FBR Designates 34 Banks as SWAPS Withholding Tax Agents

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Karachi, December 10, 2024 – The Federal Board of Revenue (FBR) has officially designated 34 banks to act as agents under the Synchronized Withholding Administration and Payment System (SWAPS). This initiative is intended to streamline the deduction and collection of withholding taxes, integrating these functions into the advanced SWAPS portal.

The designation was formalized through SRO 2041(I)/2024, with the FBR notifying the following banks as SWAPS agents:

1. Al Baraka Bank (Pakistan) Limited

2. Allied Bank Limited

3. Askari Bank Limited

4. Bank Al-Falah Limited

5. Bank Al-Habib Limited

6. Bank Islami Pakistan Limited

7. Bank of China Limited

8. Citi Bank N.A.

9. Deutsche Bank AG

10. Dubai Islamic Bank Pakistan Limited

11. Faysal Bank Limited

12. First Women Bank Limited

13. Habib Bank Limited

14. Habib Metropolitan Bank Limited

15. Industrial and Commercial Bank of China

16. Industrial Development Bank of Pakistan Limited

17. JS Bank Limited

18. MCB Bank Limited

19. MCB Islamic Bank Limited

20. Meezan Bank Limited

21. National Bank of Pakistan

22. Punjab Provincial Cooperative Bank Limited

23. Samba Bank Limited

24. SILK Bank Limited

25. Sindh Bank Limited

26. SME Bank Limited

27. Soneri Bank Limited

28. Standard Chartered Bank (Pakistan) Limited

29. Summit Bank Limited

30. The Bank of Khyber

31. The Bank of Punjab

32. United Bank Limited

33. Zarai Tarqiati Bank Limited

34. State Bank of Pakistan

The FBR clarified that these banks are responsible for collecting and depositing withholding taxes under Sections 153(1)(a) and 153(1)(b) of the Income Tax Ordinance, 2001. Until the SWAPS system is fully operational, the banks will continue their tax collection duties under the existing withholding tax regime.

Integration with the SWAPS portal requires compliance with specified parameters and APIs shared with these banks. Once fully implemented, SWAPS is expected to enhance tax administration by synchronizing and automating withholding tax processes, thereby improving transparency and efficiency.

This measure is part of the FBR’s broader efforts to modernize Pakistan’s tax collection systems and integrate advanced technology to enhance compliance and reduce manual errors.