How are pensions taxed under the United Kingdom-Pakistan tax treaty?
Under the United Kingdom-Pakistan tax treaty, private pensions are generally taxable only in the country of residence — meaning no withholding tax applies at source (0%). This is favorable for retirees who have moved between the two countries, as their pension income will not be subject to double taxation. Government pensions may have different rules under a separate treaty article. This 0% rate compares to a median of 0% across United Kingdom's 54 active treaty partners, and 0% across Pakistan's 28 active partners.
Network Comparison
United Kingdom
Rank 42 of 54 active treaties (lowest rate = #1)
Lower rates with: Norway (0%), New Zealand (0%), Philippines (0%)
Higher rates with: Poland (0%), Portugal (0%), Romania (0%)
Pakistan
Rank 12 of 28 active treaties (lowest rate = #1)
Lower rates with: Denmark (0%), Spain (0%), France (0%)
Higher rates with: Indonesia (0%), India (0%), Italy (0%)