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Pakistan vs Germany
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ต๐Ÿ‡ฐ Pakistan
vs
๐Ÿ‡ฉ๐Ÿ‡ช Germany
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“35%
IMF fiscal consolidation; rate structure maintained
No change
14โ€“45%
Basic allowance ~โ‚ฌ12,336; bracket creep relief
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
18%
18% GST; digitalization of tax collection progressing
No change
7โ€“19%
Standard 19% unchanged
No change
Corporate Tax Rate
Corporate Tax Rate
29%
29% stable; FDI incentives in SEZs
No change
~29%
Coalition discussions on lowering to 25% ongoing
โ–ผ -0.5pp vs 2025
Capital Gains Tax
Capital Gains Tax
15%
CGT unchanged; real estate documentation improving
No change
25%
Investment income reform proposals under review
No change
Social Security & Payroll
Social Security / Payroll
~12%
EOBI; provincial systems varying
No change
~41.5%
Health insurance rising; pension base up
โ–ฒ +0.5pp vs 2025
State, Regional & Local Taxes

๐Ÿ‡ต๐Ÿ‡ฐ Pakistan โ€” Provincial Sales Taxes & Levies

Pakistan's 4 provinces (Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan) levy their own sales tax on services at 13%โ€“16%, separate from federal GST on goods. Agricultural income tax is exclusively provincial, though poorly collected. Sindh has the most developed provincial tax authority (SRB). Urban immovable property tax is provincial. Development surcharges and cess taxes vary by province. The FBR (Federal Board of Revenue) administers national taxes.

๐Ÿ‡ฉ๐Ÿ‡ช Germany โ€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundeslรคnder apply federal income tax rates uniformly โ€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7โ€“17% effective. Church tax (Kirchensteuer) of 8โ€“9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Pakistan vs Germany: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฉ๐Ÿ‡ช Germany has a higher top income tax rate (0โ€“35% vs 14โ€“45%). ๐Ÿ‡ต๐Ÿ‡ฐ Pakistan is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Germany has a higher consumption tax (18% vs 7โ€“19%).

๐Ÿข Corporate Tax: Corporate rates are similar in both countries (29% vs ~29%).

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ฐ Pakistan taxes investment gains at a lower rate (15% vs 25%), benefiting investors.

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