Reduction in tax rate applicable to small companies [Paragraph (iii), Division II, Part I of the First Schedule]
Reduction in tax rate applicable to small companies: A “small company” is defined in sub-section (59A) of section 2 of the Ordinance. A tax rate of 25% was applicable to a small company prior to the Finance Act, 2018.
Through the Finance Act, 2018, the rate of tax for a small company has also been reduced by 1% each year (for five years) in the following manner:-
Tax Year Rate of Tax
2019 24%
2020 23%
2021 22%
2022 21%
2023 and onwards 20%
