The Federal Board of Revenue (FBR) has announced the updated rates of withholding tax on the usage of telephone and internet services for the fiscal year 2021-2022.
(more…)Tag: withholding tax card 2021-2022
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Tax rates on electricity consumption during 2021-2022
ISLAMABAD: The Federal Board of Revenue (FBR) has announced revised withholding tax rates for electricity consumption by both commercial and domestic consumers, effective from July 1, 2021. These updates, implemented under Section 235 of the Income Tax Ordinance, 2001, were introduced through the Finance Act, 2021.
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Tax rates on passenger, goods transport vehicles
Tax rates on passenger, goods transport vehicles have been revised by the Federal Board of Revenue (FBR) to rationalize applicable rates.
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Tax rates on brokerage, commission for 2021-2022
The Federal Board of Revenue (FBR) has issued updated rates of withholding tax on brokerage and commission during fiscal year 2021-2022.
The tax authorities collect withholding tax on brokerage and commission under Section 233 of the Income Tax Ordinance, 2001. The withholding tax rates have been updated after incorporating amendments brought through Finance Act, 2021.
The withholding tax shall collect by federal government, provincial government, local authority, company, Association of Persons (AOPs) or individual having turnover of Rs100 million or more constituted by or under any law or principal.
The tax shall be collected from recipient of brokerage or commission or agent at the time brokerage or commission is actually paid.
The tax deducted/collected shall be minimum tax liability.
WITHHOLDING TAX CARD 2021/2022
Following is the withholding tax rates:
Where any payment on account of brokerage or commission is made by the Federal Government, a Provincial Government, a Local Government, 22a company or an association of person or individual having turnover of hundred million rupees or more
In case of:
(i) Advertising agents: the tax rate shall be 10 per cent and in case the person is not appearing on the Active Taxpayers List (ATL) issued by the FBR the tax rate shall be 20 per cent.
(ii) Life insurance agents where commission received is less than Rs0.5 million per annum: the tax rate shall be 8 per cent and in case the person is not appearing on the ATL the tax rate shall be 16 per cent.
(iii) Persons not covered in 1 & 2: the tax rate shall be 12 per cent and in case persons are not appearing on the ATL the tax rate shall be 24 per cent.
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Tax rates on unregistered new cars during 2021-2022
In order to stop the ‘on money’ phenomenon, the government has slapped withholding tax on unregistered new motor cars or cars sold prior to first registration.
Through the Finance Act, 2021 the tax rates have been imposed for the year 2021/2022 and onwards. Initially, these rates were imposed through the Tax Laws (Amendment) Ordinance, 2021 for a period of 90 days.
The Federal Board of Revenue (FBR) collects the withholding tax under Section 231B (2A) of the Income Tax Ordinance, 2001.
Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer.
The provincial excise and taxation authorities collect tax on behalf of the FBR from persons getting new locally manufactured motor vehicles transferred in their name at the time of registration of the new motor vehicles.
WITHHOLDING TAX CARD 2021/2022
Following are the rates of withholding tax:
01. Car engine capacity up to 1000CC: the tax rate shall be 50,000; and in case the person is not on the Active Taxpayers List (ATL) the tax shall be Rs100,000.
02. Car engine capacity between 1001CC to 2000CC: the tax rate shall be Rs100,000; and in case the person is not on the ATL the rate shall be Rs200,000
03. Car engine capacity with 2001 and above: the tax rate shall be Rs200,000; and in case the person is not on the ATL the rate shall be Rs400,000
The tax collected/deducted shall be adjustable against the tax liability of the person.
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Withholding tax rates on transfer of motor car ownership
The Federal Board of Revenue (FBR) in Pakistan has announced the revised rates of withholding tax applicable to the transfer of registration or ownership of motor vehicles for the fiscal year 2021/2022.
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Withholding tax rates on petroleum products
The Federal Board of Revenue (FBR) has released updated rates for withholding income tax on petroleum products, incorporating amendments introduced through the Finance Act, 2021.
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Withholding income tax rates on prize bonds
Federal Board of Revenue (FBR) has issued updated rates of withholding income tax on winning of prize bonds during fiscal year 2021-2022.
The withholding tax rates have been updated after incorporating changes made through Finance Act, 2021.
WITHHOLDING TAX CARD 2021-2022
The FBR collects withholding tax under Section 156 of the Income Tax Ordinance, 2001.
The withholding tax shall be collected from every person making payment on account of winning of prize on prize bond, cross word, raffle, lottery and quiz from recipient of prize or winning at the time of the prize or winnings are actually paid.
A tax rate of 15 per cent of the gross amount shall be collected on payments made for prize on prize bond and cross word. The rate shall be increased by 100 per cent if the person is not appearing on the Active Taxpayers List (ATL).
A tax rate at 20 per cent of the gross amount shall be collected on payments on winning from a raffle, lottery, prize on winning a quiz, prize, offered by companies for promotion of sale crosswords puzzles.
However, the tax rate shall be increased by 100 per cent i.e. 40 per cent if person is not appearing on the ATL.
The tax rate shall be final against tax liability of the person.
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Tax rates on exports of goods, services for 2021-2022
Islamabad – The Federal Board of Revenue (FBR) has released updated withholding tax rates on exports of goods and services for the fiscal year 2021-2022.
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Withholding tax rates on retailers during 2021-2022
Islamabad, January 12, 2024 – The Federal Board of Revenue (FBR) has announced the withholding tax rates applicable to retailers at the time of sales by manufacturers for the fiscal year 2021-2022.
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