Direct Taxation
TAX ADVISORY
Direct Taxation
Tax Solutions Tailored for Your Business and Personal Needs in Pakistan, UAE, and KSA
Navigating corporate and individual taxation in a globalized economy can be challenging, but with the right support, it can also provide opportunities for efficiency and growth. At Vintage Global Consulting, we provide expert guidance across Pakistan, UAE, and KSA, helping businesses and individuals achieve compliance while optimizing their tax positions.
Corporate Taxation in Pakistan
In Pakistan, the corporate tax system is designed to target both resident and non-resident companies. Resident companies are taxed on their worldwide income, while non-residents are taxed only on Pakistan-sourced income. The standard corporate tax rate is 29%, but banking companies are taxed at 39%. Additionally, super tax applies to high-earning companies with rates ranging from 1% to 10% based on income levels exceeding PKR 150 million.
Small businesses and SMEs can benefit from reduced rates, with 7.5% to 15% taxes based on turnover, or opt for the final tax regime, which offers lower rates like 0.25% on gross turnover.
Taxation for exporters and specific sectors like construction or development is also subject to special regimes, which require careful consideration to avoid overpayment or non-compliance.
Corporate Taxation in the UAE
The UAE introduced its corporate tax in 2023, applying a 9% rate on profits above AED 375,000. This change marks a shift from the UAE’s historically tax-free business environment and provides new opportunities for strategic planning. Notably, businesses in free zones can continue to enjoy a 0% tax rate on qualifying income, while tax exemptions are available for certain types of income like dividends and capital gains.
The UAE also maintains its VAT system under the Federal Decree-Law No. 8 of 2017, which applies a 5% VAT on most goods and services. Businesses must navigate both corporate tax and VAT compliance to ensure they’re meeting obligations without unnecessary costs.
Corporate Taxation in KSA
In Saudi Arabia, the corporate tax rate is 20% for foreign-owned businesses. Zakat, a religious tax, applies to businesses owned by Saudi or GCC nationals at 2.5% of their zakat base (assets minus liabilities).
KSA also applies VAT at 15%, and businesses must carefully manage transactions with non-residents due to withholding tax on certain payments. Compliance with transfer pricing regulations and managing the complex landscape of Zakat and VAT is crucial for businesses operating in KSA.
Individual Taxation in Pakistan
For individuals in Pakistan, the tax system is progressive, with rates ranging from 5% for income above PKR 600,000 to 35% for those earning over PKR 2.4 million annually. Salary and business income are taxed, with exemptions and deductions available depending on the source and type of income.
Individuals with foreign income must report it in Pakistan, as the country taxes worldwide income for its residents. Strategic planning can help minimize tax liabilities while ensuring full compliance with local laws.
How We Help You Navigate Corporate and Individual Taxation
At Vintage Global Consulting, we support businesses and individuals in Pakistan, UAE, and KSA with:
- Tailored Tax Strategies: We develop personalized plans that optimize tax positions while ensuring compliance with complex tax regulations.
- Advisory Services: From corporate structuring to specific tax filings, our expertise ensures you stay ahead of regulatory changes.
- Due Diligence & Health Checks: Our team reviews existing tax positions to identify risks, opportunities, and areas for improvement.
- Litigation Support: Should disputes arise, we represent clients in tax-related matters with local authorities and courts.
We help businesses navigate the complexities of corporate and individual taxation in a way that maximizes savings and minimizes risk.
