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8 ACCA Taxation (Pakistan) questions with answers and explanations.
Printable worksheet with answer key
Taxable income of an ordinary company (not a small company or bank) is Rs. 10,000,000. What is the tax at the corporate rate in ACCA's 2026 to 2027 tables?
A small company has taxable income of Rs. 10,000,000. What is the tax?
A company has accounting income of Rs. 30,000,000 and normal tax of Rs. 4,000,000. The alternative corporate tax rate is 17 percent. What tax is payable?
Correct answer: Rs. 5,100,000
The alternative tax (17% x 30,000,000 = 5,100,000) is higher than normal tax, so the higher amount is payable.
Which statement about a company's tax liability is correct?
Correct answer: A company is liable to tax separately from its shareholders
A company is a separate taxpayer.
What are thin capitalisation rules about?
Correct answer: Limiting the deduction of interest on high debt in a foreign-controlled company
They apply to foreign-controlled resident companies and branches.
Where a company has a small and medium enterprise (SME) under the final tax regime, which rates are in ACCA's table?
Correct answer: 0.25 percent for Category-1 and 0.5 percent for Category-2
The 7.5 and 15 percent rates are for the normal law regime.
What is the general rate of withholding tax on dividends in ACCA's table?
Correct answer: 15 percent
7.5 percent applies to independent power producers and 25 percent to certain exempt or loss-making payers.
When is a company resident in Pakistan?
Correct answer: When it is incorporated in Pakistan, or its control and management are in Pakistan
Residence is decided by incorporation or control and management.