PROFESSIONAL TAX

Professional Tax is implemented under the Finance Act 1977. It is a tax levied and collected with respect to earning or income from any profession, trade, calling or employment for each financial year in addition to any tax, rate, duty or fee that may be payable under any other law.

STEP – 1 :

It can be initiated by two methods which are:

• Applicant visits Excise & Taxation Department for the payment of concerned tax. OR
• Deputed official inspects the offices in different areas of Islamabad and deliver notices to tax defaulters.

STEP – 2 :

Following documents are submitted by the applicant:

  1. Application to ETO on office Letter pad.
  2. Copy of CNIC of tax payer.
  3. National Tax Number (NTN)
  4. Proof of SECP Registration/Registration in Registrar Office/Any authorized Registration.
  5. Leasing Agreement of the Office.
  6. Monthly Salary Sheet of the employees / Staff.
  7. Income Tax (IT) and Sales Tax (ST) returns of current/previous year.
  8. Deposited Fee Challan.

STEP – 3 :

Tax amount should be deposited in State Bank of Pakistan (SBP), Islamabad / National Bank of Pakistan (NBP), E&TD branch, Islamabad in Account No: B01601. The rate of the professional tax is mentioned below:

REVISED PROFESSIONAL TAX RATES:

S No.
Categories Fee Amounts (Rs.)/annum in ICT
1
Companies registered under the Companies Act 2017 having:
a
Capital upto PKR 5 million but not exceeding PKR 10 million 7,000/-
b
Capital exceeding PKR 10 million but not exceeding PKR 50 million 18,000/-
c
Capital exceeding PKR 50 million but not exceeding PKR 100 million 35,000/-
d
Capital exceeding PKR 100 million but not exceeding PKR 200 million 80,000/-
e
Capital exceeding PKR 200 million 90,000/-
f
Employees not exceeding 10 1,000/-
g
Employees exceeding 10 but not exceeding 25 2,000/-
h
Employees exceeding 25 5,000/-
2
Lawyers 1,000/-
3
Members of Stock Exchanges 5,000/-
4
Money Changer 3,000/-
5
Motorcycle Dealers 5,000/-
6
Motor Car Dealers & Real Estate Agents 10,000/-
7
Health Clubs, Gymnasiums & Others 5,000/-
8
Recruiting Agents 10,000/-
9
Jewellers, Departmental Stores, Electronics Goods Stores, Cable Operators, Printing Press and Pesticide Dealers 1,000/-
10
Tobacco Vendors - Wholesalers 2,000/-
11
Medical Consultants or Specialists andental surgeons 5,000/-
12
Registered Medical Practitioners 2,000/-
13
Others 1,000/-

STEP – 4 :

In return, Professional tax Certificate will be issued, which is dually signed by concerned official and Excise and Taxation Officer.

STEP – 5:

The Professional tax Certificate is renewed in the month of July of every year and procedural requirements of the Certificate renewal is as under:

1. Application for Renewal on authentic letter pad.
2. Copy of last paid Certificate.
3. Paid Challan of the due tax amount.