Business & AOP Tax Calculator

Sole proprietors, freelancers, partners and Associations of Persons (AOPs) are taxed under a different and steeper schedule than salaried employees. The business tax calculator applies the FBR 2025-26 non-salaried slabs to your annual business income so you instantly see your tax liability, your effective rate and the exact slab-by-slab breakdown.

Whether you run a retail shop, consultancy, freelancing practice, factory, medical clinic or partnership firm, the FBR treats your income as non-salaried and business income. Knowing how much tax your business genuinely owes in Pakistan is the foundation of realistic pricing, clean bookkeeping and confident IRIS filing.

Select the entity type - sole proprietor, AOP or partnership firm - then enter your annual business profit after expenses. For a sole entrepreneur the tool uses the non-salaried individual slabs; for a partnership it shows the AOP schedule, which is the same table but applied at firm level.

• Choose the entity type from the segmented control.
• Enter annual taxable business income (profit, after all allowable deductions).
• The slab breakdown appears instantly, including your effective tax rate.
• Use Reset to try different profit scenarios and Copy/Print for your records.

Only put the taxable profit, not turnover - you can deduct the cost of goods sold, salaries, rent, utilities, depreciation and other eligible business expenses when preparing the return.

Business income in Pakistan is charged to price at the First Schedule rates found in the Finance Act 2025. For a non-salaried individual or AOP, the slabs are significantly heavier than the salary schedule: nil up to Rs 600,000, 15% on the next Rs 600,000, then 20%, 25%, 30%, 35% and finally a top rate of 45% on income above Rs 6,000,000.

The logic mirrors the income tax order: total business receipts minus allowable deductions equals taxable income; the taxable income is placed in the AOP slab table; every slab contributes its own share; and the sum is the yearly tax. An AOP is taxed as a single person, then the remaining profit is distributed to partners without further tax at entity level.

• Compute business profit = receipts minus allowable expenses.
• Apply the non-salaried continuous rates to the taxable profit.
• Each slab adds fixed tax plus a percentage of the excess.
• The final liability is the sum of all slab contributions.

A Karachi freelancer registers a sole proprietorship and earns taxable profit of Rs 2,000,000 in 2025-26. His tax works out as: nil on Rs 600,000; Rs 90,000 at 15% on the next Rs 600,000; then Rs 160,000 at 20% on the remaining Rs 800,000. Total liability is Rs 250,000 - about 12.5% of his income.

A three partner AOP shares an annual taxable profit of Rs 9,000,000. The firm pays 35% on Rs 2,000,000 (Rs 700,000) plus 45% on Rs 3,000,000 (Rs 1,350,000), giving a total of Rs 2,050,000, before profits are distributed to the partners.

• Using the salaried schedule for business income - the non-salaried rates are much higher and misusing the wrong table understates your tax.
• Confusing turnover with taxable income - you must deduct genuine expenses; the calculator expects the profit figure.
• Splitting profit among partners for rate purposes. An AOP is taxed at entity level first, the slabs apply to the whole firm profit.
• Forgetting that withholding tax on goods, contracts and services is an advance payment, which is adjustable against the final liability.
• Missing the final payment dates - while the return is due by September, advance instalments are payable during the year and carry penalties if missed.