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Pakistan vs Japan
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‡ฏ๐Ÿ‡ต Japan
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
5โ€“45%
Basic deduction increase for low earners
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
18%
18% GST; digitalization of tax collection progressing
No change
8โ€“10%
No rate change; digital services tax under review
No change
Corporate Tax Rate
Corporate Tax Rate
29%
29% stable; FDI incentives in SEZs
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change
Capital Gains Tax
Capital Gains Tax
15%
CGT unchanged; real estate documentation improving
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change
Social Security & Payroll
Social Security / Payroll
~12%
EOBI; provincial systems varying
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
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‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

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 Japan: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฏ๐Ÿ‡ต Japan has a higher top income tax rate (0โ€“35% vs 5โ€“45%). ๐Ÿ‡ต๐Ÿ‡ฐ Pakistan is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Pakistan has a higher consumption tax (18% vs 8โ€“10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ต๐Ÿ‡ฐ Pakistan offers a lower corporate rate (29% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ฐ Pakistan taxes investment gains at a lower rate (15% vs 20.315%), benefiting investors.

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