Strategic tax planning and advisory services for individuals and businesses in Pakistan. We help you legally minimize your tax burden, stay compliant with FBR, and make informed financial decisions under the Income Tax Ordinance, 2001.
Why Tax Planning Matters in Pakistan
Pakistan's tax system is progressive — salaried individuals face rates from 0% to 35%, while businesses pay corporate tax at 29% (standard rate for tax year 2025-26). Without proper planning, you could be paying significantly more than necessary.
The Federal Board of Revenue (FBR) offers numerous legal exemptions, deductions, and incentives that most taxpayers don't take advantage of — simply because they don't know about them. That's where professional tax planning comes in.
Use our free Salary Tax Calculator to see where you currently stand, then let our advisors show you how to reduce that number legally.
Our Tax Planning Services
Individual Tax Planning
For salaried individuals and self-employed professionals, we provide:
- Tax slab optimization — Structuring salary components (basic, house rent, medical, conveyance) to minimize taxable income under the 6-slab FBR structure
- Allowable deductions — Claiming deductions under Section 60 (charitable donations), Section 61 (education expenses), Section 62 (profit on debt for self-occupied house), and other applicable provisions
- Investment planning — Tax credits under Section 62A for investment in shares, Behbood Savings Certificates, and pension funds (up to 20% of taxable income)
- Timing strategies — Structuring income receipt and expense payments across tax years for optimal slab positioning
- Property tax advisory — Capital gains tax planning on property disposal (rates differ for filers vs non-filers)
Corporate Tax Planning
For businesses registered in Pakistan, our corporate tax advisory covers:
- Business structure optimization — Choosing between sole proprietorship, AOP, private limited company, or SMC based on tax efficiency (learn more about corporate formation)
- Minimum tax & turnover tax — Managing the interplay between Section 113 (minimum tax at 1.25% of turnover) and normal tax, and determining which regime is more beneficial
- Depreciation planning — Maximizing initial and normal depreciation allowances under the Third Schedule to reduce taxable profits
- Tax credits & incentives — Claiming available credits: investment in plant/machinery (Section 65B), employment generation (Section 65F), and IT/ITeS export income (reduced 0.25% tax rate)
- Withholding tax management — Ensuring proper WHT deduction and claiming adjustable taxes already paid on purchases, imports, and banking transactions
- Transfer pricing — Advisory on arm's length pricing for transactions between related parties (Section 108) to avoid FBR adjustments
NTN Registration & Active Taxpayer Status
Not yet a filer? We handle the complete process:
- Registration on FBR IRIS portal and NTN issuance
- Preparation and filing of your income tax return
- Wealth statement and reconciliation
- Ensuring your name appears on the Active Taxpayers List (ATL)
Being a filer saves you thousands on every major transaction — property purchases, vehicle registration, banking, and more. See the full comparison on our Filer vs Non-Filer guide.
FBR Audit & Notice Response
Received a notice from FBR? Our tax lawyers handle:
- Section 122 notices — Amendment of assessment where FBR believes income was understated
- Section 176 / 177 audit — Selection for audit by FBR; we prepare documentation and represent you
- Penalty proceedings — Defense against penalties for late filing, under-reporting, or non-compliance
- Voluntary disclosure — Advice on amnesty schemes and voluntary correction of past returns when applicable
For disputes that escalate beyond audit, see our dedicated Tax Dispute Representation services.
International Tax Advisory
For overseas Pakistanis and businesses with cross-border operations:
- Double Taxation Agreements (DTAs) — Pakistan has DTAs with 60+ countries. We advise on treaty benefits, withholding rates, and PE (Permanent Establishment) exposure
- Foreign income reporting — Guidance on declaring worldwide income and claiming foreign tax credits under Section 103
- Remittance tax implications — Tax treatment of remittances received from abroad under Section 111(4)
- Non-resident taxation — Pakistan source income rules, branch profit tax, and withholding obligations for non-residents
FY 2025–26 Tax Slabs for Salaried Individuals
| Annual Income (PKR) | Tax Rate |
|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | Rs. 6,000 + 11% of amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | Rs. 116,000 + 23% of amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | Rs. 346,000 + 30% of amount exceeding 3,200,000 |
| Above 4,100,000 | Rs. 616,000 + 35% of amount exceeding 4,100,000 |
Calculate your exact tax using our free Salary Tax Calculator.
Who Should Get Tax Planning Advice?
- Salaried individuals earning above PKR 100,000/month — you're likely overpaying tax without proper salary structuring
- Business owners — corporate tax, sales tax, and withholding obligations create significant optimization opportunities
- Freelancers & IT professionals — special reduced tax rates apply to IT/ITeS exports, but you need to register and claim them properly
- Property investors — capital gains, advance tax on purchase/sale, and filer vs non-filer rates create massive tax differences
- Overseas Pakistanis — foreign income reporting, remittance treatment, and DTA benefits require professional guidance
- Startups — tax incentives, exemptions, and optimal business structures can save lakhs in the early years
Why Choose LegalPK for Tax Advisory?
- FBR-experienced lawyers — our team has handled 500+ tax filings and audit representations
- Up-to-date expertise — we track every Finance Act amendment, SRO, and FBR circular
- End-to-end service — from planning to filing to dispute resolution, all under one roof
- Free first consultation — we assess your situation before you commit
- Transparent pricing — fixed fees, no hidden charges, no hourly billing surprises
Frequently Asked Questions
Tax planning is the legal arrangement of your financial affairs to minimize tax liability under the Income Tax Ordinance, 2001. In Pakistan, proper tax planning can save individuals and businesses significant amounts through exemptions, deductions, and FBR-approved incentives — you just need to know which ones apply to your situation.
Tax planning uses legal methods — exemptions, deductions, timing of income — to reduce tax liability. Tax evasion is illegal and involves hiding income, falsifying records, or not filing returns. Our services focus exclusively on legal, FBR-compliant tax optimization strategies.
Tax consultation fees vary based on complexity. Simple salaried individual advisory starts from PKR 10,000–25,000. Corporate tax planning ranges from PKR 50,000–300,000+ depending on revenue and complexity. LegalPK offers a free initial consultation to assess your needs.
Yes. We handle NTN registration on FBR IRIS, income tax return preparation and filing, wealth statement, and ensuring your name appears on the Active Taxpayers List (ATL). The entire process typically takes 2–5 business days.
Yes, especially if you earn above PKR 1.2 million annually. A tax advisor can help you claim allowable deductions (medical, education, charitable donations), optimize your salary structure, and ensure your employer is deducting the correct amount under the applicable slab.
