{"id":1289,"date":"2026-07-13T08:59:02","date_gmt":"2026-07-13T08:59:02","guid":{"rendered":"https:\/\/www.befiler.com\/wordpress\/?p=1289"},"modified":"2026-07-13T10:50:44","modified_gmt":"2026-07-13T10:50:44","slug":"tax-guide-2026-2027","status":"publish","type":"post","link":"https:\/\/www.befiler.com\/wordpress\/tax-guide-2026-2027\/","title":{"rendered":"Tax Guide 2026-2027"},"content":{"rendered":"\n

Key Changes in Finance Act 2026-2027<\/strong><\/h2>\n\n\n\n

\u2705Salary surcharge withdrawn<\/strong>
\u2b07\ufe0fSuper Tax eased to 8%<\/strong> (above Rs. 500M)
\ud83d\uddd1\ufe0fSec 7E & CVT repealed<\/strong>
\ud83d\udcc9Property tax: flat rates<\/strong> (1.25% \/ 2.75%)<\/p>\n\n\n\n

1. Salaried Individuals \u2014
Section 149<\/h2>\n\n\n\n

\u2714\ufe0f Good news The 9% surcharge<\/strong> on salaried individuals has been withdrawn<\/strong>.
(The 9% surcharge still applies to AOPs and non-salaried individuals with taxable income above Rs. 10M.)<\/p>\n\n\n\n

Salary Tax Slabs (2026\u201327)<\/h3>\n\n\n\n
Annual Income (Rs.)<\/th>Tax<\/th><\/tr><\/thead>
Up to 600,000<\/td>0%<\/td><\/tr>
600,001 \u2013 1,200,000<\/td>1% of the amount exceeding 600,000<\/td><\/tr>
1,200,001 \u2013 2,200,000<\/td>6,000 + 11% over 1,200,000<\/td><\/tr>
2,200,001 \u2013 3,200,000<\/td>116,000 + 20% over 2,200,000<\/td><\/tr>
3,200,001 \u2013 4,100,000<\/td>316,000 + 25% over 3,200,000<\/td><\/tr>
4,100,001 \u2013 5,600,000<\/td>541,000 + 29% over 4,100,000<\/td><\/tr>
5,600,001 \u2013 7,000,000<\/td>976,000 + 32% over 5,600,000<\/td><\/tr>
Above 7,000,000<\/td>1,424,000 + 35% over 7,000,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Pensioners (under age 70):<\/strong> same slabs; no surcharge.<\/p>\n\n\n\n

2. AOPs & Non-Salaried Individuals \u2014 Section 18<\/h2>\n\n\n\n
Taxable Income<\/th>Tax Rate<\/th>Surcharge<\/th><\/tr><\/thead>
Up to Rs. 10 Million<\/td>Standard slab<\/td>0%<\/td><\/tr>
Above Rs. 10 Million<\/td>Standard slab<\/td>9%<\/strong> (on tax amount)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

3. Companies & Super Tax \u2014 Section 4C<\/h2>\n\n\n\n

\ud83d\udd04 Changed Super Tax<\/strong> now applies only<\/strong> where taxable income exceeds Rs. 500 million<\/strong>.
Rate: 8%<\/strong> for non-bank companies (on income above the threshold).
\u26a0\ufe0f Banks, E&P companies, and fertiliser manufacturers remain on the older, higher schedule.<\/p>\n\n\n\n

4. Property \u2014 Purchase & Sale<\/h2>\n\n\n\n
Transaction<\/th>Section<\/th>New Rate (Filers)<\/th>Notes<\/th><\/tr><\/thead>
Purchase<\/strong><\/td>236K<\/td>1.25%<\/strong> flat<\/td>Previously 1.5%\u20132.5% slab. FCVA\/NRVA buyers: 0%<\/strong> (subject to conditions).<\/td><\/tr>
Sale<\/strong><\/td>236C<\/td>2.75%<\/strong> flat<\/td>Three slabs abolished. Late-filer enhancements (Tenth Schedule) also abolished.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

5. Capital Gains \u2014 Immovable Property<\/h2>\n\n\n\n
  • Acquired before 1 July 2024:<\/strong> Unchanged (old regime).<\/li>
  • Acquired on\/after 1 July 2024:<\/strong> Taxable under Normal Tax Regime<\/strong> (capped at 15%<\/strong> for ATL persons).<\/li><\/ul>\n\n\n\n

    6. Income from Property (Rent) \u2014 Section 155<\/h2>\n\n\n\n

    Rental income tax rates remain unchanged<\/strong> from the previous tax year. Standard deduction of 20% (or actual repairs) applies. Rate for filers remains 10%<\/strong> of gross rent (subject to applicable slabs).<\/p>\n\n\n\n

    7. Funds \/ REITs & Telephone \/ Internet<\/h2>\n\n\n\n
    • REITs:<\/strong> Tax rates remain unchanged as per the REIT regulations.<\/li>
    • Telephone \/ Internet:<\/strong> Withholding tax rates on phone\/internet bills remain unchanged<\/strong> (standard rates apply).<\/li><\/ul>\n\n\n\n

      8. Dividend & Sukuk \u2014 Section 150<\/h2>\n\n\n\n
      • Dividend (Sec 150):<\/strong> Tax rates remain unchanged (15% for filers, 30% for non-filers on cash dividends).<\/li>
      • Return on Sukuk:<\/strong> Rates remain unchanged. Taxed similarly to profit on debt.<\/li><\/ul>\n\n\n\n

        9. Securities & Investments \u2014 Section 37A<\/h2>\n\n\n\n
        • Acquired before 1 July 2025:<\/strong> Unchanged.<\/li>
        • Acquired on\/after 1 July 2025:<\/strong> Non-ATL persons face 100% enhanced rate<\/strong> (restored).<\/li><\/ul>\n\n\n\n

          10. Withholding Tax \u2014 Services, Goods & Contracts<\/h2>\n\n\n\n
          Category<\/th>Section<\/th>Rate \/ Status<\/th><\/tr><\/thead>
          Services<\/strong> (IT, transport, freight, courier, manpower, hotel, security, software, warehousing, engineering, telecom, car rental, inspection, training, travel, REIT management)<\/td>153(1)(b)<\/td>IT: 4%<\/strong>; Independent professionals: 15%<\/strong> (unchanged)<\/td><\/tr>
          Sale of Goods<\/strong><\/td>153(1)(a)<\/td>Unchanged<\/td><\/tr>
          Contracts<\/strong><\/td>153(1)(c)<\/td>Unchanged<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

          11. Profit on Debt & Debt Securities \u2014 Section 151 \/ 151A<\/h2>\n\n\n\n
          • Sec 151 (Profit on Debt):<\/strong> 20% (unchanged).<\/li>
          • Sec 151A (Debt Securities):<\/strong> Raised from 15% \u2192 20%<\/strong> (to match the profit-on-debt rate).<\/li><\/ul>\n\n\n\n

            12. Advance Tax on Motor Vehicles<\/h2>\n\n\n\n

            Rates apply to the value of the vehicle<\/strong> at the time of purchase, registration, or transfer. The slab structure remains unchanged from the previous year.<\/p>\n\n\n\n

            13. E-Commerce & Exports<\/h2>\n\n\n\n
            Category<\/th>Change<\/th><\/tr><\/thead>
            E-commerce (Sec 6A)<\/strong><\/td>Now adjustable<\/strong> (not final) for turnover > Rs. 200M.<\/td><\/tr>
            Exports (Sec 154 & 154A)<\/strong><\/td>1% advance tax removed<\/strong>; WHT rises 0.25% \u2192 net 0.75% saving<\/strong> for goods exporters.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

            14. Imports & Mobile Phones<\/h2>\n\n\n\n
            • Withholding on Imports (Sec 148):<\/strong> No change for TY 2026-27.<\/li>
            • Import of Mobile Phones:<\/strong> Rates remain unchanged.<\/li><\/ul>\n\n\n\n

              15. Advance Tax \u2014 Builders \/ Developers \u2014 Section 147(5C)<\/h2>\n\n\n\n

              Applicable to projects in major cities. Rates remain unchanged.<\/p>\n\n\n\n

              Other major cities covered:<\/strong> Hyderabad Sukkur Multan Faisalabad Rawalpindi Gujranwala Sahiwal Sialkot Bahawalpur Peshawar Mardan Abbottabad Quetta<\/p>\n\n\n\n

              16. Payments to PE of Non-Residents & SME Rates<\/h2>\n\n\n\n
              • Payments to PE of Non-Residents (Sec 152(2A) \/ Sec 6):<\/strong> Rates remain unchanged.<\/li>
              • SME Rates & Builders\/Developers (Sec 7F):<\/strong> Unchanged. SME turnover threshold and reduced rates remain applicable as per existing rules.<\/li><\/ul>\n\n\n\n

                17. Electricity Consumption \u2014 WHT<\/h2>\n\n\n\n

                Withholding tax on electricity bills remains unchanged<\/strong>. Standard rates apply based on consumption slabs for commercial and industrial users.<\/p>\n\n\n\n

                18. Miscellaneous Withholding Taxes<\/h2>\n\n\n\n
                • Sec 236Y:<\/strong> Cut from 5% to 0.5%<\/strong>.<\/li>
                • Social Media Revenue (NEW Sec 154B):<\/strong> 5% \u2014 resident: minimum tax; non-resident: final tax.<\/li>
                • Life Insurance:<\/strong> Early payouts taxed; exempt after 7 years or on death\/disability.<\/li>
                • Foreign TV-drama WHT (Sec 236CA):<\/strong> Abolished<\/strong>.<\/li>
                • CVT on foreign assets:<\/strong> Abolished<\/strong>.<\/li><\/ul>\n\n\n\n

                  19. Minimum Tax (Section 113) \u2014 Concessional List @ 0.5%<\/h2>\n\n\n\n

                  \u2705 Still included<\/p>\n\n\n\n

                  • Packaged food<\/li>
                  • Fertiliser<\/li>
                  • Locally-made mobiles<\/li>
                  • Sugar<\/li>
                  • Electronics<\/li><\/ul>\n\n\n\n

                    \u274c Dropped<\/p>\n\n\n\n

                    • Cement<\/strong><\/li>
                    • Steel<\/strong><\/li>
                    • Edible oil<\/strong><\/li><\/ul>\n\n\n\n

                      20. Key Changes \u2014 Finance Act 2026 (1 of 2)<\/h2>\n\n\n\n
                      • Salary surcharge<\/strong> \u2014 Withdrawn for salaried individuals.<\/li>
                      • Super Tax<\/strong> \u2014 Eased to 8%, only above Rs. 500M.<\/li>
                      • Sec 7E & CVT<\/strong> \u2014 Omitted (deemed-income & foreign-asset tax repealed).<\/li>
                      • Property Purchase (236K)<\/strong> \u2014 Single 1.25% flat rate; FCVA buyers: 0%.<\/li>
                      • Property Sale (236C)<\/strong> \u2014 Single 2.75% flat rate; late-filer enhancements abolished.<\/li>
                      • Capital Gains (Immovable)<\/strong> \u2014 Acquired after 1 Jul 2024 taxed under Normal Tax Regime (capped at 15%).<\/li><\/ul>\n\n\n\n

                        21. Key Changes \u2014 Finance Act 2026 (2 of 2)<\/h2>\n\n\n\n
                        • Securities (37A)<\/strong> \u2014 Non-ATL: 100% enhanced rate restored (acquired on\/after 1 Jul 2025).<\/li>
                        • Debt Securities (151A)<\/strong> \u2014 Raised from 15% to 20%.<\/li>
                        • E-commerce (6A)<\/strong> \u2014 Now adjustable (turnover > Rs. 200M).<\/li>
                        • Exports (154\/154A)<\/strong> \u2014 1% advance removed; net 0.75% saving for goods exporters.<\/li>
                        • Social Media Revenue (154B)<\/strong> \u2014 New 5% tax (resident: minimum; non-resident: final).<\/li>
                        • Miscellaneous<\/strong> \u2014 Sec 236Y cut to 0.5%; Foreign TV-drama WHT & CVT abolished.<\/li><\/ul>\n\n\n\n

                          22. Non-ATL (Non-Filer) Restrictions<\/h2>\n\n\n\n

                          \u26a0\ufe0f Strict Effective 1 July 2026<\/strong>, non-filers face:<\/p>\n\n\n\n

                          • Activity restrictions<\/strong> under Sec 114C.<\/li>
                          • Enhanced withholding<\/strong> rates on securities, property, and services.<\/li><\/ul>\n\n\n\n

                            Winners & Losers<\/h2>\n\n\n\n

                            Winners<\/h4>\n\n\n\n
                            • Salaried individuals (surcharge gone)<\/li>
                            • Exporters (net 0.75% saving)<\/li>
                            • FCVA\/NRVA property buyers (0% on purchase)<\/li>
                            • Builders\/developers (some relief)<\/li><\/ul>\n\n\n\n

                              Losers<\/h4>\n\n\n\n
                              • Non-filers (higher rates & restrictions)<\/li>
                              • Cement & steel sectors (removed from 0.5% list)<\/li>
                              • Non-ATL securities holders (100% enhanced rate)<\/li><\/ul>\n\n\n\n

                                \ud83d\udccc Disclaimer:<\/strong> This summary is based on the Finance Act 2026 and publicly available interpretations. Tax rates and provisions are subject to official notification and individual circumstances.<\/p>\n\n\n\n

                                Visit Befiler.com<\/strong> to file your taxes or get an expert consultation on financial matters.<\/p>\n\n\n\n

                                <\/p>\n","protected":false},"excerpt":{"rendered":"

                                Pakistan’s Income Tax 2026-27 explained! Salary surcharge is gone, Super Tax eases to 8%, property taxes flatten to 1.25%\/2.75%, and non-filers face tougher rules. Full tables and highlights inside.<\/p>\n","protected":false},"author":1,"featured_media":1292,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,24,21,17],"tags":[28],"class_list":["post-1289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-befiler-revolutionizing-the-tax-industry","category-learn-sales-tax","category-pakistans-tax-affairs","category-tax-planning-in-pakistan","tag-budget-2026-2027"],"_links":{"self":[{"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/posts\/1289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/comments?post=1289"}],"version-history":[{"count":0,"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/posts\/1289\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/media\/1292"}],"wp:attachment":[{"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/media?parent=1289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/categories?post=1289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.befiler.com\/wordpress\/wp-json\/wp\/v2\/tags?post=1289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}