | No |
| Is the rule is applicable to third party debt? · Rule 1 | No |
| Are there targeted rules to address specific risks not addressed by the general rule? · Regime 1 | No |
| Are there targeted rules to address specific risks not addressed by the general rule? · Rule 1 | No |
Country-by-country reporting — 4 data points
| Is there a country-by-country reporting law in place? | Yes |
| Deadline by which filings must be submitted | 12 months |
| Reports are required for MNEs with annual revenues above | EUR 750 million |
| Headquarter jurisidiction filing required from | 01-Jan-16 |
IP regimes — 5 data points
| Regime name · Regime 1 | Export regime on IT |
| Status of the IP regime as determined by the OECD’s Forum on Harmful Tax Practices (FHTP). · Regime 1 | Abolished |
| Asset types that can qualify for the IP regime · Regime 1 | Software |
| Tax rate that would otherwise apply · Regime 1 | 25.00% |
| Reduced tax rate that applies under the IP regime · Regime 1 | 0.00% |
Administration self-reported metrics (ISORA)
Reported by the administration itself to the IMF/OECD/CIAT/IOTA International Survey on Revenue Administration. 1 = yes, 0 = no for policy questions.
| Indicator | Year | Value |
|---|---|---|
| Percentage of tax returns - Electronic, not prefilled - CIT | 2024 | 100 |
| Percentage of tax returns - Electronic, not prefilled - PIT | 2024 | 100 |
| Percentage of tax returns - Electronic, not prefilled - VAT | 2024 | 100 |
| Population per FTE | 2024 | 19994.3633325376 |
| Labor force per FTE | 2024 | 6655.829951460173 |
| Corporate taxpayers per FTE in LTO/P | 2024 | 2.231404958677686 |
| Active taxpayers on PIT register as percentage of Population | 2024 | 3.077830115278292 |
| Active taxpayers on PIT register as percentage of Labor Force | 2024 | 9.245917346070359 |
| Closing stock of collectable arrears as percentage of closing stock of arrears | 2024 | — |
| CIT arrears as percentage of CIT collected | 2024 | 60.14020675618951 |
| PIT arrears as percentage of PIT collected | 2024 | 32.16274219090584 |
| PAYE arrears as percentage of PIT collected | 2024 | — |
| VAT arrears as percentage of VAT collected | 2024 | 40.45454162586935 |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - CIT | 2020 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - CIT | 2020 | 0 |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - CIT | 2020 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - PIT | 2020 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - PIT | 2020 | 0 |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - PIT | 2020 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled deemed acceptance - VAT | 2020 | 0 |
| Percentage of tax returns - Electronic, fully pre-filled confirmation required - VAT | 2020 | 0 |
| Percentage of tax returns - Electronic, partially pre-filled with income and/or expense information - VAT | 2020 | 0 |
| Additional assessments raised through all audits and verification actions as percentage of tax collections | 2024 | 2.51890045800574 |
| Audit hit rate | 2024 | 100 |
| Percentage of tax returns - Electronic, not prefilled - PAYE | 2024 | 100 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, not modified by taxpayer - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled, modified by taxpayer - VAT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled not modified by taxpayer - VAT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - CIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - PIT | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - PAYE | 2024 | 0 |
| Percentage of tax returns - Electronic, prefilled Total - VAT | 2024 | 0 |
| Availability of specific powers in legislation / regulation to assist in collecting tax arrears | 2022 | 1 |
| On-time filing rate % - CIT | 2024 | 41.27657233303285 |
| On-time filing rate % - PIT | 2024 | 27.88660016708093 |
| On-time filing rate % - VAT | 2024 | 61.21314821139376 |
| On-time filing rate % - PAYE | 2024 | 41.27657233303285 |
| Administration pre-fills PIT returns or assessments | 2024 | 0 |
| Categories of third party information used to pre-fill PIT returns or assessments-Taxpayer personal information | 2019 | 1 |
| Administration conducts random audits | 2022 | 1 |
| E-filing mandatory - CIT | 2022 | 1 |
| E-filing mandatory - PIT | 2022 | 1 |
| E-filing mandatory - Employer Withholdings | 2022 | 1 |
| E-filing mandatory - VAT | 2022 | 1 |
| E-payment mandatory - CIT | 2022 | 1 |
| E-payment mandatory - PIT | 2022 | 1 |
| E-payment mandatory - Employer Withholdings | 2022 | 1 |
| E-payment mandatory - VAT | 2022 | 1 |
| Employers withholding taxes on behalf of salaried employees | 2024 | 1 |
| Percentage of payments received electronically-By number of payments | 2024 | — |
| Percentage of payments received electronically-By value of payments | 2024 | — |
| Cooperative compliance approach exists for -Large taxpayers | 2024 | 1 |
| Cooperative compliance approach exists for -HNWI taxpayers | 2024 | 1 |
| Cooperative compliance approach exists for -Other taxpayers | 2024 | 0 |
| Most employees that have tax deducted through direct withholding required to file a return | 2024 | 1 |
| Administration receives data from devices that register transactions | 2024 | 1 |
| Administration uses electronic compliance checks as part of returns filing process | 2024 | 1 |
| Administration has specialized audit staff for international tax issues | 2022 | 0 |
| Administration has systems for importing, storing and managing third-party data - Customs data | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from stock exchanges | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from the Social Security Agency | 2022 | 0 |
| Administration has systems for importing, storing and managing third-party data - Data from online (internet-based) vendors | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data from Utilities | 2022 | 1 |
| Administration checks the quality of data reported by third parties on a systematic basis | 2022 | 1 |
| Administration has systems for importing, storing and managing third-party data - Data on property ownership and sales | 2022 | 1 |
| Administration undertakes fully automated compliance checks based on data matching/analysis | 2022 | 0 |
| Administration measures the effectiveness of any compliance interventions undertaken | 2022 | 0 |
| Administration has standards for auditor productivity | 2022 | 1 |