Tax Free Living in Pakistan

[yazdi]

Re: Tax Free Living in Pakistan

@kakaballi

If I am a shareholder of an incorporated business, and that company pays income tax, I do not have to pay any tax for the profits earned by the corporation, right?

Company’s tax liability is not your personal liability.. However you will have to pay tax on dividends distributed by the company as your personal tax liability. In addition to this a tax officer may add back some perks/allowances you might be getting from the company as your personal income for which you are liable to pay tax.