Section 236 — Advance Tax on Telecom & Internet
Section 236 advance tax on phone/internet bills Pakistan TY 2025-26 — 15% on mobile and internet prepaid top-ups, 10% on landline bills above PKR 1,000 monthly.
Section 236 levies advance income tax on telecom services. Mobile prepaid top-ups: 15% (no filer/non-filer split). Internet prepaid: 15%. Landline bills above PKR 1,000 monthly: 10%. The telco or ISP deducts at source — when you load PKR 1,000 of credit on your mobile, you effectively get PKR 850 of usable balance after the Section 236 deduction.
Section 236 is adjustable advance tax — you claim it back in your IRIS return assuming the connection is tied to your NTN-linked CNIC. The telco issues a consolidated annual certificate (Jazz, Zong, Telenor, Ufone, PTCL all support this via their customer portals) showing total advance tax paid across the year.
Practical claim threshold: salaried individuals with modest mobile usage rarely bother claiming Section 236 — a typical claim is PKR 5,000-15,000/year which most filers leave on the table. SME owners with multiple business-line connections, however, can claim significant amounts; pull the annual certificate from each telco portal before filing.
Frequently asked questions
Does Section 236 apply to every mobile top-up?
Yes — 15% advance tax is deducted on every prepaid top-up regardless of filer status. There is no filer/non-filer split under Section 236.
Is Wi-Fi/internet usage taxed?
Yes — 15% on internet prepaid top-ups (same rate as mobile). Fixed-line internet (PTCL Flash Fiber, etc.) follows the landline-bill structure at 10% above PKR 1,000 monthly.
Can I claim Section 236 back?
Yes — it's adjustable. Pull the annual telco certificate (Jazz/Zong/Telenor/Ufone/PTCL customer portal) and claim the total as tax-deducted-at-source in your IRIS return.
Is Section 236 a final tax?
No — adjustable advance tax. Section 236 differs from Section 151 (bank profit, final) and Section 150 (dividends, final) in this regard.