Pakistan Raises Number of Employment Income Tax Brackets

Pakistan increased its number of tax brackets for employment income under its 2019 Finance Act, which the country’s National Assembly passed June 28.

The Act did not change Pakistan’s system of using two separate sets of personal income tax brackets, in which the set of brackets applicable to an individual’s income is based on the percentage of the individual’s income derived from employment. However, under the Act, effective since July 1, 2019, the tax brackets for employment income apply to an individual if more than 75% of the individual’s total income during the applicable tax year was derived from employment, ...