Pakistan (PK)
Pakistan is South Asia's second-largest country and a land of extraordinary contrasts — from the towering Karakoram peaks in the north to the bustling port city of Karachi on the Arabian Sea.
2026 Annual Changes — Pakistan
Updated thresholds, benefits, and regulatory changes effective this year.
Pakistan 2026 planning uses Tax Year 2026 (FY 2025-26, July 2025–June 2026) salary slabs under Finance Act 2025, 18% federal sales tax, EOBI pension contributions, and a 30 September individual return filing deadline. Security planning, embassy registration and KYC/source-of-funds documentation remain central operational requirements.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Income Tax — Salaried Persons (Tax Year 2026) Finance Act 2025 salary-tax slabs for resident salaried employees for Tax Year 2026 (July 2025–June 2026). Non-salaried individuals use different rates. | 0% up to PKR 600,000/year; 5% on PKR 600,001–1,200,000; 15% on PKR 1,200,001–2,200,000; 25% on PKR 2,200,001–3,200,000; 30% on PKR 3,200,001–4,100,000; 35% above PKR 4,100,000. Verify exact bands with FBR (fbr.gov.pk) before salary modelling. | Tax Year 2025 top rate was also 35% | 2025-07-01 (Tax Year 2026) |
| Income Tax — Tax Filing Deadline Annual income-tax return deadline for individuals for Tax Year 2026 income (FY 2025-26). Extensions may be granted via FBR notification. | 30 September 2026 (standard deadline for Tax Year 2026). Filing via FBR IRIS portal (iris.fbr.gov.pk). Late filing attracts default surcharge. | — | 30 September 2026 |
| Federal Sales Tax Standard federal GST/sales tax rate on goods under the Sales Tax Act remains the primary consumption tax. Provincial services tax rates differ. | 18% standard federal sales tax on most goods. Provincial services tax rates: Punjab Revenue Authority (PRA) 16%; Sindh Revenue Board (SRB) 15%; KP Revenue Authority (KPRA) 15%; Balochistan Revenue Authority (BRA) 15%; ICT 16%. | — | 2026 |
| Minimum Wage Federal minimum wage for unskilled workers set in Finance Bill 2025 for FY 2025-26. Provincial minimum wages may differ. | PKR 37,000/month federal minimum wage for unskilled workers (FY 2025-26) | PKR 37,000/month (FY 2024-25 — unchanged; PKR 32,000 was FY 2023-24) | 2025-07-01 |
| EOBI — Employees Old-Age Benefits EOBI contributions remain mandatory for formal employers in covered industries. Contributions are calculated on insurable wages (capped at minimum wage). | Employer: 5% of insurable wages (approx. PKR 1,850/month at PKR 37,000 minimum wage); Employee: 1% of insurable wages (approx. PKR 370/month). Register at eobi.gov.pk. | — | 2026 |
| National Tax Number (NTN) — FBR Registration NTN/STRN registration with FBR via IRIS portal is required for employment income, business activity, property transactions and many banking operations in Pakistan. | Free NTN registration via iris.fbr.gov.pk. Required in 2026 for: property purchase, vehicle above PKR 2.5M, bank transactions above threshold, foreign travel (active filer status), and avoiding enhanced withholding tax deductions on non-filers. | — | 2026 (ongoing) |
| Withholding Tax — Non-Filer Surcharge Pakistan enforces higher withholding tax rates on individuals not on FBR's Active Taxpayers List (ATL). Being a non-filer materially increases tax deductions on bank interest, property, vehicles and dividends. | Non-filers pay double or higher WHT rates on bank profits, property transactions and other specified income compared with ATL-registered filers. Check ATL status at fbr.gov.pk/atl. | — | 2026 (ongoing) |
| Work Permits and BOI Routes Foreign employees working in Pakistan must have valid work authorisation before starting employment. The Board of Investment (BOI) handles most commercial foreign worker routes; sector-specific routes apply to NGOs, diplomats and others. | Work visa + employer/BOI documentation required. Pakistan Online Visa portal (visa.nadra.gov.pk) for entry clearance. BOI route: employer submits recommendation; work visa issued at Pakistan mission. No work on tourist/business visa. | — | 2026 (ongoing) |
| Banking — Source-of-Funds and KYC State Bank of Pakistan KYC requirements for foreign nationals remain strict. Banks routinely request full documentation for inward salary transfers, outward remittances and large transactions. | Documents typically required: passport, valid visa/work permit, employer letter, NTN, salary certificate, bank statement. Keep these current for every large transfer. | — | 2026 (ongoing) |
| Public Holidays — Eid and Muharram 2026 Government and banking closures around Eid-ul-Fitr, Eid-ul-Adha and Ashura/Muharram affect visa processing, banking, tax filing and intercity travel. Dates are moon-sighting dependent and confirmed by Cabinet Division. | Eid-ul-Fitr approx. 20–22 March 2026 (moon-sighting dependent; government usually declares 3 days); Eid-ul-Adha approx. 27–29 May 2026; Ashura: approx. 25–26 June 2026. Verify Cabinet Division/SBP notices before travel or deadline planning. | — | 2026 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Check visa and work-permit expiry dates; calendar renewal reminders at 90 and 60 days.
- 2
Confirm NTN/IRIS registration is active and ATL status is current for the new tax year.
- 3
Verify payroll withholding uses correct Finance Act 2025 salary slabs from 1 July 2025.
- 4
Update source-of-funds folder (payslips, salary certificate, bank statements) for Bank KYC.
- 5
Review health, evacuation and life insurance; renew before expiry.
- 6
Book Eid-ul-Fitr (March) and Eid-ul-Adha (May) travel early — transport books out weeks ahead.
- 7
Prepare smog supplies (masks, purifiers) before Lahore/Punjab winter peak (Nov–Feb).
Where to Track Annual Changes
-
Federal Board of Revenue — fbr.gov.pk — income tax slabs, WHT rates, ATL, IRIS filings
-
Pakistan Online Visa — visa.nadra.gov.pk — visa categories and processing
-
Board of Investment — invest.gov.pk — work authorisation and investment routes
-
EOBI — eobi.gov.pk — pension contribution rates and employer registration
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State Bank of Pakistan — sbp.org.pk — exchange controls, remittance rules and KYC circulars
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Provincial Revenue Authorities — pra.punjab.gov.pk, srb.gos.pk, kpra.gov.pk — services tax by province
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Cabinet Division — pakistan.gov.pk — official public holiday notifications
Pakistan tax rules are updated annually through the Finance Act (typically June/July) and FBR SROs. The Tax Year 2026 runs 1 July 2025 to 30 June 2026. Verify current salary slabs, WHT rates and provincial services tax with FBR and a Pakistan-qualified tax adviser before payroll processing. Non-filer surcharges can materially increase tax costs — maintain ATL registration.
Annual Changes
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