Tax on Doctor Income in Pakistan (TY 2025-26)
Pakistani doctor tax TY 2025-26 - salaried hospital pay vs private practice slabs, Section 153 services WHT on patient fees, clinic deductions, ATL tips.
Worked example: Rs 350,000 per month
Annual income Rs 4,200,000 - here's how it would be taxed both ways under Finance Act 2025.
| Taxable income band | Rate | Income in band | Tax in band |
|---|---|---|---|
| Up to Rs 600,000 | 0% | Rs 600,000 | Rs 0 |
| Rs 600,001 – Rs 1,200,000 | 15% | Rs 600,000 | Rs 90,000 |
| Rs 1,200,001 – Rs 1,600,000 | 20% | Rs 400,000 | Rs 80,000 |
| Rs 1,600,001 – Rs 3,200,000 | 30% | Rs 1,600,000 | Rs 480,000 |
| Rs 3,200,001 – Rs 5,600,000 | 40% | Rs 1,000,000 | Rs 400,000 |
| Total slab tax | Rs 1,050,000 | ||
Salary plus private practice - the typical doctor profile
Most Pakistani doctors mix two income streams: a salaried role at a hospital or medical college and private practice fees from clinics or consulting hours. The two streams are taxed differently. Hospital salary falls under salaried slabs with Section 149 WHT deducted by the employer. Private practice fees fall under business income or services income (Section 18) and hit the non-salaried slabs at 15% → 45%, or, if your practice is structured as a sole proprietorship clinic, the same slabs with deductions.
Services WHT on hospital and corporate patients
Many private hospitals and corporate health insurers act as withholding agents under Section 153 when paying consultants - 11% (filer) / 22% (non-filer) on professional services fees. The hospital/insurer issues a deduction certificate quarterly or annually. You claim this WHT as advance tax credit in your annual return. Cash fees from individual patients usually have no withholding - you self-assess and pay tax at year-end.
Clinic deductions for private practitioners
Doctors running a clinic can deduct: clinic rent, electricity, internet, equipment depreciation (Third Schedule rates for medical equipment), nurse and receptionist salaries, medical supplies and disposables, professional indemnity insurance, continuing medical education courses, society/PMDC fees, accounting/legal fees, and a reasonable share of utility costs for a home-based clinic. Personal expenses, family travel, and non-professional entertainment are not deductible.
Filing checklist for doctors
Combine salary income (from your hospital employer) with private practice fees, report each under the appropriate IRIS code (1009 salary, 3029 business receipts), claim the Section 153 WHT deducted by hospitals/insurers, file before 30 September. Doctors who incorporate as a private limited company face flat 29% corporate rates instead of slabs - typically not worthwhile until practice revenue clears PKR 10M annually with a meaningful payroll.
Frequently asked questions
How is a doctor's income taxed in Pakistan?
Salaried hospital income - salaried slabs (0–35%) with employer WHT. Private practice fees - non-salaried slabs (15–45%) on net business income with Section 153 WHT credits from corporate payers.
Do hospitals deduct tax on consultant fees?
Yes. Under Section 153 the hospital/insurer typically deducts 11% (filer) or 22% (non-filer) on professional services fees and issues a deduction certificate.
Can I deduct medical equipment from clinic income?
Yes. Depreciate medical equipment under the Third Schedule rates against private-practice business income. Maintain purchase invoices and a depreciation schedule.
Should I incorporate my medical practice?
Generally not until annual practice revenue exceeds PKR 10M with employees. Sole-proprietor slab rates beat the flat 29% corporate rate at most individual-doctor income levels.
How do I declare cash patient fees?
Self-assessed as business income in the annual IRIS return. Without WHT records, maintain an appointment register and bank-deposit log to substantiate the figure during any audit.