Tax Comparison
Pakistan Corporate Tax Rate vs UAE — How Much Could You Save?
Pakistan companies pay up to 29% corporate tax. UAE free zone companies pay 0% on qualifying income. Use our calculator below to see your potential annual saving.
Pakistan vs UAE Tax Rates
| Tax Type | Pakistan | UAE Free Zone | UAE Mainland |
|---|---|---|---|
| Corporate Tax | 29% | 0% | 9% (above AED 375K) |
| Personal Income Tax | Up to 35% | 0% | 0% |
| VAT / GST | 17% | 5% | 5% |
| Capital Gains Tax | Varies | 0% | 0% |
| Dividend Withholding Tax | Varies | 0% | 0% |
Pakistan and the UAE have a Double Taxation Avoidance Agreement (DTAA). Pakistan and the UAE have a Double Taxation Avoidance Agreement. UAE-sourced income is generally not taxable in Pakistan for UAE tax residents. Pakistani nationals must comply with FBR (Federal Board of Revenue) disclosure requirements for foreign assets and income. Consult a tax advisor for personal advice.
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Estimates based on headline corporate tax rates. Does not account for all surcharges, reliefs, or individual circumstances. Not tax advice. Consult a qualified tax professional.
Why Pakistani Entrepreneurs Move to UAE
0% Personal Income Tax
No income tax on your salary, dividends, or capital gains as a UAE resident — compared to 35% top rate in Pakistan.
100% Foreign Ownership
Keep full ownership of your company. No local partner required. Full repatriation of profits and capital.
UAE Residency Visa
A free zone trade license entitles you to a 2–3 year UAE residency visa. Sponsor family members on your visa.
No Forex Restrictions
Move money freely. No capital controls. Maintain bank accounts in multiple currencies without restriction.
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Frequently Asked Questions
What is the corporate tax rate in Pakistan in 2026?
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What is Pakistan's GST/VAT rate?
How much could a Pakistani business save by moving to a UAE free zone?
Tax rates shown are estimates based on representative headline corporate tax rates for the stated tax year. They do not account for all surcharges, slab details, reliefs, or individual circumstances. This is not tax advice. Always consult a qualified tax professional for your specific situation. Data last reviewed: .