Re: Tax Free Living in Pakistan
If you are really paying tax on profit from your business and your business is paying tax on the same and you do not get credit for either your tax payment or tax paid by business, time to fire your consultant. :S If your business is incorporated, then only the business will pay income tax and not you. There would be a deduction of 10% income tax if you receive dividends from your company. If your business is sole proprietorship, then only you would pay the tax. If the business is a partnership, then the partnership would pay tax (if registered with FBR) and you would only pay the difference in tax if your individual tax rate is higher than the firm’s tax rate.
I do know corporate tax (as understood in US) is different from personal tax but either the ‘person’ pays the tax on profit (if it is a partnership/sole proprietership) or the business pays (if the business is incorporated). BOTH DO NOT PAY.
BTW, there is NOTHING called ‘corporate tax’ in Pakistan.