
Pakistan offers specific tax benefits to empower business or salaried women to increase their participation in the economy. For the fiscal year 2024-25, the most noticeable tax concessions are a reduced tax rate for women-owned businesses and exemptions for home-based female entrepreneurs.
Pakistan has implemented financial measures to empower women, particularly in entrepreneurship and marital separation contexts.
These financial measures aim to promote women's economic participation, entrepreneurship, and financial independence. The initiatives focus on two major areas:
- Tax reduction for women-owned businesses.
- Tax exemption for spousal support payments received after separation.
It is worth noting that businesses fully owned by women and started on or after July 1, 2021, are eligible for a 25% tax reduction on their payable income tax.
According to the Federal Board of Revenue (FBR), taxpayers such as salaried individuals and businesses owned by women can file an income tax return for the fiscal year 2024-25 until September 30. After the deadline, filing income tax returns 2025 may result in penalties and other consequences.
This move is to minimise the financial burden and encourage more women to enter the corporate scene.
The FBR noted that home-based women-owned businesses that are one-time or occasional sellers are exempt from the new e-commerce taxation framework.
The government aims to actively promote women in their entrepreneurial endeavours by offering financial incentives, contributing to the general growth and diversity of the country's commercial sector.
How to calculate tax on salary?
Women, whether salaried or non-salaried, seeking ways to calculate tax on her income, Gadinsider has an easy-to-access calculator to help you determine your tax. By simply inputting your income, you will know the exact amount of tax to be deducted from your salary.