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Tag: withholding tax card

  • Withholding tax rates on payment for goods and services during Tax Year 2019

    Withholding tax rates on payment for goods and services during Tax Year 2019

    KARACHI: Federal Board of Revenue (FBR) has updated withholding tax card for tax year 2019 amendment through Finance Supplementary (Second Amendment) Act, 2019.


    Following are the withholding tax rates applicable on payment for goods and services under Section 153 of Income Tax Ordinance, 2001.


    Under this section every withholding agent prescribed under the ordinance shall collect withholding tax from resident person, and permanent establishment in Pakistan of a non-resident at the time the amount is actually paid.


    The withholding tax rates under Section 153(I)(a):


    For sale of rice, cotton seed oil and edible oil the tax rate shall be 1.5 percent of gross amount.


    Supply made by distributors of fast moving consumer goods shall be 2 percent of gross amount in case of company and 2.5 percent of gross amount in case of other than company.


    For sale of any other goods:


    (i) in the case of company the filer of income tax return shall pay 4 percent and the rate of withholding tax shall be 8 percent for non-filer.


    (ii) In the case of other than companies the tax rate for filer shall be 4.5 percent and 9 percent for non-filer.


    The FBR said that no deduction of tax where payment is less than Rs75,000 in aggregate during a financial year.


    The withholding tax rate for transport services under Section 153(1)(b) shall be two percent.


    All others under the section shall be:


    (i) in the case of companies the filer shall pay 8 percent and 14.5 percent for non-filer.


    (ii) in all other than company taxpayers the withholding tax shall be 10 percent for filer and 17.5 percent for non-filer.


    (iii) Person making payment to electronic and print media for advertising services: filer shall pay 1.5 percent; non-filer shall pay 12 percent; and non-filer other than company shall pay 15 percent.


    The FBR said that no deduction of tax where payment is less than Rs30,000 in aggregated during a financial year.


    The rate of withholding tax on execution of contracts under Section 153(1)(c) shall be:


    (i) in case of sportsperson the rate shall be 10 percent


    (ii) in the case of companies the withholding tax rate for filers shall be 7 percent and 14 percent for non-filers.


    (iii) In the case of other than companies the rte of withholding tax shall be 7.5 percent for filers and 15 percent for non-filers.


    Every exporters or export house shall deduct tax on payments in respect of services of stitching, dying, printing etc. received or provided under Section 153(2) the withholding tax rate shall be one percent.


  • Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    KARACHI: Federal Board of Revenue (FBR) has issued updated withholding tax rates on purchase and registration of motor vehicles.

    The withholding tax rates have been updated through Finance Supplementary (Second Amendment) Act, 2019 as on March 09, 2019.
    The withholding tax rate on registration of motor vehicle to be collected by excise and taxation department of provincial government under Sub-Section 1 of Section 231B of Income Tax Ordinance, 2001:
     

    Registration of Motor VehicleFilerNon-Filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000

     
    Every leasing company or a scheduled bank or a non-banking financial institution or an investment bank or a modaraba or a development finance institution, whether shariah compliant or under conventional mode, at the time of leasing of a motor vehicle to a non-filer, either through ijara or otherwise, shall collect advance tax at the rate of four per cent of the value of the motor vehicle under Sub-Section 1A of Section 231B of Income Tax Ordinance.

    Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registration or ownership of a private motor vehicle, at the following rates under Sub-Section 2 Section 231B of Income Tax Ordinance, 2001:
     

    Engine CapacityTax for FilerTax for Non-Filer
    Up to 850CCRs 0Rs5,000
    851CC to 1000CCRs5,000Rs15,000
    1001CC to 1300CCRs7,500Rs25,000
    1301CC to 1600CCRs12,500Rs65,000
    1601CC to 1800CCRs18,750Rs100,000
    1801CC to 2000CCRs25,000Rs135,000
    2001CC to 2500CCRs37,500Rs200,000
    2501CC to 3000CCRs50,000Rs270,000
    Above 3000CCRs62,500Rs300,000

     
    Provided that no collection of advance tax under this sub-section shall be made on transfer of vehicle after five year from the date of first registration in Pakistan.

    Every manufacturer of a motor vehicle shall collect, at the time of sale of a motor car or jeep, advance tax at the following rates under Sub-Section 3 of Section 231B of Income Tax Ordinance, 2001 from the person to whom such sale is made:
     

    Engine CapacityTax for FilerTax for Non-filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000
  • Withholding tax card for dividend income, return on Sukuk: updated for Tax Year 2019

    Withholding tax card for dividend income, return on Sukuk: updated for Tax Year 2019

    KARACHI: Federal Board of Revenue (FBR) has updated withholding tax card for Tax Year 2019 incorporating amendment made to Income Tax Ordinance, 2001 through Finance Supplementary (Second Amendment) Act, 2001.

    Following are the withholding tax rates for dividend income and return on investment in Sukuk under Section 150 and Section 150 A updated up to March 09, 2019 for Tax Year 2019.

    Every persons paying dividend under Section 150 of Income Tax Ordinance, 2001 shall deduct withholding tax on the gross amount of dividend paid to the recipient at the following rates:

    a. Purchaser of Wapda privatized power project, company setups for power generation or company supplying coal exclusively to power generation projects: 7.50 percent

    b. the tax rate for filer (other than mentioned in (a) above): 15 percent

    c. non-filers (other than mentioned in (a) above): 15 percent

    i. in the case of collective investment scheme, REIT scheme or mutual funds, rate of tax on dividend paid shall be:

    Stock Fund: Individual 12.50 percent; company 12.5 percent; Association of Person (AOP) 12.5 percent.

    Money market Fund, Income Fund, or , REIT scheme or any other fund:

    Individual: filer 12.5 percent; non-filer 15 percent

    Company: filer 15 percent; non-filer 25 percent

    AOP: filer 12.5 percent; non-filer 15 percent

    ii. In case of Stock Fund if dividend recipient gain, the rate of tax shall be: 12.5 percent

    iii. In the case of Money Market Mutual Fund, the rate of tax on dividend paid up to Rs2.5 million, to a person (i.e. individual and AOP) other than company, shall be: 10 percent

    iv. In the case of Rental REIT, the rate of tax on dividend paid to an Individual shall be: 7.5 percent

    The withholding tax for return on investment in Sukuk under Section 150A shall be deducted by special purpose vehicle, company from Sukuk holders on payment of gross amount on return on investment.

    The withholding tax rates will be:

    a) In case the Sukuk- holder is a company: 15 percent

    b) In case the Sukuk – holder is an individual or an association of person, if the return on investment is more than one million: 12.50 percent

    c) In case the Sukuk – holder is an individual and an association of person, if the return on investment is less than one million, 10 percent, and

    d) In case the Sukuk – holder is a non-filer: 17.50 percent

  • Banks require to collect 5pc withholding tax on off-shore digital services

    Banks require to collect 5pc withholding tax on off-shore digital services

    Banks in Pakistan are now required to collect a 5 percent withholding tax on payments for off-shore digital services, according to the Withholding Tax Card for Tax Year 2019 released by the Federal Board of Revenue (FBR).

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  • Media to pay 20pc final tax on foreign produced advertisements

    Media to pay 20pc final tax on foreign produced advertisements

    The Federal Board of Revenue (FBR) in Pakistan has introduced a significant tax measure by imposing a 20% final tax on media at the time of payments for the production of commercial advertisements to foreign entities.

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  • Withholding tax rate on winning prize bonds

    Withholding tax rate on winning prize bonds

    The Federal Board of Revenue (FBR) has revealed the withholding tax rate on prize bonds and winning for Tax Year 2019, as outlined in Section 156 of the Income Tax Ordinance, 2001.

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  • Withholding tax rates on income from property for Tax Year 2019

    Withholding tax rates on income from property for Tax Year 2019

    The Federal Board of Revenue (FBR) has recently released the rates of withholding tax to be collected on income from property for Tax Year 2019.

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  • Withholding tax rates on profit on banking deposits

    Withholding tax rates on profit on banking deposits

    Withholding tax rates on profit on banking deposits have been updated for tax year 2019. In a significant development for the financial sector, the Federal Board of Revenue (FBR) has announced updated withholding tax rates on profit earned from banking deposits for the tax year 2019.

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  • Withholding income tax rates at import stage for tax year 2019

    Withholding income tax rates at import stage for tax year 2019

    Withholding income tax rates that will be deducted at the import stage for the tax year 2019 have been unveiled, giving importers in Pakistan a clear picture of their tax obligations.

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  • Salary tax slab of above Rs800,000 to pay Rs2,000 as minimum tax

    Salary tax slab of above Rs800,000 to pay Rs2,000 as minimum tax

    Islamabad – The Federal Board of Revenue (FBR) has introduced a minimum tax for salary individuals with taxable income exceeding Rs800,000 but not exceeding Rs12,000 for Tax Year 2019.

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