What is withholding tax in Pakistan?
Withholding tax (WHT) is income tax deducted at source when you pay a vendor, landlord, contractor, or other prescribed person. You deposit the tax with FBR; the recipient usually gets credit on their return (adjustable) — or it can be final tax for some sections.
FBR rate card TY 2026 (Finance Act 2025)
Rates differ by section and by whether the recipient is on the Active Taxpayer List (ATL). Non-ATL rates are often double. Common planning rows include:
- s.153 goods — company ~5% / other ~5.5% (ATL)
- s.153 services — certain 6%, IT 4%, other 15% (ATL)
- s.153 contracts — company 7.5% / other 8% (ATL)
- s.155 rent — company 15%; individuals progressive slabs
- s.236C / 236K property — FMV slabs with late-filer columns
- s.151 bank profit — 20% ATL / 40% non-ATL (bank/FI deposits)
- s.154 exports — ~1% ATL; s.156 prizes / raffles
Always verify the official FBR WHT rate card before remitting — SROs and provisos can change a row.
Gross-up so the vendor nets your target
If you want the recipient to receive amount N after WHT at rate r, invoice ≈ N ÷ (1 − r). Our calculator shows gross-up automatically.
Frequently asked questions
Who deducts WHT?
Prescribed persons (companies, AOPs, and others listed in the Ordinance) deduct when making specified payments.
Is WHT the same as sales tax?
No. WHT is income tax at source. GST/SST is a separate sales tax on goods or services.
Do filer and non-filer rates always differ?
Often yes under the Tenth Schedule-style uplift — confirm the exact section on the rate card.
Is this official FBR advice?
No. Planning estimates only — verify before filing.