Pakistan Tax Guide 2026-27

Tax-Inclusive Versus Tax-Exclusive Invoice Examples

The amount basis changes how sales or services tax is derived.

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Tax-exclusive amount

Value PKR 100,000 and rate 16% gives tax of PKR 16,000 and gross of PKR 116,000.

Tax-inclusive gross amount

Gross PKR 116,000 at 16% gives embedded tax of PKR 16,000 using 116,000 × 16 ÷ 116.

Income Tax WHT is calculated on gross amount payable. Sales or Services Tax WHT is calculated separately on the stated or derived tax amount.

Important: This basic explainer is for general guidance. Verify the selected category, effective law, schedule, notification and any exemption before payment or filing.

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