Corporate Tax Return Services 2024-2025
Complete corporate tax compliance solutions under the latest Income Tax Ordinance
Corporate Tax Rates 2024-2025
Key Changes in 2024-2025 Budget Ordinance
- Reduced corporate tax rate for certain industries
- New tax incentives for export-oriented sectors
- Revised minimum tax provisions
- Enhanced tax credits for technology adoption
- Stricter transfer pricing documentation requirements
Standard Corporate Tax Rates
| Company Type | Tax Rate | Notes |
|---|---|---|
| Banking Companies | 39% | +2% super tax may apply |
| Other Companies | 29% | Standard rate |
| Small Companies (paid-up capital ≤ 50M PKR) | 20% | New reduced rate |
| Manufacturing Companies (new industries) | 20% | First 5 years of operation |
Special Industry Rates
| Sector/Industry | Tax Rate | Conditions |
|---|---|---|
| Textile | 25% | For export-oriented units |
| Information Technology | 15% | For registered IT companies |
| Renewable Energy | 17.5% | For projects completed by 2026 |
| Construction | 20% | For Naya Pakistan Housing projects |
Corporate Tax Return Requirements
Essential Documents for Filing
- Audited financial statements (signed by directors)
- Tax computation worksheet
- NTN certificate and company registration documents
- Bank statements for the tax year
- Withholding tax statements (monthly/quarterly)
- Sales tax returns and payment proofs
- Details of fixed assets additions/disposals
- Depreciation schedules
- Loan agreements and interest payment proofs
- Board resolution authorizing tax filing
- Transfer pricing documentation (if applicable)
- Proof of tax credits/deductions claimed
- Details of related party transactions
Additional Requirements for Specific Cases
- Exporters: E-Form, bank credit advice, SBP records
- Importers: Custom clearance documents
- Manufacturers: Production records, utility bills
- Companies with losses: Loss carryforward calculations
- Companies with foreign income: Foreign tax credit documents
Corporate Tax Deductions & Credits 2024 Updates
Allowable Deductions
- Business expenses (ordinary and necessary)
- Depreciation as per prescribed rates
- Bad debts (specific conditions apply)
- Research & Development expenses (150% deduction)
- Employee training costs (125% deduction)
- Charitable donations to approved institutions
- Energy conservation investments
Available Tax Credits
- Export tax credit (1% of export proceeds)
- Technology upgrade credit (5% of investment)
- Special economic zone credit (10% of investment)
- Employment generation credit (for new hires)
- Green energy credit (for renewable energy use)
- Withholding tax credits (on payments received)
Corporate Tax Compliance Calendar 2024-2025
| Requirement | Due Date | Frequency |
|---|---|---|
| Advance Tax Installments | 15th of Sep, Dec, Mar, Jun | Quarterly | Withholding Tax Statements | 15th of following month | Monthly |
| Sales Tax Return | 15th of following month | Monthly |
| Annual Tax Return | December 31, 2025 | Annual |
| Audited Accounts Submission | With annual return | Annual |
| Transfer Pricing Documentation | With annual return | Annual (if applicable) |
Important Compliance Notes
- Late filing penalty: 0.1% of tax due per day (max 50% of tax)
- Minimum tax: 1.25% of turnover for certain industries
- Digital filing mandatory for all corporate taxpayers
- Transfer pricing documentation required for cross-border transactions > PKR 200M
- Companies must maintain records for 6 years
Special Tax Regimes New 2024 Provisions
Final Tax Regime (FTR)
- Applicable to small businesses with turnover < PKR 100M
- Tax rate: 1.25% of turnover
- No deductions or credits allowed
- Simplified compliance requirements
Presumptive Tax Regime
- For certain sectors (contractors, distributors, etc.)
- Tax rates range from 3-8% of gross receipts
- No expense deductions permitted
- Optional for eligible taxpayers
