3.0% Non-Filer148

(i) Import of remeltable steel 1.0% 1.5%(ii) Import of potassic fertilizers 1.0% 1.5%(iii) Persons importing urea; 1.0% 1.5%(iv) Manufacturers covered under S.R.O. 1125(I)/2011 dated 31.12.2011

1.0% 1.5%

(v) Persons importing Gold; 1.0% 1.5%(vi) Persons importing Cotton; and 1.0% 1.5%(vii)Designated buyer of LNG 1.0% 1.5%Person Importing Pulse 2.0% 3.0%Commercial importers & importing itemscovered under S.R.O. 1125(I)/2011 dated the 31.12.2011

3.0% 4.5%

4 Ship breakers on import of ships 4.5% 6.5%5 Industrial undertakings not covered S.No 1 to 4 5.5% 8.0%6 Companies not covered S. Nos. 1 to 5 5.5% 8.0%7 Persons not covered S. Nos. 1 to 6 6.0% 9.0%

150/236S.Dividend Income 12.5% 17.5%Dividend declared by WAPDA or company setup for power generation

7.5% 7.5%

151

151(1)(a)A person paying profit / yield has to deduct tax from the gross amount of yield / profit.

10.0% 17.5%

151(1)(b) Profit on debt paid by Banking company 10.0% 17.5%151(1)(c) Profit on securities , other than 151(1)(a) 10.0% 17.5%151(1)(d) Profit on bonds , certificates, debentures 10.0% 17.5%

152152 (1) Royalties or fee for technical services

a) Contract for construction, of project in Pak. 6.0% 6.0%b) Any other contract for construction or services rendered relating there to.

6.0% 6.0%

c) Contract for advertisement services. 6.0% 6.0%152(1AA) Any payment of insurance premium 5.0% 5.0%

152(1AAA)Payment to non-resident media person for advertisement services provided

10.0% 10.0%

152(2A)(i)Sale of goods 4% (Compny)

4.5% (other than company)

6% (company) 6.5% (Other than Company)

(ii) Rendering /providing of services. 2% in case of transport service, 8% (Company)10% (Other than Company)

2% in case of transport service, 12% (Company)15% (Other than Company)

(iii) Execution of a contract other than a contract for sale of goods or providing / rendering of services.

10% (Sportsperson)7% (Company)7.5% (Other than Company)

10% in all cases

Payment to a Permanent Establishment of Non- Resident

Withholding Tax Rates (Income Tax Ordinance, 2001) For Tax Year 2016

152(1A)

Tax Rates 2016Nature of PaymentSection

1

2

Collection of Tax From Importer

Advance Tax on dividend

Profit on Debt

Payments to non-resident

153

i) For sale of rice, cotton, seed, edible oil. 1.5% 1.5%ii) For Sale of any other goods 4% (Company)

4.5% (Other than Company)

6% (company) 6.5% (Other than Company)

Reduce rates:- Manufactures of Cooking Oil or Vegetable Ghee

2.0% 2.0%

On sale of goods to distributers of Cigarettes, Pharmaceutical products

1.0% 1.0%

153(1)(b)Transport Services 2.0% 2.0%All Other Services 8% (Company)

10% (other than Company)

12% (Company)15% (Other than Company)

Electronic & print media for advertising services1%

(in all cases)

12% (Company)15% (Other than Company)

Reduce Rates: i. income from services rendered and construction contractsoutside Pakistan shall be charged at the rate of one per cent of the gross receipts, provided that receipts from services and income from contracts are brought into Pakistan in foreign exchange through normal banking channel.

1.0% 1.0%

153(1)(c)Sports Person 10.0% 10.0%Companies 7.0% 10.0%Other than companies 7.5% 10.0%

153(2)Every Exporter or Export House deducts Tax on payments in respect of services of stitching, dying, printing etc. received/provided.

1.0% 1.0%

154154(1) on account of export of goods 1.0% 1.0%

154(2)on account of commission to; I. Non-export indenting agent II. Export indenting agent

5.0% 5.0%

154(3) on account of sale of goods to an exporter 1.0% N/A154 (3A) Exports of goods located in EPZ 1.0% N/A154 (3B) Payment to indirect exporters 1.0% N/A154 (3C) Clearance of goods exported 1.0% N/A

155i) Amount not exceeding 150,000 NILL Sameii) 150,000 but does not exceed 10,00000

iii) Exceeding 10,00,000

B) In case of company 15.0% 15.0%156

156(1) Payment of prize on prize or cross word puzzle 15.0% Same

156(2)Payment on a winning prizes offered by companies for sale promotion

20.0% 20.0%

156ATax deduction from commission/discount to petrol pumps

12.0% 15.0%

153(1)(a)

10 % of gross amount exceeding Rs.150K85,000 + 15% of the gross amount exceeding Rs. 1,000,000.

Prizes and winnings

Petroleum Products

Payments for Goods or Services Payments for Goods:

Payments for Services

Payments for Execution of Contract

Payments for Execution of Contract

Export & foreign indenting commission

Income From Property Rent of immovable property (Individual or AOP)

156B

i) Withdrawal before retirement age ii) Withdrawal if in excess of 25% of accumulated balance at or after the retirement age

231ACash withdrawl exceeding Rs. 50,000/- 0.3% 0.6%

231AAAdvace Tax on Transaction in Bank exceeding Rs. 25000/-

0.3% 0.6%

233Advertising Agents 10.0% 15.0%In all other cases 12.0% 15.0%

233A1(a) Commission earned by member on purchase 1(b) Commission earned by member on sale

233B Collection of tax by NCCPL234A CNG Stations (On the amount of gas bill) 4.0% 4.0%235

Commercial and industrial consumer (No tax collection from exporters cum manufacturers)

235A Domestic consumers

236(a) Telephone monthly bill exceeds Rs.1000.

(b)For internet, mobile telephone and pre-paid internet or telephone card

236A Advance tax at the time of sale by auction236B Advance tax on purchase of air ticket236C Sale or transfer of immovable Property 0.5% 1.0%236D Functions and gatherings 5.0% 5.0%236E Foreign Produced TV plays and serials

236F Cable operators and other electronic media

236GFertilizers 0.7% 1.4%Other than Fertilizers 0.1% 0.2%

236H Advance tax on sales to retailers

236I Collection of advance tax by educational institutions

Group or Class A: Rs. 10,000 Rs. 10,000Group or Class B: Rs. 7,500 Rs. 7,500Group or Class C: Rs. 5,000 Rs. 5,000Any other category: Rs. 5,000 Rs. 5,000Purchase or transfer of immovable propertyImmovable property value up to 3 million. 0.0% 0.0%Immovable property Value more than 3 million 1.0% 2.0%

236LFirst/Executive ClassOthers excluding EconomyEconomy

236K

Purchase of international air ticket.

0.5% of Gross Sale5% of amount of fee No advance tax in case of non-resident

Dealers, commission agents and arhatis etc

236J

5% of gross amount of tax

Rs. 100,000/- per EpisodeAs per various slabs given as per Div XIII of 1st Schedule

Rs.16,000 per person

Telephone Users10% of exceeding amount of bill

0.0%

average rate of tax for the last 3 preceding years or rate applicable for the year whichever is lower.

Advance Tax on cash Withdrawl from a bank

Brokerage & Commission

14% of amount of bill or sale price or card

10% of gross sale price

Rs.12,000 per person

Electricity consumptionAs given in Par-IV Div IV of First Sch (Ranging from Rs, 80 to Rs, 1500 depending on the monthly bill) for bill exceeding Rs, 20,000 10%

Collection of tax by a stock exchange in Pak0.01% of purchase value of shares0.01% of sale value of shares

Withdrawal of balance under pension fund

10% of profit or mark-up earned

Sale to distributors, dealers and wholesalers

7.5% if monthly bill 75,000/- or more 0% if less than Rs. 75,000/-

236M shares issued by companies quoted on stock exchange 5.0% 5.0%

236Nshares issued by companies not listed on stock-exch:

5.0% 5.0%

236PBanking Transactions Otherwise Than Through Cash

N/A 0.6%

236QPayment to a resident person for right to use machinery and equipment

10.0% 10.0%

236R Education related expenses remitted abroad 5.0% 5.0%236T

sale or purchase of future commodity contract 0.05% 0.05%Collection of Tax by PMEX (Pakistan Mercantile Exchange)