Withholding Tax Regime(Rates Card)

Guidelines for the Taxpayers, Tax Collectors & Withholding Agents

Section

Provision of the Section

Tax Rate

148 Imports

Imports(not otherwise
specified)

5% of the
import value

Import by an industrial
undertaking for its own use

Import of edible Oil and

packing material

3%

4%

Import of all fiber, yarns and

fabrics and goods covered by
the Zero Rating regime of
Sales Tax-{C},(9),Part-II.
Second Schedule

1%

Import of potassic
fertilizer{C},(13E),Part-II of
Second Schedule

1%

Items mentioned in
Cl,(13G),Part ll of Second
Schedule
Imports of Urea fertilizer
{CL,(23),Part ll of Second
Schedule

Who will
deduct / collect
/ agent
Collector of Customs

1%

1%

From whom

When

Time of deposit
in Govt Treasury

Importer of goods

At the same time On the day

and manner as
collected Rule
the custom duty
43(a)
is payable in
respect of the
goods imported

Import of pulses{Cl.(24),PartII of Second Schedule}

2%

Old and used automotive

vehicles

Rates
specified in
Cl(4)Part III
of 2nd
Schedule

149 Salary

Salary Income

Different as
per Division
l of Part I of
1st Schedule
to the
Income Tax
Ordinance

Employer

150
Dividend

Dividend Income

10% of
gross
payment

Every Person

The following concession are

to be noted;
On dividend
declared/distributed by
purchaser of power project
privatized by WapadaCI,(17),PART ll,2nd Sch

On dividend
Declared/distributed by a
company set up for power
generation. Cl,(20),Part ll,2nd
Sch.

7.5%

7.5%

Employee

At the time the

salary is actually
paid

On the day
deducted by the
Government
Rule 43(a)
within 15days of
deduction

Recipients of dividend

At the time the

dividend is
actually paid

Within 7days
from the end of
each fortnight

151
Profit on
debt
151(1)(a)

Yield or profit (profit on debt)

on account, deposit or a
certificate under the National
saving schemes or Post office
savings account.

151(1)(b)

Profit on debt paid by

Banking company or financial
institution on account or
deposit maintained.

151(1)( c)

Profit on securities , other

than those mentioned in s.
151(1)(a), issued by federal /
provincial government or a
local government

151(1)(d)

Profit on bonds , certificates,

debentures, securities or
instruments of any kind (other
than loan agreements between
borrowers and banking
companies or development

10% of the
gross yield
paid. Less
amount of
Zakat if paid
under Zakat
and Usher
ordinance
1980(XVII
of 1980)

10% of the
profit paid.
Less amount
of Zakat if
paid under
Zakat and
Usher
ordinance
1980(XVII
of 1980
10% of the
profit paid.
Less amount
of Zakat if
paid under
Zakat and
Usher
ordinance
1980(XVII
of 1980)

10% of the
profit paid.
Less amount
of Zakat if
paid under

Resident recipient of
yield (Profit on debt)

At the time the

yield (profit on
debt) is credited
to the account of
the recipient or is
actually paid,
whichever is
earlier.

On the day
deducted Rule
439a)

Banking Company or
Financial Institution

Resident recipient of
Profit on debt on an
account or deposit

At the time the

profit on debt is
credited to the
account of the
recipient or is
actually paid,
whichever is
earlier.

Within 7days
from the end of
each fortnight
Rule 43(a)

Federal / Provincial
Govt/ Local authority

Resident recipient of
profit on any security
(profit on debt)

At the time the

profit on debt is
credited to the
account of the
recipient or is
actually paid,
whichever is
earlier.

On the day
deducted where
deducted by and
on behalf of the
government Rule
43(b)

Resident recipient of
Profit on debt

At the time the

profit on debt is
credited to the
account of the
recipient or is
actually paid,
whichever is

Within 7days
from the end of
each fortnight
Rule 43(a)

Every Person Making

Payment

Banking company, a
financial institution, a
company or finance
society

151(2)

financial institutions) [for

exemption see clause
(59)(i)(ii), Part IV, 2nd
schedule

Zakat and
Usher
ordinance
1980(XVII
of 1980)

In case of non-resident
recipients

20% of the
profit or
reduced rate,
if any under
Double
Taxation
Agreement
(DTA)

In case of non-resident having

no permanent establishment
(PE) in Pakistan

earlier.

Every person

10% of
gross
amount paid
[clause (5A)
Part-II 2nd
schedule]

152
Payments to
non-resident
152(1)
Royalties or fee for technical
services to non-residents
other than their PEs in
Pakistan

152(1A)

15% of the
gross
amount or
reduced rate
under DTA

Every person

A non-resident person on the

execution of;
a) Contract or sub-contract

6%

Non Resident person

At the time the

royalty or fee for
technical services
is actually paid

Non-Resident Person

At the time the

amount is
actually paid

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight
On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)

under a construction,
assembly or installation
project
in
Pakistan
including a contract for
the supply of supervisory
activities relating to such
project.
b) Any other contract for
construction or services
rendered relating there to.

c) Contract
for
advertisement
services
rendered by TV Satellite
Channels. No deduction in
respect of payments to
foreign news agencies
syndicate services and
non-resident contributors
who have no PE in
Pakistan[clause (41B)PartIV]

Within 7days
from the end of
each fortnight

6%

6%

152(1AA)

Any payment of insurance

premium or re-insurance to a
non-resident person

5% of gross
amount

Every Person

152(1AAA)

Payment to non-resident
media person relaying from
outside Pakistan, for
advertisement services

10%

Every Person

Non-Resident Person

At the time the

amount is
actually paid

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight
On the day
deducted where
deducted by and
on behalf of the

provided.

152(2)

Payment for profit on debt to

a non-resident having no
permanent establishment in
Pakistan

Any other payment to non

resident, not other wise
specified and excluding the
following
(a)on account of salary,
dividend, contractual
payments u/s
153,rent,winnings& prizes
and commission/ brokerage

10% of
gross
amount paid
[clause (5A)
Part-II 2nd
schedule.

Non-resident Person

Every Person

20% of the
gross
amount or
reduced rate
under DTA
if applicable.

(b)taxable in the hands of a

PE in Pakistan of the nonresident person
(c)payable by a person who is
liable to pay tax as
representative of the nonresidents or
(d) not chargeable to tax in
the hands of the non-resident.

At the time the

amount is
actually paid

government rule
43(a)
Within 7days
from the end of
each fortnight
On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

152(2A)

Every Prescribed person

making payment to a
Permanent Establishment of
Non- Resident. For:
(i)Sale of goods
(ii) Rendering /providing of
services.

(iii) Execution of a contract

other than a contract for sale
of goods or providing/
rendering of services.
153
Payment for
goods &
services

153(1)(a)

Every Prescribed
person

3.5%
(i) 2% in
the case of
Transport
service.
(ii) other
cases 6%
6%

Resident Person; and

Permanent
Establishment
in
Pakistan of a
NonResident

Payment in full or in part

including by way of advance
to a resident person :
For sale of rice, cotton, seed,
edible oil

Rice sold by rice exporters

association of Pakistan to
utility store corporation

1.5% of the
gross
payment
[exemption /
reduced
rates are
provided in
SRO 600(1)
/1991 dated
2-7-1991 &
SRO
586(1)/1991
dated 30-61991
1% of sale
value[clause
(13HH) part

Federal Govt /
Provincial Govt
Company
AOP Constituted Or
Formed Under The Law
Non Profit
Organization
Foreign Contractor Or
Consultant
Consortium Or Joint
Venture

Individual And AOP

Having Turnover Of
50(M) or above
[Note: Manufacture

Resident Person; and

Permanent
Establishment
in
Pakistan of a NonResident

At the time the

amount is
actually paid

At the time the

amount is
actually paid

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

II 2nd
schedule

Cum Exporters Are

Exempt On Fulfillment
Of Condition
Mentioned In Clause
(45) Part-IV 2nd
Schedule

For sale of any other goods

3.5% of the
gross
payment

153(1)(b)

Transport services
All others

2%
6%

153(1)(c)

On execution of the contract

other than for supply of goods
for the rendering of or
providing services.
Every Exporter or Export
House deduct Tax on
payments in respect of
services of stitching, dying,
printing etc.
received/provided.

6% of gross
payment

0.5%

Exporter/Export
House

Any service provider

At the time of
making the
payment.

Suspended till 30-06-2013

vide SRP NO.1487 (1)/2012
dated 24-12-2012.

0.5% of the
gross
amount

Every manufacture

Distributors, Dealers &

Wholesalers

At the time the

amount
is
actually paid

153(2)

153A
Payment to
Traders
and
Distributor
s.

Every manufacturer to collect

tax from distributors,
wholesalers and dealers.

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight
On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

154
Export and
foreign
indenting
commission
154(1)

154(2)

On realization of proceeds on
account of export of goods
[ exemption to cooking oil or
vegetable ghee exported to
Afghanistan if tax u/s 148 is
paid]
On realization of proceeds on
account of commission to;
I. Non-export indenting agent
II. Export indenting agent /
export buying house

154(3)

On realization of proceeds on
account of sale of goods to an
exporter under inland back to
back LC or any other
arrangement as may be
prescribed by FBR

154(3A)

Exports of goods located EPZ

154(3B)

154(3C)

1%

Exporter of goods;
and
Indenting commission
agent

Authorized
dealer/Banking
Company

At the time of
realization
of
the
export
proceeds
or
indenting
commission

Authorized
dealer/Banking
Company

Within 7 days
from end of each
fortnight

Within 7 days
from end of each
fortnight

5%
5%
1%

Authorized
dealer/Banking
Company

Every Person

1%

EPZ Authority

Payment to indirect exporters

as defined in DTRE rules,
2001

1%

Direct exporters /
export house
registered under
DTRE rules, 2001.

Clearance of goods exported

1%

Collector of custom

Industrial undertaking
located in the areas
declared by the Federal
Government to be a
Zone within the meaning
of the Export Processing
Zone
Authority
Ordinance, 1980.
Indirect
exporters
(defined under subchapter 7 of the chapter
XII of the Custom
Rules , 2001)
Exporter of goods

At the time of
realization of the
sales proceeds or
realizing
the
payment made
through crossed
cheque

Within 7 days
from end of each
fortnight

Within 7 days
from end of each
fortnight

At the time of
payment
against a firm
contract

Within 7 days
from end of each
fortnight

At the time of

Within 7 days

export of goods
155
Income
from
Property

Any payment in full or in part

including by way of advance
on account of rent of
immovable property including
rent of furniture and fixtures
and services relating to such
property and amounts
mentioned in section 16(1)or
(3):
(A) In case of individual
or AOP
i)
Amount not
exceeding
150,000
ii)
150,000 to 400,000

iii)

iv)

400,000 to
1,000,000

Exceeding 1,000,000

B) in case of company
i) amount not exceeding
400,000
ii) 400,000 to 1,000,000

Federal
Govt/Provincial
Govt, Company;
local authority, nonprofit, organization,
diplomatic mission of
a foreign state and
any other person
notified by FBR

NIL
5% of
amount
exceeding
150,000
12,500+7.5
% of amount
exceeding
400,000
57,500+10%
of amount
exceeding
1,000,000

5%

20,000+7.5
% of
Amount
exceeding

10

Recipient of rent of
immovable property

At the time the

rent is actually
paid

from end of each

fortnight
On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

400,000

iii) exceeding 1,000,000

156
Prizes and
winnings

156 A
Petroleum
Products

156B
Withdrawal
of balance
under
pension
fund

Payment of prize on prize or

cross word puzzle

Payment on a winning from a

raffle, lottery, prize on
winning a quiz, prize, offered
by companies for promotion
of sale crossword puzzles
(where such amount in not
paid in cash then tax is to be
collected from the recipient
on fair market values of the
prize)
Payment to petrol pump
operator on account of sale of
petroleum products

i)

ii)

Withdrawal before
retirement age
Withdrawal if in excess
of 25% of accumulated
balance at or after the
retirement age

65,000
+10% of
amount
exceeding
1,000,000
10%

Every person

Recipient of prize or
winnings

At the time the

prize or winnings
are actually paid

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

10% of
amount of
commission

Every person

Petrol pump operators

At the time the

commission is
actually paid

As specified
in sub
section (6)
of section 12
i.e average
rate of tax
for the last 3
preceding

Pension fund
manager

Individuals maintaining
pension accounts with
an approved pension
fund

At the time of
withdrawal

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight
Within 7days
from the end of
each fortnight

20%

11

231A
Cash
Withdrawal
from a Bank

231AA
Advance tax
on
transaction
in bank

Payment of cash withdrawal

exceeding Rs, 50,000/- in a
day

1.
Sale against cash of
any instrument including
demand draft, payment
order, CDR, STDR, RTC, or
any other instrument of
bearer nature or o receipt
of cash on cancellation of
any of these instruments
(except in case of interbank or intra-bank
transfer and also where
payment is made through
a crossed cheque for
purchase of these financial
instruments).

years or rate
applicable
for the year
whichever is
lower.
0.2% of the
amount
exceeding
Rs, 50,000/-

0.3% of the
amount
exceeding
Rs, 25,000/in a day

Every Banking
Company

Every banking
company non
banking financial
institution , exchange
company or any
authorized dealer of
foreign exchange

Persons
withdrawing
cash, other than the
following:
a. Federal
Government;
b. Provincial
Government;
c. Foreign diplomat;
d. Diplomatic
mission in
Pakistan; or
e. Person who
produces a
certificate from the
Commissioner that
his income during
the tax year is
exempt
.

Persons (excluding *)
to whom sale of any
instrument is made
against cash payment
Including
Demand
Draft, Pay Order, Call
Deposit Receipt (CDR),
Short Term Deposit
Receipt
(STDR),Security
DepositReceipt (SDR),
Rupee
Travelers
Cheque (RTC) or any
other instrument of
bearer nature; and
Excluding
bank or

2.
Transfer of any sum
against cash through

12

Interintra-bank

At the time the

cash
is
withdrawn

Within 7days
from the end of
each fortnight

At the time of
sale
of
instrument
or
transfer

Within 7days
from the end of
each fortnight

online transfer,
telegraphic transfer mail
transfer or any other
mode of electronic
transfer except online
transmission of day to day
collection to centralized
account of a distributor
where the depositor and
the beneficiary is the same
maintained under cash
management
arrangements provided by
a bank shall be treated as
inter bank transfer

transfer

0.3% of the
amount
exceeding
Rs, 25,000/in a day

3.
The entire section
does not apply to federal
government , provincial
government and
diplomatic mission or in
the case of person who
produces certificates of
exemption from the
commissioner
231B
Purchase of
Motor car

Up to 850cc
851cc to 1000cc
1301cc to 1600cc
1601cc to 1800cc
1801cc to 2000cc
Above 2000cc

Rs7,500
Rs, 10500
Rs, 16875
Rs, 22500
Rs, 25000
Rs, 50,000

Motor vehicle
registration authority

Persons registering
new
locally
manufactured motor
vehicle, other than the
following:
a.
b.
c.
d.

233

Brokerage and

10% of the

Federal Government,

13

At the time of
registration of
new
motor
vehicle

On the day
deducted where
deducted by and
on behalf of the
government Rule
43(a)

At the time the

brokerage or

On the day

Federal Government
Provincial
Government
Local Government
Foreign Mission in
Pakistan

Recipient of brokerage
or commission

Brokerage
&
Commission

commission income
(including non-resident
agents)

amount of
payment
5% in case
of
advertising
agents

Members
exchange

233A
Collection
of tax by
stock
exchange
233(1)(a)

(1)(b)

233AA

234
Tax on
Motor
Vehicle

commission is
actually paid;

Provincial
Government, Local
authority, Company
AOP constituted by
or under any law.

On purchase of shares in lieu of

the commission earned by its
Member
On sale of shares in lieu of the
commission earned by its
Member

Advance Tax on margin

financing through Stock
Exchanges registered in
Pakistan.
From plying or hiring of
goods transport;
Reduced rate for good
transport vehicle with laden
weight of 8120 Kg or more
after a period ten years from
the date of first registration
of the vehicle in Pakistan [
Para (1A) or Div III part IV of
st
1 schedule]
Passenger transport

0.01% of
Purchase
value

of

stock

At the time of
making or
receiving
payment

deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight
Within 7days
from the end of
each fortnight

Stock Exchange
Registered in Pakistan

0.01% of
sale value
10% of
carryover
charge

NCCPL

Within 7days
from the end of
each fortnight

Rs. 5 per kg
of the laden
weight
Rs, 1200 per
annum

Person collecting
motor vehicle tax

Rs, 25 to Rs,
500 per seat
per annum
Rs 750 to
8000 per

14

Owner of motor vehicle

excluding:

At the time of
collecting motor
vehicle tax
installment

On the day
collected

234A
CNG
Station

235
Electricity

236
Telephone

On the amount of gas bill

of a Compressed Natural
Gas
Commercial and industrial
consumer
Note:
Tax collected up to bill
amount of Rs, 30,000 shall
be minimum tax or a income
of a person (other than a
company). There shall be no
refund of tax collected
under this section unless the
tax so collected is excess of
the amount for which the
tax payer is chargeable to
tax under this ordinance in
the case of a company
No tax collection from
exporters cum
manufacturers of items
mentioned in clause (66
nd
Part-IV of 2 schedule
Telephone subscribers

annum
[paragraph
(1), Div, III
part IV of
First SCH]
4%

Person preparing gas

consumption bill

Consumer of gas for

compressed natural
gas station

At the time of
realization of gas
consumption
charges

On the day
collected

As given in
Par-IV Div
of First Sch
(Ranging
from Rs, 80
to Rs, 1500
depending
on the
monthly
bill) for bill
exceeding
Rs, 20,000
5%

Person preparing
electricity bill

Commercial and Industrial

consumers of electricity
excluding a consumer who
produces a certificate from
the Commissioner that his
income is exempt from tax
during a tax year

Along with
payment of
electricity
consumption
charges

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

Up to
monthly
1,000 Nil,
Bill
exceeding
1,000
10%

Person preparing
telephone bill /
issuing or selling
prepared card for
mobile phones

Along with
payment of
telephone bill or
at the time of
issuance of or
sales of prepared
cards

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

10% of the

15

Telephone subscriber
and
purchaser
of
prepaid
telephone
cards excluding the
following:
a. Federal
Government;
b. Provincial Govt
c. Local Government;
d. Foreign diplomat;

e. Diplomatic mission in
Pakistan; or
Person who produces a
certificate of exemption .
Purchaser
of
any
property (including the
awarding of any lease
to any person, including
a lease of the right to
collect tolls, fees or
other
levies,
by
whatever name called)
or goods confiscated or
attached
either
belonging to or not
belonging
to
the
Government,
local
Government,
any
authority, a company, a
foreign
association
declared to be a
company under subclause (vi) of clause (b)
of sub-section (2) of
section 80, or a foreign
contractor
or
a
consultant
or
a
consortium or Collector
of
Customs
or
Commissioner
of
Income Tax or any
other authority

Mobile telephone
subscriber and prepaid
telephone cards

amount of
Bill

236A

Sale by auction

5%

Every person

236B
Advance tax
on purchase
of Air
Ticket

Purchase of domestic air

ticket

5% of gross
amount of
ticket

Person preparing air

ticket

16

Purchaser of domestic
air travel ticket
excluding the following
a. Federal Govt
b. Provincial Govt
c. Person who produce
a certificate from the
commissioner IR
that income of such
person during the

At the time of
realization of sale
proceeds

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

At the time of
realization
of
sale proceeds

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

year is exempt

236C
Immovea
ble
property

Transfer or attesting
transfer of Immoveable
property.

0.5%

From seller of
Every person
immoveable property
Registering or
attesting Transfer.

At the time of
Registering or
attesting the
transfer

On the day
deducted where
deducted by and
on behalf of the
government rule
43(a)
Within 7days
from the end of
each fortnight

In case of non-compliance Penalties and other consequences

Section

provision

Penalty/ default surcharge.

182 S.No.15 Offences

and Penalties.

Any person who fails to collect or deduct tax or fails to deposit

the tax collected or deducted within the time allowed for this
purpose.

The person is liable to a penalty of Rs.

25,000 or 10% of the amount of tax
involved, whichever is higher.

191(1) (c) prosecution.

Any person who, without reasonable excuse:

The person is treated as having committed

an offence punishable on conviction with a
fine or imprisonment for a term not
exceeding one year, or both

205 (3) Default

Surcharge

Fails to comply with the obligation to

collect or deduct tax;

Having collected or deducted fails to

pay the tax.

Any person who fails to collect or deduct tax or fails to deposit

the tax collected or deducted (as required under Div .II &III of
Part V, Chapt. X and XII read with section 160) within the time
allowed for this purpose.
Default surcharge is paid in addition to the principal amount of
the tax to be collected or deducted at source by the
withholding agent.

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The person/defaulter is liable to pay default

surcharge at the rate of 15% per annum, on
the defaulted amount, computed from the
first day of default till the date it is paid.

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