Income tax on rent, worked example, in Pakistan

Taxation Researcher | April 04, 2019

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 800,000 0.25% 10 10 10
PKR500,000 - PKR 1,200,000 0.50% 19 19 19
PKR750,000 - PKR 2,400,000 5% 329 571 571
PKR1,500,000 - PKR 4,800,000 10% - 2,286 2,286
Over PKR 4,800,000 15% - 3,943 14,743
Annual Income Tax Due 357 6,829 17,629
Tax Due as % of Gross Income 37.94% 24.48% 12.24%
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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