Budget FY26: NBR slashes income tax for publicly traded companies, private educational institutions
Regarding publicly traded companies, companies that have transferred at least 10% of their paid-up capital through IPO or direct listing will now face a 22.5% tax rate
The National Board of Revenue (NBR) has abolished the provision that allowed declaring investments in buildings or apartments through the payment of a special tax.
The move came along with a series of tax reforms and adjustments in the national budget for FY2025-26, which was approved by the Advisory Council today (22 June), with major changes to income tax, VAT, and customs duties.
Regarding publicly traded companies, companies that have transferred at least 10% of their paid-up capital through IPO or direct listing will now face a 22.5% tax rate, according to a press release issued by the finance ministry today.
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If all income in the assessment year is transacted via bank transfer, the rate will be reduced to 20%, it said.
Other publicly traded companies will be taxed at 27.5%, which will be reduced to 25% if all transactions are conducted via bank transfer.
Regarding private educational institutions, the corporate tax rate for private universities, medical colleges, dental colleges, engineering colleges, and IT-focused colleges has been reduced from 15% to 10%.
The interim government has also revised the existing withholding tax rates on property transfers to 5%, 3%, and 2% from the previous 8%, 6%, and 4%, respectively, depending on the property value and type.
