RATES FOR WITHHOLDING (INCOME) TAX | TAX YEAR 2024 Tariq Abdul Ghani Maqbool & Co.

Applicable from July 01, 2023 to June 30, 2024 | As Amended vide the Finance Act, 2023 Chartered Accountants Member TAG Group

WHAT THIS DOCUMENT AIMS AT? Tax Rate Nature of

This document aims to summarize the law on withholding income Activity Non- Tax Activity
tax, taking into account significant amendments videthe Finance Act, Filer
2023. These tax rates & treatments are effective from July 01, TAX ON MOTOR VEHICLES | Sec 231B Div. VII Pt. IV 1st Sch
Filer
2023, Securities purchased via a foreign 10% FinalTax Purchase/ registration Various
i.e., for the Tax Year 2024. The information summarized herein is bank
Profit on FCYAs Electric Vehicles (EV) value Rs.5M > 3%
generaland based on our interpretation of law. This information account, NRVA oror FCYAs
COIs under SBP’s
does FC
Account Scheme 0% Transfer of registration/ ownership Various Adv
not constitute any opinion or advice and may also not be Sale/ transfer of EV valuing Rs.5M > Rs.20K Ta
acceptable accounts on funds exclusively remitted 0%
from aboard in FCY Sale of vehicle on Own-Money Various
to taxation authorities in a particular case. Tax laws are subject to Leasing to a non-filer N/A 4%
change from time to time and we do neither warrant at any time
the IMPORTS | Sec 148 & Part II First Schedule Other payments 20% Adv. Tax TAXON FOREIGN DOMESTIC WORKERS | Sec 231C
currency of the above details norTaxaccept
Rateany responsibility to PAYMENTS TO PE OF NON-RESIDENTS | Sec 152, Div. II Pt. III 1st Agency/ Sponsor/ Person to whom visa is Adva
update Sch. issued or renewed for Foreign National Tax
the same. Filer Nature
Tax For Goods Company 5% 10% BROKERAGE & COMMISSION | Sec 233, Div. II Pt. IV 1 st
Filer of supplied Other than Company 5.5% 11%
Importsof Goods as per Part For services By PE ofNR company 9% 18% Minimum Advertising agent
Schedule 10% 20%
rendered Other PEs 11% 22% Tax
I of the Twelfth Schedule All 1% 2% Life insurance commission<Rs.0.5M pa 8% 16%
cial Tax for Contract by sports persons 10% 20% Others 12% 24%
For other contracts 8% 16%
II of theTwelfth
Importsof Goods as Importers Industrial TAXON MOTOR VEHICLES | Sec 234, Div. VII & III Pt. IV 1
Schedule
per Part Schedule
importing SUPPLY OF GOODS INCLUDING TOLL MANUFACTURING | Goods Transport Vehicle | Based on Rs.2.5/
Commer- Sec 153(1)(a), Div. III Pt. III 1st Sch, Cl 24A, 24C, 31, 45A Pt. II 2nd laden weight Kg
Sch.Sale of rice, cotton seed or edible oil 1.5% 3% Goods Transport Vehicle | Laden weight Rs.1.2K Adv
Importers Sale of cigarettes& pharma products 8,120Kg > after 10 yrs. of registration

Others 5.5% 11% by hire | Based on seating & air-conditioning

material, distributors
1% 2% Paper- dealers, wholesales &Tier-1 retailers Advance Motor vehicle | Based on engine capacity Various
integrated &configured with Board Tax for
in SRO 1125(I)/2011 facturers board or COMMERCIAL, INDUSTRIAL ELECTRICITY CONSUMERS
(also appearing on Sales Tax ATL) of companies
manufactured locally as All 4% 8% the following: and Gross Monthly Bill Tax | Not applicable to For
certified by DRAP Companies
FMCG | Fertilizer | Electronics (excluding From To Specified Sectors
mobile phones) | Sugar | Cement | Steel |
Imports ofCKD Kits for Edible oil Manu- Up to Rs. 500 NIL Tax
electrical vehicles (small Tax
cars/ SUVswith up to 50 All 1% 2% taxpayers in the following sectors: facturing Rs. 501 Nature
Rs.20,000 10% of amount Other Taxp
kWh battery) andLCVs with Annual
Textile & articles thereof | Carpets | 1%
up to 150 kWh battery
2% Leather & articles thereof | Artificial leather
Bill (Rs.) of Tax
footwear | Surgical goods | Sports Goods
Up to Minimum
IMPORT OF MOBILE PHONES | Sec148 & Part II of First Sch. other cases Industrial Rs.1,950 + 5%
0.5% 1% Consumer over Rs.20,000
C&F Value(USD) CBU CKD/ SKD Nature by Yarn Traders 360K Tax
of
Up to 30, except smartphone Rs.70 NIL Tax sales (incld. Toll Activity
Non-
From31 to100 Rs. 100 NIL for Industrial Manufacturing)
From101 to 200 Rs. 930 NIL Undertaking
Sale ofgold & silver and articles thereof 1% 2% Adv.Tax DOMESTIC ELECTRICITY CONSUMERS| S 235, Div. IV, P
From201 to 350 Rs. 970 NIL Min. Tax for
Note | No taxto be withheld in case of: Sch
From 351to 500 Rs.5,000 Rs.3,000 All Other (a) where aggregate annualpayment is below Rs.75,000 Monthlybill up toRs. 25,000 0% Advance
(b) purchase of an asset under lease & buy back agreement Monthlybill exceeds Rs. 25,000 7.5% Tax
Cases by Banks and Non-banking Finance Companies.
Note: Advance taxis to be increased by 100% for Non-filers TELEPHONE USERS | Sec 236, Div. V Pt. IV 1st Schedule
Sec 153(1)(b), 153(2), Div. III & Div. IV Pt. III 1st Schedule Landline bills exceeding Rs.1,000 10% Advanc
Internet &Mobile subscriptions 15% Tax
Taxable Income Transport | Freight forwarding | Air cargo SALE BY AUCTION | Sec 236A, Div. VIII Pt. IV 1st Schedule
services | Courier | Manpower outsourcing
From To Rate of Tax | Hotel services | Security guard | Software Sale by public Property/ goods 10% 20%
development | IT & IT enabled services |
Up to 600,000 0% Tracking services | Advertising (other than 5% 10%
by print/ electronic media) | Share registrar
600,001 1,200,000 2.5% on amount exceeding
services | Engineering/ Architectural
collectionrights Toll
Rs.0.6M Final Tax
1,200,001 2,400,000 15,000 12.5% on amount services | Warehousing | Services
> Rs.1.2M rendered by AMCs | Data services |
2,400,001 3,600,000 165,000 22.5% on amount 40% 80% Sec 236C, Div. X Pt. IV 1st Schedule
> Rs.2.4M
3,600,001 6,000,000 435,000 27.5% on amount Telecom. infrastructure (tower) services | Minimum By NRPs where the propertyacquired Final Tax
> Rs.3.6M Car rentals | Building maintenance |
Above 6,000,000 1,095,000 35% on amount Services rendered by PSEL & PMEL | Tax Acquired in same year 3% 6% Min. Tax
> Rs.6M
Rate of advance tax deductible is 20% on directorship fee or fee for
Inspection, certification & testing | Training All other cases Inheritance/ Gift Not Applicable N/A
services | Oilfield services | Telecom |
attending Tax Rate Collateral management | Travel & tours | Other cases 3% 6% Adv.Tax
board meetings Nature of REIT management | NCCPL services
Activity Filer Tax Advertising services | electronic/ print media 1.5% 3% ONTV PLAYS & ADVERTISEMENT | S236CA, Div. XA Pt. IV
Non- Sch.
Other services By companies 9% 18% drama serial

DIVIDEND | st nd
By AOPs & Individuals 11% 22% TV play
Stitching, dying,printing, embroidery, Tax tax on advertisement starring
Dividend paid by IPPs, when itis a washing, sizing &weaving to 1% 2% Per second Rs. Rs.
Exporters foreign actor 0.1M
pass-throughitem to be reimbursed Note | Not applicableif aggregate annual payment isunder TAXON SALES TO DISTRIBUTORS, DEALERS &
by Rs.30,000
Dividend attributable to income from 7.5% 15% EXECUTION OF CONTRACTS | Sec 153(1)(c), Div III Pt III 1st
CPPAG
biomass &baggas based power Sch.
7.5% 15% IMPORTERS | Sec 236G, Div. XIV Pt. IV 1 st Schedule
projects
Dividend received where company is Final Tax Performed byOther
Executed for sportspersons 10% Minimum I. Tax S. Tax 0.25%
20%
Companies
availing exemption or benefiting from 25% 50% Other cases 8% Tax X X 1.4%
c/f business losses &tax credits 16%
Mutualfunds, REITs &other cases 15% 30% EXPORTS | Sec 154 Div. IV Pt. III 1st Sch, Cl. 47C Pt. IV 2nd Pharmaceuticals | Poultry & animal feed |
Dividend in specie 15% 30% Schedule Edible oil & ghee | Auto-parts | Tyres |
Realization ofexport proceeds Varnishes | Chemicals | Cosmetics | IT Tax
Dividend from By REIT scheme 0% 0%
SPV received: By others 35% 70% Goods soldper inland back-to-back LC equipment | Electronics | Sugar | Cement | 0.1% 0.2%
Export of goods by units in EPZ Iron & steel products | Motorcycles |
Intercorporate dividend/group taxation Not Applicable Payments under DTRE Rules & Export Pesticides | Cigarettes | Glass | Textile |
Facilitation Scheme, 2021 to indirect Beverages| Paint | Foam
PROFIT ONDEBT | Sec 151, Div. IA Pt. III 1st Sc./ Cl. 5AB Pt. II 2nd
Sc. exporters by direct exporters
Advance Cooking oil/ vegetable ghee exported TAXON SALES TO RETAILERS& WHOLESALERS BY
Received by 0% Exempt
Company
 Received by Tax to Afghanistan, if taxu/s 148 is paid 0% Exempt & COMMERCIAL IMPORTERS | Sec 236H, Div. XV Pt. IV 1st
Company Schedule
15% 30% EXPORT OF SERVICES | Sec 154A IVA Pt. III 1st Schedule Pharmaceuticals | Poultry & animal feed |
Received by Edible oil & ghee | Auto-parts | Tyres |
Profitabove Rs. Minimum Software, IT or IT-enabled services by 0.25% Varnishes | Chemicals | Cosmetics | IT
5M
Tax Services/ tech- Rendered abroad equipment | Electronics | Sugar | Cement | 0.5% 1%
Iron & steel products | Motorcycles |
Government securities, purchased via 10% Final Tax nical services Exported from Pakistan specified Pesticides | Cigarettes | Glass | Textile |
Royalty/ commission/ franchise fees conditions Beverages| Paint | Foam
FCVAunder SBP’sScheme
received by a resident company from a
INVESTMENTS IN SUKUKS | Sec 151, Div. IB Pt. III 1st Schedule 10% OR/ PURCHASE OF IMMOVABLE PROPERTY |
Returns received by Companies 25% 50% Adv.Tax property outside Pakistan By Non-Resident via FCVA or NRVA 0% N/A
10% 20% Final Construction contracts executed Advance All other Inheritance/ Gift Not Applicable N/A
Tax outside Pakistan Tax cases
AOPs/ AboveRs.1M upto 5M 12.5% Normal Purchase 3% 10.5% Adv.Ta
Foreign indenting commission
25%
RENT OF IMMOVABLE PROPERTY | Sec 155, Div. V Pt. III 1st FOREIGN PAYMENTS VIA DEBIT/ PRE-PAID OR CREDIT
Sch. |
Div.II Pt. III1 stTO
PAYMENTS Sch. & Cl. 5A, 5AA, 5AC
NON-RESIDENTS | SecPt. II 2Div.
152, nd Schedule
IV Pt. I, Company 15% Ongross amountremitted abroad 5% 10% Adv.Ta
Royalty/ fees for technical services Annual Rent (Rs.) BONUS SHARES ISSUED BY COMPANIES | Sec 236Z
15%
Fee for offshore digital services, Money From To Tax Value ofthe bonus shares issued 10% 20%
transfer operations, Card network
10% Final Tax 5% of rent Advance GLOSSARY OF KEY TERMS
services, Payment gateway services,
Interbankfinancial telecom. Services 300,001 600,000 Tax
Contracts/ subcontract under a exceeding Rs.300K
construction, assembly/ installation 600,001 2,000,000
70% rent above Rs.600K
project (including supply of supervisory
Rs.155K + 25% of
activitiestherefor) and Advertisement
Minimum Above2,000,000
services by TV Satellite Channels
50% Note | Rates tobe increased byrent above
100% for Rs.2M
Non-filers
Insurance/ re-insurance premium
Advertisement servicesrelaying from PRIZES AND WINNINGS | Sec 156, Div. VI Pt. III 1st Schedule
outside Pakistan 10%
Foreign produced commercials forTV On a prize bond or crossword puzzle 15% 30%
channel/ other media 20% sales promotion 20% 40%
schemes.
Capital gain to foreign companies on REACH US AT…
disposal ofDebt Instruments &Govt.
securities invested via SCRA Final Tax Commission amount / discount Head | 173-W, Block 2, P.E.C.H.S., Karachi
Profiton debt from investments allowed 12% 24% Office | 02134322 582/ 583, 34322 606/ 607
10% FinalTax
exclusivelymade through a SCRA to a petrol pump operator | info@tagm.co
Capital gain to individuals on disposal CASH WITHDRAWAL | Sec 231AB Telephone Scan QR Co
ofdebt instruments andGovt. Cash withdrawal exceeding Rs. Email | www.tagm.co
0% Advance C
50,000 Web
0.6% LinkedIn
Securities invested via FCVA or NRVA Tax |
Facebook FB/TAGM
 Member TAG Group

Tax Rate Nature of

Tax Non-
Filer
VEHICLES | Sec 231B Div. VII Pt. IV 1st Schedule
Filer
on Various
V) value Rs.5M > 3%

tion/ ownership Various Advance

valuing Rs.5M > Rs.20K Tax
Own-Money Various
er N/A 4%

DOMESTIC WORKERS | Sec 231C

Person to whom visa is Advance
d for Foreign National Tax
COMMISSION | Sec 233, Div. II Pt. IV 1 st
10% 20%
mission<Rs.0.5M pa 8% 16% Tax
Minimum
12% 24%
VEHICLES | Sec 234, Div. VII & III Pt. IV 1st
Vehicle | Based on Rs.2.5/
Kg
Vehicle | Laden weight Rs.1.2K Advance
0 yrs. of registration Tax
Various

sed on engine capacity Various

NDUSTRIAL ELECTRICITY CONSUMERS |

ill Tax | Not applicable to For

Specified Sectors
NIL Tax

0 10% of amount Other Taxpayers

Industrial Rs.1,950 + 5%
Consumer over Rs.20,000

Tax Rate
Nature of
Filer
TRICITY CONSUMERS| S 235, Div. IV, Pt. IV 1st

. 25,000 0% Advance
s Rs. 25,000 7.5% Tax
ERS | Sec 236, Div. V Pt. IV 1st Schedule
eding Rs.1,000 10% Advance
ubscriptions 15% Tax
ON | Sec 236A, Div. VIII Pt. IV 1st Schedule
Property/ goods 10% 20%
5% 10% Tax
Advance
10% 20%

Pt. IV 1st Schedule

e propertyacquired Final Tax (In

ed in same year 3% 6% Min. Tax
Inheritance/ Gift Not Applicable N/A
her cases 3% 6% Adv.Tax
DVERTISEMENT | S236CA, Div. XA Pt. IV 1st
Rs. 1M Rs. 2M

Rs. 3M Rs. 6M
n advertisement starring Rs. Rs.
0.1M 0.2M
O DISTRIBUTORS, DEALERS &

c 236G, Div. XIV Pt. IV 1 st Schedule

I. Tax S. Tax 0.25%
X X 1.4%
Poultry & animal feed |
| Auto-parts | Tyres |
cals | Cosmetics | IT Tax
onics | Sugar | Cement | 0.1% 0.2%
cts | Motorcycles |
ttes | Glass | Textile |
Foam

O RETAILERS& WHOLESALERS BY
IMPORTERS | Sec 236H, Div. XV Pt. IV 1st
Poultry & animal feed |
| Auto-parts | Tyres |
cals | Cosmetics | IT
onics | Sugar | Cement | 0.5% 1%
cts | Motorcycles |
ttes | Glass | Textile |
Foam

MMOVABLE PROPERTY |
ia FCVA or NRVA 0% N/A
nheritance/ Gift Not Applicable N/A
ormal Purchase 3% 10.5% Adv.Tax
ENTS VIA DEBIT/ PRE-PAID OR CREDIT CARD
mitted abroad 5% 10% Adv.Tax
ISSUED BY COMPANIES | Sec 236Z
shares issued 10% 20% Final Tax
GLOSSARY OF KEY TERMS

-W, Block 2, P.E.C.H.S., Karachi

34322 582/ 583, 34322 606/ 607
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