The full company tax stack, corporate tax through WWF and WPPF.
Total company tax
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Corporate / min
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Super tax
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WWF
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WPPF
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More than one tax sits on a Pakistani company
When founders model their company tax, most stop at the headline corporate rate. The reality is a stack. A profitable company in Pakistan can owe the corporate income tax, a minimum tax tied to turnover that ignores how thin your margins are, a super tax once income crosses a high threshold, and two labour levies on top if it counts as an industrial undertaking. This tool adds those layers into one all-in number so you are not surprised at filing time, and so your cash planning reflects the full bill rather than a fraction of it.
The structure of that stack is stable from year to year even though the Federal Board of Revenue (FBR) revises the actual percentages through each June Finance Act. What changes is the rate on each layer and where the super-tax bands sit. What stays put is the logic: take the greater of normal tax and minimum turnover tax, then add super tax, then add the Workers' Welfare Fund and Workers' Profit Participation Fund where they apply.
The four layers, and who actually pays them
Corporate or minimum, whichever bites harder
The base layer is the higher of corporate tax on profit or a minimum tax on turnover. The rate this calculator applies is 29% for a standard company, 20% for a small company, and 39% for a banking company, with a minimum turnover tax of 1.25% of gross turnover. A loss-making or low-margin business still pays the minimum, which is why it exists.
Super tax under section 4C
Super tax is a separate charge on company income that climbs in bands. As modelled here it starts only above PKR 150 million of income, stepping up gradually to a 10% ceiling on income beyond PKR 500 million. The tool computes it band by band, which the underlying notes describe as the conservative reading. The FBR's own application of section 4C can differ on whether the band rate hits the whole income, so treat this layer as an estimate and confirm the mechanism for your income level.
WWF and WPPF, the labour levies
Industrial undertakings carry two more charges. The Workers' Welfare Fund is 2% of income and the Workers' Profit Participation Fund is 5% of profit at the rates this calculator applies. A pure services or trading company that is not an industrial undertaking will often fall outside these, so if that describes you, mentally strip the last two cards from the result.
Stacking it up: a PKR 180 million profit year
Take the default scenario, a standard company with PKR 180 million of taxable profit on PKR 900 million of turnover. Corporate tax at 29% comes to PKR 52.2 million, which easily beats the minimum turnover tax of PKR 11.25 million, so the base layer is PKR 52.2 million. Super tax on PKR 180 million, applied band by band, reaches just the first 1% band above PKR 150 million, giving PKR 300,000. WWF adds PKR 3.6 million and WPPF adds PKR 9 million.
| Layer | Basis | Amount |
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The chart above shows how each layer contributes to the all-in total. Corporate tax dominates, but the labour levies together can add more than a fifth of the bill, which is exactly the slice founders tend to forget.
A common mistake and a planning tip
The most frequent error is treating the minimum turnover tax as an add-on rather than an alternative. It is not stacked on the corporate tax. You pay one or the other, the larger of the two. A high-turnover, low-profit company can find the minimum tax sets the floor and the effective rate on profit looks brutal. The planning tip that follows: if your margins are thin, model turnover carefully, because at 1.25% of turnover the minimum tax can exceed your 29% on profit long before you would expect.
Use this page for board-level cash planning and to brief your tax advisor, not as a filed return. The exact rates, super-tax bands, and WWF and WPPF scope are set by the current Finance Act and FBR notifications, so verify every figure for your tax year before you commit numbers to a budget.
Do all companies pay WWF and WPPF?
No. These two are primarily levies on industrial undertakings. A standalone services firm, a trading house, or a small consultancy that is not classed as an industrial undertaking often falls outside them. Check your classification with your advisor, and if you are not industrial, read the result as corporate plus super tax only.
Is super tax charged on the same income as corporate tax?
Effectively yes, super tax under section 4C is a further charge on a measure of company income, sitting on top of the corporate or minimum tax rather than replacing it. That is why a single profitable year can attract corporate tax, super tax, and the labour levies all at once, which is the whole reason this all-in view is useful.