CHAPTER 9 WITHHOLDING TAX RATES

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1 CHPTER 9 WITHHOLDING TX RTES Section Nature of Payment/Transaction 148 Imports 5.00% Import of Items mentioned in Cl 9, P II, 2nd Sch, Cl 13E, P II, 2nd Sch, Cl 13G P II, 2nd Sch (Gold, Silver & Mobile phone), Cl 23, P II, 2 nd Sch, Cl. 24, P II, 2 nd Sch. Import of edible oil and packing material by manufacturer of ghee & edible oil. Import of raw material by Industrial undertaking for its own use Collector of Customs 1.00% 3.00% C. 9, P II 2 nd Sch. Import of items mentioned in Cl 24, P II 2nd Sch, Cl 13C, P II 2nd Sch,. 2.00% In respect of old and used automotive vehicles, tax under section 148 shall not exceed the amount specified in Notification No. SRO. 577(I)/2005, dated the 6 th June, Salary verage Employer lying llowance, Submarine 2.50% Employer llowance 150 Dividend a) Dividend Income b) Paid by a purchaser of a power project privatized by WPD Cl 17, PII, 2 nd Sch % Every Person 7.50% djustable () / inal Discharge () Minimum Tax (MT) (Except industrial undertaking, Large Import houses) Edible Oil MT. Raw Material other than company other than company

2 c) Paid by a company set up for power generation Cl 20, PII, 2 nd Sch. 7.50% other than company Section Nature of Payment/Transaction 151 Profit on Debt a) Profits on DSC or National Saving Deposit certificates b) Profit on account or deposit c) Govt. Securities etc d) Profit to any person other than a financial institution, or any bond, certificate, debenture, security, or instrument of any kind (other than a loan agreement between a borrower & a banking company or a development finance institution) e) Payment to non-resident having no PE [Clause (5), Part II, 2nd Sch.] 152 Payment to non-resident Royalties or fee for technical services Execution of contract or sub contract under a construction, assembly or installation project in Pakistan including a contract for supply of supervisory activities relating to such project and any other contract for construction or services rendered relating thereto Contract for advertisement services rendered by TV satellite channels Payment of insurance or reinsurance premium 10.00% Every Person 10.00% 10.00% 10.00% Banking company or financial institution ederal/provincial Government / Local uthority Banking company, financial institution, company or finance society 10.00% Every Person 15.00% Every Person 6.00% Every Person 6.00% Every Person 5.00% Every Person djustable () / inal Discharge () (Except Companies) (Except Companies) (Except Companies) (Except Companies)

3 Other than royalty, fee for technical services, salary, dividend, rent, winnings and prizes, commission, brokerage, taxable in the hands of PE of Non-resident, payable by a person who is liable to pay tax as representative of the non-resident and exempt for non-resident 20.00% Every Person Section Nature of Payment/Transaction 153 Payment for goods and services and contracts Payments to resident persons or permanent establishment of nonresident for: Sales of goods djustable () / inal Discharge () * Sale of rice, cotton seed or edible ederal 1.50% Government, oil * sale of any other goods Provincial (except Government, manufacturer Company, cum supplier OP companies 3.50% constituted or and formed under commercial the law, supplies by oreign public contractor or company) Rendering of services: consultant, * Transport services 2.00% Consortium or Minimum Tax * Other services rendered or Joint Venture, 6.00% OP having Minimum Tax provided Execution of contracts: turnover of Other than a contractor for the Rs. 50m or, for supply of goods or rendering or 6.00% above, NPO public providing of services, companies Services rendered or provided for stitching, dying, printing, 0.50% embroidery, washing, sizing and Exporter / weaving Export house

4 153 Payment to non-resident media person Payment for advertisement services to a non-resident media person relaying from outside Pakistan 10% Every person

5 Section Nature of Payment/Transaction 154 Exports/Indirect Exports/EPZ/Export House: On realization of proceeds on account of export of goods Commission to non-export indenting agent Commission to Export Indenting / export buying house On realization of proceeds on account of sale of goods to an exporter under inland back to back LC or any other arrangement as may be prescribed by CBR 1.00% 5% 5.00% 1.00% uthorized Dealer / Banking Company / Collector of Customs Exports of goods located in EPZ 1.00% EPZ uthority payment to indirect exporters as defined in DTRE Rules, % Exporter / Export house registered under DTRE Rules, 2001 djustable () / inal Discharge () Minimum Tax (MT)

6 Section Nature of Payment/Transaction 155 Income from property ny payment in full or in part including by way of advance on account of rent of immovable property including rent of furniture and fixtures and services relating to such property and amounts mentioned in section 16(1) or (3) to Individual or OP ny payment in full or in part including by way of advance on account of rent of immovable property including rent of furniture and fixtures and services relating to such property and amounts mentioned in section 16(1) or (3) to a Company Upto 150,000 = Nil 150, ,000 = 5% 400,001 = Rs. 12, % of the maount exceeding Rs. 400,000 bove = 57, % of the amount exceeding Rs. Upto 400,000 = 5% 400,001 = Rs. 20, % of the maount exceeding Rs. 400,000 bove = 65, % of the maount exceeding ederal/provincial Government, Company, oreign Mission, oreign Contractor or Consultant, Consortium or Joint Venture djustable () / inal Discharge () Minimum Tax (MT)

7 Rs.

8 Section Nature of Payment/Transaction 156 Prizes and winnings Prize on Prize bond & cross word puzzle Lotteries, Raffles Prizes on quizzes or offered by companies. 156 Commission/discount on Petroleum Products Commission or discount on Petroleum Products to Petrol Pump Operators 156B Withdrawal of balance under Pension und 1) Withdrawal before retirement age 2) Withdrawal, if in excess of 25% of accumulated balance at or after the retirement age. 231 Cash Withdrawal from bank Cash withdrawal exceeding Rs. 25,000 in a day 10% Every Person 20% 10% verage rate of tax on taxable income of 3 preceding years 0.2% when the amount exceeds Rs. 25,000/- in a day Every Person Pension und Manager Every Banking Company djustable () / inal Discharge () Minimum Tax (MT) Section 231 Nature of Payment/Transaction dvance Tax on Transactions in Bank Sale against cash of any instrument, including DD, PO, 0.3% when the amount exceeds Every banking company, Non- Banking inancial Institution, djustable () / inal Discharge () Minimum Tax (MT)

9 231B CDR, STDR, SDR, RTC or any other bearer nature or on receipt of cash on cancellation of any of these instruments, Transfer of amount against cash through online transfer. dvance tax on private motor vehicles Rs. 25,000/- in a day bove 850cc = 7, = 10, = 16, = 16, = 22, = 16,875 bove 2000 = 50,00 Exchange Company, uthorized dealer of oreign Exchange Motor Vehicle Registration uthority 233 Brokerage and commission income (including non-resident agents) Section Nature of Payment/Transaction 10% of the amount of payment 5% in case of advertising agents {Cl 26 PII, 2 nd Sch} ederal Government, Provisional government, Local authority, Company, OP constituted by or under any law. 233 Purchase & Sale of Shares Stock Exchange djustable () / inal Discharge ()

10 On purchase of shares in lieu of the commission earned by its Members 0.01% registered in Pakistan Minimum Tax On sale of shares in lieu of the commission earned by its Members. rom its Members in respect of trading of shares rom its members in respect of financing of carryover trade (Badla) in shares business 234 Tax on Motor Vehicles rom plying or hiring of goods transport; 234 Reduced rates for goods transport vehicle with laden weight of 8120 kg or more after a period ten years from the date of first registration of the vehicle in Pakistan Passenger transport ll Private Motor Cars including less than 1000 cc 0.01% Minimum Tax 0.01% Minimum Tax 10.00% One Rupee per KG of the laden weight Rs Rs. 25 to Rs. 100 per seat Rs. 750 to Rs. 8,000 per annum On the amount of gas bill of a CNG 4.00% 235 Electricity Commercial/Industrial Consumer of electricity Upto Rs. 20,000 (Rs. 80 to Rs. 1,500) bove Rs. 20,000 (10% for Commercial & 5% for Industrial Consumers) Person collecting motor vehicle tax Person preparing Gas consumption bill Person preparing electricity bills MT upto the monthly bill amount of Rs. 30,000) otherwise adjustable. ully adjustable for companies

11 Section Nature of Payment/Transaction 236 Telephone Telephone Subscribers (Bill exceeding Rs. 1,000/-) Mobile telephones & prepaid telephone cards. 236 Sale of units through any electronic medium or whatever form 10% 10% Person preparing telephone bills / issuing or selling prepaid card or sale of units through any electronic medium or whatever form for mobile phones. dvance tax at the time of sale by auction (including confiscated or attached) properties 5% Every person djustable () / inal Discharge () 236B dvance tax on purchase or air ticket 5% Person preparing ir ticket

CHART OF WITHHOLDING TAX UNDER THE INCOME TAX ORDINANCE, 2001

CHART OF WITHHOLDING TAX UNDER THE INCOME TAX ORDINANCE, 2001 148 Part II Imports Collector of Customs 5% of the value of goods Rate reduced of 1% for 149 Division I of Part I 150 Division III items mentioned in clause (9), 13(E), (13G), (23), 3% for items mentioned