Withholding Tax Pakistan 2025-26 - Sections & Rates
Pakistan withholding tax reference for TY 2025-26 - every section from 148 to 236K, filer vs non-filer rates, adjustable vs final tax, and where to claim against your annual tax.
What is withholding tax (WHT)?
Withholding tax is an advance income tax that a third party - your employer, bank, broker, telco, electricity company, registrar, or the buyer of your goods or services - deducts from a payment owed to you and deposits with FBR on your behalf. It is one of FBR's largest revenue heads and the way the government taxes you in real-time rather than waiting for the year-end return. Whether the deduction is the final tax on that income or just an advance you can claim back depends on the section.
Adjustable vs final / minimum tax
Not every withholding is the same. Adjustable WHT (cash withdrawals, salary, most services) is treated as a payment on account - you claim it as a credit in your return and either pay the balance or get a refund. Final tax (PSX dividends, prize money, IT export proceeds for PSEB-registered freelancers, bank profit on debt for individuals) closes the matter entirely; you declare the income for transparency but no further tax is due. Minimum tax (Section 153 services, Section 233 brokerage) means whichever is higher: the WHT collected or your slab-based liability on that income.
The ATL vs non-ATL split
Active Taxpayer List (ATL) filers pay the rates printed in the First Schedule. Non-ATL pays roughly double - 236C jumps from 3% to 10%, dividend WHT from 15% to 30%, profit on debt from 15% to 35%, cash withdrawal from 0.6% to 1.2%. The ATL is refreshed every Monday and reflects whether you filed your last return by the deadline. The premium for staying off the ATL is enormous: a single property purchase by a non-filer can cost more than a year of compliance.
Sections every Pakistani should know
Section 148 - imports (5.5% filer / 11% non-filer for commercial importers). Section 149 - salary, slab-based via your employer. Section 150 - dividend (15% / 30%). Section 151 - profit on bank deposits, certificates, NSCs (15% / 35%). Section 153 - payments for goods (4.5%), services (11%), or contracts (7.5%) by prescribed persons. Section 155 - rent on immovable property (graduated 5% → 25% slabs for individuals). Section 156 - prize money and winnings (15% prize bonds, 20% raffles). Section 231B - fixed PKR amount at vehicle registration / transfer, tied to engine cc. Section 233 - brokerage and commission (8–12% depending on type). Section 235 - electricity on commercial / industrial connections. Section 236 - telephone and internet (15% on prepaid top-ups). Sections 236C / 236K - property sale and purchase advance tax (3% filer, 10–10.5% non-filer). Sections 236G / 236H - sales to distributors and retailers.
Special regimes - exporters, freelancers, IT services
Section 154 charges 1% (filer) / 2% (non-filer) on export proceeds collected by the bank on realisation. PSEB-registered IT exporters get a 0.25% final tax on foreign remittances under separate special provisions. Non-PSEB freelancers fall under regular slab rates after a 1% section 154 deduction is netted off.
Where to find your WHT for the year
Three primary sources: the salary certificate from your employer (Form 16-style summary of section 149 deductions), bank statements and the bank's annual WHT certificate (sections 151, 231A cash-withdrawal tax, 236P banking transactions), and CPRs / challans from any registrar, broker, AMC, or buyer who deducted at source. Save the certificates - FBR allows the credit only against documented deductions, not against entries in your bank statement.
Claiming WHT credit in your IRIS return
In the IRIS income tax return, every withholding head has a code - 64020001 for section 149 salary tax, 64151101 for 151 profit on debt, 64236C01 for 236C property sale, and so on. Enter the WHT amount under the correct code, attach a soft copy of the certificate, and IRIS adds it to your tax credits. The total flows into the computation page where it nets off against your slab-based liability - producing either a payable amount or a refund claim.
Common mistakes
Missing the bank's 231A cash-withdrawal tax (it's silent and doesn't appear on your statement clearly). Forgetting that 236C / 236K base on the FBR-notified valuation table, not your declared price. Double-counting WHT once as income and once as a credit. Treating PSX dividend WHT as adjustable when it is final tax (you cannot offset losses against it). Skipping the wealth reconciliation - even final-tax income must be declared so your wealth statement balances.
Using the Easy Tax Online WHT calculator
Pick the section, the transaction sub-type if applicable (153 splits goods / services / contracts; 150 splits standard / mutual fund / IPP / REIT), enter the gross amount, and toggle ATL status. The calculator shows the applied rate and the PKR amount your withholding agent should deduct. Use it to cross-check the deduction on your bank or broker statement, to plan a property transaction (236C / 236K can be 5–10% of the deal), or to gross-up a service quote when you are the withholding agent paying a vendor.
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