My Tax Calculator — Pakistan income tax calculator logo
MyTaxCalculator.pk
Tax Year 2026-27 · Section 113 minimum tax

Minimum Tax on Turnover Calculator Pakistan 2026-27

Check the tax floor set by Section 113. It is worked out from your yearly sales instead of your profit, and you pay whichever figure is higher.

Tax floor on yearly salesCompares with your normal taxLower rates by tradeShows what carries forward

Business details

Who is being taxed?
Rs.

Your gross sales and receipts for the year, before any costs.

The default rate, used for every business the law does not name in a lower group — manufacturing, construction, services, trading and so on.
Rs.

Leave this at zero if the business made a loss or owes no tax on profit.

Enter zero as the normal tax if the business made a loss — that is exactly when this rule bites.

Minimum tax check

Most businesses · 2026-27

Yearly breakdown

Total yearly salesYour gross sales and receipts for the year before costs — money from selling goods (less sales tax, excise duty and any discount shown on the invoice), fees for services including commission, and money received for completing contracts.Rs. 500,000,000
Minimum tax rate1.25%
Minimum tax on salesA floor on your tax bill worked out from your sales instead of your profit. It exists so a business with heavy losses or reliefs still pays something. You pay the higher of the two figures, never both.Rs. 6,250,000
Normal tax on profitThe income tax you would owe on your profit for the year under the ordinary rules — for a company, the flat company rate on taxable profit.Rs. 0
Tax you actually payRs. 6,250,000
Extra you can use in later yearsWhen the minimum tax is higher than your normal tax, the extra is not lost. You can set it against your tax bill in the next two years.Rs. 6,250,000

Which figure applies

The minimum tax is higher, so it replaces the tax on your profit for this year.

The extra you paid above your normal tax is not lost — it can be set against your tax bill in the next two years.

Section 113 replaces your normal tax when it is higher — it is never added on top. Super tax, if any, is separate again.

Working out a different company tax?

Each of the three sits on its own page so you can share the exact one you need.

Company taxYearly profit, the kind of company, and any tax already paid.Open the company tax calculatorSuper taxIncome counted for super tax and the kind of business.Open the super tax calculator

Minimum tax rates on turnover for 2026-27

The rate is a small percentage of your yearly sales. Most businesses use the top line; the law names a handful of trades that pay less.

Minimum tax rates on turnover for 2026-27
Who it applies toRateWhat this means
Most businesses1.25%The default, used for any business the law does not name below.
Gas utilities, PIA and poultry0.75%Sui Southern and Sui Northern Gas above Rs. 1 billion of sales, PIA, and the poultry industry.
Fuel companies and motorcycle dealers0.5%Oil refineries, oil marketing companies and registered motorcycle dealers.
Distributors and wholesalers of listed goods0.5%Up from 0.25% for 2026-27. Only if the business is on both active taxpayer lists.
Rice mills, flour mills and similar0.25%Also petroleum agents, linked-up large retailers, online marketplaces and used-vehicle sellers.

The rate for distributors and wholesalers of listed goods went up from 0.25% to 0.5% for 2026-27. Every other rate here is unchanged since 2021-22.

How the three company taxes fit together

A company can face all three in the same year, but they do not simply add up. Work through them in this order.

  1. 1

    Work out the tax on your profit

    Apply the company rate for your kind of company to your taxable profit for the year.

    Company tax calculator
  2. 2

    Check it against the minimum tax on sales

    Work out the minimum tax from your yearly sales. If it is higher than the tax on your profit, that is what you pay instead — you never pay both.

    Minimum tax calculator
  3. 3

    Then add super tax if your income is high

    Super tax is separate. If your income for the year passes the threshold, it is charged on top of whichever figure came out of step 2.

    Super tax calculator

Steps 1 and 2 compete with each other. Step 3 is always extra.

Got questions?

Minimum tax on turnover questions

Simple answers about the tax floor that Section 113 sets on yearly sales.

What is the minimum tax on turnover?

It is a floor on your yearly income tax. Instead of taxing your profit, the law takes a small percentage of your yearly sales and compares it with the tax on your profit. You pay whichever is higher. It exists so a business with heavy losses, exemptions or reliefs still pays something.

What is the minimum tax rate for 2026-27?

Most businesses pay 1.25% of yearly sales. Gas utilities above Rs. 1 billion of sales, PIA and the poultry industry pay 0.75%. Oil refineries, oil marketing companies and registered motorcycle dealers pay 0.5%. Rice mills, flour mills, petroleum agents, online marketplaces, used-vehicle sellers and linked-up large retailers pay 0.25%. Distributors and wholesalers of listed goods pay 0.5% for 2026-27, up from 0.25%.

Who has to pay it?

Every resident company and every Pakistan branch of a foreign company, regardless of size. A sole trader or partnership is only caught once yearly sales reach Rs. 100 million.

Do I pay the minimum tax as well as the tax on my profit?

No. The minimum tax replaces the tax on your profit for that year when it is higher. You never pay both. Super tax is different — that one is genuinely added on top.

Does my company still pay if it made a loss?

Yes. That is the point of the rule. A loss means no tax on profit, so the minimum tax on your sales becomes the bill. Enter zero as the normal tax to see what that comes to.

What happens to the extra I pay?

Where the minimum tax comes out higher, the difference is carried forward and can be set against your tax bill in the next two tax years. Older guidance mentioning five years is out of date.

What counts as turnover?

Gross sales and receipts from selling goods, leaving out sales tax, excise duty and any discount shown on the invoice; plus gross fees for services including commission; plus money received for completing contracts; plus a company share of these from a partnership it belongs to. Amounts already settled under a final tax are left out.

Why does the active taxpayer list matter for distributors?

The lower 0.5% rate for distributors and wholesalers of listed goods is conditional. The business has to appear on the active taxpayer list under both the Sales Tax Act 1990 and the Income Tax Ordinance 2001. Fall off either list and the ordinary 1.25% applies.

Which tax years does this cover?

Tax years 2022-23 through 2026-27. Every rate has been steady across those years except the distributor rate, which rose from 0.25% to 0.5% for 2026-27.

This calculator gives an estimate, not tax or legal advice. Confirm your final tax with a qualified Pakistan tax professional.

Trusted. Accurate. Updated.

More Pakistan tax calculators

Pick the calculator for your income or salary decision — each one uses current FBR rates.

Salary Tax CalculatorSalary tax and take-home payCalculate nowFreelancer Tax CalculatorIT export tax under Section 154ACalculate nowBusiness Tax CalculatorBusiness, self-employed & AOP taxCalculate nowRental Income Tax CalculatorTax on rent under Section 155Calculate nowProperty Purchase Tax CalculatorBuyer advance tax under Section 236KCalculate nowProperty Sale Tax CalculatorSeller advance tax under Section 236CCalculate nowProperty Capital Gains TaxTax on the profit from a property saleCalculate nowVehicle Tax CalculatorRegistration & transfer tax under Section 231BCalculate nowVehicle Token Tax CalculatorYearly token tax, province by provinceCalculate nowAgricultural Income Tax CalculatorProvincial tax on farm incomeCalculate nowCapital Gains Tax CalculatorTax on profit from selling sharesCalculate nowMutual Fund Tax CalculatorTax when you cash in fund unitsCalculate nowCash Withdrawal Tax CalculatorBank deduction on cash under Section 231ABCalculate nowElectricity Bill Tax CalculatorIncome tax on your bill under Section 235Calculate nowMobile & Internet Tax CalculatorTax on loads and phone bills under Section 236Calculate nowSalary Increment CalculatorSee how much of your raise you keepCalculate nowJob Offer ComparisonCompare two roles by take-home payCalculate nowReverse Salary CalculatorGross salary from your target take-homeCalculate nowCorporate Tax CalculatorCompany income tax on yearly profitCalculate nowSuper Tax CalculatorSection 4C extra tax on high incomeCalculate now
Straight from the source

Official sources

Every rate on this page comes from these official documents. Open them to check the figures yourself.

Federal Board of Revenue PakistanIncome Tax Ordinance 2001Section 113 sets the rule and the two-year carry forward; Division IX of the First Schedule holds the rates for every year here.Federal Board of Revenue PakistanFinance Act 2026Raised the reduced rate for distributors and wholesalers of listed goods from 0.25% to 0.5% for 2026-27.Federal Board of Revenue PakistanFinance Act 2021Wrote the Division IX table used here, and set the 0.25% rate for distributors of listed goods that applied from 2022-23 to 2025-26.FBR IRIS portal PakistanFBR IRIS PortalFile the yearly return where the minimum tax is settled.