Section 233 — Withholding on Brokerage & Commission
Section 233 brokerage and commission WHT Pakistan TY 2025-26 — 8% life insurance, 10% advertising, 12% general agents (filer); non-filer rates double.
Section 233 taxes brokerage and commission income paid by prescribed persons. The rate varies by agent type: advertising agents 10% (filer) / 20%, life insurance agents 8% / 16%, general agents 12% / 24%. The payer deducts before remitting the commission and issues a deduction certificate. Section 233 is generally minimum tax — the recipient pays the higher of WHT collected or slab-based liability.
Insurance agents, stockbrokers, advertising agents, and real-estate agents in Pakistan see Section 233 deductions on every commission cheque from prescribed-person payers. Treat the certificates as advance tax credit in your IRIS return and reconcile against your gross commission income. The minimum-tax treatment means you cannot recover the full amount if your slab liability is lower; but if your slab liability is higher, you owe the top-up at year-end.
Pakistani Fiverr/Upwork freelancers occasionally see Section 233 referenced incorrectly. Foreign payments for services do not fall under Section 233 — they are export of services under Section 154/154A. Domestic Pakistani commission income (from a local insurance company, brokerage firm, or ad agency) is what Section 233 targets.
Frequently asked questions
What's the Section 233 rate on insurance commission?
8% for ATL filers / 16% for non-filers. Life insurance agents see this on every commission cheque from the insurance company.
Is Section 233 final tax?
Generally minimum tax — the recipient pays the higher of WHT collected or slab-based liability. Not final tax, so you can owe a top-up if slab rates exceed 12%.
Do real estate agents face Section 233?
Yes — at the general 12%/24% rate when commissioned by a prescribed-person payer (a developer, builder, or company). Individual private buyers don't withhold.
How do I claim Section 233 back?
Declare gross commission income on your IRIS return and enter the WHT under tax-deducted-at-source with the payer's deduction certificate.