KARACHI: The rate of withholding tax on prizes and winning under Section 156 of Income Tax Ordinance, 2001 for Tax Year 2019.
The FBR issued Withholding Tax Card for Tax Year 2019 under which every person making payment to recipient on account of winning of prize on prize bond, cross word, raffle, lottery and quiz, shall collect following rates:
i. payment made for prize on quiz bond and cross word:
Filer: 15 percent
Non-filer: 25 percent
ii. Payments on winning from a raffle, lottery, prize on winning a quiz, prize, offered by companies for promotion of sale crossword puzzles, the withholding tax shall be 20 percent.
The withholding tax under Section 156 of the Ordinance shall be final tax for the recipient of prize payment.