What is the withholding tax rate on services under Section 153(1)(b)?

Under Section 153(1)(b) of the Income Tax Ordinance 2001, withholding tax on services rendered by a corporate entity is 9% (18% for non-ATL), and for individuals or AOPs it is 11% (22% for non-ATL).

What are the Provincial Sales Tax on Services rates in Pakistan?

Punjab (PRA) standard rate is 16%; Sindh (SRB) standard rate is 15%; Khyber Pakhtunkhwa (KPRA) is 15%; Balochistan (BRA) is 15%; and Islamabad Capital Territory (ICT under FBR) is 15%.

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Tax Regime / Category

Gross Invoice / Payment Amount (PKR)

Payee / Vendor Taxpayer Status

Active Taxpayer (ATL) Non-Active (Doubled Rate 100th Sched)

FBR Rule 43(b) Deposit Timeline: All income tax deducted during each week ending on Sunday must be remitted into the Government Treasury within 7 days.

Statutory Deduction Summary 9.0% Applied

PKR 9,000.00

Tax Deducted at Source (Withholding / Sales Tax)

Gross Transaction Value: PKR 100,000.00

Tax Deducted (To Be Remitted): PKR 9,000.00

Net Payable to Payee / Vendor: PKR 91,000.00

Legal Statutory Reference: Section 153(1)(b) ITO 2001

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FBR Withholding Tax Rate Card (FY 2026-2027)

Transaction / Supply Nature	Legal Section	Active Taxpayer (ATL)	Non-Active (Non-ATL)
Sale of Goods (Company)	Sec 153(1)(a)	5.0%	10.0%
Sale of Goods (Individual / AOP)	Sec 153(1)(a)	5.5%	11.0%
Rendering of Services (Company)	Sec 153(1)(b)	9.0%	18.0%
Rendering of Services (Individual / AOP)	Sec 153(1)(b)	11.0%	22.0%
Execution of Contracts (Company)	Sec 153(1)(c)	7.5%	15.0%
Export Proceeds Realization	Sec 154	1.25%	2.5%

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FBR Withholding Tax Rate Card (FY 2026-2027)