Business · SME regime · Tax Year 2026-2027
SME Tax Regime Calculator
Compare the SME turnover-based final tax option against the normal progressive business slabs — enter your own current SME rate, since it changes between Finance Acts.
Step by step
How the SME comparison works
Confirm your category
Small or Medium, based on your annual turnover threshold.
Enter your turnover
And the current SME final-tax rate for your category.
Add your taxable profit
Optional — only needed to compare against the normal business slabs.
See which option is cheaper
The SME final tax vs the normal progressive slab tax on your profit.
Good to know
SME regime essentials
Rates change often
SME thresholds and rates have shifted across recent Finance Acts — always confirm the current figures before deciding.
Turnover vs profit
The SME option taxes turnover (revenue), not profit — it can suit low-margin, high-turnover businesses especially well.
Election is usually annual
Opting into or out of the SME regime is typically a year-by-year choice — model both before deciding.
Reading the result
Turnover tax ignores whether you made money
The attraction of the SME regime is simplicity and, in a good year, a lower bill. The risk is the other half of that: a turnover-based charge is payable whether the year was profitable or not.
A trading business on thin margins can owe more under a turnover regime than under the slabs, because the slabs tax what is left and turnover tax does not care. The comparison here is worth running with a realistic bad year, not only a good one.
The election is not casual
Opting into the regime is a formal choice with consequences for how long you stay in it. It is not something to switch between year by year depending on which looks better after the fact. Model both before electing.
Turnover is the gross figure
Entering profit where turnover is asked for produces a reassuring number that is badly wrong. Turnover is what you invoiced, before any cost of sales.
Where this stops
Whether you qualify as an SME at all depends on the statutory turnover thresholds and your registration, and exceeding the ceiling in a year has consequences for the following ones. This compares two tax treatments; it does not establish your eligibility for either.
FAQs
SME tax regime FAQs
What is the SME special tax regime?
Pakistan's SME regime lets qualifying small and medium enterprises (by turnover) elect a reduced, often turnover-based final tax instead of the normal progressive business slabs — intended to simplify compliance for smaller businesses.
What counts as "Small" vs "Medium"?
Categories are defined by annual turnover thresholds set by the Finance Act / SME Policy, which have changed over recent years. Confirm your business's current category and threshold with FBR or a tax advisor before relying on this tool.
Why is the rate editable instead of fixed?
This calculator was never built with real rate data on the old site, and rates for this regime have changed between Finance Acts. Rather than guess a number, we let you enter the current notified rate for your category so the comparison logic is still useful and accurate.
How is the comparison calculated?
The SME option applies your entered rate to turnover; the normal option applies the Tax Year 2026-2027 non-salaried business slabs to your taxable profit. Compare the two to see which costs less at your numbers.
Related tools
Check the normal business slabs directly
See your full business tax breakdown without the SME comparison.
Open Business Tax Calculator