Islamabad, August 3, 2025 – The Federal Board of Revenue (FBR) has said that the withholding tax rate for sports persons has been enhanced to 15% from fiscal year 2025-26.
The FBR issued Income Tax Circular No. 1 for 2025-26 to explain major changes brought through Finance Act, 2025 to amends provisions of the Income Tax Ordinance, 2001.
The FBR said that withholding tax rates on non-categorized services under section 153 of the Income Tax Ordinance, 2001 applicable prior to Finance Act, 2025 were applied at the rate 9% and 11% for company and other than companies respectively. The rate of withholding for Sports Person was 10%.
Similarly, under section 152 and 153 of the Ordinance categorized services were chargeable to withholding tax at the rate of 4%.
The FBR said that through Finance Act, 2025 the withholding tax rate for unspecified services as well as for sports person will be charged at the flat rate of 15%.
However, for specified services mentioned under section 152 the withholding tax rate have been increased from 4%o to 8%; and the rate under section 153 is increased from 4% to 6% excluding lT and lT enabled services which will continue to be subject to withholding tax rate of 4%.