Withholding Taxes Regime

Lightening the Load
WITHHOLDING TAXES REGIME

(Rates Card)
Amended as per Finance Act 2016
Muhammad Yusuf Amin Associates

Tax Advisors & Consultants
E: ameentax@gmail.com
Imports
Section 148
Rate
S. No.
Persons
(i) Industrial
undertaking
importing remeltable steel
(PCT Heading 72.04) and
directly reduced iron for its
own use;
Filer
Non-Filer
1% of the import 1.5% of the import
value as
value as
increased by
increased by
customs-duty,
customs-duty,
sales tax and
sales tax and
federal excise
federal excise
duty
duty
(ii) Persons importing potassic

fertilizers in pursuance of
Economic
Coordination
Committee of the cabinets
decision No. ECC-155/ 12/
2004
dated
the
9th
December 2004;
(iii) Persons importing urea;
(iv) Manufacturers
covered
under Notification No.
SRO.1125(I)/2011 dated
the 31st December, 2011
and
importing
items
covered
under
SRO.
1125(I)/2011 dated the
31st December, 2011;
(v) Persons importing Gold;
(vi) Persons importing Cotton;
and
(vii) Designated buyer of LNG
on behalf of Government
of Pakistan, to import LNG
Persons importing pulses
2% of the import 3% of the import
value as
value as
increased by
increased by
customs-duty,
customs-duty,
sales tax and
sales tax and
federal excise
federal excise
duty
duty
Commercial importers covered 3% of the import 4.5% of the import
under Notification No.SRO.
value as
value as
1125(I)/2011 dated the 31st
increased by
increased by
December,
2011
and
customs-duty,
customs-duty,
importing items covered under
sales tax and
sales tax and
SRO. 1125(I)/2011 dated the
federal excise
federal excise
31st December, 2011.
duty
duty

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Rate
S. No.
Persons
Ship breakers on import of

ships
Industrial undertakings not
covered under S. Nos. 1 to 4
Companies not covered under
S. Nos. 1 to 5
Persons not covered under
S. Nos. 1 to 6
5
6
7
Filer
Non-Filer
4.5%
6.5%
5.5%
8%
5.5%
8%
6%
9%
Salary
Section 149
Rate
Every person responsible for paying salary to
an employee shall, at the time of payment,
deduct tax from the amount paid at the
employees average rate of tax computed.
Every person responsible for making payment
for directorship fee or fee for attending board
meeting or such fee by whatever name called,
shall at the time of payment, deduct tax.
Various slab rates
20% of the gross amount

payable
Dividend& dividend in specie

S. No.
Section 150& 236S
Persons
Rate
Filer
(a)
(b)
In the case of dividends declared or

distributed by purchaser of a power
project privatized by WAPDA or on
shares of a company set up for
power generation or on shares of a
company, supplying coal exclusively
to power generation projects;
Other than mentioned in (a)
Non-Filer
7.5%
12.5%
20%
Collective investment scheme, REIT Scheme or a mutual funds
Person
Individual
Company
AOP
Stock Fund
10%
10%
10%
Money market fund, income

fund or REIT scheme or any
other fund
Filer
Non-Filer
10%
15%
25%
25%
10%
15%

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In the case of a stock fund if dividend receipts of the fund are less than capital
gains, the rate of tax deduction shall be 12.5%.
If a Developmental REIT Scheme with the object of development and

construction of residential buildings is set up by thirtieth day of June, 2018,
rate of tax on dividend received by a person from such Developmental REIT
Scheme shall be reduced by fifty percent for three years from thirtieth day of
June, 2018.
Profit on debt
Section 151
Filer
Where yield or profit is upto Rs.500,000
Note: For a non-filer, if the yield or profit paid is
Rs.500,000 or less, the rate shall be 10%.
Where yield or profit is above Rs.500,000
Rate
Non-Filer
10%
10%
Payments to non-resident
Nature of Payment
Royalty or fees for technical services
On the execution of:
(a) a contract or sub-contract under a
construction, assembly or installation project in
Pakistan, including a contract for the supply of
supervisory activities relating to such project;
or
(b) any other contract for construction or services
rendered relating thereto; or
(c) a contract for advertisement services rendered
by T.V. Satellite Channels,
Payment of insurance premium or re-insurance
premium
Payment for advertisement services to a non-resident
person relaying from outside Pakistan
Payment to non-resident, not otherwise specified
17.5%
Section 152
Rate
Filer
Non-Filer
15% of the gross
amount paid
7% of the
gross
amount
payable
12% of
the gross
amount
payable
5% of the gross
amount paid
10% of the gross
amount paid
20% of the gross
amount paid

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Payment to a permanent establishment in

Pakistan (PE) of a non-resident person
Nature of Payment
Section 152(2A)
Rate
Filer
Non-Filer
For the sale of goods:

Company
Other than company
4%
4.5%
6%
6.5%
For the rendering of or providing of services:

Company
Other than company
In the case of transport services
8%
10%
2%
12%
15%
2%
On the execution of a contract, other than a contract

for the sale of goods or the rendering of or providing
services.
Sportspersons
In case of any person
10%
7%
10%
12%
Payment for foreign produced commercials
Section 152A
Rate
Every person responsible for making payment directly
or through an agent or intermediary to a non-resident
person for foreign produced commercial for
advertisement on any television channel or any other
media.
Payment for sale of goods

Nature of payment
In the case of sale of rice, cotton seed or edible oils
In the case of sale of goods:
In case of a company
In any other case
In the case of the supplies made by the distributors of
fast moving consumer goods:
Other than a company
20% of the gross

amount paid
Section 153(1)(a)
Rate
Filer
Non-Filer
1.5%
4%
4.5%
6%
6.5%
3%
3.5%

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Rendering of or providing of services

Nature of payment
Section 153(1)(b)
Filer
In the case of transport services
Rate
Non-Filer
2%
In the case of rendering of or providing of services:

In any other case
8%
10%
12%
15%
In the case of persons making payments to electronic

and print media for advertising services:
Other than a company
1.5%
1.5%
12%
15%
Execution of a contract
Section 153(1)(c)
Nature of payment
In case of contracts on payments to companies
In case of contracts on payments to other taxpayers
i.e. other than companies
In case of contracts on payments to sportspersons
Exports
Rate
Filer
Non-Filer
7%
10%
7.5%
10%
10%
Section 154 & 153(2)
Rate
5%
Indenting commission
Export proceeds
1%
Every exporter or an export house making a payment

in full or part including a payment by way of advance
to a resident person or permanent establishment in
Pakistan to a non-resident person for rendering of or
providing of services of stitching, dying, printing,
embroidery, washing, sizing and weaving, shall at the
time of making the payment, deduct tax from gross
amount payable.
1%

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Income from property

S.No.
1
2
Section 155
Gross amount of rent

In the case of individual & AOPs
Where the gross amount of rent does not
exceed Rs.200,000.
Where the gross amount of rent exceeds
Rs.200,000 but does not exceed Rs.600,000.
Rs.600,000
but
does
not
exceed
Rs.1,000,000.
Rs.1,000,000
but
does
not
exceed
Rs.2,000,000.
5
Rs.2,000,000.
Rate of tax
Nil
5% of the gross
amount exceeding
Rs.200,000.
Rs.20,000 + 10% of
the gross amount
exceeding Rs.600,000.
Rs.60,000 + 15% of
the gross amount
exceeding
Rs.1,000,000.
Rs.210,000 + 20% of
the gross amount
exceeding
Rs.2,000,000.
In the case of company

Gross amount of rent
15%
Prizes and winnings
Section 156
On a prize on prize bond or cross-word puzzle

On winning from a raffle, lottery, prize on winning a
quiz, prize offered by a company for promotion of sale
Rate
Filer
Non-Filer
15%
20%
20%
Petroleum products
Section 156A
Rate
Filer
Non-Filer
Every person selling petroleum products to a petrol
pump operator shall deduct tax from the amount of
commission or discount allowed to the operator.
Withdrawal of balance under pension fund

Withdrawn before the retirement age
Withdrawn, if in excess of 50% of his accumulated
balance at or after the retirement age.
12%
15%
Section 156B
Rate
Average rate of tax for
the last 3 preceding
years or rate applicable
for the year whichever
is lower.

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Cash withdrawal from a bank
Section 231A
Rate
Filer
Non-Filer
Payment for cash withdrawal, or the sum total of the
payments for cash withdrawal in a day, exceeds
Rs. 50,000.
0.3%
Transactions in bank
0.6%
Section 231AA
Rate
Filer
Non-Filer
Every banking company, non-banking financial
institution, exchange company or any authorized
dealer of foreign exchange shall collect advance tax at
the time of sale against cash of any instrument,
including Demand Draft, Payment Order, CDR, STDR,
SDR, RTC, or any other instrument of bearer nature or
on receipt of cash on cancellation of any of these
instruments, where the sum total of payments
exceeds Rs.25,000 in a day.
Every banking company, non-banking financial
institution, exchange company or any authorized
dealer of foreign exchange shall collect advance tax at
the time oftransfer of any sum against cash through
online Transfer, Telegraphic Transfer, Mail Transfer or
any other mode of electronic transfer, where the sum
total of payments exceeds Rs.25,000 in a day.
0.3%
0.6%
0.3%
0.6%
Advance tax on private motor vehicle

Registration & purchase of motor vehicle
S. No.
Engine Capacity
Section 231B
Rate
1
2
Upto 850cc
851cc to 1000cc
Filer
Rs.10,000
Rs.20,000
3
4
5
6
7
8
9
1001cc to 1300cc
1301cc to 1600cc
1601cc to 1800cc
1801cc to 2000cc
2001cc to 2500cc
2501cc to 3000cc
Above 3000cc
Rs.30,000
Rs.50,000
Rs.75,000
Rs.100,000
Rs.150,000
Rs.200,000
Rs.250,000
Non-filer
Rs.10,000
Rs.25,000
Rs.40,000
Rs.100,000
Rs.150,000
Rs.200,000
Rs.300,000
Rs.400,000
Rs.450,000

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Section 231B(2)
Advance tax on private motor vehicle
Transfer of registration or ownership of a private motor vehicle
S. No.
Engine Capacity
Rate
Filer
1
2
3
4
5
6
Upto 850cc
851cc to 1000cc
1001cc to 1300cc
1301cc to 1600cc
1601cc to 1800cc
1801cc to 2000cc
5,000
7,500
12,500
18,750
25,000
Non-filer
5,000
15,000
25,000
65,000
100,000
135,000
7
8
9
2001cc to 2500cc
2501cc to 3000cc
Above 3000cc
37,500
50,000
62,500
200,000
270,000
300,000
The rate of tax to be collected shall be reduced by 10% each year from the date
of first registration in Pakistan.
Leasing of a motor vehicle
Section 231B(1A)
Rate
Every leasing company or a scheduled bank or an investment
bank or a development finance institution or a modaraba
shall, at the time of leasing of a motor vehicle to a non-filer,
collect advance tax.
Brokerage & commission

S. No.
1
2
Section 233
Person
Filer
10%
Advertising Agents
Life insurance Agents where commission
received is less than Rs.0.5 million per
annum
Persons not covered in 1 & 2 above
Collection of tax by a stock exchange registered

in Pakistan
S. No.
1
2
3% of the value
of the motor
vehicle
Description
In case of purchase of shares in lieu of tax
on the commission earned by such members.
In case of sale of shares in lieu of tax on the
commission earned by such members.
Rate
Non-Filer
15%
8%
16%
12%
15%
Section 233A
Rate
0.02% of purchase
value
0.02% of sale value

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Collection of tax by NCCPL
Section 233AA
Rate
Profit or mark-up or interest earned by the member,
margin financier or securities lender.
10%
Tax on motor vehicles
Section 234
In case of goods transport vehicles

In the case of transport vehicle with laden weight of
8120 Kgs or more, after a period ten years from the
date of first registration of vehicle in Pakistan.
Capacity
In the case of passenger transport vehicles plying for
hire with seating capacity:
(i) 4 or more persons but less than 10 persons
(ii) 10 or more persons but less than 20 persons
(iii) 20 persons or more
Rate
Filer
Non-Filer
2.5 paisa
Rs.4 per
per Kg of
Kg of the
the laden
laden
weight
weight
Rs.1,200 per annum
Rs. Per seat per annum
Filer
Non-Filer
50
100
300
100
200
500
In case of other private motor vehicles
S. No.
Engine Capacity
Rate
Non-Filer
Rs.1,200
Upto 1000cc
Filer
Rs.800
1001cc to 1199cc
Rs.1,500
Rs.4,000
1200cc to 1299cc
Rs.1,750
Rs.5,000
1300cc to 1499cc
Rs.2,500
Rs.7,500
1500cc to 1599cc
Rs.3,750
Rs.12,000
1600cc to 1999cc
Rs.4,500
Rs.15,000
2000cc & above
Rs.10,000
Rs.30,000
Where the motor vehicle tax is collected in lump sum

S. No.
Engine Capacity
Up to 1000cc
Rate
Filer
Non-Filer
Rs.10,000
Rs.10,000
1001cc to 1199cc
Rs.18,000
Rs.36,000
1200cc to 1299cc
Rs.20,000
Rs.40,000
1300cc to 1499cc
Rs.30,000
Rs.60,000

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S. No.
Engine Capacity
Rate
Non-Filer
Rs.90,000
1500cc to 1599cc
Filer
Rs.45,000
1600cc to 1999cc
Rs.60,000
Rs.120,000
2000cc & above
Rs.120,000
Rs.240,000
CNG stations
Section 234A
On the amount of gas bill of a Compressed Natural

Gas Station.
Rate
4% of the gas
consumption charges
Electricity consumption
(Commercial or industrial consumer)
S. No
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Section 235
Amount of electricity bill

does not exceed Rs.400
Exceeds Rs.400 but does not exceed Rs.600
Exceeds Rs.600 but does not exceed Rs.800
Exceeds Rs.800 but does not exceed Rs.1,000
Exceeds Rs.1,000 but does not exceed Rs.1,500
exceeds Rs.20,000
Domestic electricity consumption

Monthly bill is less than Rs.75,000
Monthly bill is Rs.75,000 or more
Tax amount
Rs.0
Rs.80
Rs.100
Rs.160
Rs.300
Rs.350
Rs.450
Rs.500
Rs.650
Rs.1,000
Rs.1,500
(i) at the rate of
12% for
commercial
consumers;
(ii) at the rate of
5% for
industrial
consumers.
Section 235A
Rate
0%
7.5%

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Steel melters, re-rollers etc
Section 235B
Every steel melters, steel re-roller, composite steel units, registered for the
purpose of Chapter XI of Sales Tax Special Procedure Rules, 2007 at the rate of
one rupee per unit of electricity consumed for the production of steel billets,
ingots and mild steel (MS products) excluding stainless steel.
Telephone users
Section 236
Rate
In the case of a telephone subscriber where the
amount of monthly bill exceeds Rs.1,000.
In the case of subscriber of internet, mobile telephone
and pre-paid internet or telephone card.
Sale by auction
10%
14% of the amount of
bill or sales price of
internet pre-paid card
or pre-paid telephone
card or sale of units
through any electronic
medium or whatever
form
Section 236A
Rate
Any person making sale by public auction or auction
by a tender of any property or goods including
property 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, or a foreign
contractor or a consultant or a consortium or Collector
of Customs or Commissioner Inland Revenue or any
other authority, shall collect advance tax, computed
on the basis of sale price of such property from the
person to whom such property or goods are being
sold.
Purchase of air ticket
10% of the gross sale

price of any property or
goods sold by auction.
Section 236B
Purchase of domestic air ticket
Rate
5% of gross amount of
ticket

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Sale or transfer of immovable property
Section 236C
Rate
Filer
Non-Filer
Any person responsible or registering or attesting
transfer of any immovable property shall at the time
of registering or attesting the transfer shall collect
from the seller or transferor advance tax at the
following rate:
where holding period of property is up to 5 years
where holding period of property is above 5 years
Functions and gatherings
1%
0%
2%
0%
Section 236D
Rate
Every prescribed person shall collect advance tax on
the total amount of the bill from a person arranging or
holding a function in a marriage hall, marquee, hotel,
restaurant, commercial lawn, club, a community place
or any other place used for such purpose.
Sales to distributors, dealers and wholesalers
5%
Section 236G
Rate
Filer
Non-Filer
Every manufacturer or commercial importer of electronics, sugar, cement, iron
and steel products, fertilizer, motorcycles, pesticides, cigarettes, glass, textile,
beverages, paint or foam sector, at the time of sale to distributors, dealers and
wholesalers, shall collect advance tax from the aforesaid person to whom such
sales have been made.
Fertilizers
0.7%
1.4%
Other than fertilizers
0.1%
0.2%
Category of Sales
Ssales to retailers
Section 236H
Rate
Every manufacturer, distributor, dealer, wholesaler or
commercial importer of electronics, sugar, cement,
iron and steel products, motorcycles, pesticides,
cigarettes, glass, textile, beverages, paint or foam
sector, at the time of sale to retailers and every
distributor or dealers to another wholesaler in respect
of the said sectors shall collect advance tax from the
aforesaid person to whom such sales have been
made.
0.5% of the gross

amount of sales

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Section 236I
Collection of tax by educational institutions

Every educational institution shall collect advance tax
on the fee exceeding Rs.200,000 per annum.
Dealers, commission agents

issuance/renewal of license
and
arhatis
Rate
5% of the amount of
fee
on
Section 236J
Rate
Every market committee shall collect tax from dealers,
commission agents or arhetis at the time of issuance
or renewal of licences.
Various slab rates
Purchase or transfer of immovable property

S. No.
Period
Section 236K
Rate
Filer
Non-Filer
Where value of Immovable property is upto

0%
3 million
2
Where the value Immovable property is more
2%
4%
than 3 million
Rate of tax for non-filer shall be 1% up the date appointed by the Board through
notification in official gazette.
International air ticket

S. No.
1
2
3
Section 236L
Types of Ticket
First/Executive Class
Other excluding Economy
Economy
Rate
Rs. 16,000 per person
Rs.12,000 per person
0
Bonus share issued by companies quoted on stock

exchange
Section 236M
Rate
Bonus shares issued by companies quoted on stock
exchange
5%

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Banking transactions otherwise than through

cash
Section 236P
Rate
Every banking company shall collect advance
adjustable tax from a non-filer at the time of sale of
any instrument, including demand draft, pay order,
special deposit receipt, cash deposit receipt, short
term deposit receipt, call deposit receipt, rupee
travellers cheque or any other instrument of such
nature, where the sum total of payment for all
transactions as the case may be, exceed Rs.50,000 in
a day.
0.6%
Every banking company shall collect advance

adjustable tax from a non-filer at the time of transfer
of any sum through cheque or clearing, interbank or
intra bank transfers through cheques, online transfer,
telegraphic transfer, mail transfer, direct debit,
payments through internet, payments through mobile
phones, account to account funds transfer, third party
account to account funds transfers, real time account
to account funds transfer, real time third party
account to account fund transfer, automated teller
machine (ATM) transfers, or any other mode of
electronic or paper based funds transfer, where the
sum total of payment for all transactions as the case
may be, exceed Rs.50,000 in a day.
0.6%
Payment to a residents for use of machinery and

equipment
Section 236Q
Rate
Payment by way of advance to a resident person for
use or right to use industrial, commercial and scientific
equipment.
10%
Payment by ways of advance to a resident person on

10%
account of rent of machinery
Tax deduction shall not be apply to:
a) agricultural machinery; and
b) machinery leased by a leasing company, and investment bank or a modaraba
or a scheduled bank or a development finance institution in respect of assets
owned by the leasing company or an investment bank or a modaraba or a
scheduled bank or a development finance institution.

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Section 236R
Education related expenses remitted abroad

Amount of education related expenses remitted
abroad.
Rate
5% of the amount of
total education related
expenses
Insurance premium
Section 236U
S. No.
Type of Premium
Rate
Every insurance company shall collect advance tax at the time of collection of
insurance premium from non-filer in respect of general insurance premium and
life insurance premium.
1
General insurance premium
4%
2
Life Insurance Premium if exceeding Rs.0.2

million per annum
1%
Others
0%
Extraction of minerals
Section 236V
Rate
Filer
Non-Filer
On the value of minerals extracted, produced,
despatched and carried away from the licensed or
leased areas of the mines.
0%
5%

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Withholding Taxes Regime

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