Income Tax For Business in Pakistan

Income Tax For Business in Pakistan

Income Tax For Business in Pakistan

Income Tax For Business in Pakistan, First of all if you are thinking about to start a business, so you must know about the available business formation in Pakistan which are as follow:

Individual

AOP/LLP

PVT LTD

Public Ltd

  • Tax for Individual/AOP (registrar of firm), LLP(SECP)

If you have a business or are thinking of starting one, you will need to know about Income Tax for Business in Pakistan. There are various organizations that offer tax preparation services and consultations to both the business owner and the employees. These tax consultants will take your case and prepare and submit them and guide you according to law.

Taxes in Pakistan are too easy to understand, too simple to handle and efficient to collect.

If you are a startup and managing both ends barely, you should go for individual or AoP/LLP as you business grows and you can afford minor monthly retainer ship of consultant specially those who are accounts gurus like CMA firm as AIMA management Consultants having sessional tax and accounts gurus, being one of the best audit and tax firm

Whatever you earn, if your earning exceeds to the minimum threshold you would need to pay tax, and there are slabs for a different level of earning if you earn less you don’t need to pay, but if you earn good, you need to pay some income tax.

This is a matter of audit that how much sales you have shown and how much profit you declare for tax, so there is a turnover tax or minimum tax, if you sales more than 100milion you would need to pay a fixed percentage called turnover tax.

 

  • Tax for private limited companies incorporated by SECP

 

When you go for the company, no doubt you have more chance to grab business from the platform of corporate company tax and responses to authorities are to be taken care of properly as there are more obligations for companies, it is always better to opt for a tax consultant or outsource the complete tax department as if you hire a permanent professional for tax matters it will be very costly.

 

  • A public limited company

Status of public limited company is higher than private limited so as the legal requirements, however, business owners opt for going for IPO / public limited status as to grab investment and fulfill the cash shortfall or fulfill the investment opportunities, however burden of tax in amount is somehow same as to the private limited company, but again compliances requirements are very high due to involvement of public money.

 

what is a Public Limited Company    What is a Private Limited Company    What is Single member companies


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