The rates of tax for a branch of a company incorporated outside Pakistan are the same as those applicable on resident companies, other than public and banking companies (i.e. 31% for tax year 2017, and 30% for tax year 2018 onwards). Tax at the rate of 12.5% is levied on the transfer of profits to the head office, with an exception for companies engaged in the oil and gas exploration and production business.
Payments to a branch in Pakistan of a non-resident are subject to deduction of tax at source on the same basis as a resident in the case of sale of goods, rendering of professional services, and execution of contracts. In other circumstances, a reduced/0% WHT certificate can be obtained from the Commissioner of Income Tax.
Pakistan has signed agreements for avoidance of double taxation with over 60 countries.