Office rent in Lahore is subject to 16% Punjab sales tax on services from July 2025, and companies withhold income tax on rent under section 155; check that the building is approved for commercial use by LDA and sign a written tenancy agreement registered with the Rent Registrar.
Office space in Lahore ranges from single rooms over shops to full floors in purpose-built plazas, concentrated on the city's commercial roads. Two things change the real cost: the 16% Punjab sales tax on commercial rent and whether the building is lawfully in commercial use.
Where offices are in Lahore
Offices cluster where LDA has allowed commercial use: main roads in Gulberg, New Garden Town, Johar Town and along Canal Road. That same geography shows up in enforcement.
In June 2026, APP reported that LDA sealed 191 properties, including offices, across Gulberg, New Garden Town, Shamsani Road in Johar Town, Canal Road, Allama Iqbal Town and Sabzazar. Another 140, including estate offices and shops, were sealed weeks later (ProPakistani).
A sealed office means lost rent days, moved staff and lost deposits. Check the building first.
| Office type | Typical setting | Watch for |
|---|---|---|
| Plaza floor or suite | Commercial roads, purpose-built | Approved floors, parking, fire exits |
| Converted house | Roads listed for commercial use | Commercialisation fee paid in full |
| Room in a residential house | Inner residential streets | Usually not permitted; sealing risk |
What office rent costs beyond the headline
Houseplot's indicative rent data (Oct 2026) covers homes, portions and flats, not offices, so we do not quote office rents. What we can show is what sits on top of the agreed rent.
Punjab sales tax. Renting non-residential premises, including offices, is taxable at 16% under the Punjab Sales Tax on Services Act 2012 as amended by the Punjab Finance Act 2025, per ABS & Co. Pakistan Observer gives 1 July 2025 as the start date, with the Punjab Revenue Authority collecting.
If the landlord is unregistered, PRA can require tenants to withhold the tax and deposit it. A tenant who fails to do so becomes personally liable.
Income tax withholding. FBR's 2026-27 rate card sets rent withholding under section 155:
| Landlord | Rate on gross rent |
|---|---|
| Company (on ATL) | 15% |
| Company (not on ATL) | 30% |
| Individual/AOP, up to Rs300,000 a year | Nil |
| Rs300,001–600,000 | 5% of amount over Rs300,000 |
| Rs600,001–2,000,000 | Rs15,000 + 10% over Rs600,000 |
| Above Rs2,000,000 | Rs155,000 + 25% over Rs2,000,000 |
As simple arithmetic, every Rs100,000 of monthly rent carries Rs16,000 in sales tax on top.
The lease: what Punjab law requires
The Punjab Rented Premises Act 2009 covers non-residential buildings as well as homes (Act text). Key points:
- A landlord may let premises only through a written tenancy agreement (s.5).
- The landlord must present it to the Rent Registrar for recording (s.5).
- The agreement must state rent, annual increase, due date, payment mode, and any advance, security or pagri (s.6).
- If no date is set, rent is due by the 10th of the following month (s.7).
- Grounds for eviction include expiry, 30 days' default, breach, use for another purpose and unauthorised subletting (s.15).
An unregistered agreement costs you later: a tenant must pay a fine of 5% of annual rent before a Rent Tribunal will hear them (s.9).
Register the tenancy with Punjab Police too. Its tenant registration page says owners, tenants and dealers must report tenants under the Punjab Information of Temporary Residents Act 2015.
Checks before you sign
- Ask for LDA's commercialisation letter and fee receipts for the building.
- Confirm the floor you are renting appears on the approved plan.
- Ask whether the landlord is registered with PRA and will issue tax invoices.
- Agree in writing who pays electricity, generator, maintenance and parking charges.
- Set the annual increase and lock-in period in the agreement.
- Check fire exits, lift certification and backup power for your team size.
- Record the advance and security amounts and refund terms.
Red flags
- Rent quoted "all inclusive" with no mention of the 16% sales tax.
- A residential house on an inner street marketed as an office.
- Landlord refuses a written agreement or Rent Registrar recording.
- Large pagri demanded in cash without a receipt.
This guide is general information; confirm current rates with FBR/the bank/a lawyer before you pay.
Sources
- ABS & Co — Punjab imposes sales tax on rental payments — 16% rate, liability, tenant withholding
- Pakistan Observer — 16% tax on commercial rent (Jul 2025) — effective date, PRA
- FBR — Withholding Tax Rates Card 2026-27 — section 155 rates
- Punjab Rented Premises Act 2009 (text) — tenancy agreement, Rent Registrar, eviction
- Punjab Police — Tenant Registration System — tenant registration duty
- APP — LDA seals 191 properties (Jun 2026) — offices sealed by area
- ProPakistani — LDA seals another 140 properties (Jun 2026) — estate offices and shops sealed