Tax Example: Rent

November 08, 2017

Non-resident couple's joint monthly rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income 18,000 72,000 144,000
Income Tax3
Up to PKR 400,000 0% - - -
PKR400,000 - PKR 750,000 7% 67 67 67
PKR750,000 - PKR 1,500,000 10% 238 238 238
PKR1,500,000 - PKR 2,500,000 15% 1,071 1,071 1,071
PKR2,500,000 - PKR 4,000,000 20% 743 1,905 1,905
PKR4,000,000 - PKR 6,000,000 25% - 3,571 3,571
Over PKR 6,000,000 30% - 5,714 5,714
Over PKR 6,000,000 35% - 5,200 30,400
Annual Income Tax Due 2,052 17,700 42,900
Tax Due as % of Gross Income 11.40% 24.58% 29.79%
Source:
GPG

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on May 06, 2016.

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 105.00 PKR

3 Rental income earned by nonresident individuals is taxed at progressive rates.

INCOME TAX ON OTHER INCOME

TAXABLE INCOME, PKR(US$)
TAX RATE
Up to 400,000 (US$ 3,810 )
0%
400,000 - 500,000 (US$ 4,762 )
7%
500,000 - 750,000 (US$ 7,143 )
10%
750,000 - 1,500,000 (US$ 14,286 )
15%
1,500,000 - 2,500,000 (US$ 23,810 )
20%
2,500,000 - 4,000,000 (US$ 38,095 )
25%
4,000,000 - 6,000,000 (US$ 57,143 )
30%
Over 6,000,000 (US$ 57,143 )
35%
Source: Global Property Guide

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