Corporate - Branch income

Last reviewed - 23 January 2024

The rates of tax for a branch of a company incorporated outside Pakistan are the same as those applicable on resident companies. Tax at the rate of 15% is levied on the transfer of after-tax profits by a branch to the head office, subject to certain exception.

Payments to a branch in Pakistan of a non-resident are subject to deduction of tax at source primarily on the same basis as a resident in the case of sale of goods, rendering of services, and execution of contracts.

Pakistan has presently executed agreements for avoidance of double taxation with 66 countries.