Pakistan Withholding Tax Card 2026-27
Every withholding & advance-tax provision of the Income Tax Ordinance, 2001 — with filer (ATL) and non-filer rates side by side — as amended by the Finance Bill 2026. One page to keep open all year.
Prepared by Trustpoint Consultants — Tax, Advisory & Assurance. Based on the Income Tax Ordinance 2001 (amended to 20 Feb 2026) as further amended by the Finance Bill 2026. General information, not tax advice (see note at the end).
What the Finance Bill 2026 changed for withholding
If you only scan one section, scan this. These are the moves that change how much is deducted from your payments and receipts from 1 July 2026.
Property got cheaper to transact Cut
Seller advance tax (236C) drops to a flat 2.75% and buyer (236K) to 1.25%. The Section 7E deemed-income tax and its transfer certificate are abolished.
Salaried relief Changed
Slabs restructured — the 35% top rate now starts at Rs 7m, and the 9% surcharge on high earners is gone.
A tax on creators New
Social-media / platform revenue (YouTube, Meta, TikTok) now carries a 5% withholding via banks (s.154B).
Independent professionals New
Doctors, lawyers, accountants and the like face a 15% service withholding (s.153), up from the general specified-services rate.
E-commerce in the net New
Digitally ordered goods/services withheld at 1% (digital/bank) or 2% (cash on delivery) under s.153(2A).
Exporters & IT favoured Cut
Goods export set at 1.25% (the separate 1% u/s 147(6C) withdrawn); the 0.25% IT/ITeS rate extended to TY2029.
Life-insurance gains New
Early-encashment gains taxed 15% (within 1 yr) / 10% (1–7 yrs); exempt on death, disability, or after 7 years (s.7G/151B).
Cheaper card spend abroad Cut
Remittance abroad via debit/credit/prepaid card (236Y) cut to 0.5% for filers.
The biggest lever isn't a section — it's being a filer
Across almost the entire card, the non-filer (non-ATL) rate is the filer rate increased by 100% — i.e., doubled (Tenth Schedule, Rule 1). Vehicles (231B) are tripled. A few collections (236C, 236G, 236H, 236K) carry their own fixed non-filer rates, and a handful (salary, exports, electricity, telephone) don't increase at all.
What that means in rupees: on a Rs 10,000,000 base, here's the difference being on the Active Taxpayers List makes.
| Transaction | Filer | Non-filer | Extra cost of not filing |
|---|---|---|---|
| Sale of goods — company (s.153) | 5% = Rs 500,000 | 10% = Rs 1,000,000 | +Rs 500,000 |
| Services — other (s.153) | 14% = Rs 1,400,000 | 28% = Rs 2,800,000 | +Rs 1,400,000 |
| Sale of property — seller (236C) | 2.75% = Rs 275,000 | 11.5% = Rs 1,150,000 | +Rs 875,000 |
| Dividend (s.150) | 15% = Rs 1,500,000 | 30% = Rs 3,000,000 | +Rs 1,500,000 |
Salary — Section 149 (TY 2026-27 slabs)
The slabs were re-cut: two new intermediate rates (29% and 32%) mean the punishing 35% rate now begins only above Rs 7 million (was Rs 4.1m), and the 9% surcharge on income over Rs 10m is gone.
| Annual taxable income (Rs) | Tax |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of amount over 600,000 |
| 1,200,001 – 2,200,000 | 6,000 + 11% over 1,200,000 |
| 2,200,001 – 3,200,000 | 116,000 + 20% over 2,200,000 |
| 3,200,001 – 4,100,000 | 316,000 + 25% over 3,200,000 |
| 4,100,001 – 5,600,000 | 541,000 + 29% over 4,100,000 |
| 5,600,001 – 7,000,000 | 976,000 + 32% over 5,600,000 |
| Over 7,000,000 | 1,424,000 + 35% over 7,000,000 |
Goods, services & contracts — Section 153
The workhorse of the withholding regime. Filer rates shown; non-filer is double unless noted.
| Payment | Filer | Non-filer | Status |
|---|---|---|---|
| Sale of goods — company / other | 5% / 5.5% | 10% / 11% | Minimum |
| Rice, cotton-seed, edible oils | 1.5% | 3% | Minimum |
| Toll manufacturing — company / other | 9% / 11% | 18% / 22% | Minimum |
| Services — specified list B26 | 7% | 14% | Minimum |
| Services — IT / IT-enabled | 4% | 8% | Minimum |
| Independent professionals New | 15% | 30% | Minimum |
| Other services | 14% | 28% | Minimum |
| Advertising to print / electronic media | 1.5% | 3% | Minimum |
| Terminal / port operator services New | 12% | 24% | Minimum |
| Contracts — company / other | 7.5% / 8% | 15% / 16% | Minimum |
| E-commerce — digital / cash-on-delivery New | 1% / 2% | 2% / 4% | Min / Adj |
Property & other collections — 236-series
| Transaction | Filer | Non-filer | Status |
|---|---|---|---|
| Sale of immovable property — seller (236C) B26 | 2.75% | 11.5% | Adj / Min |
| Purchase of immovable property — buyer (236K) B26 | 1.25% | 10.5–18.5% | Adjustable |
| Sale by auction — general / immovable (236A) | 10% / 5% | 20% / 10% | Adjustable |
| Functions & gatherings — halls, marquees (236CB) | 10% | 20% | Adjustable |
| Sale to distributors / dealers (236G) | 0.1–0.7% | 1.4–2% | Minimum |
| Sale to retailers (236H) | 0.5% | 2.5% | Minimum |
| Remittance abroad via card (236Y) B26 | 0.5% | 1% | Adjustable |
Dividends, Sukuk & profit on debt
| Payment | Filer | Non-filer | Status |
|---|---|---|---|
| Dividend — general & REIT (s.150) | 15% | 30% | Final |
| Dividend — company paying no tax | 25% | 50% | Final |
| Mutual funds — debt / equity | 25% / 15% | 2× | Final |
| Sukuk return — company / individual | 25% / 10–12.5% | 2× | Final |
| Profit on debt — non-individuals / others (s.151) | 20% / 15% | 40% / 30% | Final / Adj |
| Bonus shares (236Z) | 10% | 10% | Final |
Exports & the new digital net
| Receipt | Filer | Non-filer | Status |
|---|---|---|---|
| Export proceeds — goods (s.154) B26 | 1.25% | Same | Final |
| Export of IT / IT-enabled services (s.154A) B26 | 0.25% | Same | Final / Min |
| Export of other services | 1% | Same | Final / Min |
| Social-media revenue — resident (s.154B) New | 5% | 10% | Minimum |
| Social-media revenue — non-resident New | 5% | 5% | Final |
5 withholding mistakes that cost businesses real money
- Treating minimum tax as adjustable. Much of s.153 is minimum tax — you can't claim it back even at a loss. Knowing which deductions are Final / Minimum / Adjustable changes your effective rate entirely.
- Staying off the ATL "to keep it simple." As shown above, non-filing routinely doubles the tax withheld — and the late-filer relief has now been removed.
- Not reconciling withheld tax with your return. Adjustable deductions (236C, 236K, profit on debt for individuals, etc.) are refundable/creditable — but only if claimed and reconciled. Most SMEs leave money with the FBR.
- Missing the new nets. Social-media income, e-commerce sales and independent-professional services are now withheld at source — budget for it before it surprises your cash flow.
- Ignoring the Rs 100m bank-reporting trigger. Large deposits/withdrawals are now algorithmically cross-matched against declarations. Documentation isn't optional anymore.
How Trustpoint helps
Withholding agent compliance
Setting up correct deduction, monthly statements and reconciliation so you never over- or under-withhold.
ATL & filer strategy
Getting (and keeping) you on the Active Taxpayers List to halve withholding and recover adjustable tax.
Refunds & reconciliations
Reclaiming the adjustable tax most businesses quietly leave with the FBR each year.
Property & transaction planning
236C / 236K, capital gains and the end of 7E — structured before you sign.
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