RATES FOR WITHHOLDING (INCOME) TAX | TAX YEAR 2024 Tariq Abdul Ghani Maqbool & Co.

Applicable from July 01, 2023 to June 30, 2024 | As Amended vide the Finance Act, 2023 Chartered Accountants Member TAG Group

WHAT THIS DOCUMENT AIMS AT? Tax Rate Tax Rate

Nature of Nature of
This document aims to summarize the law on withholding income Activity Non- Activity Non-
Filer Tax Filer Tax
tax, taking into account significant amendments vide the Finance Act, Filer Filer
2023. These tax rates & treatments are effective from July 01, 2023, Individuals receiving profit on Govt. TAX ON MOTOR VEHICLES | Sec 231B Div. VII Pt. IV 1st Schedule
i.e., for the Tax Year 2024. The information summarized herein is Securities purchased via a foreign bank 10% Final Tax Purchase/ registration Various
general and based on our interpretation of law. This information does

Increased
account, NRVA or FCYAs

by 200%
Electric Vehicles (EV) value Rs.5M > 3%
not constitute any opinion or advice and may also not be acceptable Profit on FCYAs or COIs under SBP’s FC
0% Transfer of registration/ ownership Various Advance
to taxation authorities in a particular case. Tax laws are subject to Account Scheme
Exempt Sale/ transfer of EV valuing Rs.5M > Rs.20K Tax
change from time to time and we do neither warrant at any time the Profit received by NRPs from PKR
currency of the above details nor accept any responsibility to update accounts on funds exclusively remitted 0% Sale of vehicle on Own-Money Various
the same. from aboard in FCY Leasing to a non-filer N/A 4%
Other payments 20% Adv. Tax
TAX ON FOREIGN DOMESTIC WORKERS | Sec 231C
IMPORTS | Sec 148 & Part II First Schedule
PAYMENTS TO PE OF NON-RESIDENTS | Sec 152, Div. II Pt. III 1st Sch. Agency/ Sponsor/ Person to whom visa is Advance
Tax Rate issued or renewed for Foreign National
Rs.200,000/-
Importer Nature of For Goods Company 5% 10% Tax
Activity Non-
Category Filer Tax supplied Other than Company 5.5% 11%
Filer BROKERAGE & COMMISSION | Sec 233, Div. II Pt. IV 1st Schedule
Imports of Goods as per Part For services By PE of NR company 9% 18% Minimum Advertising agent 10% 20%
All 1% 2% Minimum
I of the Twelfth Schedule rendered Other PEs 11% 22% Tax Life insurance commission<Rs.0.5M pa 8% 16%
Advance Tax
Commer- Contract by sports persons 10% 20% Others 12% 24%
cial 3.5% 7% Tax for
Imports of Goods as per Part For other contracts 8% 16%
Importers Industrial TAX ON MOTOR VEHICLES | Sec 234, Div. VII & III Pt. IV 1st Schedule
II of the Twelfth Schedule
Undertaking Goods Transport Vehicle | Based on Rs.2.5/
Others 2% 4% SUPPLY OF GOODS INCLUDING TOLL MANUFACTURING |

Increased by
importing Sec 153(1)(a), Div. III Pt. III 1st Sch, Cl 24A, 24C, 31, 45A Pt. II 2 nd Sch.
laden weight Kg
Commer- goods other Goods Transport Vehicle | Laden weight Rs.1.2K

100%
cial 6% 12% Sale of rice, cotton seed or edible oil 1.5% 3% Advance
Imports of Goods as per Part than Edible 8,120Kg > after 10 yrs. of registration
Importers Sale of cigarettes & pharma products Tax
III of the Twelfth Schedule oil, Packing 1% 2% Passenger transport vehicle plying for
Others 5.5% 11% by distributors Various
material, hire | Based on seating & air-conditioning
Paper and Sale by distributors, dealers, sub-
Imports of Goods mentioned Manu- Motor vehicle | Based on engine capacity Various
1% 2% Paper- dealers, wholesales & Tier-1 retailers Advance
in SRO 1125(I)/2011 facturers integrated & configured with Board Tax for
board or COMMERCIAL, INDUSTRIAL ELECTRICITY CONSUMERS |
Imports of medicines not Plastics (also appearing on Sales Tax ATL) of 0.25% 0.5% companies Sec 235, Div. IV Pt. IV 1st Sch., Cl. 66 Pt. IV 2nd Schedule
manufactured locally as All 4% 8% the following: and Gross Monthly Bill Tax | Not applicable to For Companies
certified by DRAP FMCG | Fertilizer | Electronics (excluding Companies From To Specified Sectors
Minimum mobile phones) | Sugar | Cement | Steel |
Nature of Advance
Imports of CKD Kits for Tax for All Engaged in Up to Rs. 500 NIL Tax Tax
Edible oil
electrical vehicles (small Other Manu- Rs. 501 Rs. 20,000 10% of amount Other Taxpayers
Sales, supplies & services by
cars/ SUVs with up to 50 All 1% 2% Cases facturing Annual Nature
taxpayers in the following sectors: Commer- Rs.1,950 +
kWh battery) and LCVs with Textile & articles thereof | Carpets | 1% 2% Bill (Rs.) of Tax
Minimum cial 12% above
up to 150 kWh battery Leather & articles thereof | Artificial leather Up to Minimum
Above Rs. 20,000 Consumer Rs.20,000
footwear | Surgical goods | Sports Goods Tax for 360K Tax
IMPORT OF MOBILE PHONES | Sec148 & Part II of First Sch. other cases Industrial Rs.1,950 + 5% Above Advance
Supplies & services to above sectors Consumer over Rs.20,000
0.5% 1% 360K Tax
Nature of by Yarn Traders
C&F Value (USD) CBU CKD/ SKD
Tax Other supplies/ By companies 5% 10% Tax Rate
Up to 30, except smartphone Rs. 70 NIL sales (incld. Toll Nature of
Adv. Tax By AOPs & Individuals 5.5% 11% Activity Non-
From 31 to 100 Rs. 100 NIL
Manufacturing) Filer Tax
for Industrial Filer
Sale of gold & silver and articles thereof 1% 2% Adv. Tax
From 101 to 200 Rs. 930 NIL Undertaking
Note | No tax to be withheld in case of: DOMESTIC ELECTRICITY CONSUMERS| S 235, Div. IV, Pt. IV 1st Sch
From 201 to 350 Rs. 970 NIL Min. Tax for (a) where aggregate annual payment is below Rs.75,000 Monthly bill up to Rs. 25,000 0% Advance
From 351 to 500 Rs. 5,000 Rs. 3,000 All Other (b) purchase of an asset under lease & buy back agreement Monthly bill exceeds Rs. 25,000 7.5% Tax
Above 500 Rs, 11,500 Rs. 5,200 Cases by Banks and Non-banking Finance Companies.
TELEPHONE USERS | Sec 236, Div. V Pt. IV 1st Schedule
Note: Advance tax is to be increased by 100% for Non-filers PAYMENTS FOR SERVICES | Landline bills exceeding Rs.1,000 10% Advance
Sec 153(1)(b), 153(2), Div. III & Div. IV Pt. III 1 st Schedule Internet & Mobile subscriptions 15% Tax
SALARY | Sec 149, Div. I Part I First Schedule Transport | Freight forwarding | Air cargo
Taxable Income services | Courier | Manpower outsourcing SALE BY AUCTION | Sec 236A, Div. VIII Pt. IV 1st Schedule
Rate of Tax
From To | Hotel services | Security guard | Software Sale by public Property/ goods 10% 20%
development | IT & IT enabled services | Advance
Up to 600,000 0% auction/ tender Immoveable Property 5% 10%
Tracking services | Advertising (other than Tax
600,001 1,200,000 2.5% on amount exceeding Rs.0.6M Lease of Fee or Other levies
by print/ electronic media) | Share registrar 10% 20%
services | Engineering/ Architectural
collection rights Toll Final Tax
1,200,001 2,400,000 15,000 12.5% on amount > Rs.1.2M
services | Warehousing | Services SALE/ TRANSFER/ DISPOSAL OF IMMOVABLE PROPERTY |
PLUS

2,400,001 3,600,000 165,000 22.5% on amount > Rs.2.4M 4% 8%

rendered by AMCs | Data services | Sec 236C, Div. X Pt. IV 1st Schedule
3,600,001 6,000,000 435,000 27.5% on amount > Rs.3.6M Telecom. infrastructure (tower) services |
Car rentals | Building maintenance | Minimum By NRPs where the property acquired Final Tax (In
Above 6,000,000 1,095,000 35% on amount > Rs.6M 3%
Services rendered by PSEL & PMEL | Tax via FCVA or NRVA lieu of CGT)
Rate of advance tax deductible is 20% on directorship fee or fee for attending Inspection, certification & testing | Training Acquired in same year 3% 6% Min. Tax
board meetings services | Oilfield services | Telecom | All other cases Inheritance/ Gift Not Applicable N/A
Tax Rate Collateral management | Travel & tours | Other cases 3% 6% Adv. Tax
Nature of REIT management | NCCPL services
Activity
Filer
Non-
Tax 1.5%
Advertising services | electronic/ print media 3% ON TV PLAYS & ADVERTISEMENT | S236CA, Div. XA Pt. IV 1st Sch.
Filer Per episode tax on foreign-produced TV
By companies 9% 18% Rs. 1M Rs. 2M
Other services drama serial
DIVIDEND | By AOPs & Individuals 11% 22% Tax on foreign-produced single-episode Minimum
st nd
Sec 150, Div. I Pt. III 1 Sch. & Cl. 18C Pt. II & Cl. 11B Pt. IV 2 Sch. Stitching, dying, printing, embroidery, TV play
Rs. 3M Rs. 6M
Tax
Dividend paid by IPPs, when it is a 1% 2%
washing, sizing & weaving to Exporters Per second tax on advertisement starring Rs. Rs.
pass-through item to be reimbursed by Note | Not applicable if aggregate annual payment is under Rs.30,000 foreign actor 0.1M 0.2M
CPPAG
7.5% 15% TAX ON SALES TO DISTRIBUTORS, DEALERS &
Dividend attributable to income from EXECUTION OF CONTRACTS | Sec 153(1)(c), Div III Pt III 1st Sch.
biomass & baggas based power WHOLESALERS BY MANUFACTURERS & COMMERCIAL
Executed for Listed Companies Adv. Tax
7.5% 15% IMPORTERS | Sec 236G, Div. XIV Pt. IV 1st Schedule
projects Executed for Other Companies
Minimum I. Tax S. Tax 0.25%
Status

Dividend received where company is Final Tax Performed by sportspersons 10% 20%
ATL

availing exemption or benefiting from 25% 50% Tax Fertilizers I. Tax X 0.7%
Other cases 8% 16%
c/f business losses & tax credits X X 1.4%
Mutual funds, REITs & other cases 15% 30% EXPORTS | Sec 154 Div. IV Pt. III 1st Sch, Cl. 47C Pt. IV 2nd Schedule Pharmaceuticals | Poultry & animal feed |
Edible oil & ghee | Auto-parts | Tyres | Advance
Dividend in specie 15% 30% Realization of export proceeds
Varnishes | Chemicals | Cosmetics | IT Tax
Dividend from By REIT scheme 0% 0% Goods sold per inland back-to-back LC
equipment | Electronics | Sugar | Cement | 0.1% 0.2%
SPV received: By others 35% 70% Export of goods by units in EPZ Iron & steel products | Motorcycles |
1% Final Tax
Intercorporate dividend/ group taxation Not Applicable Payments under DTRE Rules & Export Pesticides | Cigarettes | Glass | Textile |
Facilitation Scheme, 2021 to indirect Beverages| Paint | Foam
PROFIT ON DEBT | Sec 151, Div. IA Pt. III 1st Sc./ Cl. 5AB Pt. II 2nd Sc. exporters by direct exporters
Cooking oil/ vegetable ghee exported TAX ON SALES TO RETAILERS & WHOLESALERS BY
Advance 0% Exempt
Received by Company to Afghanistan, if tax u/s 148 is paid MANUFACTURERS, DISTRIBUTORS, DEALERS, WHOLESALERS
Tax
& COMMERCIAL IMPORTERS | Sec 236H, Div. XV Pt. IV 1st Schedule
Profit up to Rs. 5M 15% 30% Final Tax EXPORT OF SERVICES | Sec 154A IVA Pt. III 1st Schedule Pharmaceuticals | Poultry & animal feed |
Received by Edible oil & ghee | Auto-parts | Tyres |
AOP/ individual Minimum Software, IT or IT-enabled services by
Profit above Rs. 5M 0.25% Varnishes | Chemicals | Cosmetics | IT
Tax PSEB registered taxpayers Final Tax, Advance
equipment | Electronics | Sugar | Cement | 0.5% 1%
Received by Resident Pakistanis on Services/ tech- Rendered abroad subject to Tax
Iron & steel products | Motorcycles |
Government securities, purchased via 10% Final Tax nical services Exported from Pakistan specified Pesticides | Cigarettes | Glass | Textile |
FCVA under SBP’s Scheme Royalty/ commission/ franchise fees conditions Beverages| Paint | Foam
received by a resident company from a
INVESTMENTS IN SUKUKS | Sec 151, Div. IB Pt. III 1st Schedule OR/ PURCHASE OF IMMOVABLE PROPERTY |
foreign entity for use of intellectual 1%
Returns received by Companies 25% 50% Adv. Tax property outside Pakistan Optional Sec 236K, Div. XVIII Pt. IV 1st Schedule
Construction contracts executed Advance By Non-Resident via FCVA or NRVA 0% N/A
Returns rec. by Up to Rs. 1M 10% 20%
Final Tax Inheritance/ Gift Not Applicable N/A
outside Pakistan Tax All other cases
AOPs/ Above Rs.1M upto 5M Normal Purchase 3% 10.5% Adv. Tax
Individuals 12.5% 25% Foreign indenting commission
Above Rs. 5M Min. Tax
RENT OF IMMOVABLE PROPERTY | Sec 155, Div. V Pt. III 1st Sch. FOREIGN PAYMENTS VIA DEBIT/ PRE-PAID OR CREDIT CARD |
PAYMENTS TO NON-RESIDENTS | Sec 152, Div. IV Pt. I, Sec 236Y, Div. XVIII Pt. IV 1st Schedule
Div. II Pt. III 1st Sch. & Cl. 5A, 5AA, 5AC Pt. II 2nd Schedule Company 15% On gross amount remitted abroad 5% 10% Adv. Tax
Royalty/ fees for technical services 15% Annual Rent (Rs.)
Tax BONUS SHARES ISSUED BY COMPANIES | Sec 236Z
Fee for offshore digital services, Money From To Value of the bonus shares issued 10% 20% Final Tax
transfer operations, Card network Final Tax Up to 300,000 NIL s
10% GLOSSARY OF KEY TERMS
services, Payment gateway services, 5% of rent Advance
Interbank financial telecom. Services Individual 300,001 600,000 Tax
exceeding Rs.300K
Contracts/ subcontract under a & AOP
Rs.15K + 10% of
construction, assembly/ installation 600,001 2,000,000
rent above Rs.600K
project (including supply of supervisory 7%
Rs.155K + 25% of
activities therefor) and Advertisement Minimum Above 2,000,000
rent above Rs.2M
services by TV Satellite Channels Tax
Insurance/ re-insurance premium 5% Note | Rates to be increased by 100% for Non-filers
Advertisement services relaying from PRIZES AND WINNINGS | Sec 156, Div. VI Pt. III 1st Schedule
10%
outside Pakistan
On a prize bond or crossword puzzle 15% 30%
Foreign produced commercials for TV Final Tax
20% Raffle, lottery, winning quiz & prizes on
channel/ other media 20% 40%
sales promotion schemes.
Capital gain to foreign companies on
disposal of Debt Instruments & Govt. PETROLEUM PRODUCTS | Sec 156A, Div. VIA Pt. III 1st Schedule REACH US AT…
securities invested via SCRA Commission amount / discount allowed Head Office | 173-W, Block 2, P.E.C.H.S., Karachi
Final Tax 12% 24% Final Tax
Profit on debt from investments to a petrol pump operator Telephone | 021 34322 582/ 583, 34322 606/ 607
10%
exclusively made through a SCRA Email | [email protected]
Capital gain to individuals on disposal CASH WITHDRAWAL | Sec 231AB Web | www.tagm.co Scan QR Code to
of debt instruments and Govt. Advance LinkedIn | LinkedIn/TAGM Download this Rate
Cash withdrawal exceeding Rs. 50,000 0% 0.6% Card
Securities invested via FCVA or NRVA Tax Facebook | FB/TAGM