Jul 18, 2022 1 min read

Pakistan Payroll Outsourcing Alert

Pakistan– Amends Personal Income Tax Rates for 2022-2023 Tax Year.

On 30 June 2022, the President of Pakistan enacted the Finance Act of 2022. The Act provides for changes to the personal income tax rates and brackets for salaried employees for the period 1 July 2022 to 30 June 2023, as per below:

Annual taxable income (in PKR)Tax rate/Minimum tax amount in PKR
FromTo
1600,0000%
600,0001,200,0002.5% of the amount exceeding PKR 600,000
1,200,0002,400,000PKR 15,000 plus 12.5% of the amount exceeding PKR 1,200,000
2,400,0003,600,000PKR 165,000 plus 20% of the amount exceeding PKR 2,400,000
3,600,0006,000,000PKR 405,000 plus 25% of the amount exceeding PKR 3,600,000
6,000,00012,000,000PKR 1,005,000 plus 32,5% of the amount exceeding PKR 6,000,000
12,000,000AbovePKR 2,955,000 35.0% of the amount exceeding PKR 12,000,000

In addition to the above changes, Sections 60C, 62 and 62A have been omitted from the tax rebate. As a result of this omission, no tax credit will be provided for the expenses:

These changes are effective 1 July 2022.

Mercans Recommend

View PDF

Mercans Statutory Alert Pakistan Salary Tax Change Effective 01 July 2022
Size

755.78 KB

Most viewed posts

View all posts

Lebanon – Sickness and Maternity Contributions Set To Raise

Contributions will be raised to LBP 18,000,000 from the existing limit of LBP 5,600,000.

Sep 18, 2023 1 min read

Singapore – Central Provident Fund Ceiling Changes

Effective from 1 September 2023, the Central Provident Fund Board has amended the additional income ceiling for monthly mandatory contributions. CPF Ordinary Wage (OW) ceiling limits, the amount of OW that attract CPF contributions in a calendar m

Sep 12, 2023 1 min read

Kenya – 2023 Statutory Changes

Effective from 28 July 2023, the Kenyan Government has lifted the suspension barring the implementation of the 2023 Finance Act. The Finance Act of 2023 proposed the below changes to take effect from the 1st of July 2023: Exemption of travel allo

Aug 15, 2023 2 min read

Oman Announces New Labor Law

Effective from 25 July 2023, the Omani government through Royal Decree No. 53/2023 issued the New Labor Law which replaces the Old Labor law issued through Royal Decree No. 35/2003. Please find the previous and new law comparison in the below tabl

Aug 11, 2023 1 min read

HR Blizz Acquires an Accounting Software Award from Leading B2B Rev...

HR Blizz earned another notch on its belt when a major B2B software marketplace granted our accounting software a major award. FinancesOnline, one of the leading software directories today, confers HR Blizz with a Rising Star Award, acknowledgin

Aug 10, 2023 3 min read

New Salary capping limit for payment of Social and Health Insurance...

Effective from 1 July 2023, the Ho Chi Minh City Social Insurance authority with Notice no. 2651/TB-BHXH dated 7 Juy 2023 increased the ceiling amount of salary for payment of compulsory social insurance, occupational accident and disease insurance,

Jul 31, 2023 1 min read