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Sole Proprietor vs AOP vs Private Limited Calculator
The structure you trade under decides your tax rate for as long as you keep it. Enter a year's profit and see the three outcomes side by side, including what it costs to get money out of a company.
Free, no sign-up. Every rate comes from the published FBR and provincial schedules.
These rates are pending final verification against the current Finance Act. Confirm with us before relying on them for a transaction.
- Sole proprietor take-home
- Rs. 0
- Company take-home
- Rs. 0
- Sole proprietor effective rate
- 0%
- Company effective rate
- 0%
Where each rupee of tax goes
| What it applies to | Sole proprietor / AOP | Private limited |
|---|---|---|
| Tax on the trading profit | Rs. 0 | Rs. 0 |
| Tax on the salary you draw | Rs. 0 | Rs. 0 |
| Tax on taking the rest out as dividend | Rs. 0 | Rs. 0 |
| Total tax | Rs. 0 | Rs. 0 |
| What you keep | Rs. 0 | Rs. 0 |
| Company, if you leave the profit inside it Corporate tax only. The dividend tax is deferred until you actually draw it. | Rs. 0 | Rs. 0 |
This is an estimate based on the published salaried slab rates for the tax year selected. It is not tax advice. Your actual liability depends on allowances, tax credits, other sources of income and tax already withheld from you.
Worth knowing
- A company only looks expensive when you take everything out in the same year. Profit left in the business is taxed once, at the corporate rate.
- A company also brings limited liability, a separate legal identity, and the ability to take on shareholders. None of that shows up in a tax comparison.
- Small companies meeting SECP's criteria are taxed at a lower corporate rate than the one used here. Ask us before you assume it applies.
Want the real number, not an estimate?
A calculator works from the figures you give it. Your actual position accounts for allowances, credits, other income and every rupee already withheld from you — which is frequently more than the tax you owe.
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