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Last week I got a job offer from the place where I was interviewed for a position as civil engineer. I have been informed that I will receive a monthly salary of RS 50,000. I will have not have to pay taxes since they will be paid by the company.

I am happy with this offer but I have serious concerns about this unusual breakdown regarding salary and taxes. Is there anything I have to worry about or that I should look into further before accepting this offer?

I have only one week to respond to their offer. My main concern is if this is some sort of tax fraud. If it is, please advise me what questions I need to ask in order to ensure that they are not committing some kind of fraud.

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It sounds quite unusual to me that a company would offer a net salary to me. So you need to make 100% sure that they are really paying a salary X, where X minus taxes equals RS 50,000 and not a salary of RS 50,000 and when you start the job, they say they meant exactly that and not what you understood.

This is especially unusual to me because in every country where I worked, the company didn't know how much taxes they would have to pay on my behalf until I started.

I suspect that there is some huge misunderstanding going on. In most countries, as an employee you don't have to report any taxes, because the company reports them and deducts them from your salary for you. Guessing that your tax rate is 20%, this may mean that your salary is RS 50,000 and the company pays RS 10,000 to the tax office on your behalf, and RS 40,000 to you, meaning you don't have to report any taxes.

My company didn't tell me that I don't have to report taxes, because everyone in the country knows that this is how it works. Maybe if you were an 18 year old on their first job, then someone would explain to them exactly what the offer meant.

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The tax rate in Pakistan is just Rs 1000 for salary up to Rs 8,00,000. Looks like company is paying as it is a small amount and good for publicity.

Where the taxable salary income does not exceed Rs. 400,000 the rate of income tax is 0%.
Where the taxable salary income exceeds Rs. 400,000 but does not exceed Rs. 800,000 the rate of income tax is Rs. 1000.

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