FBR releases withholding income tax rate card for fiscal year 2026-27

The Federal Board of Revenue (FBR) has issued the Withholding Income Tax Rate Card containing the rates of withholding tax levied on various sectors, payments and transactions for the current financial year 2026-27.

The Withholding Income Tax Rate Card issued by the FBR has been updated as per the Finance Act 2026 up to June 30, 2026.

The rate card lists the rates of withholding tax levied on various sectors, payments and transactions, including imports, salaries, profits, payments to non-residents, payments for goods, services and contracts, exports, rent, prizes, petroleum products, cash withdrawals, motor vehicles, electricity, telephone and internet, purchase and sale of immovable property and other matters.

According to the rate card, if the taxable income is up to Rs 600,000, the tax rate on salary is zero, while for income between Rs 600,000 and Rs 120,000, one percent tax will be levied on the amount exceeding Rs 600,000.

Similarly, for income between Rs 120,000 and Rs 220,000, 11 percent will be levied on the amount exceeding Rs 600,000, 20 percent on the amount exceeding Rs 116,000, 20 percent on the amount exceeding Rs 220,000 and Rs 320,000, 25 percent on the amount exceeding Rs 316,000, 20 percent on the amount exceeding Rs 320,000, 20 percent on the amount exceeding Rs 320,000, 20 percent on the amount exceeding Rs 320,000, 20 percent on the amount exceeding Rs 320,000, 20 percent on the amount exceeding Rs 320,000, 20 percent on the amount exceeding Rs 541,000, 20 percent on the amount exceeding Rs 41 According to the rate card, 32% tax has been fixed on income from Rs 5.6 million to Rs 7 million plus Rs 9.76 million and more than Rs 5.6 million, while 35% tax has been fixed on income above Rs 7 million plus Rs 1.424 million and more than Rs 7 million.

The rate card also lists separate rates for imported goods, commercial importers, pharma products, CKD kits of electric vehicles and mobile phones. A withholding tax of 20% for ATL individuals and 40% for non-ATL individuals has been fixed on profits paid on bank or financial institution accounts or deposits.

A rate of 4% for ATL individuals and 8% for non-ATL individuals has been fixed on the provision of IT and IT-related services. A withholding tax of 1% for ATL and 2% for non-ATL has been fixed for digital or banking payments on digital orders through e-commerce platforms, while 2% and 4% for cash on delivery respectively have been fixed.

Exports are subject to 1.25%, while the rate of 0.25% is fixed for export earnings of computer software or IT services of individuals registered with the Pakistan Software Export Board. The tax on the earnings of social media influencers is 5% for ATL and 10% for non-ATL.

Regarding motor vehicles, the rates for vehicles up to 850 cc are 0.50% for ATL and 1.50% for non-ATL, while the rates for vehicles above 3000 cc are 12% and 36% respectively. The rate of 2.75% for ATL and 11.50% for non-ATL is fixed for transfer of immovable property.

The relevant rates for electricity, telephone, internet and various other matters have also been included in the rate card.

The document clarifies that this rate card has been prepared for the convenience of taxpayers, withholding agents and other concerned persons, however, in case of any discrepancy or error, the amended Income Tax Ordinance 2001 shall be considered as the original law and this card cannot be used as a legal document before a court or legal forum.