Inside vs Outside
The Zone
A comparative financial analysis showing the dramatic profitability impact of operating within Silicon Village's STZA-licensed zone.
Executive Highlight
A typical data/AI services firm importing PKR 1.2bn of hardware sees a ~PKR 555M Year-1 cash benefit and ~PKR 195M annual NPAT uplift by operating inside an STZA-licensed zone.
* Illustrative example based on a tech firm with PKR 3B revenue importing PKR 1.2B in hardware. Your actual savings will vary.
Silicon Village - Smart Incubation Center
Side-by-Side Comparison
Based on a typical tech company: PKR 3B revenue, importing PKR 1.2B hardware.
| Metric | Outside Zone | Inside STZA Zone | Note |
|---|---|---|---|
| Revenue | 3,000 | 3,000 | Same business operations |
| COGS | (900) | (900) | |
| Payroll | (1,000) | (1,000) | |
| Rent & Utilities | (240) | (240) | |
| Other Opex | (210) | (210) | |
| EBITDA | 650 | 650 | |
| Depreciation | (150) | (150) | |
| Profit Before Tax | 500 | 500 | |
| Corporate Income Tax (29%) | (145) | 0 ✓ | 10-year exemption |
| Super Tax (10%) | (50) | 0 ✓ | 10-year exemption |
| Net Profit After Tax | 305 | 500 |
Annual recurring benefit from tax exemptions
Year-1 Capex Savings
Import Sales Tax (18%)
Customs & Levies (10%)
Advance Income Tax (2%)
Direct cash benefit on primary hardware deployment
Complete STZA
Benefits
10-year comprehensive tax and duty exemptions
10-Year Income Tax Exemption
Zero corporate income tax on profits for a full decade
Customs Duty Exemption
Import capital goods, machinery, and equipment duty-free
Zero Import Sales Tax
18% sales tax waived on all imported capital equipment
No Minimum Tax
Exemption from 1.25% minimum turnover tax
No Alternate Corporate Tax
Exemption from 17% ACT on accounting income
Special Forex Accounts
SBP-permitted foreign exchange accounts for operations
Understanding the
Tax Landscape
What Pakistan tech firms face in 2025
Outside STZA Zone
Inside STZA Zone
Important Considerations
Provincial/ICT Sales Tax Still Applies
Sales tax on services (SST) at 15-16% still applies to domestic services. STZA mainly affects federal taxes.
Export Services Usually Zero-Rated
Exports of services are typically zero-rated for SST, but confirm with your province's current schedule.
10-Year Benefit Period
All STZA exemptions apply for 10 years from the date of licensing as a Zone Enterprise.
Legal Framework
Based on STZA Act 2021, Income Tax Ordinance, Customs PCT 9917, and Sales Tax 6th Schedule.
10-Year
Cumulative Impact
Total financial advantage over the STZA benefit period.
Beyond the Numbers
These calculations exclude additional operational efficiencies, infrastructure cost savings, and the competitive advantages of being in Pakistan's premier technology ecosystem. The actual total benefit is significantly higher.
Additional Strategic
Advantages
100% Foreign Ownership
International companies can own 100% of their Pakistani entity without local partner requirements.
Full Profit Repatriation
Convert and transfer 100% of your profits, dividends, and capital back to your home country in any currency.
Simplified Forex Regime
Exemption from certain SBP foreign exchange regulations for zone enterprises to facilitate global operations.
One-Window Facilitation
Direct support for all regulatory approvals, utility connections, and administrative hurdles via STZA.
The Only STZ Inside a Master-Planned Smart City
Beyond tax savings - premium infrastructure, transport, and amenities that no other zone in Pakistan can match.
Calculate Your Savings
Calibrate your potential savings within Silicon Village
Talk to our team
about your numbers
Join Pakistan's most profitable technology park and maximize your bottom line with STZA benefits.