Tax Overview and Recommendations

4 Personal Taxation Income Tax Income Tax - Individuals Top Rate Social Security Personal tax rates differ between salaried taxpayers and non-salaried taxpayers. The top tax rate for salaried taxpayers is 30 percent and applies to income in excess of PKR 7,000,000. For non-salaried taxpayers, the top tax rate is 35 percent and applies to income in excess of PKR 6,000,000. The following are payable by employers: ☐ Social Security - 6 percent of minimum wage of insurable employees ◉ Employees Old Age Benefit (EOAB) - 5 percent of minimum wage of insurable employees International Social Security Agreements Further information For EOAB, employees are also liable to pay Rs. 130 per month, being one percent of the minimum wage, in addition to the contribution made by the employer. Usually, employers deduct this amount from the salary and pay it over to the EOAB Institution on behalf of their employees together with the employer's contribution. None. For more detailed personal taxation information across various countries, refer to: KPMG's Thinking Beyond Borders KPMG 10 © 2016 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. All rights reserved.

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