Income Tax Withholding Rates For Tax Year 2017-18

Income Tax Withholding Rates

For Tax Year-2018

WHT Rates
Sr. No. Detail of Sections Description Of Sections Slab rates
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Dividends from privatized power

DIVIDEND, INCLUDING
DIVIDEND IN SPECIE
[Section 150, 236S, Division I
1
Part III First Schedule &
Clause 11B Part IV Second
Schedule]
projects or companies set up for power
generation or companies supplying 7.50% 7.50%
coal exclusively to power generation
projects
Dividends received by a company from
a collective investment scheme, REIT
25% 25%
scheme or a mutual fund, other than a
stock fund
Dividends received from stock funds 12.5% 20%
Inter-corporate dividend within the
group companies covered under group
taxation, where return of the group has 0% 0%
been filed for the latest completed tax
year
Other cases, including repatriation of
after-tax profits by branches of foreign 15% 20%
companies
Dividends for 3 years from June 30,
2018 paid by Developmental REIT
Schemes set up by June 30, 2018 with Rate to be reduced by 50%
the object of development and
construction of residential buildings

Dividends received from a company 15% 15%

TAX ON DIVIDENDS
2 [Section 5, Division III Part I
First Schedule] Dividend received by a person from a
10% 10%
mutual fund

Received by Company 25% 25%

RETURN ON INVESTMENT IN
SUKUKS
3
[Section 150A, Division IB Part
III First Schedule]
Received by an individual or an AOP, if
12.5% 12.5%
the profit is more than Rs. 1 Million
Received by an individual or an AOP, if
10% 10%
the profit is less than Rs. 1 Million

SHIPPING OR AIR TRANSPORT Shipping income 8% 8%

INCOME OF NON-RESIDENTS
4
[Section 7 & Division V Part I
First Schedule] Air transport income 3% 3%

INCOME OF RESIDENTS FROM
SHIPS and all floating crafts
including tugs, dredgers,
5 survey vessels and other
specialized craft purchased or
bare-boat
[Section 7A]
Chartered and flying Pakistan flag USD 1 per gross registered tonnage
USD 0.15 / ton of gross registered tonnage
Not registered in Pakistan and hired
per chartered voyage, subject to a
any charter other than bare-boat
maximum annual amount of USD 1 per ton
charter
of gross registered tonnage

Where profit upto Rs. 5 Million, 10% 10%

TAX ON PROFIT ON DEBTS received by aon
Where profit person
debt exceeds Rs.5
6 [Section 7B, Division IIIA Part I Million but does not exceed Rs.25 12.5% 12.5%
Million, received by a person
of First Schedule]
Where profit on debt exceeds Rs.25
15% 15%
Million, received by a person

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Income Tax Withholding Rates For Tax Year 2017-18

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Received by individuals and AOPs, 15% 20%

where holding
Received
CAPITAL GAINS TAX collected period of securities is up to 4 years
by mutual funds, collective
investment schemes or REIT
7 schemes at the time of
redemption of securities
[Second Proviso to Division VII
DIVIDEND, INCLUDING
of Part I of First Schedule]
DIVIDEND IN SPECIE
[Section 150, 236S, Division I
1 Industrial undertaking importing
Part III First Schedule &
Clause 11B Part IV Second
Schedule]
IMPORTS
8 [Section 148 & Part II First
Schedule]
period of securities
by companies, if holdingis up 10.0% for stock
10.0% for stock funds
funds 25.0% for
25.0% for others
others
All type of recipients, where holding
Exempt Exempt
period of securities is above 4 years
In 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% instead of
10%
remeltable steel (PCT Heading 72.04)
and directly reduced iron for its own
use;
Persons importing potassic fertilizers in
pursuance of ECC‘s decision No.ECC-
155/12/2004 dated the 9 Dec 2004;
1% 1.5%
Persons importing urea
Manufacturers covered under S.R.O.
1125(I)/2011 dated the 31 Dec 2011
for importing items as per said SRO
Persons importing gold
Persons importing cotton
Designated buyer of LNG importing on
1% 1.5%
behalf of Govt. of Pakistan
Persons importing Pulses 2% 3%
Commercial importers covered under
S.R.O. 1125(I)/2011 dated the 31 Dec
3% 4.5%
2011 for importing items as per said
SRO
Ship breaker on import of ships 4.5% 6.5%
Companies and industrial undertakings
5.5% 8%
not covered above
Others 6% 9%
Where debt yield is up to Rs. 500,000
10% 10%

PROFIT ON DEBT
9 [Section 151 & Division IA Where debt yield is above Rs. 500,000 10% 17.5%
Part III First Schedule]
For non-filers, 10% is treated as final tax for non-company recipients and balance
7.5% is advance tax
Royalty or fee for technical services 15% 15%
Contracts or related services 7% 13%
PAYMENTS TO NON- Insurance or re-insurance premium 5% 5%
RESIDENTS Advertisement services to a non-
resident media person relaying from 10% 10%
10 [Section 152, Division IV Part I
outside Pakistan
First Schedule & Division II Execution of contract by Sportpersons
Part III First Schedule] 10% 10%
Any other receipt 20% of the gross amount or reduced rate
under DTA
Sale/ supply of goods by PE of non-
4% 7%
resident company
Sale/ supply of goods by PE of other
4.5% 7.75%
non-residents
Rendering/ providing of services by PE
8% 14%
PAYMENTS TO PERMANENT of non-resident company
ESTABLISHMENT (PE) OF NON- Rendering/ providing of services by PE 10% 17.5%
of other non-residents
11 RESIDENTS
Rendering/ providing of transport
[Section 152 & Division II Part services 2% 2%
III First Schedule] Execution of contract other than
contract for sale or services by PE of 7% 13%
non-resident company
Execution of contract other than
contract for sale or services by PE of 7% 13%
other non-residents

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Income Tax Withholding Rates For Tax Year 2017-18

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PAYMENT FOR FOREIGN Payment against foreign produced

12 PRODUCED COMMERCIALS advertisement commercial to non- 20% 20%
[Section 152A] residents

Sale of rice, cotton seed oil and edible 1.5% 1.5%

oil by distributors of cigarettes &
Sale
pharmaceutical products and large 1% 1%
import houses
DIVIDEND, INCLUDING Sale of goods by FMCG distributors,
2% 2%
DIVIDEND IN SPECIE which are companies
PAYMENTS
[Section 150, FOR SUPPLY
236S, OF I
DivisionSale of goods by FMCG distributors,
1 which are not companies 2.5% 2.5%
GOODS
Part III First Schedule &
[Section
Clause 11B 153(1)(a), Division III Sale of any other goods by companies
Part IV Second
13 4% 7%
Part III
Schedule]First Schedule &
Clause (24A) Part II Second Sale of any other goods by other than
4.5% 7.75%
companies
Schedule]
No tax to be withheld for payments in case of:
- Imported goods sold by an importer where tax u/s 148 has been paid
- Yarn sold by traders to taxpayers specified in the sales tax zero-rated
regime as provided under clause (45A) of Part-IV of Second Schedule
- Purchase of an asset under a lease & buy back agreement by modarabas,
leasing/ banking companies or financial institutions
Companies providing advertising
services (electronic & print media 1.5% 12%
services)
Companies providing transport
2% 2%
services
Companies providing other services 8% 14.5%
Non-company entities providing
advertising services (electronic & print 1.5% 15%
PAYMENTS FOR SERVICES media services)
[Section 153(1)(b), 153(2), Non-company entities providing
2% 2%
14 Division III Part III First transport services
Non-company entities providing other
Schedule & Division IV Part III 10% 17.5%
services
First Schedule] By export houses for services rendered
for stitching, dying, printing,
1% 1%
embroidery, washing, sizing & weaving

No tax to be withheld for payments in case of payment for securitization of

receivables by Special Purpose Vehicles to Originators. Any tax deducted by a person
making a payment for a Special Purpose Vehicle, on behalf of the Originator, the tax
is credited to the Originator

To companies 7% 12%
PAYMENT ON ACCOUNT OF
EXECUTION OF CONTRACTS
15 To sportsperson 10% 10%
[Section 153(1)(c) & Division
III Part III First Schedule]
To others 8% 12.50%

At the time of realization of proceeds

EXPORTS
[Section 154 & Division IV
16 Part III First Schedule &
Clause (47C) Part IV Second
Schedule]]
on export of goods [Exemption to
cooking oil or vegetable ghee exported 1% 1%
to Afghanistan if tax u/s 148 is paid]
Indenting commission on realization of
proceeds on account of commission to 5% 5%
indenting agent
Inland back to back LC by exporter on
sale of goods under inland back to
back LC or any other arrangement as 1% 1%
may be prescribed by FBR.
Export of goods by units located in
EPZ 1% 1%

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Income Tax Withholding Rates For Tax Year 2017-18
Sr. No. Detail of Sections
DIVIDEND, INCLUDING
DIVIDEND IN SPECIE
[Section 150, 236S, Division I
1 Above 200,000 but less than 600,000
Part III First Schedule &
Clause
PROPERTY 11BINCOME/
Part IV Second
RENTALS
17 Schedule]
[Section 155 & Division V Part
I First Schedule]
PRIZES AND WINNINGS
18 [Section 156 & Division VI
Part III First Schedule]
PETROLEUM PRODUCTS
[Section 156A & Division VIA
Part III First Schedule]
19
WITHDRAWAL OF BALANCE
UNDER PENSION FUND
[Section 156B]
20
CASH WITHDRAWALS FROM
BANKS
21 [Section 231A, Division VI Part
IV First Schedule & Clause
(28B) Part II Second Schedule]
TRANSACTIONS IN BANK –
Banking instrument
purchased against payment in
22
cash
[Section 231AA & Division VIA
Part IV First Schedule]
TAX ON MOTOR VEHICLES
[Section 231B, 234, Division
23 VII Part IV First Schedule &
Division III Part IV First
Schedule]
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Payment for a firm contract by direct
exporters or export houses registered
under DTRE Rules, 2001 to an indirect 1% 1%
exporter as per the said Rules
To companies 15% of the gross 17.5% of the gross
amount of rent amount of rent
To individuals & AOPs Annual Rent (Rs.)
Tax Rate
From To
Up to 200,000 NIL
5% of the gross
amount above
Rs.200,000
Rs.20,000 + 10% of
Above 600000 but less than 1 Million gross amount above
Rs.600,000
Rs.60,000 + 15% of
Above 1 Million but less than 2 Million gross amount above
1 Million
Rs.210,000 + 20% of
Above 2 Million gross amount above
2 Million
Prize on prize bonds and cross-word
puzzle 15% 25%
Winnings from a raffle, lottery, prize on
winning a quiz or prizes related to
20% 20%
companies’ sales promotion schemes
Commission or discount to petrol
12% 17.5%
pump operators on petroleum products
Withdrawal before retirement age
Average rate of tax for 3 preceding years or
Withdrawal in excess of 50% of rate applicable for the year, whichever is
accumulated balance at or after the lower
retirement age
Exchange company, duly licensed and
authorized by SBP, subject to specified 0.15% 0.15%
conditions
Other cases, where total withdrawal in
a day exceeds Rs. 50,000 from all 0.3% 0.6%
bank accounts
Sale against cash of any instrument
including demand draft, payment order,
CDR, STDR, RTC, or any other
0.3% 0.6%
instrument of bearer nature except
payment is made through a crossed
cheque
Tax on purchase/ transfer of motor
vehicles & along with annual motor
vehicle tax [Not applicable to Federal,
Provincial and Local Govts., Foreign Various rates based on engine capacity
Diplomatic Missions in Pakistan]
On value of motor vehicle leased by
Leasing companies, Schedule bank, 0% 3%
Investment bank, DFIs or Modaraba
Income Tax Withholding Rates For Tax Year 2017-18

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Advertising agents 10% 15%

BROKERAGE & COMMISSION
Life Insurance Agents where
24 [Section 233 & Division II Part commission received is less than Rs. 8% 16%
IV First Schedule] 0.5 million per annum
Others 12% 15%

COLLECTION OF TAX BY On purchase of shares 0.02% 0.02%

DIVIDEND, INCLUDING
STOCK EXCHANGES IN LIEU
DIVIDEND IN SPECIE
25 OF TAX ON COMMISSION
[Section 150, 236S, Division I
1 [Section 233A & Division IIA
Part III First Schedule & On sale of shares 0.02% 0.02%
Part IV First Schedule]
Clause 11B Part IV Second
Schedule]

COLLECTION BY TAX BY NCCPL

FROM MEMBERS OF STOCK
26 EXCHANGES
[Section 233AA & Division IIB
Part IV First Schedule]
In respect of financing of carryover
trade, margin financing, margin trading
10% 10%
nor securities lending in shares
business

CNG STATIONS
[Section 234A & Division VIB On the amount of gas bill 4% 6%
Part III First Schedule]
27

ELECTRICITY CONSUMPTION
[Section 235, Division IV of
Part IV of First Schedule &
Clause (66) Part IV Second
Schedule]
28
Electricity bill of commercial or
industrial consumers [Exporters-cum-
Various rates
manufacturers are exempt from this
collection]

DOMESTIC ELECTRICITY Where the amount of monthly bill is

0% 0%
less than Rs. 75,000.
CONSUMPTION
[Section 235A & Division XIX
Where the monthly bill is Rs. 75,000
Part IV First Schedule] 7.5% 7.5%
and above
29
Electricity consumed for the production
of steel billets, ingots and mild steel
STEEL MELTERS, RE-ROLLERS (MS products) excluding stainless steel
ETC. by steel melters, steel re-rollers,
30 Re. 1 per unit of electricity consumed
[Section 235B/ Section composite steel units (registered for
153(1)] the purpose of Chapter XI of Sales Tax
Special Procedure Rules, 2007)

Mobile phone bills and prepaid

TELEPHONE USERS 12.5% 12.5%
telephone cards
31 [Section 236 & Division V Part Landline bills exceeding Rs. 1,000 10% 10%
IV First Schedule] Post-paid internet and prepaid internet
12.5% 12.5%
cards
Sale of property, goods or lease of
SALE BY AUCTION 10% 15%
right by public auction or tender
32 [Section 236A & Division VIII
Part IV First Schedule] Sale of lease of the right to collect tolls 10% 15%

Tickets for routes of Baluchistan

PURCHASE DOMESTIC OF AIR coastal belt, Azad Jammu and
Exempt Exempt
Kashmir, FATA, Gilgit-Baltistan and
TICKETS
33 Chitral
[Section 236B & Division IX
Part IV First Schedule] Other routes 5% 5%

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To be collected from seller or

transferor at the time of recording or
1% 2%
SALE OR TRANSFER OF attesting the transfer, where holding
IMMOVABLE PROPERTY period of property is up to 3 years
34
[Section 236C & Division X To be collected from seller or
Part IV First Schedule] transferor at the time of registering or
0% 0%
attesting the transfer, where holding
period of property is above 3 years
DIVIDEND, INCLUDING
FUNCTIONS
DIVIDEND INAND SPECIE To be collected from a person
GATHERINGS
[Section 150, 236S, Division I arranging or holding a function on total
1 5% 5%
[Section 236D
Part III First & Division
Schedule & XI amount of bill and also for food,
Part IV 11B
FirstPart
Schedule] service or facility
35 Clause IV Second
Schedule] From IPTV, FM Radio, MMDS, Mobile
TV, Mobile Audio, Satellite TV Channel 20% of the permission fee or renewal fee
CABLE OPERATORS AND and Landing Rights
OTHER ELECTRONIC MEDIA From cable operators Various Rates
36
[Section 236F & Division XIII From every TV channel in respect of
Part IV First Schedule] screening or viewing Foreign TV
50% of the permission fee or renewal fee
Drama serial or a play in any language
other than English.

On sale of fertilizers 0.7% 1.4%

TAX ON SALES TO
DISTRIBUTORS, DEALERS AND
WHOLESALERS BY
37 MANUFACTURERS AND
COMMERCIAL IMPORTERS
[Section 236G & Division XIV
Part IV First Schedule]
On sale of electronics, sugar, cement,
iron & steel products, motorcycles,
0.1% 0.2%
pesticides, cigarettes, glass, textile,
beverages, paint, batteries or foam

On sale of electronics 1% 1%
TAX ON SALES TO RETAILERS
& WHOLESALERS BY
MANUFACTURERS,
DISTRIBUTORS, DEALERS,
38
WHOLESALERS OR
On sale of sugar, cement, iron & steel
COMMERCIAL IMPORTERS products, motorcycles, pesticides,
[Section 236H & Division XV 0.5% 1%
cigarettes, glass, textile, beverages,
Part IV First Schedule] paint, batteries or foam

COLLECTION OF TAX BY From residents 5% 5%

EDUCATIONAL INSTITUTIONS
WHERE FEE EXCEEDS RS.
39
200,000/-
[Section 236I & Division XVI of
Part IV of First Schedule] From non-residents Exempt Exempt

TAX ON DEALERS,
COMMISSION AGENTS AND
ARHATIS ON ISSUANCE/
40 To be collected by market committees Various Rates
RENEWAL OF LICENSE
[Section 236J & Division XVII
Part IV First Schedule]

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Income Tax Withholding Rates For Tax Year 2017-18

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PURCHASE OR TRANSFER OF Value up to Rs. 4 Million 0% 0%

IMMOVABLE PROPERTY
41
[Section 236K & Division XVIII
Part IV First Schedule] Value exceeding Rs. 4 Million 2% 4%

INTERNATIONAL AIR TICKETS
DIVIDEND, INCLUDING
42 [Section 236L & Division XX
DIVIDEND IN SPECIE
Part IV First Schedule]
[Section 150, 236S, Division I
1 Economy
Part III First Schedule &
Clause 11B Part IV Second
BONUS SHARES
43 Schedule]
[Section 236M & 236N]
Rs.16,000 per
First/ executive class Rs.16,000 per person
person
Rs.12,000 per
Others excluding economy Rs.12,000 per person
person
Nil Nil
5% of bonus shares 5% of bonus shares
Issued by listed companies
issued issued
5% of bonus shares 5% of bonus shares
Issued by other companies
issued issued

ALL TYPE OF BANKING Transactions otherwise through cash

TRANSACTIONS OF NON-
44 FILERS
[Section 236P & Division XXI
Part IV First Schedule]
Not Applicable Not Applicable
up to Rs.50,000 per day
Transactions otherwise through cash
0.4%
above Rs.50,000 in aggregate from all Not Applicable
bank accounts per day
As of 30th June, 2017

To be collected in case of industrial,

RENT OR PAYMENT FOR
RIGHT TO USE MACHINERY
45 AND EQUIPMENT
[Section 236Q & Division XXIII
Part IV First Schedule]
commercial & scientific equipment and 10% 10%
machinery
The deduction shall not be applicable in the following cases:
a. agricultural machinery; and
b. machinery owned and leased by leasing companies, investment banks,
modarabas, scheduled banks or DFIs

EDUCATION RELATED Remittance of tuition fee, boarding &

EXPENSES REMITTED ABROAD
[Section 236R & Division XXIV
Part IV First Schedule]
46
lodging expenses, payments for distant
5% 5%
learning programs and any other
expense related to foreign education

ADVANCE TAX ON General insurance premium 0% 4%

INSURANCE PREMIUM
47
[ Section 236U & Division XXV Life insurance premium exceeding Rs. 0% 1%
0.3 million per annum
Part IV First Schedule]
Others 0% 0%

ADVANCE TAX ON Value of minerals extracted, produced,

EXTRACTION OF MINERALS
48
[ Section 236V & Division XXVI
Part IV First Schedule]
dispatched & carried away from
licensed or leased areas of mines – to 0% 5%
be collected by provincial revenue
authority/ board

Tax on turnover of non-filers,

ADVANCE TAX FROM registered with provincial sales tax
PROVINCIAL SALES TAX authorities/ boards – to be collected by
49 0% 3%
REGISTERED PERSON provincial revenue authority/ board at
[ Section 236W] the time of furnishing of sales tax
return

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