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The Inland Revenue Service (IRS) is a department of the Federal Board of Revenue (FBR) in Pakistan. It was established in 2009 and holds the responsibility for overseeing various aspects of domestic taxation, encompassing Sales Tax, Income Tax, and Federal Excise Duty. [1] [2]
Best for free tax filing: FreeTaxUSA. FreeTaxUSA. FreeTaxUSA. 馃挵 Costs • DIY federal tax return: $0 • Assisted federal tax return: $8 to $40. Pros. Free federal filing for all tax situations;
For tax year 2024, filers with incomes of $79,000 and below can take advantage of the guided tax preparation option and file a federal return electronically for free via an IRS partner site.
Over-reliance on Indirect Taxes: Pakistan’s tax system is heavily dependent on indirect taxes, such as sales tax, which are regressive and disproportionately affect low-income individuals. Corruption : According to a 2002 study, 99% of 256 respondents reported facing corruption with regard to taxation.
6.9% (for minimum wage full-time work in 2024: includes 20% flat income tax, of which first 7848€ per year is tax exempt for low-income earners + 2% mandatory pension contribution + 1.6% unemployment insurance paid by employee); excluding social security taxes paid by the employer
More than two dozen House Republicans are asking President-elect Donald Trump to terminate the Internal Revenue Service's free direct tax-filing system as soon as day one of his presidency.
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