 |
| Withholding Tax Card 2022-23 | Tax Card 2023 Pakistan |
This withholding tax card
summarizes amendments proposed in the Finance Bill 2022 in Income Tax
ordinance, which are effective from 01 July 2022. Our is aimed at providing general
guidance with the objective of keeping our clients abreast of the changes in
the aforementioned law.
Section 37: Capital Gain Tax on Sale of Immovable Property
|
Holding Period |
Open Plots |
Constructed Property |
Flats |
|
Under 1
Year |
15% |
15% |
15% |
|
More
than 1 year but less than 2 Years |
12.5% |
10% |
7.5% |
|
More
than 2 years but less than 3 Years |
10% |
7.5% |
0% |
|
More
than 3 years but less than 4 Years |
7.5% |
5% |
- |
|
More
than 4 years but less than 5 Years |
5% |
0% |
- |
|
More
than 5 years but less than 6 Years |
2.5% |
- |
- |
|
After 6
Years |
0% |
- |
- |
Section 37-A: Tax on Capital Gains on Sale of Securities
|
Holding Period |
Rate of Tax |
|
Under 1 Year |
15% |
|
More than 1 year
but less than 2 Years |
12.5% |
|
More than 2 years
but less than 3 Years |
10% |
|
More than 3 years
but less than 4 Years |
7.5% |
|
More than 4 years
but less than 5 Years |
5% |
|
More
than 5 years but less than 6 Years |
2.5% |
|
After 6
Years |
0% |
Section 149: For Salaried Individual
|
S. No. |
Taxable Income |
Rate of Tax |
|
1 |
Where
taxable income does not exceed Rs. 600,000 |
0 |
|
2 |
Where
taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 |
2.5% of
the amount exceeding Rs. 600,000 |
|
3 |
Where
taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 |
Rs.
15,000/- + 12.5% of the amount exceeding Rs. 1,200,000 |
|
4 |
Where
taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000 |
Rs.
165,000/- + 20% of the amount exceeding Rs. 2,400,000 |
|
5 |
Where
taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000 |
Rs.
405,000/- + 25% of the amount exceeding Rs. 3,600,000 |
|
6 |
Where
taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000 |
Rs.
1,005,000/- + 32.5% of the amount exceeding Rs. 6,000,000 |
|
7 |
Where
taxable income exceeds Rs. 12,000,000 |
Rs.
2,955,000/- + 35% of the amount exceeding Rs. 12,000,000 |
Tax Rates for Individual / AOP (Non-Salaried)
|
S. No. |
Taxable Income |
Rate of Tax |
|
1 |
Where
taxable income does not exceed Rs. 600,000 |
0 |
|
2 |
Where
taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000 |
5% of
the amount exceeding Rs. 600,000 |
|
3 |
Where
taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 |
Rs. 10,000/-
+ 12.5% of the amount exceeding Rs. 800,000 |
|
4 |
Where
taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 |
Rs. 60,000/-
+ 17.5% of the amount exceeding Rs. 1,200,000 |
|
5 |
Where
taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 |
Rs. 270,000/-
+ 22.5% of the amount exceeding Rs. 2,400,000 |
|
6 |
Where
taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 |
Rs. 405,000/-
+ 27.5% of the amount exceeding Rs. 3,000,000 |
|
7 |
Where
taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000 |
Rs. 680,000/-
+ 32.5% of the amount exceeding Rs. 4,000,000 |
|
8 |
Where
taxable income exceeds Rs. 6,000,000 |
Rs. 1,330,000/-
+ 35% of the amount exceeding Rs. 6,000,000 |
Section 155: Rent Individuals and AOPs (Double tax in case of Non-filer)
|
S. No. |
Taxable Income |
Rate of Tax |
|
1 |
Where
annual Rent does not exceed Rs. 300,000 |
0 |
|
2 |
Where
annual Rent exceeds Rs. 300,000 but does not exceed Rs. 600,000 |
5% of
the amount exceeding Rs. 600,000 |
|
3 |
Where annual
Rent exceeds Rs. 600,000 but does not exceed Rs. 2,000,000 |
Rs. 15,000/-
+ 10% of the amount exceeding Rs. 600,000 |
|
4 |
Where annual
Rent exceeds Rs. 2,000,000 |
Rs. 155,000/-
+ 25% of the amount exceeding Rs. 2,000,000 |
For Companies Rent
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
On Gross Rental Payment
|
15% |
30% |
Companies Rates
|
Category |
Rate of Tax |
|
Small
Company |
20% |
|
Banking
Company |
39% |
|
Any
other Company |
29% |
Section 113: Minimum Tax
|
Person |
Minimum
Tax as percentage
of the person’s
turnover for the year |
||
|
a. SNGPL and SSGCL (annual turnover exceeds Rs. 1 billion b. PIA c. Poultry industry including poultry breeding, broiler production, egg production and poultry feed production |
0.75% |
||
|
a. Oil refineries b. Motorcycle dealer (Sales
Tax Registered) c. Oil Marketing companies
|
0.50% |
||
|
0.25% |
||
|
In all other cases |
1.25% |
Section 148: Imports
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
On Gross Rental Payment
|
15% |
30% |
|
Persons importing goods classified in Part I of the Twelfth Schedule Manufacturers covered under SRO 1125(I)/2011 dated December 31, 2011 (as it stood on June 28, 2019) Importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs with 150 kwh battery or below |
1% of the import value as increased by customs-duty, sales tax and federal excise duty |
2% of the import value as increased by customs-duty, sales tax and federal excise duty |
|
Persons Importing Goods Classified in Part II of The Twelfth Schedule |
2% of the import value as increased by customs-duty, sales tax and federal excise duty except commercial importers |
4% of the import value as increased by customs-duty, sales tax and federal excise duty except commercial importers |
|
|
2% of the import value as increased by customs-duty, sales tax and federal excise duty |
4% of the import value as increased by customs-duty, sales tax and federal excise duty |
|
In case of commercial importers
|
3.5% of the import value as increased by customs-duty, sales tax and federal excise duty |
7% of the import value as increased by customs-duty,
sales tax and federal excise duty |
|
Persons importing finished pharmaceutical that are not manufactured in Pakistan, as certified by DRAP |
4% |
8% |
|
|
5.5% of the import value as increased by customs-duty, sales tax and federal excise duty |
11% of the import value as increased by customs-duty, sales tax and federal excise duty |
Section 153 Payments of Goods, Services & Contract
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
For sale of rice, cotton seed or edible oils
|
1.50% |
3% |
|
For sale of other goods including toll manufacturing services by company |
4% |
8% |
|
For
payment to distributors, dealers, sub-dealers, wholesalers and retailers of
fast-moving consumer goods, fertilizer, electronics excluding mobile phones,
sugar, cement, steel and edible oil if appearing on ATL issued under STA,
1990, ITO, 2001. Tier-1 Retailers integrated with FBR’s software for real
time reporting.
|
0.25% |
8% |
|
For sale of other goods including toll manufacturing services by persons other than company
|
4.50% |
9% |
|
Services Transport
services, freight forwarding services, air cargo services, courier services,
manpower outsourcing services, hotel services, security guard services,
software development services, IT services and IT enabled services as defined
in section 2, tracking services, advertising services (other than print or
electronic media), share registrar services, engineering services including
architectural services, warehousing services, services rendered by asset
management companies, data services provided under license issued by the
Pakistan Telecommunication Authority, telecommunication infrastructure
(tower) services, car rental services, building maintenance services,
services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange
Limited, inspection, certification, testing and training services, oilfield
services, telecommunication services, collateral management services, travel
and tour services, RIET management services, services rendered by National
Clearing Company of Pakistan Limited. |
3% |
6% |
|
Other service provided by the Companies (if Annual Services > 30K) |
8% |
16% |
|
Other service provided by other than Companies (if Annual Services > 30K) |
10% |
20% |
|
Advertisement services of print and electronic media by a Company |
1.50% |
3% |
|
Advertisement services of print and electronic media by other than Companies |
1.50% |
3% |
|
Exporter making payment for stitching, dying, printing, embroidery, washing, weaving and sizing |
1.00% |
2% |
|
Sale of gold, silver, and
articles |
1.00% |
2% |
|
Execution of contracts by
Companies |
6.50% |
11% |
|
Execution of contracts by other than Companies |
7.00% |
14% |
|
Payments to sportsperson |
10% |
20% |
Description | Rate of Tax Filer | Rate of Tax Non-Filer | |
Royalty or Fee for technical services paid to non-resident
| 15% | 30% | |
Payment for construction/advertisement contracts
| 7% | 14% | |
Fee for offshore digital and other specified services
| 10% | 20% | |
Insurance premium or reinsurance premium
| 5% | 10% | |
Advertisement services relaying from outside Pakistan
| 10% | 20% | |
**Payment to PE of a non-resident company for Services Transport services, freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services, IT services and IT enabled services as defined in section 2, tracking services, advertising services (other than print or electronic media), share registrar services, engineering services including architectural services, warehousing services, services rendered by asset management companies, data services provided under license issued by the Pakistan Telecommunication Authority, telecommunication infrastructure (tower) services, car rental services, building maintenance services, services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited, inspection, certification, testing and training services, oilfield services, telecommunication services, collateral management services, travel and tour services, RIET management services, services rendered by National Clearing Company of Pakistan Limited.*** | 3% | 6% | |
Payment to PE of a non-resident company for services other than as listed above**
| 8% | 16% | |
| 10% | 20% | |
| Payment to PE of a non-resident person for contracts | 7% | 14% | |
Payment to PE of a non-resident sportsperson | 10% | 20% |
Section 154A: Payment for Export of Services
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Exports proceeds of computer software or IT services or IT enabled services by persons registered with Pakistan Software Export Board. |
0.25% of the proceeds |
0.25% of the proceeds |
|
Any other case
|
1% of the proceeds |
1% of the proceeds |
Section 156: Prizes and Winnings
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Winnings from prize bond or cross word puzzle . |
15% |
30% |
|
Winnings from raffle, lottery, prize on quiz prize offered for sale promotion
|
20% |
40% |
Section 156A Petroleum Products
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Petroleum Products
|
20% |
40% |
Rate of Super Tax on High Earning Persons
|
Category |
Rate of Tax |
|
0 to
150,000,000 |
0% of the income |
|
150,000,001 to 200,000,000 |
1% of the income
|
|
200,000,001 to 250,000,000 |
2% of the income
|
|
250,000,001 to 300,000,000 |
3% of the income
|
|
250,000,001 to 300,000,000 |
4% of the income
|
|
Bank
Companies |
10% |
|
Airlines, Automobiles, beverages,
cement, chemicals, cigarette and tobacco,
fertilizers, iron and steel, LNG terminals, oil marketing, oil refining, petroleum and gas exploration and textiles
|
10% of the income |
Section 231B (2) Advance Tax on Transfer of Private Motor Car/Jeep (Tax rate shall be reduced by 10% each year from the date of 1st registration)
|
Engine capacity |
Rate Filer |
Rate Non-Filer |
|
upto 850CC |
0 |
0 |
|
More than 851CC and less than 1,000CC |
5,000 |
10,000 |
|
More than 1,001CC and less than 1,300CC |
7,500 |
15,000 |
|
More than 1,301CC and less than 1,600CC |
12,500 |
25,000 |
|
More than 1,601CC and less than 1,800CC |
18,500 |
37,500 |
|
More than 1,801CC and less than 2,000CC |
25,000 |
50,000 |
|
More than 2,001CC and less than 2,500CC |
37,500 |
75,000 |
|
More than 2,501CC and less than 3,000CC |
50,000 |
100,000 |
|
More than 3,000CC |
62,500 |
125,000 |
Section
231B (2A) Locally Manufactured Motor Vehicle Sold Prior To Registration
|
Engine capacity |
Rate Filer |
Rate Non-Filer |
|
upto 1,000CC
|
50,000 |
100,000 |
|
More
than 1,001CC and less than 2,000CC
|
100,000 |
200,000 |
|
More
than 2,000CC |
200,000 |
400,000 |
Section 234: Private Motor Vehicle
|
Engine capacity |
Rate Filer |
Rate Non-Filer |
|
Upto 1,000 CC
|
800 |
1,600 |
|
More
than 1001 CC and less than 1,199 CC
|
1,500 |
3,000 |
|
More
than 1,001 CC and less than 1,299 CC
|
1,750 |
3,500 |
|
More
than 1,301 CC and less than 1,499 CC
|
2,500 |
5,000 |
|
More
than 1,501CC and less than 1,599 CC
|
3,750 |
7,500 |
|
More
than 1,600 CC and less than 1,999 CC
|
4,500 |
9,000 |
|
2000
CC and above
|
10,000 |
20,000 |
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
In case commission is paid to advertising agent . |
10% |
20% |
|
In case commission is paid to life insurance agent receiving annual commission of less than 500,000 |
8% |
8% |
|
In all other cases
|
12% |
24% |
Section 235: Advance Tax on Electricity Bill (Commercial & Industrial Consumers)
|
Gross amount of Bill |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Up
to Rs. 500 |
10% |
10%
|
|
Exceeds Rs. 500 but does not
exceed Rs. 20,000
|
10% of the amount |
10% |
|
Exceeds Rs. 20,000 –
Commercial Consumers
|
Rs. 1950 plus 12% of the amount exceeding 20,000 |
12% |
|
Industrial Consumers |
Rs. 1950 plus 5% of the amount exceeding 20,000 |
10% |
For Domestic Consumers (not appearing on Active Taxpayer List)
|
Gross amount of Bill |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Less than Rs. 25,000 |
0 |
0 |
|
Rs. 25,000 or more |
0 |
7.5% |
Section 235 Final tax from [Retailers (other than Tier-1) and specified services providers] through commercial electricity connections
|
Gross amount of Bill |
Tax |
Gross amount of Bill |
|
Up to Rs. 30,000 |
Rs. 3,000
|
Up to Rs. 30,000 |
|
30,001-50,000
|
Rs. 5,000
|
30,001-50,000
|
|
50,001-100,000
|
Rs. 10,000
|
50,001-100,000
|
|
Retailers and
service providers as notified by FBR
|
Upto
Rs. 200,000
|
Retailers and service
providers as notified by FBR
|
Section 236 Telephone Subscribers and Internet
|
Description |
Rate of Tax |
Description |
|
For Mobile phone and/or internet subscribers . |
8%
|
For Mobile phone and/or internet subscribers . |
|
For other subscribers where monthly bill is more than 1,000 |
10% of amount above 1,000 |
For other subscribers where monthly bill is more than 1,000 |
236A Auction Sales
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Advance tax at the time of sale by auction of immovable property . |
5.00%
|
10% |
|
Advance tax at the time of sale by auction of other then immovable property |
10.00%
|
20% |
Section 236C: Sale of Property
|
Description |
Rate of Tax Filer
|
Rate of Tax Non-Filer
|
|
Advance tax at the time of sale or transfer of immovable property |
2%
|
4% |
Section 236K Purchase of Property
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Advance tax on purchase of property immovable property |
2%
|
7% |
Section 236CA TV Plays and Advertisements
|
Description |
Rate of Tax |
|
Foreign produced TV drama
serial or play . |
Rs. 1,000,000 per episode
|
|
Foreign Produced TV play
(single episode)
|
Rs. 3,000,000
|
|
Advertisement starring foreign
actor
|
Rs. 100,000 per second
|
Section 236G Distributors
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Advance tax on sale to distributors, dealers or wholesalers (fertilizers) appearing on ATL under ITO, 2001 and STA, 1990
|
0.25%
|
0.50% |
|
Advance tax on sale to distributors, dealers or wholesalers (fertilizers)-others
|
0.70%
|
1.40% |
|
Advance tax on sale to distributors, dealers or wholesalers (other than fertilizers)
|
0.10%
|
0.20% |
Section 236H Retailers
|
Description |
Rate of Tax Filer |
Rate of Tax Non-Filer |
|
Advance tax on sale to retailers
|
0.5%
|
1% |
236Y Payment remitted abroad
|
Description |
Rate of Tax |
Description |
|
Advance tax on amount
remitted abroad through Debit, credit, or prepaid cards
|
1% of gross amount remitted abroad
|
Advance tax on amount
remitted abroad through Debit, credit, or prepaid cards
|
