Key takeaways
- Pakistan has no crypto-specific tax rate: a resident individual's gains on cryptocurrency are taxed as ordinary income under the Income Tax Ordinance, 2001, at slab rates that reach 45% for non-salaried taxpayers above PKR 5.6 million.
- Since 2026 crypto businesses are regulated under the Virtual Assets Act, 2026 and must be licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA), but this regulatory law does not create a separate tax regime.
- Pakistan taxes residents on worldwide income, so gains made on foreign exchanges are taxable for anyone present in Pakistan for 183 days or more in a tax year running 1 July to 30 June.
Last reviewed: October 2026
Crypto gains in Pakistan are taxed under the general income tax rules: there is no special crypto rate, no flat crypto tax and no blanket exemption. What changes the bill is whether you are resident, whether you are salaried or not, and whether your activity is investment or business. This guide sets out the 2026 position, the new regulatory framework and practical examples.
Key figures: crypto tax in Pakistan (2026)
| Item | Figure |
|---|---|
| Crypto-specific tax rate | None; ordinary slab rates apply |
| Non-salaried individual slabs | 0% up to PKR 600,000, rising to 45% above PKR 5.6 million |
| Surcharge (non-salaried, income above PKR 10 million) | 10% of the income tax |
| Top salaried slab rate | 35% above PKR 7 million |
| Corporate income tax (standard) | 29% |
| Residence test | 183 days or more in a tax year (1 July – 30 June) |
| Regulator | PVARA, under the Virtual Assets Act, 2026 |
Is crypto legal and regulated in Pakistan?
For years Pakistan had no specific law on crypto. The State Bank of Pakistan (SBP) instructed regulated banks in 2018 not to deal in or facilitate virtual currencies, and the SBP stated in January 2021 that it had not authorised anyone to sell, buy, exchange or invest in virtual currencies.
That changed in three steps:
- July 2025: the Virtual Assets Ordinance, 2025 created the Pakistan Virtual Assets Regulatory Authority (PVARA) on 8 July 2025, an autonomous federal body under the Ministry of Finance.
- 2026: the framework was placed on a statutory footing with the Virtual Assets Act, 2026, supported by the Pakistan Virtual Asset Services Regulations and Activity Specific Regulations.
- Licensing: every virtual asset service provider (VASP) must obtain a PVARA licence before offering services in Pakistan. Operators active on or before 5 March 2026 had to file a no-objection certificate (NOC) application by 5 September 2026 or cease operations.
- Banking access: the SBP's BPRD Circular Letter No. 10 of 2026 (April 2026) allowed banks to open accounts for licensed virtual asset service providers, overriding the 2018 ban for them.
Important: this is a regulatory regime. It decides who may run an exchange or wallet service; it does not set a tax rate for investors. Taxation remains governed by the Income Tax Ordinance, 2001 and the annual Finance Acts.
How is crypto taxed in Pakistan?
The Federal Board of Revenue (FBR) has not published a dedicated crypto tax regime, and the Virtual Assets Act 2026 regulates the sector without creating a new tax. In practice, crypto falls into one of two categories under the Ordinance.
1. Capital gains on a movable asset (investors)
If you buy and hold crypto as a personal investment, a disposal is treated as a gain on a movable capital asset:
- Taxable event: selling crypto for rupees or another currency, and exchanging one token for another, both realise a gain or loss (sale price or market value received minus cost).
- Rate: the gain is added to your other income and taxed at your normal slab rate. Unlike listed securities and property, crypto does not benefit from a reduced flat rate.
- Holding period: gains on movable assets held for more than one year used to be taxed on 75% of the gain; PwC's 2026 summary states these gains are now fully taxable.
2. Business income (traders, miners, service providers)
If your activity is frequent, organised and profit-driven (day trading, mining, running a node or OTC desk, operating a VASP), the profit is more likely to be treated as business income. Expenses such as electricity, hardware depreciation and platform fees can then be deducted, and the profit is taxed at slab rates for individuals or 29% for a company.
What are the crypto tax rates in Pakistan?
The rates depend on whether you are classed as salaried (salary is more than 75% of taxable income) or non-salaried. Crypto investors and traders without a salary use the non-salaried table.
Non-salaried individuals and AOPs:
| Taxable income (PKR) | Tax |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 15% of the amount above 600,000 |
| 1,200,001 – 1,600,000 | 90,000 + 20% above 1,200,000 |
| 1,600,001 – 3,200,000 | 170,000 + 30% above 1,600,000 |
| 3,200,001 – 5,600,000 | 650,000 + 40% above 3,200,000 |
| Above 5,600,000 | 1,610,000 + 45% above 5,600,000 |
A 10% surcharge on the tax applies when a non-salaried individual's taxable income exceeds PKR 10 million. These figures come from PwC's Pakistan summary last reviewed in August 2026. The Finance Act 2026 revised the salaried slabs (top rate unchanged at 35%) and abolished the surcharge on salary income.
Example. A resident, non-salaried investor sells Bitcoin bought for PKR 1,000,000 for PKR 4,500,000 and has no other income. The gain of PKR 3,500,000 falls in the 40% slab: 650,000 + 40% x 300,000 = PKR 770,000, an effective rate of about 22%.
How do you report crypto on your Pakistani tax return?
- Keep a transaction ledger. Record date, token, quantity, rupee value at acquisition and disposal, fees and the platform used. Exchange exports are useful but not always complete.
- Convert foreign-currency values to PKR at the rate on the transaction date, applied consistently.
- Declare the gains or business profit in your annual return filed with the FBR through the IRIS portal.
- Include holdings in your wealth statement. Resident individuals filing a wealth statement should list crypto among their assets so that later disposals and bank inflows reconcile.
- Stay on the Active Taxpayer List. Non-filers face higher withholding on many transactions, including property and banking.
What about non-residents and location-independent professionals?
Pakistan taxes residents on worldwide income and non-residents only on Pakistan-source income. Residence for individuals is decided each tax year (1 July – 30 June):
- 183-day test: you are resident if present in Pakistan for 183 days or more in the tax year, whatever your nationality.
- Citizens' rule: a Pakistani citizen is also resident if not present in any other country for more than 182 days in the tax year, or if not tax resident in any other country.
The citizens' rule matters for nomads. A Pakistani software developer who spends four months in Lahore, four in Dubai and four in Bangkok is not present anywhere else for more than 182 days and holds no other tax residence, so Pakistan can treat them as resident and tax their crypto gains on foreign exchanges. To rely on non-residence, you typically need a tax residency certificate from your new country and evidence of more than 182 days there.
Points to plan for:
- Gulf relocation: many overseas Pakistanis move to the UAE, Qatar or Saudi Arabia, which do not tax individuals' crypto gains. Once non-resident in Pakistan, foreign crypto gains are outside the Pakistani net.
- Timing disposals: a sale made while you are still resident is taxed in Pakistan, even if you move later in the same tax year.
- Card payments abroad: the Finance Act 2026 cut advance tax on foreign remittances by debit, credit and prepaid cards from 5% to 0.5%; this is advance tax, creditable against your final liability if you file.
Frequently asked questions
How much tax on crypto in Pakistan?
There is no crypto-specific rate. For a resident individual, gains from selling crypto are added to taxable income and taxed at normal slab rates. For non-salaried individuals these run from 0% up to PKR 600,000 to 45% above PKR 5.6 million, plus a 10% surcharge on the tax when income exceeds PKR 10 million. A profit of PKR 3.5 million on its own costs about PKR 770,000.
Is cryptocurrency legal in Pakistan in 2026?
Owning crypto is not prohibited, and since 2026 the sector has a dedicated legal framework: the Virtual Assets Act, 2026, supervised by the Pakistan Virtual Assets Regulatory Authority (PVARA). Virtual asset service providers must hold a PVARA licence before offering services in Pakistan, and operators active before 5 March 2026 had to apply for a no-objection certificate by 5 September 2026 or stop operating.
Do I pay tax on crypto if I hold it for more than a year in Pakistan?
Yes. Under the Income Tax Ordinance, 2001, gains on movable capital assets held for more than one year used to be taxed on 75% of the gain, but PwC's 2026 summary states that such gains are now fully taxable. There is no holding-period exemption for crypto comparable to the one that still applies to some listed securities and property.
Do overseas Pakistanis pay tax on crypto gains in Pakistan?
Only if they are Pakistani tax residents. A non-resident is taxed only on Pakistan-source income. A Pakistani citizen is treated as resident if not present in any other country for more than 182 days in the tax year and not tax resident elsewhere, so overseas Pakistanis should keep proof of foreign residence, such as a foreign tax residency certificate.
Is crypto mining or trading taxed differently in Pakistan?
Possibly. Occasional disposals of personal holdings are usually treated as capital gains on a movable asset. Frequent, organised trading, mining, staking as a service or running an exchange can be treated as business income, which is taxed at the same slab rates for individuals but allows business expenses to be deducted. A company is taxed at the standard 29% corporate rate.
Related guides
- Capital gains tax in Pakistan: the separate flat rates for listed securities and property.
- How to obtain tax residency in Pakistan: the 183-day and citizen tests in detail.
- How to cease your tax residency in Pakistan: what overseas Pakistanis need to document.
- Cryptocurrency taxes in Qatar: how a common Gulf destination treats crypto.
Sources
- PwC Worldwide Tax Summaries – Pakistan, taxes on personal income
- PwC Worldwide Tax Summaries – Pakistan, income determination (capital gains)
- PwC Worldwide Tax Summaries – Pakistan, significant developments (Finance Act 2026)
- PwC Worldwide Tax Summaries – Pakistan, residence
- Pakistan Virtual Assets Regulatory Authority (PVARA)
This article is general information, not personalised tax advice. Crypto rules in Pakistan are changing quickly; confirm your position before filing.
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