#

Ease of Doing Business in

Pakistan

Pakistan Download Profile (2027.3KB, pdf)
Region South Asia
Income Category Lower middle income
Population 188,924,874
GNI Per Capita (US$) 1,440
City covered Karachi, Lahore

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 144 148 up
4
51.77 49.48 down
2.29
Starting a Business 141 135 down
6
77.88 77.43 up
0.45
Dealing with Construction Permits 150 150
-
59.07 58.56 up
0.51
Getting Electricity 170 163 down
7
42.05 43.73 down
1.68
Registering Property 169 173 up
4
40.70 39.22 up
1.48
Getting Credit 82 134 up
52
50.00 30.00 up
20.00
Protecting Minority Investors 27 25 down
2
66.67 66.67
-
Paying Taxes 156 154 down
2
53.40 53.74 down
0.34
Trading across Borders 172 172
-
39.41 38.11 up
1.30
Enforcing Contracts 157 156 down
1
43.49 43.49
-
Resolving Insolvency 85 85
-
45.01 43.87 up
1.14

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

53.43

DB 2016 DTF (% points):

53.77

Change in DTF (% points):

down0.34

Indicator Karachi South Asia OECD high income
Payments (number per year) info_outline 47 31.8 10.9
Time (hours per year) info_outline 311.5 283.9 163.4
Total tax rate (% of profit) info_outline 33.2 40.9 40.9
Postfiling index (0-100) info_outline 37.6 45.0 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 5 40 25% taxable profit 18.48
Employer paid -Pension contributions 12 5% or PKR 400 per employee per month gross salaries 6.60
Social security contributions 12 40 6% gross salaries 6.12
Education cess 1 PKR 100 per month per worker 0.93
Property tax 1 18% (including 10% discount) annual rental value of property 0.89
Tax on interest 0 10% interest 0.26 included in other taxes
Professional tax 1 PKR 10,000 fixed fee 0.14
Vehicle tax 1 varies fixed fee depending on type of vehicle 0.07
Fuel tax 1 25% included into fuel price 0.00 small amount
Employee paid - Pension contributions 0 jointly 1% or PKR 80 per employee per month gross salaries 0.00 withheld
Goods and sales tax (VAT) 12 232 17% value added 0.00 not included
Stamp duty 1 rate based on contract value 0.00
Totals: 47 311.5 33.2
  • Answer
    Profit tax (% of profit) 18.5
    Labor tax and contributions (% of profit) 13.8
    Other taxes (% of profit) 1.1
    Answer Score
    Postfiling index (0-100) 37.6
    VAT refunds 0.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process Carry forward for 6 months
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A 0.0
    Time to obtain a VAT refund (weeks) N/A 0.0
    Corporate income tax audits 50.5
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 28.5 50.5
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Commissioner Inland Revenue (Appeals)
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 120 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.