Withholding Tax Calculator

Every payment has a WHT rate - goods, services, contracts and imports, filer and non-filer.

Withholding tax

Deductible withholding on business payments under the FBR 2025-26 first schedule.

Payment type

Payment amountRs

Recipient status

Withholding computation

Applicable rate

4.0%

Amount to withhold

Rs 20,000

Net payment to recipient

Rs 4,80,000

Deposit reminder

Payment

Rs 5,00,000

Deposit with FBR by the 7th (or 10th for banks) of the following month and generate the challan on the portal.

What does this calculator do?

The withholding tax calculator Pakistan 2025-26 covers the most common withholding deductions made by buyers, companies and individuals under the Income Tax Ordinance 2001. Pick the type of payment - supply of goods, services, contracts, imports, rent, commission or petroleum - enter the invoice amount, state whether the counterparty is a filer or non-filer, and the calculator shows the exact amount to deduct and deposit.

Withholding can be final or adjustable, normal or higher for non-filers. Businesses use this tool every day, because depositing the right amount on time - or the wrong one - is the difference between an audit-clean file and a penalty notice.

How to use it

The calculator asks three questions: what kind of payment you are making, how much, and whether the recipient is a registered taxpayer (filers) or not (non-filers). Change any input and the rate refreshes instantly from the Section 153/148 tables plus the non-filer enhancement of Section 231AB.

Pick the transaction type from the list.
Enter the payment amount.
Switch the filer / non-filer control for the recipient.
Read the amount to withhold and the effective rate.

Rate chart - Tax Year 2025-26

Transaction	Filer rate	Non-filer rate
Supply of goods (Rs 153)	4%	7%
Supply of services (Rs 153)	8%	10%
Contract execution (Rs 153)	8%	12%
Imports of goods (Rs 148)	1% - 5.5%	+2%
Rent of machinery (Rs 155)	11%	16%
Commission on goods (Rs 156)	7%	12%

How the calculation works

Every payment type has its own rate in the First Schedule. For example, Section 153 charges 5% on the supply of goods to a filer and 7% to a non-filer, 8% (filer) and 10% (non-filer) on services, and 12% on contracts and 13% on contracts with a labour component for non-filers. Import payments under Section 148 run from 1% up to 5.5% depending on the customs classification with an additional 2% for non-filers.

The withholding is deducted from the payment made to the counterparty and is deposited to the FBR within the statutory dates (the 7th of the following month, or 10th for the banking mode). For sales of goods and rendering of services to private entities the deduction is adjustable; for imports and certain others it is a minimum tax on income.

Identify the payment section - 153 (business), 148 (imports), 233 (rent/commission) and others.
Look up the applicable percentage from the First Schedule.
Add the non-filer loading of Section 231AB where it applies.
Multiply the payment amount by the resulting rate to get the deduction.

Worked example

A construction firm bills a developer Rs 5,000,000 for a building contract. The developer withholds 12% x 5,000,000, = 600,000 if the firm is not on the Active Taxpayer List, or 10% (500,000) if it is a filer. The firm later adjusts this amount against its annual tax in the IRIS return.

An importer clears a consignment worth Rs 2,000,000 (C&F value) classified for the 3% rate under Section 148. At the bank, the customs and sales tax are computed and the 3% withholding tax is deposited before clearing - the tax is final and no carry forward is allowed against income.

Common mistakes to avoid

Applying the filer rate because the person claims to pay tax - you must verify filers through the FBR ATL (as per rules) and only then apply the discounted rate.
Forgetting the 2% surcharge for non-filers on rent and imports.
Mixing up adjustable and final withholding - an importer cannot claim an adjust against the taxes paid on imports.
Missing the deposit date - WHT is due on the 7th of the following month and carries penal consequences and default surcharge when late.

Frequently asked questions

What are the withholding tax rates on supplies in Pakistan?+

On sales of goods 4% for filers (7% for non-filers) is withheld; on services the rates are 8% and 10%; and on contracts 10% (12% for non-filers).

How do I check if a supplier is a filer?+

You can query the Active Taxpayer List through the FBR ATL portal by CNIC or NTN - the 4% discount only applies when the supplier is on the list at the time of a payment.

When do I deposit the withholding tax?+

Within seven days of the end of the month in which the deduction was made using a cheque or the Income Tax System; for online filers the due date is generally the 10th of the following month.

Is withholding tax on imports final?+

For imports into Pakistan, the tax under Section 148 is generally final and cannot be adjusted against the importer income - it is a cost of the imported goods.

Are withholding tax challans adjustable?+

Yes - for sales of goods, services and contracts where the recipient carries on a business, the deduction is treated as an advance payment of the recipient income tax and is claimed in the annual return.