Withholding Tax in Pakistan — Complete Guide 2025-2026
Withholding tax (WHT) is tax deducted at source — meaning the person making a payment deducts tax before paying the recipient and remits it to the FBR. Pakistan has one of the most comprehensive withholding tax regimes in the world, with over 30 different sections covering various types of payments. This guide covers every major section with rates for filers and non-filers.
What is Withholding Tax?
Withholding tax is an advance payment of income tax. When someone deducts tax from your payment (salary, rent, dividend, etc.), that amount is credited against your total annual tax liability. If more tax is withheld than you owe, you can claim a refund when filing your return.
Complete Withholding Tax Rate Table
| Section | Type of Payment | Filer Rate | Non-Filer Rate | Nature |
|---|---|---|---|---|
| 148 | Import of goods (industrial) | 1% | 2% | Adjustable |
| 149 | Salary | As per slabs | As per slabs | Adjustable |
| 150 | Dividend | 15% | 30% | Final |
| 151 | Profit on debt (up to Rs. 5M) | 15% | 30% | Final |
| 153(1)(a) | Goods (company) | 4% | 8% | Minimum |
| 153(1)(b) | Services (company) | 8% | 16% | Minimum |
| 153(1)(c) | Contracts (company) | 7% | 14% | Minimum |
| 155 | Rent of property (>600K) | 10% | 20% | Adjustable |
| 156 | Prize bond/crossword | 15% | 30% | Final |
| 231A | Cash withdrawal (>50K/day) | 0.6% | 1.2% | Minimum |
| 233 | Commission/brokerage | 10-12% | 20-24% | Minimum |
| 235 | Electricity (commercial) | 10% | 20% | Adjustable |
| 236 | Telephone/internet (>Rs.1K) | 10% | 20% | Adjustable |
| 236K | Purchase of property | 3% | 6% | Advance |
| 236Y | International transactions | 5% | 10% | Advance |
Nature of Withholding Tax
There are three types of WHT:
- Final Tax: The deducted tax is the final liability — no further return needed for that income (e.g., dividends, prize winnings)
- Adjustable/Minimum Tax: Tax deducted is credited against total liability; if total liability is higher, additional tax is payable (e.g., salary, goods, services)
- Advance Tax: Tax collected in advance for specific transactions (e.g., property purchase, international transactions)
How to Check Deducted WHT
You can view all tax deducted on your behalf through the Iris portal. Log in to iris.fbr.gov.pk and check “Withholding Tax Statements” to see deductions made by each deductor. Also, check your salary slips and bank statements for tax deduction entries.
Impact of WHT on Non-Filers
Non-filers face significantly higher WHT rates across most sections — typically double the filer rate. This is the FBR’s primary mechanism to encourage tax registration and filing. Being a filer can save you substantial money on every major transaction.
Frequently Asked Questions
Can I claim refund of excess WHT?
Yes. If the total WHT deducted during the year exceeds your actual tax liability, you can claim a refund when filing your annual return. Refunds are typically processed within 90 days.
What is the difference between Section 153 and Section 148?
Section 148 covers tax on imports (collected by Customs). Section 153 covers tax on domestic payments for goods, services, and contracts (deducted by the payer).
Use our Withholding Tax Calculator to instantly calculate WHT for any transaction type.