Introduction Withholding tax on residents is collected under Section 153 of the Income Tax Ordinance, 2001. According to Section 81 of the Income Tax Ordinance, 2001, “A person shall be a resident person for a tax year if the person is — (a) a resident individual, resident company or resident association of persons for the … Read more
Introduction Withholding tax on payments to non residents in Pakistan is applicable under Section 152 of the Income Tax Ordinance, 2001. The rate of withholding tax on payments to non-residents varies depending on the nature of the payment. Some common examples of payments to non-residents subject to withholding tax in Pakistan include: Royalty; Fee for … Read more
Introduction The tax rate for payment to non resident under Section 152 of the Income Tax Ordinance, 2001 is given in the First Schedule of the Income Tax Ordinance 2001. Tax Rate for Payment to Non Resident for Royalty and Fee for Technical Services The withholding tax rate on payment of royalty and fee for … Read more
Introduction In Pakistan, withholding tax on profit on debt is applicable to interest income earned from various types of debt instruments, including bonds, debentures, and other securities. The profit on the debt has the same connotation as interest or markup. The profit on debt in Pakistan under Section 151 of the Income Tax Ordinance, 2001 … Read more
Introduction Withholding tax on dividends in Pakistan is deducted under Section 150 of the Income Tax Ordinance, 2001. Dividends are a great way to make money, but in Pakistan, you need to be aware of withholding tax on them. This tax is deducted from the dividends that you receive and goes directly to the government. … Read more
Introduction Withholding tax on salary income is deducted under Section 149 of the Income Tax Ordinance 2001. Withholding tax on salary is deducted by an employer while paying salaries to the employees at the prescribed rates. According to Section 149 of the Income Tax Ordinance, 2001, an employer or his designated person shall withhold/deduct … Read more
Introduction The tax rate on salary in Pakistan is given in the Division I Part I of the First Schedule of the Income Tax Ordinance, 2001: Salary Income Rate Where the salary income=<600,000 0% 1,200,000>=Salary income>600,000 5% of the amount>600,000 2,200,000>=Salary income>1200,000 30,000+15% of amount>1,200,000 3,200,000>=Salary income>2,200,000 180,000+25% of amount>2,200,000 4,100,000>=Salary income>3,200,000 430,000+30% of amount>3,200,000 … Read more
Introduction Withholding sales tax under Sales Tax Act 1990 is deducted in accordance with the provisions of Section 3(7) of Sales Tax Act 1990, read as given below: “The tax shall be withheld at the rate as specified in the Eleventh Schedule, by any person or class of persons being purchaser of goods or services, … Read more
Introduction The Eleventh Schedule of the Sales Tax Act, 1990 describes the rates for withholding of sales tax in accordance with the Section 3(7) of the Sales Tax Act, 1990. Withholding Sales Tax Rates Under Eleventh Schedule Active Taxpayers Under Eleventh Schedule the Federal and provincial government departments; autonomous bodies; and public sector organizations and … Read more
Advance Tax under Section 147 According to Section 147 of the Income Tax Ordinance, 2001, “every taxpayer whose income was charged to tax for the latest tax year under this Ordinance or latest assessment year under the repealed Ordinance other than – dividend income certain payments to non-residents-royalty, fee for offshore digital services, fee for … Read more
