Withholding Tax
Rates Pakistan
(2022–2027)
Complete FBR Rates Card
Explore the latest Withholding Tax Rates in Pakistan from 2021 to 2026 as per FBR notifications. Find year-wise rate cards, categories, sections
and complete deduction detalls – all in one place.
Latest FBR Rates
Year wise comparison
Categorized Breakdown
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Download FBR Withholding Tax Rate Card
Get the official FBR Withholding Tax Rate Card (2026) in PDF format
WITHHOLDING TAX RATE CARD 2022 - 2027
Withholding Tax Rates by Category
Salary
Property
Contracts
Banking
Transactions
Import
Export
Rent / Lease
Professional Services
Dividend
Withdrawal Cash
Prize & Winnings
Insurance Promium
What is Withholding Tax?
Withholding Tax is a type of advance tax collected by the Government of Pakistan Laties through the person making certain spe ng certain specified payments. The person making the Withholding Tax Rates 2026 payment (withholder) deducts the tax at the time of payment and deposits it with Withholding Tax Rates 2025 the Federal Board of Revenue (FBR).
Collected in Advance
Tax is deducted at the time of payment.
FBR Regulated
Tax is deducted at the time of payment.
Various Sections
Various Sections Applied under different sections of income Tax Ordinance, 2001
Wide Applicability
Applies to individuals companies, AOPs, and organizations.
What Are Withholding Tax Rates in Pakistan?
- Withholding Tax is a type of advance tax collected at the source of a transaction. Instead of paying taxes only at the end of the tax year, certain individuals, businesses, banks, government departments, and companies are required to deduct tax while making payments and deposit it to the Federal Board of Revenue (FBR).
- In Pakistan, withholding tax applies to numerous transactions including salary payments, property purchases and sales, contracts, imports, exports, banking transactions, profit on debt, dividends, rent, professional services, vehicle registration, and cash withdrawals. The applicable tax rates vary depending on the nature of the transaction, filer status, and the relevant tax year.
- This page provides complete information regarding Pakistan Withholding Tax Rates from 2022 to 2027, including official FBR rate cards, downloadable PDFs, major tax categories, and year-wise comparisons to help taxpayers remain compliant with the latest tax regulations.
Why Are Withholding Tax Rates Important?
Understanding withholding tax rates is essential for both individuals and businesses because incorrect deductions may lead to penalties, notices, additional taxes, and compliance issues.
✔ Helps maintain tax compliance.
✔ Reduces the risk of penalties and audits.
✔ Assists in proper tax planning.
✔ Ensures correct deduction of taxes.
✔ Helps businesses remain compliant with FBR regulations.
✔ Allows taxpayers to claim adjustable taxes while filing returns.
Difference Between Filers and Non-Filers
One of the most important factors affecting withholding tax rates in Pakistan is the taxpayer’s status on the Active Taxpayers List (ATL). Non-filers generally pay significantly higher tax rates compared to active taxpayers.
Filer Card
✔ Lower tax rates
✔ ATL benefits
✔ Better banking relationships
✔ Lower compliance risks
Non-Filer Card
✔ Higher withholding tax rates
✔ Additional tax burden
✔ Greater risk of notices
✔ Increased transaction costs
Who Must Deduct Withholding Tax?
Who Is Required to Deduct Withholding Tax?
Under the Income Tax Ordinance, various entities are designated as withholding agents and are legally responsible for deducting and depositing taxes.
- Companies
- Association of Persons (AOPs)
- Individuals
- Government Departments
- Co-operative Societies
- Any Person Responsible for Paying Specified Sum
Who Pays Withholding Tax?
- Importers of goods
- Recipients of rent, fees, or services
- Employees (on salary)
- Contractors & service providers
- Individuals withdrawing cash above the limit
- Any person receiving specified payments
How Does Withholding Tax Work?
Step 1
Payment is Made
A specified payment is
made to a person.
Step 2
Tax is Deducted
Withholder deducts tax as per applicable rate.
Step 3
Deposit to FBR
Tax is deposited with
FBR within due date.
Step 4
Reported in Return
Tax is reflected in the recipient’s tax return.
Benefits of Tax Compliance
Maintaining proper tax compliance provides numerous advantages for individuals and businesses.
✔ Lower withholding tax rates.
✔ Active Taxpayer List status.
✔ Reduced risk of audits and notices.
✔ Better credibility with banks and investors.
✔ Improved business reputation.
✔ Easier access to financial services.
Frequently Asked Questions
Where can I find the official FBR Withholding Tax Rate Card?
The official FBR Withholding Tax Rate Card can be obtained from:
- Official FBR website
- Annual Finance Act publications
- FBR notifications and circulars
- AdTaxify's year-wise withholding tax rate pages and downloadable PDF rate cards
Always ensure that you are using the latest rate card applicable to the relevant tax year.
Is Withholding Tax adjustable against final tax liability?
Yes, in many cases withholding tax is adjustable against your final income tax liability. Taxes deducted on salary, contracts, professional services, imports, and certain other transactions can generally be claimed as adjustable tax while filing your annual income tax return.
However, some withholding taxes are treated as Final Tax under specific provisions of the Income Tax Ordinance and cannot be adjusted. The treatment depends on the relevant tax section and nature of income.
Are rates different for filers and non-filers?
Yes. In most cases, non-filers are subject to significantly higher withholding tax rates compared to active taxpayers listed on the Active Taxpayers List (ATL).
Examples include:
- Property transactions
- Vehicle registration and transfer
- Banking transactions
- Cash withdrawals
- Prize winnings and investments
Being included in the ATL generally results in lower tax rates and better tax compliance benefits.
How often are Withholding Tax rates updated?
Withholding tax rates are usually updated annually through the Federal Budget and Finance Act. However, FBR may also issue notifications, amendments, or SROs during the year that can change specific rates or procedures.
Therefore, taxpayers should regularly review:
- Annual Finance Acts
- FBR notifications
- Latest withholding tax rate cards
- Updated guidance issued by tax professionals
Keeping track of updates helps businesses and individuals remain compliant and avoid penalties.
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