Tax Rate Card

Tax Year 2022

EY Ford Rhodes

Income Tax - Withholding Rates

Tax at Import Stage on Mobile Phones [Sec. 148] ATL Non -ATL Rs.30,000,001 to Rs.50,000,000 Rs.7,295,000+ 30% on amount exceeding Rs.30,000,000

Person importing goods classified in Part I, Twelfth Schedule 1% 2% Rs.13,295,000+ 32.5% on amount exceeding
Rs.50,000,001 to Rs.75,000,000
Rs.50,000,000
Person importing goods classified in Part II, Twelfth Schedule 2% 4%
Above Rs.75,000,000 Rs.21,420,000+ 35% on amount exceeding Rs.75,000,000
Person importing goods classified in Part III, Twelfth Schedule 5.5% 11%

Goods covered under rescinded SRO 1125(I)/2011 1% 2% Dividend [Sec. 150] ATL Non - ATL

Import of finished pharmaceutical products not manufactured in Dividend paid by Independent Power Purchasers where such
4% 8%
Pakistan as certified by the DRAP dividend is a pass through item under an Implementation
Agreement or Power Purchase Agreement or Energy Purchase
Importers of CKD Kits of Electric Vehicles for Small Cars (SUVs with 50 7.5% 15%
1% 2% Agreement and is required to be reimbursed by Central Power
kwh battery and LCVs with 150 kwh battery) Purchasing Agency (CPPA-G) or its predecessor or successor
entity
Tax at Import Stage on Mobile Phones [Sec. 148]
ATL Non - ATL In case of a person receiving dividend from a company where no
C&F Value of Mobile Phone (USD) tax is payable by such company, due to exemption of income or
25% 50%
In CBU condition PCT Heading 8517.1219 carry forward of business losses under Part VIII of Chapter III or
claim of tax credits under Part X of Chapter III
Up to 30 except smart phones 70 140
In mutual fund, Real Estate Investment Trusts and cases other
15% 30%
Exceeding 30 and up to 100 and smart phones up to 100 100 200 than mentioned above

Exceeding 100 and up to 200 930 1,860 Dividends declared by a company as are “attributable” to profits
and gains derived from a bagasse and biomass-based co- 7.5%
Exceeding 200 and up to 350 970 1,940 generation power project qualifying for exemption under clause [Cl.18C]
(132C) of Part-I of this Schedule
Exceeding 350 and up to 500 3,000 6,000

Exceeding 500 5,200 10,400 WHT Tax on Profit on Debt [Sec. 151] ATL Non - ATL

In CSK.SKD condition PCT Heading 8517.1211 Profit on debt on National Savings Scheme, Bank 15%
Account, Federal/ Provincial/ Local Government Bonds 30%
Up to 30 except smart phones - and/or Company Loans [Sec. 151]

Exceeding 30 and up to 100 and smart phones up to 100 - 15%

Interest on Investment in Sukuks from a Sukuk Holder 30%
Exceeding 100 and up to 200 - [Sec. 151(1A)]

Exceeding 200 and up to 350 - Profit on debt from debt instrument, whether
conventional or sharia compliant, issued by Federal
Exceeding 350 and up to 500 5,000 10,000 Govt under Public Debt Act, 1944 and purchased by 10%
resident citizen of Pakistan who has declared all his
Exceeding 500 11,500 23,000 foreign assets to the Board through a Foreign Currency [Cl.5AB of Part II of
Value Account (FCVA) maintained with authorized Second Schedule]
Salaried Individuals [Sec. 149] Tax Rates banks in Pakistan under the foreign exchange regulation
issued by the State Bank of Pakistan.
Up to Rs.600,000 Nil
0%
Profit on debt paid, covered under clauses (78) and (79)
Rs.600,001 to Rs.1,200,000 5% on amount exceeding Rs.600,000 [Cl. 5AC of Part II of
of Part I of the Second Schedule
Second Schedule]
Rs.1,200,001 to Rs.1,800,000 Rs.30,000 + 10% on amount exceeding Rs.1,200,000

Rs.1,800,001 to Rs.2,500,000 Rs.90,000 + 15% on amount exceeding Rs.1,800,000 Payments to Non-Residents [Sec. 152] Tax Rates
15%
Rs.2,500,001 to Rs.3,500,000 Rs.195,000 + 17.5% on amount exceeding Rs.2,500,000 Technical services fee and royalty
[Sec.152(1)]
Rs.3,500,001 to Rs.5,000,000 Rs.370,000 + 20% on amount exceeding Rs.3,500,000
Execution of a contract
Rs.5,000,001 to Rs.8,000,000 Rs.670,000 + 22.5% on amount exceeding Rs.5,000,000 a) contract or sub-contract under a construction, assembly or
installation project in Pakistan, including a contract for the supply 7%
Rs.8,000,001 to Rs.12,000,000 Rs.1,345,000+ 25% on amount exceeding Rs.8,000,000 of supervisory activities in relation to such project; or
[Sec. 152(1A)]
Rs.12,000,001 to Rs.30,000,000 Rs.2,345,000+ 27.5% on amount exceeding Rs.12,000,000 b) any other contract for constructions or services rendered relating
thereto or a contract for advertising services rendered by T.V
Rs.30,000,001 to Rs.50,000,000 Rs.7,295,000+ 30% on amount exceeding Rs.30,000,000 satellite channels
Rs.13,295,000+ 32.5% on amount exceeding 5%
Rs.50,000,001 to Rs.75,000,000 Insurance and re-insurance premium
Rs.50,000,000 [Sec. 152(1AA)]

Above Rs.75,000,000 Rs.21,420,000+ 35% on amount exceeding Rs.75,000,000 Advertisement services to a media person relaying from outside 10%
Pakistan [Sec. 152(1AAA)]
Rs.5,000,001 to Rs.8,000,000 Rs.670,000 + 22.5% on amount exceeding Rs.5,000,000
Foreign produced commercial for advertisement on any television 20%
Rs.8,000,001 to Rs.12,000,000 Rs.1,345,000+ 25% on amount exceeding Rs.8,000,000 channel or any other media [Sec. 152(1BA)]
Rs.12,000,001 to Rs.30,000,000 Rs.2,345,000+ 27.5% on amount exceeding Rs.12,000,000 Fee for Offshore Digital Services 5%
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[Sec. 152(1C)] are integrated and configured with Board or its computerized
system for real time reporting of sales or receipts. (Clause 24C
Capital gain (of a non-resident company having no permanent
Part II of Second Schedule)
establishment in Pakistan) arising on the disposal of debt instruments 10%
and Government securities including treasury bills and Pakistan Other Goods including toll manufacturing
investment bonds invested through special convertible rupee account [Sec. 152(1D)]
(SCRA) By company 4% 8%
Capital gain (of a non-resident individual) arising on the disposal of In any other case (AOP/individual) 4.5% 9%
debt instruments and Government securities including treasury bills 10%
and Pakistan investment bonds invested through special convertible [Sec. 152(1DA)]
rupee account (SCRA) (Division II Part III of first schedule) Services [Sec. 153(1)(b)] ATL Non - ATL

Return on investment in sukuk from a sukuk holder By company – general services 8% 16%
[Sec. 152(1DB)] In any other case (AOP/individual) – general services 10% 20%
Company (any amount) 25%
Transport services, freight forwarding services, air cargo
Individual or Association of Persons (AOP) (more than Rs.1 million) 12.5% services, courier services, manpower outsourcing services, hotel
services, security guard services, software development services,
Individual or Association of Persons (AOP) (less than Rs.1 million)
10% IT services and IT enabled services as defined in section 2,
10%
tracking services, advertising services (other than by print or
20% electronic media), share registrar services, engineering services
Others including architectural services, warehousing services, services
[Sec. 152(2)]
rendered by assets management companies, data services
Profit on debt to a person having no PE in Pakistan and the 10% provided under license issued by the Pakistan
investments are exclusively made through a Special Rupee Telecommunication Authority, telecommunication infrastructure
convertible account maintained with a bank in Pakistan (other than [Cl. 5A of Part II of
Second Schedule] (tower) services, car rental services, building maintenance 3% 6%
referred in clause 78 and 79) services, services rendered by Pakistan Stock Exchange Limited
Profit on debt from debt instrument, whether conventional or sharia 10% and Pakistan Mercantile Exchange Limited, inspection,
compliant, issued by Federal Govt under Public Debt Act, 1944 and certification, testing and trainings, oilfield services,
[Cl.5AA of Part II of
purchased exclusively through a bank account maintained abroad telecommunication services, collateral management services,
Second Schedule]
travel and tour services.
0% Explanation:-- The tax rate under this sub-paragraph shall be
Profit on debt paid, covered under clauses (78) and (79) of Part I of
the Second Schedule [Cl. 5AC of Part II of applicable only to a service provider whose services are
Second Schedule] subjected to withholding tax on gross receipts and the service
provider has not agitated taxation of gross receipts before any
Payments to a PE of non-resident-on account of sale of goods court of law”
Tax Rates
[Sec 152(2A)(a)] Payments to electronic/print media for advertisement 1.5% 3%
Company 4% 2%
Oil tanker contractor services -
Other taxpayers 4.5% [Cl.28F]

Payments to a PE of non-resident on account of rendering of Contracts [Sec. 153(1)(c)] ATL Non - ATL
ATL Non - ATL
services [Sec. 152(2A)(b)] In case of sportspersons 10% 20%
Receipt on account of rendering of following services through a PE: By Company 6.5% 13%
Transport services, freight forwarding services, air cargo services,
In any other case (AOP/individual) 7% 14%
courier services, manpower outsourcing services, hotel services,
security guard services, software development services, IT services
and IT enabled services as defined in section (2), tracking services, Export [Sec. 154] Tax Rates
advertising services (other than by print or electronic media), share 3% 6% Proceeds from sale of goods to an exporter under an inland back-to-back letter
registrar services, engineering services, car rental services, building 1%
of credit or any other arrangement
maintenance services, services rendered by Pakistan Stock
Exchange Limited, Pakistan Mercantile Exchange Limited and Export of goods by an industrial undertaking located in an Export Processing
1%
inspection and certification, testing and training services, oilfield Zone
services.
Collection by collector of customs at the time of clearing of goods exported 1%
Other services through a company 8% 16% Indenting commission 5%
Other services through other than a company 10% 20%
Export of Services [Sec. 154A] Tax Rates
Payments to a PE of non-resident-on account of execution of Information Technology Services – Software Development, Software
ATL Non - ATL
contracts [Sec. 152(2A)(c)] Maintenance, System Integration, Web Design, Web Development, Web 1%
Hosting, Network Design
Sports person 10% 20%

Other person 7% 14% IT Enabled Services – Inbound or Outbound Call Centers, Medical
Transcription, Remote Monitoring, Graphic Design, Accounting Services,
Human Resource Services, Telemedicine Centers, Data Entry Operations, 1%
Sale of goods [Sec. 153(1)(a)] ATL Non - ATL Cloud Computing Services, Data Storage Services, Locally Produced Television
Sale of rice, cotton seed, edible oils 1.5% 3% Programs, Insurance Claim Proceedings.

Sale by distributors of cigarettes & pharmaceutical products and Services or Technical Services Rendered Outside Pakistan 1%
1% 2%
large import houses
Services or Technical Services Exported from Pakistan 1%
Supply made by distributor, wholesaler, retailer, dealer, and sub-
Royalty, Commission or Fees by Resident Company from Foreign Enterprise for
dealer of FMCG, fertilizer, electronics excluding mobile phones,
the Use Outside Pakistan of Patent, Invention, Model, Design, Secret Process,
sugar, cement and edible oil. 1%
At rates Secret Formula, Similar Property Right, Information Concerning Industrial,
Provided that the person should appear in Active Taxpayers’ Lists 0.25% mentioned Commercial or Scientific Knowledge, experience or skill.
issued under the provisions of the Sales Tax Act, 1990 and the below
Income Tax Ordinance, 2001 Construction Contracts Executed Outside Pakistan 1%
Provided that the benefit under this clause shall only be available
to those Tier-1 retailers as defined under Sales Tax Act, 1990 who

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Rent on Immovable Property Sale or transfer of immovable property (not to be collected

ATL Non - ATL
(Tax Rates for Individuals and Tax Rates if the holding period exceeds 4 years) [Sec. 236A]
AOPs) [Sec.155]
Gross amount of consideration received 1% 2%
Up to 300,000 Nil
Sale to Distributors, Dealers and Wholesalers [Sec. 236G] ATL Non - ATL
Rs.300,000 to Rs.600,000 5% on the amount exceeding Rs.300,000
Every manufacturer or commercial importer of electronics, sugar, cement, iron and steel
Rs.600,000 to Rs.2,000,000 Rs.15,000 + 10% on amount exceeding Rs.600,000 products, fertilizer, motorcycles, pesticides, cigarettes, glass, textile, beverages, paint or foam
sector, at the time of pharmaceuticals, poultry and animal feed, edible oil and ghee, auto-parts,
Rs.2,000,000 and above Rs.155,000 + 25% on amount exceeding Rs.2,000,000 tyres, varnishes, chemicals, cosmetics, IT equipment, sale to distributors, dealers and
wholesalers, shall collect advance tax
Tax Rates for rent of immovable property [Sec. 155] ATL Non - ATL
Fertilizers (for the person appearing in ATL of both sales & Income
0.25% 0.7%
For Companies 15% 30% Tax)
Other than fertilizers 0.1% 0.2%
Prize bonds [Sec. 156] ATL Non - ATL
Tax on sale to retailers [Sec. 236H] ATL Non - ATL
Prize on prize bond and crossword puzzle 15% 30%
Collected by every manufacturer, distributor, dealer, wholesaler or
Winnings from a raffle, lottery, prize on winning a quiz, prize offered commercial importer of pharmaceuticals, poultry and animal feed,
20% 40%
by a company for promotion of sale edible oil and ghee, auto-parts, tyres, varnishes, chemicals,
0.5% 1%
cosmetics, IT equipment, electronics, sugar, cement, iron and steel
Petroleum Products [Sec. 156A] ATL Non - ATL
products, motorcycles, pesticides, cigarettes, glass, textile,
Petrol & Petroleum Products 12% 24% beverages, paint or foam sector.

Brokerage and Commission [Sec.233] ATL Non - ATL Educational Institutions [Sec. 236I] ATL Non - ATL
Collected by educational institutions where annual fee exceeds
Advertising agents 10% 20% Nil 5%
Rs.200,000 except on an amount which is paid by way of scholarship
Life insurance agents (Less than Rs.0.5 million per annum) 8% 16%
Advance tax on purchase of immoveable property [Sec. 236K] ATL Non - ATL
Other cases 12% 24%
Collected by every person responsible from the purchaser of
1% 2%
immovable property
Tax on Motor Vehicles [Sec.234]

Engine Capacity Filer (Per Annum) Non-Filer (Per Annum) Payment to Residents for use of Machinery and Equipment [Sec. 236Q] Tax Rates
Up to 1000cc 800/seat 1,600/seat For use or right to use industrial, commercial and scientific equipment 10%
1001cc to 1199cc 1,500/seat 3,000/seat For rent of machinery 10%
1200cc to 1299cc 1,750/seat 3,500/seat
1300cc to 1499cc 2,500/seat 5,000/seat
1500cc to 1599cc 3,750/seat 7,500/seat
1600cc to 1999cc 4,500/seat 9,000/seat
2000cc and above 10,000/seat 20,000/seat

Domestic Electricity Consumption [Sec. 235] ATL Non - ATL

Where the amount of monthly bill is less than Rs.25,000 Nil

7.5%
Where the monthly bill is Rs.25,000 and above Nil

Electricity Consumption Commercial &

Industrial [Sec. 235] Tax Rates

Where the amount of monthly bill is up to Rs.500 Nil

Where the amount of monthly bill is more than
10%
Rs.500 and less than Rs.20,0000

In case of industrial customer, where the amount Rs.1,950 + 5% of the amount exceeding
of monthly bill is more than Rs.20,0000 Rs.20,000

In case of commercial customer, where the Rs.1,950 + 12% of the amount exceeding
amount of monthly bill is more than Rs.20,0000 Rs.20,000

Telephone and Internet Users [Sec. 236] Tax Rates

Telephone Bill, Internet Bills, Phone Cards for TY-2022 10%

Telephone Bill, Internet Bills, Phone Cards from 01 July 2022 onwards 8%

Sale by Auction [Sec. 236A] ATL Non - ATL

Gross sale price of any property or goods sold 10% 20%
In case of immoveable property sold by auction 5% 10%

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Income Tax – Charging Rates

Rate of Tax for Business Individuals and Commercial Residential Building
Tax Rates
Association of Persons [First Schedule] Tax on Builders [Sec.100D] Building
3,000 sq. ft
Where taxable income does not exceed Rs. (any size) Up to 3,000 sq. ft.
0% and above
400,000 Rs. 250/Sq. ft Rs. 80/Sq. ft Rs. 125/Sq. ft
Karachi, Lahore and Islamabad
Where the taxable income exceeds Rs.400,000 Hyderabad, Sukkur, Multan, Rs. 230/Sq. ft Rs. 65/Sq. ft Rs. 110/Sq. ft
5% exceeding Rs.400,000
but does not exceed Rs. 600,000 Faisalabad, Rawalpindi,
Where taxable income exceeds Rs. 600,000 but Gujranwala, Sahiwal, Peshawar,
Rs.10,000 + 10% exceeding Rs. 600,000 Mardan, Abbottabad, Quetta
does not exceed Rs.1,200,000
Urban Areas not specified above Rs. 210/Sq. ft Rs. 50/Sq. ft Rs. 100/Sq. ft
Where taxable income exceeds Rs.1,200,000
Rs.70,000 + 15% exceeding Rs.1,200,000 Entire Project other than Development of
but does not exceed Rs.2,400,000 Tax on Developers [Sec.100D]
industrial area (any size) Industrial Area (any size)
Where taxable income exceeds Rs.2,400,000 Karachi, Lahore and Islamabad Rs. 150/Sq. Yds Rs. 20/ Sq. Yds
Rs.250,000 + 20% exceeding Rs.2,400,000
but does not exceed Rs.3,000,000
Hyderabad, Sukkur, Multan,
Where taxable income exceeds Rs.3,000,000 Faisalabad, Rawalpindi,
Rs.370,000 + 25% exceeding Rs.3,000,000 Rs. 130/ Sq. Yds Rs. 20/ Sq. Yds
but does not exceed Rs.4,000,000 Gujranwala, Sahiwal, Peshawar,
Mardan, Abbottabad, Quetta
Where taxable income exceeds Rs.4,000,000 Urban Areas not specified above Rs. 100/ Sq. Yds Rs. 10/ Sq. Yds
Rs.620,000 + 30% exceeding Rs.4,000,000
but does not exceed Rs.6,000,000
Where taxable income exceeds Rs.6,000,000 Rs.1,220,000 + 35% exceeding Rs.6,000,000 Capital Gain on Securities [Sec. 37A] Tax Rates

Where the security was acquired before 1st July, 2013 0%

Rate of Tax for Companies [First Schedule] Tax Rates
Where the security was acquired after 1st July, 2013 12.5%
Small company for Tax Year 2022 21%
Future commodity contracts entered into by members of Pakistan
Banking Company 35% 5%
Mercantile Exchange
All other companies 29% Gain on units of mutual fund or a collective investment scheme or a 10% for Stock/Other
REIT scheme (Individual/AOP) funds
Alternate Corporate Tax (ACT) [Sec. 113C] 17%
Gain on units of mutual fund or a collective investment scheme or a 10% for stock funds
Super tax for banking companies 4% REIT scheme (Company) 25% for other funds

Capital Gain on Immoveable property [Sec. 37A] Tax Rates

Small and Medium Enterprises [Sec.100E] Tax Rates
Where the amount of gain does not exceed Rs. 5 million 3.5%
Where annual business turnover does not exceed Rupees 100 million 7.5% of taxable income
Where the gain exceeds Rs. 5 million but does not exceed Rs. 10 million 7.5%
Where annual business turnover does not exceed Rupees 100 million 15% of taxable income
Where the gain exceeds Rs. 10 million but does not exceed Rs. 15 million 10%
Where annual business turnover does not exceed Rupees 100 million 0.25% of gross turnover
Where the gain exceeds Rs. 15 million 15%
Where annual business turnover does not exceed Rupees 100 million 0.5% of gross turnover
Exports [Sec. 154] Tax Rates
Minimum Tax [Sec.113] Tax Rates Proceeds from sale of goods to an exporter under an inland back-to-
1% of export proceeds
 Oil marketing companies, Sui Southern Gas Company Limited and Sui back letter of credit or any other arrangement
Northern Gas Pipelines Limited (where annual turnover exceeds Rs.1 billion)
Export of goods by an industrial undertaking located in an Export
 Pakistan International Airlines Corporation; and 0.75% 1% of export proceeds
Processing Zone
 Poultry industry including breeding, broiler production, egg production, feed
production Collection by collector of customs at the time of clearing of goods
1% of export proceeds
 Oil Refineries exported
0.5%
 Motorcycle dealers registered under the Sales Tax Act, 1990 Indenting commission 5%
 Person’s turnover from supplies through ecommerce including from running an Exports of computer software or IT services or IT enabled services in
online marketplace as defined in clause (38B) of section 2 1% of export proceeds
case tax credit under section 65F is not available
 Persons engaged in the sale and purchase of used vehicles
 Distributors of pharmaceutical products, fast moving consumer goods and Services or technical services rendered outside Pakistan or exported
1% of export proceeds
cigarettes from Pakistan
0.25%
 Petroleum agents and distributors registered under the Sales Tax Act, 1990 Royalty, commission or fees derived by a resident company from a
 Rice mills and dealers foreign enterprise in consideration for the use outside Pakistan of any
 Tier-1 retailers of fast-moving consumer goods who are integrated with Board patent, invention, model, design, secret process or formula or similar
or its computerized system for real time reporting of sales and receipts 1% of export proceeds
property right, or information concerning industrial, commercial or
 Flour mills scientific knowledge, experience or skill made available or provided to
such enterprise;
In all other cases
 Individual (turnover 100 million and above) Construction contracts executed outside Pakistan 1% of export proceeds
1.25%
 Association of persons (turnover 100 million and above)
 Company Other services rendered outside Pakistan as notified by the Board from
1% of export proceeds
time to time

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Sales Tax Withholding Rates - Federal

Transaction on which withholding is required Withholding Requirements Withholding Agent
Taxable Supplies of goods made by registered persons  Federal and Provincial Government Departments;
1/5th of the Sales Tax shown on the invoice
other than wholesaler, dealer or distributor  Autonomous Bodies;
Taxable Supplies of goods made by wholesaler, distributor (10%) - 1/10th of the amount of sales tax shown  Public sector Organizations;
or dealer on the invoice  Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001);
 Federal and Provincial Government Departments;
Whole of the tax involved or as applicable to
 Autonomous Bodies;
Taxable Supplies of goods made by unregistered persons supplies on the basis of gross value of supplies
 Public sector Organizations;
5% of the value of gross value of taxable supplies Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001);
Person providing advertisement services Whole amount of sales tax as applicable Receipt of advertisement services by Registered Persons
Provision of cane molasses Whole amount of sales tax as applicable Registered persons purchasing cane molasses
Persons supplying reclaimed lead or used lead batteries 75% of the Sales Tax Applicable Registered persons manufacturing lead batteries
2% of the gross value of supplies (effective from
Persons other than active taxpayers Online Market Place
the date notified by FBR)
Exemptions
 Electrical Energy, Natural Gas, Vegetable ghee and cooking oil, Telecommunication services.
 Petroleum products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high-speed diesel;
 Goods specified in the Third Schedule to the Sales Tax Act, 1990 (Retail products)
 Supplies made by commercial importers who paid value addition tax on such goods at the time of import
 Supplies made by an Active Taxpayers as defined in the Sales Tax Act, 1990 to another registered person, with the exception of advertisement services
Supply of sand, stone, gravel/crush and clay to low cost housing schemes sponsored or approved by Naya Pakistan Housing and Development Authority

Sales Tax Withholding Rates - Provincial

Transaction on which withholding is required Withholding Requirements Withholding Agent
SRB - Sindh Sales Tax Special Procedures (Withholding) Rules, 2014 [SSTSP Withholding Rules]
Services provided by a SRB registered person, other than:  Offices and departments of Federal Government, Provincial Government and
 Advertisement services; 1/5th of the total amount of sales tax local or District Governments;
 Renting of immovable property services; OR, if no sales tax is mentioned on  Autonomous Bodies;
 Services by auctioneers; the invoice then whole amount of  Public Sector Organizations, including public corporations, state owned
 Services of inter-city transportation or carriage of goods by roads, sales tax under the tax fraction enterprises and regulatory bodies and authorities;
excluding carriage of goods vide pipelines; and formula.  Organizations which are funded, fully or partially, out of the budget grants of
 Services by advertising agents. the federal or provincial governments;
100% of sales tax under the tax  Companies as defined in clause (28) of section 2 of the Act;
Taxable services provided by unregistered person
fraction formula.  FBR-registered or SRB-registered persons or the persons specified above,
Receipt of following services by SRB registered Peron or non-resident who receive / procure advertisement services or renting of immovable property
person based in a country other than Pakistan: services or services of auctioneers or services of inter-city transportation or
carriage of goods by road, excluding carriage vide pipelines, and the persons
 Advertisement services;
receiving / procuring services of advertising agents, who issue release orders
 Renting of immovable property services;
or book advertisement space in relation to advertisement services;
 Services by auctioneers; and
 SRB-registered persons receiving taxable services from unregistered persons.
 Services of inter-city transportation or carriage of goods by roads, Provided that a person shall be treated as withholding agent only if he is
100% of sales tax as shown on the
excluding carriage of goods vide pipelines or conduit or through resident in Sindh or has a place of business in Sindh.
invoice. OR, if no sales tax is
specialized car carriers or through the fleet of logistic companies
mentioned on the invoice then whole  SRB-registered Persons or insurers receiving or procuring the services
owning not less than 25 goods transport vehicles.
amount of sales tax under the tax provided or rendered by insurance agents or insurance brokers
 Services of Advertising Agents
fraction formula.  Persons receiving service from SRB registered persons where the amount of
 Services provided by insurance agents or insurance brokers Sales tax is not indicated on the invoice
 Services provided or rendered by the owners or drivers of the  Persons or passengers using the services of a cab aggregator in relation to the
motor vehicles using the services of cab aggregators services provided or rendered by the owners or drivers of the motor vehicles
 Services provided by SRB-registered persons where the amount of using the services of cab aggregators
Sales tax is not indicated on the invoice  Persons receiving services of contractors and construction as liable to reduce
 Services on Contractors and Construction as liable to reduced rate rate
Exemption
 Telecommunication, Banking company, Financial Institution, Insurance Company other than reinsurance company;
 Port Operator, Airport Operator; Terminal Operator; and Airport Ground services.
PRA – The Punjab Sales Tax on Services (Withholding) Rules, 2015 (PSTS Withholding Rules)
Services provided by a registered person having CORPORATE STATUS No withholding is required  Federal Government, Provincial Government, local government, a department
and active taxpayer or office under the Government, a public sector project or programme
100% of sales tax governed thereunder;
Services provided by a registered person having non-corporate status
 Autonomous body, Special Institution, public sector organization including
Taxable services provided by unregistered person (except those are not 100% of sales tax public corporation, Government owned enterprise, regulatory or statutory body
required to be registered) or authority;
 An organization which is funded fully or partially out of the budgets, grants of
the federal Government or the Government;
 Receipt of services of an advertisement who is registered:
100% of sales tax as shown on the  for the sales tax on goods with the federal Government
invoice. OR if no sales tax is
 for the sales tax on services in the Punjab
mentioned on the invoice then whole
Receipt of advertisement services  A Company which is resident or has a place of business in the Punjab;
amount of sales tax at the applicable
rate on the value of service.  Registered persons receiving taxable services from other than registered
persons;
 Accounting office responsible for making payment against invoices or bills for
the taxable services received by an office or department of the Government,
Federal Government, Provincial Governments or local governments
Exemptions
 Telecommunication, Banking, Courier, Insurance, excluding those provided from outside Punjab for risk located in or relating to Punjab
 Services (other than advertisement services) provided by companies and are active taxpayers.

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Sales Tax Withholding Rates - Provincial

Transaction on which withholding is required Withholding Requirements Withholding Agent
KPK - Khyber Pakhtunkhwa Sales Tax on Services Special Procedures (Withholding) Regulations, 2015 [KPK Withholding Rules]
Taxable services provided by unregistered person (other than 100% of sales tax on the basis of  All Federal government Departments and offices and the Departments of
advertisement services) gross value Ministry of defense
Receipt of advertisement services  All departments and offices of KPK and other provincial Government including
100% of sales tax as shown on the district government departments
Services liable to Sales Tax at a rate less than 15% invoice. OR if no sales tax is  Environment Department of the KPK Government and all divisional engineers
mentioned on the invoice then whole of the departments or irrigation, public health engineering and communication
Services provided or rendered to Federal or provincial Government amount of sales tax at the applicable and Works including the local and district government departments
departments or public sector institutions, sectors, organizations, entities rate on the value of service.  All Public sector organizations, institutions, corporations, universities, bodies,
and projects boards, projects, ventures entities, enterprises, institutions authorities of the
All cases not covered above 50% of the amount of sales tax Federal, provincial, district or Local Government including special purpose
shown on the invoice institutions
 Companies as defined in sub-section (12) of section 2 of the Act, including
those located in the jurisdiction of or registered with any other tax authority for
the purpose of payment of sales tax in respect of goods or services rendered
or provided in the province of KPK
 Persons registered with the Authority receiving taxable services from
unregistered persons;
Exemptions
Telecommunication services (excluding such services as are provided or received by telecom companies to or from each other) shall not be liable to withholding.
BRA - Baluchistan Sales Tax on Services Act, 2015 (BSTS)
Services provided by BRA and FBR registered persons, other than 20% of sales tax  Offices and departments of Federal Government, Provincial Governments, and
services mentioned below. local or district governments;
 Autonomous bodies;
Recipient of following types of services: 100% of sales tax
 Public sector organizations,
 Advertisement (other than advertisement in newspapers and
periodicals)  Organizations which are funded, fully or partially, out of the budget grants of
Federal or Provincial governments;
 Auctioneers
 Companies, as defined in clause (12) of section 2 of the Baluchistan Sales Tax
 Renting of immovable property
on Services Act, 2015;
 Inter-city transportation
 FBR-registered or BRA-registered persons receiving the services of
 Carriage of goods by road
advertisements; or
 Services from non-filers or unregistered persons
 BRA-registered persons receiving taxable services from unregistered persons,
 Services from persons not resident in Pakistan provided that person shall be treated as a withholding agent, for the purpose of
 Services provided by registered person where the invoice does not these rules, only if he is resident in Baluchistan or has a place of business in
show the amount of sales tax Baluchistan.
Exemptions
 Telecommunication, Banks, Financial institutions, Insurance (other than reinsurance),
 Airport operator, Airport ground services, Terminal operator, Port operator

DISCLAIMER

This document is a general guide for the benefits of our clients and is available to other interested persons upon request. This should not be published in any manner without the Firm’s consent. The document is not an
exhaustive treatise as it provides a general outline and overview of the applicable withholding tax rates in Pakistan.

Changes of consequential, administrative, procedural or editorial in nature have not been considered or dealt in brevity. While considering the interpretation of any provision, it is suggested that the text of the document
should be read in context of the relevant provisions of laws applicable rules and notifications.

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