As Amended upto 01-07-2022
FOR THE TAX YEAR - 2022-23
Section 37A Tax on Capital Gains on sale of Securities
| Holding Period | Rate of tax for Tax Year 2023 and onwards |
| Less than one year | 15% |
| One year to Two years | 12.5% |
| Two years to Three years | 10% |
| Three years to Four years | 7.5% |
| Four years to Five years | 5% |
| Five to Six years | 2.5% |
| Exceeds Six year | 0% |
| Future commodity contracts entered by members of PMX | 5% |
| Gain on securities acquired on or before June 30, 2022, irrespective of holding period. | 12.5% |
Capital Gains under Section 37
| Holding period | Open Plots | Constructed Property | Flats |
| Less than one year | 15% | 15% | 15% |
| One year to Two years | 12.5% | 10% | 7.5% |
| Two years to three years | 10% | 7.5% | 0% |
| Three years to Four years | 7.5% | 5% | - |
| Four years to Five years | 5% | 0% | - |
| Five to Six years | 2.5% | - | - |
| Exceeds Six years | 0% | - | - |
Section 7E Tax on deemed incme 20%
Section 113 minimum tax
| Person(s) | Tax as %age of annual turnover |
| a. SNGPL and SSGCL (annual turnover exceeds Rs. 1. bilion b. PIA c. poultry industry including poultry breeding, broiler production, egg production and poultry feed production | 0.75% |
| a. Oil refineries b. Motorcycle dealer (Sales Tax Registered) c. Oil Marketing companies | 0.50% |
| a. Distributors of pharmaceutical products, FMCG and cigarettes b. Petroleum agents and distributors (Sales Tax Registered) c. Rice mills and dealers; d. Teir-1 Retailers of FMCG (Integrated with FBR’s software for real time reporting) e. Person’s turnover from supplies through e commerce including running online market place. f. Persons engaged in trading of used vehicles; and g. Flour mills. h. Distributors, dealers, sub-dealers, wholesalers and retailers of fast-moving consumer goods, fertilizer, electronics excluding mobile phones, sugar, cement, steel, and edible oil if appearing on ATL issued under STA, 1990, ITO, 2001. Tier-1 Retailers integrated with FBR’s software for real time reporting. (Second Schedule) | 0.25% |
| In all other cases | 1.25% |
Section 101A Gain on disposal of assets outside Pakistan
| Person acquiring asset from Non-resident Company | 10% of the FMV of the asset |
| Resident Company from Non-resident | Higher of 20% of FMV less cost of acquisition; or 10% of FMV of the asset. (Note: the credit for tax deducted as above will be available) |
Section 148
| Description | Rate |
| Persons importing goods classified in Part I of the Twelfth Schedule | 1% of the import value as increased by customsduty, sales tax and federal excise duty |
| Manufacturers covered under SRO 1125(I)/2011 dated December 31, 2011 (as it stood on June 28, 2019) | |
| Importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs with 150 kwh battery or below | |
| Persons importing goods classified in Part II of the Twelfth Schedule | 2% of the import value as increased by customsduty, sales tax and federal excise duty except commercial importers |
| In case of commercial importers | 3.5% of the import value as increased by customsduty, sales tax and federal excise duty |
| Others | 2% of the import value as increased by customsduty, sales tax and federal excise duty |
| Persons importing goods classified in Part III of the Twelfth Schedule | 5.5% of the import value as increased by customsduty, sales tax and federal excise duty |
| Persons importing finished pharmaceutical that are not manufactured in Pakistan, as certified by DRAP | 4% |
Section 148 imports of Mobile Phones
| Sr. No. | C & F Value of mobile phone (In US Dollar) | Tax (in Rs.) | |
| In CBU condition PCT Heading 8517.1219 | In CKD/SKD condition under PCT Heading 8517.1211 | ||
| 1 | Up to 30 except smart phones | 70 | 0 |
| 2 | Exceeding 30 and up to 100 and smart phones up to 100 | 100 | 0 |
| 3 | Exceeding 100 and up to 200 | 930 | 0 |
| 4 | Exceeding 200 and up to 350 | 970 | 0 |
| 5 | Exceeding 350 and up to 500 | 5,000 | 3,000 |
| 6 | Exceeding 500 | 11,500 | 5,200 |
Section 149 Salary
(Where salary income exceeds 75% of the taxable income)
| Up to 600,000 | 0% |
| 600,000 - 1,200,000 | 2.5% of the amount above 600,000 |
| 1,200,001 - 2,400,000 | 15,000 + 12.5% of the amount above 1,200,000 |
| 2,400,001 - 3,600,000 | 165,000 + 20% of the amount above 2,400,000 |
| 3,600,001 - 6,000,000 | 405,000 + 25% of the amount above 3,600,000 |
| 6,000,000 - 12,000,000 | 1,005,000 + 32.5% of the amount above 6,000,000 |
| Above 12,000,000 | 2,955,000 + 35% of the amount above 12,000,000 |
Rate of tax for individual (non-salaried) and AOP's
| 0 - 600,000 | 0% |
| 600,001 - 800,000 | 5% of the amount above 600,000 |
| 800,001 - 1,200,000 | 10,000 + 12.5% of the amount above 800,000 |
| 1,200,001 - 2,400,000 | 60,000 + 17.5% of the amount above 1,200,000 |
| 2,400,001 - 3,000,000 | 270,000 + 22.5% of the amount above 2,400,000 |
| 3,000,000 - 4,000,000 | 405,000 + 27.5% of the amount above 3,000,000 |
| 4,000,000 - 6,000,000 | 680,000 + 32.5% of the amount above 4,000,000 |
| Above 6,000,000 | 1,330,000 + 35% of the amount above 6,000,000 |
Rate of tax for Companies:
| Small company | 20% |
| Banking company | 39% |
| Any other company | 29% |
Rate of Super tax (Section 4B)
| Banking Company | Person, other than Banking Company, having income equal to or exceeding Rs. 500 mllion | |
| 2018 | 4% | 3% |
| 2019 | 4% | 2% |
| 2020 | 4% | 0% |
| 2021 and 2022 | 4% | 0% |
Rate of Super tax on high earning persons (Section 4C)
| 0 - 150,000,000 | 0% of the income |
| 150,000,001 - 200,000,000 | 1% of the income |
| 200,000,001 - 250,000,000 | 2% of the income |
| 250,000,001 - 300,000,000 | 3% of the income |
| Above 300,000,000 | 4% of the income |
For banking companies
| For Tax Year 2023 where income exceeds Rs. 300,000,000 | 10% of the income |
Rate of Super tax on high earning Specific Sectors (Section 4C)
For Tax year 2022 (where income exceeds Rs. 300 million)
| Airlines, Automobiles, beverages, cement, chemicals, cigarette and tobacco, fertilizers, iron and steel, LNG terminals, oil marketing, oil refining, petroleum and gas exploration and production, pharmaceuticals, sugar, and textiles | 10% of the income |
Section 150 (Dividend)
| Dividend paid by IPPs where such dividend is a passthrough item under Implementation Agreement, or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency. | 7.50% |
| Dividend from a company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part VIII of Chapter III or claim of tax credits under Part X of Chapter III | 25% |
| Mutual funds, Real Estate Investment Trust, and all other cases | 15% |
Section 151 Profit on Debt
Section 7B (charging section for individual & AOP)
| If profit on debt does not exceed Rs.5,000,000 | 15% |
Profit on debt exceeding Rs. 5,000,000 has been excluded from
Section 7B and to be taxed income under normal tax regime.
Section 150A & 5AA (return on investment in Sukuks)
| Sukuk - Holder | ||
| Amount | Company | Individual & AOP |
| Return is less than 1 million | 25% | 10% |
| Return above Rs. 1 million | 25% | 12.5% |
Section 152 Payment to Non-resident
| Royalty or Fee for technical services paid to nonresident | 15.00% |
| Payment for construction/advertisement contracts | 7.00% |
| Fee for offshore digital and other specified services | 10.00% |
| Insurance premium or reinsurance premium | 5.00% |
| Advertisement services relaying from outside Pakistan | 10% |
| Capital Gains SCRA, FCVA, NRVA | 10% |
| Amount other than above | 20.00% |
| Payment to PE of a non-resident company for sale of goods | 4.00% |
| Payment to PE of a non-resident non-company for sale of goods | 4.50% |
| For services as listed below* | 3.00% |
| Payment to PE of a non-resident company for services other than as listed below* | 8.00% |
| Payment to PE of a non-resident persons other than company for services other than as listed below* | 10.00% |
| Payment to PE of a non-resident person for contracts | 7.00% |
| Payment to PE of a non-resident sportsperson | 10.00% |
| * Transport services, freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services, IT services and IT enabled services, tracking services, advertising services (other than print or electronic media), share registrar services, engineering services, car rental services, building maintenance services, services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited inspection, certification, testing and training services, oilfield services. |
Section 153 Payment for goods, toll manufacturing and services
| For sale of rice, cotton seed or edible oils | 1.50% |
| For sale of other goods including toll manufacturing services by company | 4.00% |
| For payment to distributors, dealers, sub-dealers, wholesalers and retailers of fast-moving consumer goods, fertilizer, electronics excluding mobile phones, sugar, cement, steel and edible oil if appearing on ATL issued under STA, 1990, ITO, 2001. Tier-1 Retailers integrated with FBR’s software for real time reporting. | 0.25% |
| For sale of other goods including toll manufacturing services by persons other than company | 4.50% |
| For services as listed below* | 3.00% |
| For other service provided by Companies | 8.00% |
| For other service provided by non-Companies | 10.00% |
| For advertisement services of print and electronic media by a company | 1.50% |
| Exporter making payment for stitching, dying, printing, embroidery, washing, weaving and sizing | 1.00% |
| For sale of gold, silver, and articles | 1.00% |
| For execution of contracts by Companies | 6.50% |
| For execution of contracts by non-Companies | 7.00% |
| For Payments to sportsperson | 10.00% |
| * Transport services, freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services, IT services and IT enabled services as defined in section 2, tracking services, advertising services (other than print or electronic media), share registrar services, engineering services including architectural services, warehousing services, services rendered by asset management companies, data services provided under license issued by the Pakistan Telecommunication Authority, telecommunication infrastructure (tower) services, car rental services, building maintenance services, services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited, inspection, certification, testing and training services, oilfield services, telecommunication services, collateral management services, travel and tour services, RIET management services, services rendered by National Clearing Company of Pakistan Limited. |
Section 154 Exports
| Upon realization of foreign exchange proceeds from export of goods | 1.00% |
Section 154A Payment for Export of Services
| Exports proceeds of computer software or IT services or IT enabled services by persons registered with Pakistan Software Export Board. | 0.25% of the proceeds |
| Any other case | 1% of the proceeds |
Section 155 Rent
| For Individuals and AOPs where annual rent is less than or equal to Rs. 300,000 | 0.00% |
| For Individuals and AOPs where annual rent is more than 300,000 but less than 600,000 | 5% of the amount above 300,000 |
| For Individuals and AOPs where annual rent is more than 600,000 but less than 2,000,000 | 15,000 + 10% of the amount above 600,000 |
| For Individuals and AOPs where annual rent exceeds 2,000,000 | 155,000 + 25% of the amount above 2,000,000 |
| For Companies | 15% |
Section 156 Prizes and Winnings
| Winnings from prize bond or cross word puzzle | 15.00% |
| Winnings from raffle, lottery, prize on quiz prize offered for sale promotion | 20.00% |
Section 156-A Petroleum Products
| Petroleum Products | 12.00% |
Section 231-B Purchase of Car/Jeep
| Engine capacity upto 850CC | 10,000 |
| Engine capacity more than 851CC and less than 1,000CC | 20,000 |
| Engine capacity more than 1,001CC and less than 1,300CC | 25,000 |
| Engine capacity more than 1,301CC and less than 1,600CC | 50,000 |
| Engine capacity more than 1,601CC and less than 1,800CC | 150,000 |
| Engine capacity more than 1,801CC and less than 2,000CC | 200,000 |
| Engine capacity more than 2,001CC and less than2,500CC | 300,000 |
| Engine capacity more than 2,501CC and less than 3,000CC | 400,000 |
| Engine capacity more than 3,000CC | 500,000 |
| In cases where engine capacity is not applicable, and value of vehicle is Rs. 5 million or more | |
| Imported vehicle | 3% of the import value as increased by customsduty, sales tax, and federal excise duty |
| Locally manufactured or assembled | 3% of the invoice value |
| Advance tax on transfer of private motor car/jeep |
| Engine capacity upto 850CC | - |
| Engine capacity more than 851CC and less than 1,000CC | 5,000 |
| Engine capacity more than 1,001CC and less than 1,300CC | 7,500 |
| Engine capacity more than 1,301CC and less than 1,600CC | 12,500 |
| Engine capacity more than 1,601CC and less than 1,800CC | 18,750 |
| Engine capacity more than 1,801CC and less than 2,000CC | 25,000 |
| Engine capacity more than 2,001CC and less than 2,500CC | 37,500 |
| Engine capacity more than 2,501CC and less than 3,000CC | 50,000 |
| Engine capacity more than 3,000CC | 62,500 |
| In cases where engine capacity is not applicable, and value of vehicle is Rs. 5 million or more | 20,000 |
| Locally manufactured motor vehicle sold prior to registration |
| Engine capacity upto 1000CC | 50,000 |
| Engine capacity more than 1001CC and less than 2,000CC | 100,000 |
| Engine capacity more than 2,001CC | 200,000 |
Section 233
| In case commission is paid to advertising agent | 10.00% |
| In case commission is paid to life insurance agent receiving annual commission of less than 500,000 | 8.00% |
| In all other cases | 12.00% |
Section 234
| For goods transport vehicle | Rs. 2.5/kg |
| For goods transport vehicle of 8120 KG or more and after ten years in Pakistan | Rs. 1,200/Annum |
| Passenger transport vehicle plying for hire (four or more but less than ten passengers) | |
| - Non-air conditioned - Air Conditioned | 200/seat/annum 375/seat/annum |
| Passenger transport vehicle plying for hire (ten or more but less than twenty passengers) | |
| - Non-air conditioned - Air Conditioned | 500/seat/annum 750/seat/annum |
| Passenger transport vehicle plying for hire (more than twenty passengers) | |
| - Non-air conditioned - Air Conditioned | 1,000/seat/annum 1,500/seat/annum |
| For motor cars with engine capacity of upto 1000CC | 800 |
| For motor cars with engine capacity of 1001-1199CC | 1,500 |
| For motor cars with engine capacity of 1200-1299CC | 1,750 |
| For motor cars with engine capacity of 1300-1499CC | 2,500 |
| For motor cars with engine capacity of 1500-1599CC | 3,750 |
| For motor cars with engine capacity of 1600-1999CC | 4,500 |
| For motor cars with engine capacity of 2000CC and above | 10,000 |
| For Lumpsum collection on motor vehicle: | |
| For Private motor cars with engine capacity of upto 1000CC | 10,000 |
| For Private motor cars with engine capacity of 1001-1199CC | 18,000 |
| For Private motor cars with engine capacity of 1200-1299CC | 20,000 |
| For Private motor cars with engine capacity of 1300-1499CC | 30,000 |
| For Private motor cars with engine capacity of 1500-1599CC | 45,000 |
| For Private motor cars with engine capacity of 1600-1999CC | 60,000 |
| For Private motor cars with engine capacity of 2000CC and above | 120,000 |
Section 235 Advance Tax on Electricity Bill
| Gross amount of Bill | Tax |
| For Commercial & Industrial Consumers | |
| Up to Rs. 500 | 0 |
| Exceeds Rs. 500 but does not exceed Rs. 20,000 | 10% of the amount |
| Exceeds Rs. 20,000 – Commercial Consumers | Rs. 1,950 plus 12% of the amount exceeding 20,000 |
| Industrial Consumers | Rs. 1,950 plus 5% of the amount exceeding 20,000 |
| For Domestic Consumers (not appearing on Active Taxpayer List) | |
| Less than Rs. 25,000 | 0 |
| Rs. 25,000 or more | 7.5% |
| Section 235 Final tax from [Retailers (other than Tier-1) and specified services providers] through commercial electricity connections | |
| Up to Rs. 30,000 | Rs. 3,000 |
| 30,001-50,000 | Rs. 5,000 |
| 50,001-100,000 | Rs. 10,000 |
| Retailers and service providers as notified by FBR | Upto Rs. 200,000 |
Section 236 Telephone Subcribers and Internet
| For Mobile phone and/or internet subscribers | 10% for Tax Year 2020 and 8% onwards. |
| For other subscribers where monthly bill is more than 1,000 | 10% of amount above 1,000 |
Section 236-A Auction Sales
| Advance tax at the time of sale by auction of immovable property | 5.00% |
| Advance tax at the time of sale by auction of other then immovable property | 10.00% |
Section 236-C Sale of Property
| Advance tax at the time of sale or transfer of immovable property | 2.00% |
Section 236-CA TV plays and advertisement
| Foreign produced TV drama serial or play | Rs. 1,000,000 per episode |
| Foreign Produced TV play (single episode) | Rs. 3,000,000 |
| Advertisement starring foreign actor | Rs. 100,000 per second |
Section 236-G Distributors
| Advance tax on sale to distributors, dealers or wholesalers (fertilizers) appearing on ATL under ITO, 2001 and STA, 1990 | 0.25% |
| Advance tax on sale to distributors, dealers or wholesalers (fertilizers)-others | 0.70% |
| Advance tax on sale to distributors, dealers or wholesalers (other than fertilizers) | 0.10% |
Section 236-H Retailers
| Advance tax on sale to retailers | 0.5% |
Section 236-K Purchase of Property
| Advance tax on purchase of property | 2% of the fair market value |
Section 236-Y Payment remitted abroad
| Advance tax on amount remitted abroad through Debit, credit, or prepaid cards | 1% of gross amount remitted abroad |
Rules for persons not appearing in the Active Taxpayers’ List Where tax is required to be deducted or collected from persons not appearing in the active tax payers’ list, the rate of tax required to be deducted or collected shall be increased by 100% of the normal rate.
However, 100% extra would not be applicable in following cases:
| 149 | Salary |
| 152(1) | Royalty & fee for technical services |
| 152(1A(a)(b) | Construction & related contracts (NR) |
| 152(1A)(c) & (1AAA) | Advertisement services payment (NR) |
| 152(1AA) | Insurance & reinsurance premium |
| 152(1C) | Off shore digital services (NR) |
| 152(1D) | Capital gain – SCRA |
| 152(2) | General payments except profit on debit covered under clause 5A and clause 5AA Part II, Second Schedule |
| 154 | Exports & indenting commission |
| 154A | Exports of services |
| 235 | Electricity consumption |
| 236 | Telephone and internet users |
However, 100% extra would not be applicable in following cases:
| Section | Nature of Provision |
| 148 | Imports |
| 150 | Dividend |
| 150A | Return on Sukuks |
| 151 | Profit on debt |
| 152(2) | In case of payments covered under clause 5A and clause 5AA, Part II, Second Schedule |
| 152(2A)(a), (b), (c) | Goods, Services & Contract of PE |
| 152A | Foreign produced commercials (NR) |
| 153 | Supplies, services & Contracts |
| 154A | Exports of services |
| 155 | Rent from Immovable Property |
| 156 | Prizes & Winning |
| 156A | Petroleum Products |
| 233 | Commission |
| 234 | Tax on Motor Vehicles |
| 236A | Sale by auction |
| 236C | Sale of immovable property |
| 236G | Sale to distribuitors, dealers and wholesalers |
| 236H | Sales to retailers |
200% extra is applicable in following cases:
| 231B | Private Motor vehicles purchase, transfer & registration |
250% extra is applicable in following cases:
| 236K | Purchase of immovable property |
FEDERAL
The Eleventh Schedule
| Withholding Agent | Supplier Category | Rate or extent of deduction |
| Federal and provincial government departments, Autonomous bodies and public sector organizations | Active Taxpayers | 1/5th of the Sales Tax as Shown on invoice |
| Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001) | ||
| Federal and provincial government departments, Autonomous bodies and public sector organizations | Active Taxpayers registered as a wholesaler, dealer or distributor | 1/10th of Sales Tax as shown on invoice |
| Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001) | ||
| Federal and provincial government departments; autonomous bodies; and public sector organizations | Persons other than active taxpayers | Whole of the tax involved or as applicable to supplies on the basis of gross value of supplies |
| Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001) excluding companies exporting surgical instruments | Persons other than active taxpayers | 5% of gross value of supplies |
| Registered persons as recipient of advertisement services | Person providing advertisement services | Whole of sales tax applicable |
| Registered persons purchasing cane molasses. | Persons other than active taxpayers | Whole of sales tax applicable |
| Registered persons manufacturing lead batteries | Persons supplying any kind of lead under chapter 78 (specified PCT Headings) or scrap batteries under chapter 85 (respective PCT headings) | 75% of the sales tax applicable |
| Online Market Place | Persons other than active taxpayers | 1% of the gross value of supplies (effective from date notified by FBR) |
Exemptions
• Supplies made by active taxpayer as defined in STA 1990 to registered person except for advertisement services.
• Electrical energy
• Natural Gas
• Petroleum products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealer of motor spirit and high-speed diesel.
• Vegetable ghee and cooking oil
• Telecommunication services
• Goods specified in 3rd Sch of ST Act, 1990
• Supplies made by commercial importers who paid VAT at time of import.
• Supply of sand, stone, gravel/crush and clay to low-cost housing schemes sponsored or approved by Naya Pakistan Housing and Development Authority.
PUNJAB
| Withholding Agent | Rate | Amount |
| Offices and departments of Federal Government | 100% | S/Tax |
| Provincial government and local government, public sector projects | 100% | S/Tax |
| Autonomous Bodies | 100% | S/Tax |
| Public sector organization | 100% | S/Tax |
| Organizations funded by budget of Fed/Prov. Government | 100% | S/Tax |
| Recipient of advertisement services registered with PRA or FBR | 100% | S/Tax |
| Company resident in Punjab | 100% | S/Tax |
| Company having place of business in Punjab | 100% | S/Tax |
| PRA registered persons receiving services from unregistered persons | 100% | S/Tax |
Exemptions
• Telecommunication
• Banking companies
• Courier Companies
• Insurance companies (other than re-insurance)
• Active Companies (Except Advertisement service providers)
SINDH
| Withholding Agent | Rate | Amount |
| Offices and departments of Federal Government | 20% | S/Tax |
| Provincial Government and Local or District Government | 20% | S/Tax |
| Autonomous Bodies | 20% | S/Tax |
| Public sector organization | 20% | S/Tax |
| Organizations funded by budget of fed/prov. government | 20% | S/Tax |
| Company as defined in Sindh Sales tax Act, 2011 | 20% | S/Tax |
| Registered persons receiving advertisement services (other than advertisement in newspapers and periodicals), auctioneers, renting of immovable property, intercity transport or carriage of goods by road (other than those through pipeline or conduit), advertising agent services from agents who issue release order or book advertisements space in relation to advertisement services. (Use tax fraction formula) | 100% | S/Tax |
| SRB-registered persons or insurers receiving or procuring the services provided or rendered by insurance agents or insurance brokers | 100% | S/Tax |
| Persons or passengers using the services of a cab aggregator in relation to the services provided or rendered by the owners or drivers of the motor vehicles using the services of the cab aggregators | 100% | S/Tax |
| Withholding agent receiving taxable services from SRB registered persons where the amount of sales tax is not indicated on the invoice | 100% | S/Tax |
| SRB registered persons receiving services from unregistered persons (use tax fraction formula) | 100% | S/Tax |
| SRB registered persons receiving services from unregistered persons (use tax fraction formula) | 100% | S/Tax |
Proviso
Provided that a person shall be treated as withholding agent if a Person resident in Sindh or person has a place of business in Sindh
Exemptions
• Telecommunication
• Banking companies
• Financial institutions, Insurance companies in relation to its services of life insurance (other than re-insurance)
• Port operator
• Airport operator
• Terminal operator
• Airport ground services
KHYBER PAKHTUNKHWA
| Withholding Agent | Nature of services | Rate of tax withholding |
| • All Federal Government Departments and offices and The Departments and Offices of the Ministry of Defense. • All Departments and Offices of the KPK and other provincial Government including District Government Departments • Environment Department of the KPK Government and All Divisional Engineers of the Departments or Irrigation, Public Health Engineering and Communication & Works including the Local and District Government Departments. • All public sector organizations, institutes, corporations, universities bodies, boards, projects, ventures entities, enterprises, Institutions authorities of the Federal, Provincial, District or Local Government including special purpose institutions • Companies as defined under sub-section (12) of section 2 of the Act including those located in the jurisdiction of or registered with any other tax authority for the purposes of payment of sales tax in respect of goods or services rendered or provided in the province of Khyber Pakhtunkhwa. | • Advertisement services • Services provided by un-registered persons or inactive/non-active persons • Services provided or rendered to Federal or Provincial Government Departments or public sector institutions, organizations, entities, and projects etc. • Services provided in the province of Khyber Pakhtunkhwa by persons from outside the province if such persons are not registered with the Authority. • Services liable to tax under the Act at reduce rate (less than the standard rate of 15%). | 100% |
| • all other cases not covered above | 5% |
Exemption:
The telecommunication services (excluding such services as are
provided or received by telecom companies to or from each other)
shall not be liable to withholding.
BALUCHISTAN
| Withholding Agent | Rate | Amount |
| Offices and departments of Federal Government (Registered including FBR) | 20% | S/Tax |
| Proincial Government and Local or District Government (Registered including FBR) | 20% | S/Tax |
| Autonomous Bodies (Registered including FBR) | 20% | S/Tax |
| Public sector organization (Registered including FBR) | 20% | S/Tax |
| Organizations funded by budget of fed/prov government (Registered including FBR) | 20% | S/Tax |
| Company (Registered including FBR) | 20% | S/Tax |
| Registered persons receiving advertisement services (other than advertisement in newspapers and periodicals), auctioneers, renting of immovable property, intercity transport or carriage of goods by road, services from non-filers or unregistered persons or Persons not resident in Pakistan, services from registered person where invoice does not show sales tax | 100% | S/Tax |
Proviso
Provided that a person shall be treated as withholding agent if a
Person resident in Balochistan or person has a place of business in
Balochistan
Exemptions
• Telecommunication
• Banking companies
• Financial institutions, Insurance companies (other than reinsurance)
• Port operator
• Airport operator
• Terminal operator
• Airport ground services
DIS-CLAIMER:
The above rates are for general guidance purposes only and should not be construed as a legal provision.
The rate card is carefully prepared but no responsibility is taken for the accuracy of this rate card.
These rates are subject to revision by authorities from time to time.
About the Author
Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.
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