Tool 08
Corporate Tax Calculator
Company income tax on yearly profit — normal, small and banking rates.
Corporate income tax in Pakistan is charged on a company's yearly taxable profit at the rate set for its type — the normal company rate, the reduced small company rate, or the higher banking company rate.
Company details
Income tax a registered company owes on its yearly profit
Tax year
What kind of company is it?
A small company pays a lower rate; a bank pays a higher one.
Your income for the year after allowed business costs.
Advance tax instalments, or tax withheld from the company during the year.
This is for a registered company. Sole traders and partnerships are taxed in progressive steps instead — use the business and AOP calculator.
Company tax rates for 2026-27
| Who it applies to | Rate | What this means |
|---|---|---|
| Normal company | 29% | Public and private companies that are not banks and are not small companies. |
| Small company | 20% | Capital and reserves up to Rs. 50 million, up to 250 staff and yearly turnover up to Rs. 250 million. |
| Bank | 42% | The banking rate has been stepping down — 44% in 2024-25, 43% in 2025-26 and 42% from 2026-27. |
How the three company taxes fit together
1. Work out the tax on your profit at the company rate.
2. Compare it with the minimum tax on turnover and pay whichever is higher — never both.
3. Add super tax on top if your income for the year passes the Section 4C threshold.
Open the super tax calculatorNot a company?
Sole traders and partnerships are taxed in progressive steps on their profit, not at a single company rate.
Use the business and AOP calculatorCompany tax questions
A normal company pays 29% of its taxable profit, a small company 20%, and a bank 42% for 2026-27 — down from 43% in 2025-26 and 44% in 2024-25.
It counts if it was registered on or after 1 July 2005, has paid-up capital plus undistributed reserves of no more than Rs. 50 million, employs no more than 250 people at any point in the year, has yearly turnover of no more than Rs. 250 million, was not formed by splitting an existing company, and is not registered as a small and medium enterprise. Miss any one and the normal rate applies.
No. A company pays one flat rate on the whole of its taxable profit. Progressive bands apply to individuals and partnerships, not to companies.
A separate minimum tax is worked out from turnover instead of profit, and you pay whichever of the two figures is higher — never both.
No. Super tax under Section 4C is a separate charge on very high income and is added on top of the tax shown here.
Advance tax instalments and tax withheld from the company count towards the yearly bill. Enter the total and the calculator shows the balance left to pay.
A company with a normal tax year files by 31 December. Confirm your own due date, since a company with an approved special tax year files on a different timetable.
Where these figures come from
Every rate in this tool is read from the official documents below. Open any of them to check a figure yourself.
Income Tax Ordinance 2001Division II of the First Schedule holds the rate for every kind of company, with notes showing when each rate changed.- Finance Act 2026The enacted budget law for 2026-27. It leaves the company tax rates unchanged.
- Income Tax (Amendment) Act 2025Act XIII of 2025, gazetted 11 June 2025. It rewrote the bank rate as 44% for 2024-25, 43% for 2025-26 and 42% from 2026-27 onwards.
- Finance Act 2022Set the bank rate at 39%, which is the rate this calculator uses for 2022-23 and 2023-24. It also left 29% and 20% where they stand.
FBR IRIS PortalFile the company's yearly income tax return.
Rates last reviewed 20 August 2026 against the sources above. Found a figure that does not match the source? Report a correction.
This calculator gives an estimate, not tax or legal advice, and nothing you type is stored unless you send it to us. Confirm your final position with a qualified Pakistan tax professional.
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