Pakistan Business Tax Calculator 2025
Calculate tax on profit for Sole Proprietors, Freelancers & AOPs (FBR 2025-26)
Introduction
🎯 What
Pakistan Business Income Tax 2025 Calculator estimates annual income tax payable on business profits under FBR rules for Tax Year 2025–26.
👥 Who
Sole proprietors, Freelancers, AOPs (Association of Persons), Partnership firms, Small & medium businesses.
💡 Why
To estimate tax liability accurately, comparing Normal Tax (Profit-based) vs Minimum Tax (Turnover-based).
🏢 Business Profile
−💰 Financials
−Total sales/receipts before deductions
🏦 Tax Credits & Payments
+📊 Tax Summary
Enter profit details to see calculation
Detailed Tax Breakdown
Pakistan Business Income Tax Rules (2025-26)
Minimum Tax Rule
If the tax calculated on Net Profit (Normal Tax) is less than 1.25% of Annual Turnover, then the business must pay the Minimum Tax based on turnover.
Normal Tax Slabs (Individuals & AOPs)
| Taxable Income | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 - 1.2M | 1% of excess |
| 1.2M - 2.2M | 6,000 + 11% excess |
| 2.2M - 3.2M | 116,000 + 23% excess |
| 3.2M - 4.1M | 346,000 + 30% excess |
| Above 4.1M | 616,000 + 35% excess |
FAQs
Q: Is minimum tax compulsory?
A: Yes, calculating 1.25% of turnover is required to check if your normal tax liability
is lower. You pay whichever is higher.
Q: Are freelancers covered?
A: Yes, freelancers registered as businesses follow these slabs. (Note: IT exports may
have different reduced rates/regimes not covered here).
Q: Can losses be carried forward?
A: Yes, business losses can generally be carried forward to set off against future
profits for up to 6 years, subject to FBR conditions.
Disclaimer: This Pakistan Business Income Tax 2025 calculator is for informational and Google AdSense purposes only. Tax laws may change through Federal Budget or FBR notifications. Always consult a qualified tax advisor or FBR for official filing.