Payroll withholding and contributions
How income tax on salaries and statutory contributions are worked out in Pakistan.
In Pakistan, AXO works out income tax on salaries under section 149 using the current tax slabs, and statutory contributions — EOBI, provincial social security, provident fund and gratuity — from your settings.
The withholding shown before you approve a run is calculated exactly as it will be when the run posts, so what you check is what gets recorded.
Amounts withheld feed your withholding statements in Accounting › Tax & filings.
Note
Tax rates change with each budget. AXO's rates follow the current fiscal year; if you're unsure about any figure, check it with your tax adviser.
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