First Schedule – Rates of tax
Sets every rate in the Ordinance: income tax slabs, corporate rates, final and separate-block rates, super tax, and withholding and advance tax rates.
Who it applies to
Every taxpayer and every withholding agent
Structure and contents
| Part / area | What it covers |
|---|---|
| Part I | Rates of tax: Div I individuals and AOPs (salaried and business slabs), Div II companies, Div IIB super tax, Div III dividends, Div IIIA profit on debt, Div IIIB sukuk, Div IV non-resident payments, Div V shipping, Div VII securities capital gains, Div VIII property capital gains, Div IX minimum tax |
| Part II | Advance tax on imports (s.148): 1% / 2% / 5.5% by Twelfth Schedule part, plus other import rates |
| Part III | Rates for deduction at source: salary, dividends, profit on debt, payments to non-residents, payments for goods, services and contracts, rent, prizes, exports |
| Part IV | Rates for collection of advance tax: vehicles, cash withdrawals, electricity, telephone, property purchase and sale, functions, and others |
How it works in practice
Look up the section that charges or collects the tax, then go to the Division of the First Schedule it refers to. Rates change every Finance Act, so use the table in force for the relevant tax year.