Updated on
Summary The corporate sector will pay one of the worlds highest tax regimes during the next three months.
After imposition of flood surcharges on the corporate sector, Pakistan has become third country in the world in term of highest tax regime.According to the Federal Board of Revenue (FBR), a 15 percent surcharge will be charged on the existing 35 percent tax liability from March 15 to June 30 this fiscal year. This will take the ratio of tax collection to 44.25 percent in three and half months which is one of the highest in the world.According to JS Research, the corporate sector will have to pay income tax at an average rate of 36 percent for the current fiscal year. Japan tops the list in term of highest tax collection with 39 percent tax rate followed by the United States 39.2 percent while next to Pakistan is France with 34.4 percent tax rate. India is sixth in the list of highest tax collection regime.Those countries having the lowest corporate tax rate include Singapore (17 percent), Saudi Arabia (20 percent) and Iran (25 percent).
