With-Holding Tax Rates for the Tax Year 2026

A comprehensive overview of the withholding tax rates for the tax year 2026 that apply to individual, association of person and company. Tax has been deducted at source by a person or authority duly prescribed under the law.

These deductions are made in accordance with the rates officially approved by the relevant tax regulations or governing authorities. These rates are set by the appropriate legislative or regulatory bodies to ensure consistency and compliance with the law. As such, any amount withheld is determined based on the applicable legal framework, ensuring transparency and adherence to established tax policies.

This section pertains specifically to salaries under Section 149 of the Income Tax Ordinance, 2001. It applies exclusively to individuals receiving income from employment and other benefits employer.

With reference to Section 149 of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division I, Part I of the First Schedule of the Ordinance.

SALARY SECTION 149 APPLICABLE TAX RATES
SR	SLABS	FROM	TO	RATE	RUPEES	REGIM
1	Where the taxable income does not exceed Rs. 600,000	Upto Rs. 600,000		0% Upto Rs. 600,000	N/A	Adj.
2	Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000	Rs. 600,001	Rs. 1,200,000	1% of amount exceeding Rs. 600,000	Rs. 6,000	Adj.
3	Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000	Rs. 1,200,001	Rs. 2,200,000	Rs. 6,000 plus 11% of the amount exceeding Rs. 1,200,000	Rs. 116,000	Adj.
4	Where taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000	Rs. 2,200,001	Rs. 3,200,000	Rs. 116,000 plus 23% of the amount exceeding Rs. 2,200,000	Rs. 346,000	Adj.
5	Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000	Rs. 3,200,001	Rs. 4,100,000	Rs. 346,000 plus 30% of the amount exceeding Rs. 3,200,000	Rs. 616,000	Adj.
6	Where taxable income exceeds Rs. 4,100,000	Rs. 4,100,001 and above		Rs. 616,000 plus 35% of the amount exceeding Rs. 4,100,000	Rs. 616,000 Plus 35%	Adj.

SECTION 4AB - SURCHARGE APPLICABLE TAX RATES
SR	SLABS	FROM	TO	RATE	RUPEES	REGIM
1	Where taxable income exceeds Rs. 10 million	Rs. 10,000,000 and above		Surcharge at the rate of 9% of tax liability arising on salary	As to be Calculated	Adj.

RELEVANT PROVISION AND SECTION

As per Sub-Section (2) of Division I, Part I of the Second Schedule to the Income Tax Ordinance, 2001, where an individual’s income chargeable under the head “Salary” exceeds 75% of their taxable income, the tax rates applicable to individuals and associations of persons (AOPs) shall be applied accordingly.

As per the relevant provisions of the Income Tax Ordinance, the tax payable by a full-time teacher or researcher employed in a non-profit educational or research institution, duly recognized by the Higher Education Commission (HEC), a Board of Education, or a university recognized by the HEC, including government research institutions, shall be reduced by 25% of the tax payable on their income under the head "Salary."

This section specifically pertains to the directorship fee or fee for attending meetings, as outlined under Sub-Section (3) of Section 149 of the Income Tax Ordinance, 2001. It applies exclusively to individuals receiving remuneration for attending Board of Directors (BOD) meetings.

As per Sub-Section (3) of Section 149 of the Income Tax Ordinance, 2001, the applicable tax rates on are specifically prescribed within this same section of the Ordinance.

BoD MEETINGS SECTION 149(3) APPLICABLE TAX RATES
SR	PARTICULARS	AMOUNT	RATE	REGIM
1	Where any amount is paid to a director for attending a meeting	Any amount	20% on Gross amount to Director	Adj.

This section specifically pertains to pensions, annuities, and similar sources, as outlined under Sub-Section (1A) of Section 149 of the Income Tax Ordinance, 2001. It applies exclusively to employee below the age of 70 years receiving such income from a former employer.

With reference to Section 149 of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division I, Part I of the First Schedule of the Ordinance.

PENSIONS, ANNUITIES & SIMILAR SOURCES SECTION 149(1A) APPLICABLE TAX RATES
SR	PARTICULARS	FROM	TO	RATE	RUPEES	REGIM
1	Where any amount of pensions, annuities, or similar sources is paid by a former employer to an individual below the age of 70	Upto Rs. 10,000,000		0% Upto Rs. 10M	N/A	N/A
2		Rs. 10,000,000 or above		5% of amount exceeding Rs. 10M	As to be Calculated	FTR

This section specifically relates to dividend as outlined under Section 150 of the Income Tax Ordinance, 2001. It is applicable solely to individuals, associations of persons, and companies that receive dividends from companies or investment entities.

With reference to Section 150 of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division III, Part I of the First Schedule of the Ordinance.

DIVIDENDS SECTION 150 APPLICABLE TAX RATES
SR	PARTICULARS	IND, AOP, CO		REGIME	FBR CODE
SR	PARTICULARS	FILER	NON FILER	REGIME	FBR CODE
1	Independent Power Producers where such dividend tax is a pass- through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity	7.5%	15%	FTR	64030052
2	Company where no tax is payable due to exemption of income or carry forward business losses or claim of tax credit	25%	50%	FTR	64030081
3	Cash Dividend	15%	30%	FTR	64030055
4	Specie Dividend (Shares of Group Company)	15%	30%	FTR	64030055
5	In case of Mutual Funds, where proportional income derived from average annual investments in Debt Securities where recipient is Corporate entity	29%	58%	FTR	64030055
6	In case of Mutual Funds, where proportional income derived from average annual investments in Debt Securities where recipient is other than Corporate entity	25%	50%	FTR	64030055
7	In case of Mutual Funds, where proportional income derived from average annual investments in Equities	15%	30%	FTR	64030055
8	In case of Dividend received by a REIT scheme from Special Purpose Vehicle (SPV)	0%		N/A	N/A
9	In case of dividend received by others from Special Purpose Vehicle (SPV) as defined under the Real Estate Investment Trust Regulations, 2015	35%	70%	FTR
10	Any other case	15%	30%	FTR	64030055

RELEVANT PROVISION AND SECTION

Under Section 150 of the Income Tax Ordinance, 2001, any person distributing dividends is required to deduct tax from the gross amount of the dividend paid, or collect tax on dividends paid in specie, at the rate specified in the Ordinance.

This section specifically relates to profit on debt as outlined under Section 151 of the Income Tax Ordinance, 2001. It is applicable solely to individuals, associations of persons, and companies that receive profit from different sources.

With reference to Section 151 of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division IIIA, Part I of the First Schedule of the Ordinance.

PROFIT ON DEBT SECTION 151 APPLICABLE TAX RATES
SR	SEC	PARTICULARS	CATEGORY		REGIME			FBR CODE
			TYPE OF TAX PAYER
			FILER	NON FILER	IND	AOP	CO.
1	151(1)(a)	Yield on an account, deposit or a certificate under the National Savings Scheme (NSC) or Post office saving account	15%	30%	*FTR		ADJ.	64040001
2	151(1)(b)	Yield or profit on a debt, being on an account or deposit maintained with a banking company or a financial institution	20%	40%	*FTR		ADJ.	64040002
3	151(1)( c)	Yield or profit on any security issued by Federal Government, a Provincial Government or a local Government other than profit on National Saving Scheme or Post Office Saving account to any person	20%	40%	*FTR		ADJ.	64040003
4	153(1)(d)	Profit on any bond, certificate, debenture, security or instrument of any kind (excluding loan agreement between a borrower and a banking company or a development finance institution) issued by a banking company, a financial institution, company or a finance society, to any person other than a financial institution	15%	30%	*FTR		ADJ.	64040004
5		In all cases, other than mentioned above	15%	30%	*FTR		ADJ.	-
		Note: For individuals and association of persons, if the profit on debt exceeds Rs. 5 million, the tax deducted under this section shall be treated as minimum tax (MTR).			MTR

RELEVANT PROVISION AND SECTION

Under Section 151(3) of the Income Tax Ordinance, 2001, the tax deducted on profit on debt shall be treated as minimum tax for the taxpayer, except in the following cases:

(a) Taxpayer is a company; or
(b) Profit on debt is taxable under section 7B.

This section specifically relates to profit on debt as outlined under Section 151(1A) of the Income Tax Ordinance, 2001. It is applicable solely to individuals, associations of persons, and companies that receive interest on investment in sukuks.

With reference to Section 151 of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division IB, Part III of the First Schedule of the Ordinance.

RETURN ON INVESTMENT SECTION 151 (1A) APPLICABLE TAX RATES
SR	PARTICULARS	TYPE OF TAX PAYER			FBR CODE
		COMPANY
		FILER	NON FILER	REGIME
1	Return on investment in sukuk, (excluding “The Second Pakistan Sukuk Company” and “The Third Pakistan Sukuk Company”).	25%	50%	FTR	64030081

		INDIVIDUAL / AOP			FBR CODE
		FILER	NON FILER	REGIME	FBR CODE
2	Return on investment in sukuk, (excluding “The Second Pakistan Sukuk Company” and “The Third Pakistan Sukuk Company”).
	(a) Where the return is less than Rs. 1 million; or	10%	20%	FTR	64030083
	(b) Where the return is more than Rs. 1 million	12.5%	25%	FTR	64030082

This section deals specifically with payments for goods under Section 151(1)(a) of the Income Tax Ordinance, 2001. It applies only to individuals, associations of persons, and companies receiving payments from customers for goods supplied at the time of payment.

With reference to Section 153(1)(a) of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division III, Part III of the First Schedule of the Ordinance.

PAYMENT FOR GOODS SECTION 151 (1) (A) APPLICABLE TAX RATES
SR	PARTICULARS	TYPE OF TAX PAYER			FBR CODE
		INDIVIDUAL / AOP / CO
		FILER	NON FILER	REGIME
1	Sales of rice, cotton seed oil or edible oil	1.5%	3%	MTR	64060003
2	Distribution of Cigarettes	2.5%	5%	MTR	64060002
3	Distribution of Pharmaceutical Products	1%	2%	MTR	64060002
4	Distributors, dealers, sub-dealers, wholesalers and retailers of ; if they are appearing in active taxpayers list of income tax and sales tax Fast-moving consumer goods Fertilizers Electronics excluding mobile phones Sugar Cement Steel Edible oil	0.25%	N/A	MTR	64060032
5	On supplies of gold, silver and articles thereof	1%	2%	MTR	64060002
	Note: For Companies, if the company is listed company or manufacture, the tax deducted under this section shall be treated as adjustable tax (ADJ).			ADJ.

SR	PARTICULARS	FILER	NON FILER	REGIME	FBR CODE
6	Sale of any other goods in the case of:
	(a) Company (excluding toll manufacturing); or	5%	10%	MTR	64060060
	(b) Company toll manufacturing; or	9%	18%	MTR	64060068
	(d) Other taxpayers toll manufacturing	11%	22%	MTR	64060084
	(d) Other taxpayers (excluding toll manufacturing)	5.5%	11%	MTR	64060083
	Note: For Companies, if the company is listed company or manufacture, the tax deducted under this section shall be treated as adjustable tax (ADJ).			ADJ.

RELEVANT PROVISION AND SECTION

Under Section 153(1)(a) of the Income Tax Ordinance, 2001, every prescribed person making a payment in full or part including a payment by way of advance to a resident person making the payment, deduct tax from the gross amount payable (including sales tax, if any) at the rate specified in ordinance

(a) for the sale of goods including toll manufacturing except where payment is less than seventy-five thousand Rupees in aggregate, during a financial year

This section deals specifically with payments for goods under Section 151(1)(b) of the Income Tax Ordinance, 2001. It applies only to individuals, associations of persons, and companies receiving payments from customers for services at the time of payment.

With reference to Section 153(1)(b) of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division III, Part III of the First Schedule of the Ordinance.

PAYMENT FOR SERVICES SECTION 151 (1) (B) APPLICABLE TAX RATES
SR	PARTICULARS	TYPE OF TAX PAYER			FBR CODE
		INDIVIDUAL / AOP / CO
		FILER	NON FILER	REGIME
1	Specified services in the case of; Transport Services, Freight Forwarding Services, Air Cargo Services, Courier Services, Manpower Outsourcing Services, Hotel Services, Security Guard Services, Software Development Services, Tracking Services, Advertising Services (Other than Print & Electronic Media), Share Registrar Services, Engineering Services, Architectural Services, Warehousing Services, Services Rendered by Asset Management Companies, Data Services provided under License issued by PTA, Telecommunication Infrastructure (Tower) Services, Car Rental Services, Building Maintenance Services, Services Rendered by Pakistan Stock Exchange Limited (PSX), Services Rendered by Pakistan Mercantile Exchange Limited (PMX), Inspection Services, Certification Services, Testing Services, Training Services, Oilfield Service, Telecommunication Services, Collateral Management Services, Travel and Tour Services, REIT Management Services, Services Rendered by National Clearing Company Pakistan Limited (NCCPL)	6%	12%	MTR
2	Information Technology (IT) Services in the case of; Software Development, Software Maintenance, System Integration, Web Design, Web Development, Web Hosting, Network Design	4%	8%	MTR	64060158
3	Information Technology (IT) Enabled Services in the case off; Inbound / Outbound Call Centers, Medical Transcription, Remote Monitoring, Graphics Design, Accounting Services, Human Resource Services, Tele Medicine Centers, Data Entry Operations, Cloud Computing Services, Data Storage Services, Locally Produced TV Programs, Insurance Claims Processing	4%	8%	MTR	64060158
	Note: The Above reduce Tax rate shall be applicable only where the payment for services are subjected to withholding tax on gross receipts and the service provider has not contested taxation of gross receipts before any Court.
4	Electronic and Print Media Advertising Services	1.5%	3%	MTR	64060158
4	Other services in the case of:
	(a) Companies; or (b) Other taxpayers	15%	30%	MTR

RELEVANT PROVISION AND SECTION

Under Section 153(1)(b) of the Income Tax Ordinance, 2001, every prescribed person making a payment in full or part including a payment by way of advance to a resident person making the payment, deduct tax from the gross amount payable (including sales tax, if any) at the rate specified in ordinance

(b) for the sale of goods including toll manufacturing except where payment is less than seventy-five thousand Rupees in aggregate, during a financial year

This section deals specifically with payments for goods under Section 151(1)(c) of the Income Tax Ordinance, 2001. It applies only to individuals, associations of persons, and companies receiving payments from customers for contract at the time of payment.

With reference to Section 153(1)(c ) of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division III, Part III of the First Schedule of the Ordinance.

PAYMENT FOR CONTRACTS SECTION 151 (1) (C) APPLICABLE TAX RATES
SR	PARTICULARS	TYPE OF TAX PAYER			FBR CODE
		INDIVIDUAL / AOP / CO
		FILER	NON FILER	REGIME
1	Execution of a contract in the case of:
	(a) Companies; or	7.5%	15%	MTR	64060265
	(b) Other taxpayers; or	8%	16%	MTR	64060266
	(c) Sports person	15%	30%	MTR	-
	Note: For Companies, if the company is listed company or subject to conditions, the tax deducted under this section shall be treated as adjustable tax (ADJ).			ADJ.

RELEVANT PROVISION AND SECTION

Under Section 153(1)(c ) of the Income Tax Ordinance, 2001, every prescribed person making a payment in full or part including a payment by way of advance to a resident person making the payment, deduct tax from the gross amount payable (including sales tax, if any) at the rate specified in ordinance

(c ) for the sale of goods including toll manufacturing except where payment is less than one-hundred thousand Rupees in aggregate, during a financial year

With reference to Section 153(2) of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division IV, Part III of the First Schedule of the Ordinance.

DEDUCTION BY EXPORTS OR EXPORT HOUSE SECTION 151 (2) APPLICABLE TAX RATES
SR	PARTICULARS	TYPE OF TAX PAYER			FBR CODE
		INDIVIDUAL / AOP / CO
		FILER	NON FILER	REGIME
1	Deduction by exporter or an export house on payment for rendering of certain services of; Stitching Dying Printing Embroidery Washing Sizing Weaving	1%	2%	MTR	64060231

RELEVANT PROVISION AND SECTION

Under Section 153(2) of the Income Tax Ordinance, 2001, 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 of a non-resident person for rendering of or providing services shall at the time of making the payment, deduct tax from the gross amount payable at the rate specified at the rate specified in ordinance

This section deals specifically with payments for goods under Section 151(3A) of the Income Tax Ordinance, 2001. It applies only to individuals, associations of persons, and companies receiving payments from customers for contract at the time of payment.

With reference to Section 153(2A) of the Income Tax Ordinance, 2001, the applicable tax rates are prescribed in Division IV, Part III of the First Schedule of the Ordinance.

DEDUCTION BY EXPORTS OR EXPORT HOUSE SECTION 151 (3A) APPLICABLE TAX RATES
SR	PARTICULARS	TYPE OF TAX PAYER			FBR CODE
		INDIVIDUAL / AOP / CO
		FILER	NON FILER	REGIME
1	E-commerce sales where payment is made through digital means or banking channel
	Upto 10,000	1%	2%	MTR	-
	10,000 to 20,000	2%	4%	MTR	-
	20,000 & above	0.25%	0.50%	MTR	-
2	E-commerce sales where payment is made on Cash on Delivery basis
	On supply of electronic and electrical goods	0.25%	0.50%	MTR	-
	On supply of clothing articles, apparels, garments etc.	2%	4%	MTR	-
	Other Supplies of Goods	1%	2%	MTR	-

RELEVANT PROVISION AND SECTION

Under Section 153(3A) of the Income Tax Ordinance, 2001,

With-Holding Tax Rates for the Tax Year 2026

Section 149: Tax Rates for Salaried Employees

RELEVANT PROVISION AND SECTION

Section 149 (3): Tax Rates for Directorship Fee or Fee for Attending Board Meetings

Section 149 (1A): Tax Rates for Pensions, Annuities, or Similar Supplemental Sources by Former Employer

Section 150: Tax Rates on Dividends

RELEVANT PROVISION AND SECTION

Section 151: Tax Rates on Profit on Debt

RELEVANT PROVISION AND SECTION

Section 151 (1A): Tax Rates on Return on investment in sukuks

Section 153 (1) (a): Tax Rates on Payment for Goods

RELEVANT PROVISION AND SECTION

Section 153 (1) (b): Tax Rates on Payment for Services

RELEVANT PROVISION AND SECTION

Section 153 (1) (c ): Tax Rates on Payment for Contracts

RELEVANT PROVISION AND SECTION

Section 153 (2): Tax Rates for exporter or an export house on payment for rendering of certain services

RELEVANT PROVISION AND SECTION

Section 153 (3A): Tax Rates on E-commerce

RELEVANT PROVISION AND SECTION

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