Withholding Tax Calculator

MEET LEGAL · PAKISTAN

Know what to deduct.

Estimate federal income tax withholding on domestic payments for goods and services to resident recipients.

Tax Year 2027 · 1 July 2026 – 30 June 2027 · Section 153(1)

Your payment details

Payment type Goods or service category

Choose the category matching the actual goods or service.

Recipient of the payment Recipient's income tax ATL status

Check the recipient's current income tax ATL status on the payment date. An NTN or sales tax registration alone is not proof of ATL status.

This gross payment, including sales tax (PKR)

Enter the payment being made before income tax deduction, including sales tax, if any. For a part-payment or advance, enter that amount only.

Earlier payments to this recipient this financial year (PKR)

Use the same payment type (goods or services) and include sales tax. Blank means no earlier payments. Reassess when future payments are made.

The financial-year small-payment threshold is PKR 75,000 for goods.

Deduction treatment

The calculator processes these amounts in your browser and does not send or save them.

YOUR WITHHOLDING ESTIMATE

Enter payment details to see the estimate.

Income tax to deduct on this payment—

Gross payment before income tax: —
Standard rate for selected category / ATL status: —
Rate applied to this payment: —
Net payment after income tax withholding: —
Financial-year payments recorded, including this payment: —
Income tax provision: —

Net payment excludes only the income tax calculated here. Sales tax withholding, retention, other deductions and gross-up arrangements are outside this estimate.

Which services belong in the specified-services group?

Paragraph (2)(i), Division III, includes transport, freight forwarding, air cargo, courier, manpower outsourcing, hotels, security guards, tracking, advertising outside print/electronic media, share registrars, engineering and architecture, warehousing, non-banking finance companies, licensed data services, telecom towers, car rental, building maintenance, stock/commodity exchanges, inspection, certification, testing, training, oilfields, telecommunications, collateral management, travel/tours, REIT management and National Clearing Company services.

IT and IT-enabled services have a separate selection. Independent professionals, including independent architects and software developers, also have a separate selection. Confirm the legal classification where descriptions overlap.

The paragraph's gross-receipts condition must be met, including the condition concerning challenges to gross-receipts taxation before a court. If unsure, seek a classification review before using the standard-rate estimate.

How annual thresholds and certificates are handled

The tool checks the current payment plus earlier payments entered for this financial year. Under section 153(1), payments below PKR 75,000 for goods or below PKR 30,000 for services fall within the small-payment exception. At the threshold, this exception no longer applies. Once reached, the rate is applied to the entire current gross payment, not just the excess.

Later payments can change the annual position. Any catch-up on earlier payments must be reviewed separately. The tool does not maintain a supplier ledger or track payments elsewhere.

A certificate selection is a user-confirmed calculation assumption, not approval of an exemption. Check the authority, effective dates, amount limits, parties, transaction scope and any ATL conditions. Enter the final effective reduced rate; the tool does not double this rate automatically.

Scope and official sources

This is a federal income tax withholding estimate for resident services and supplies under section 153(1), using Finance Act 2026 rates. It assumes the payer is a prescribed withholding agent and the payment falls within section 153(1), subject to the annual threshold and any verified certificate entered. Tax Year 2027 is the normal tax year from 1 July 2026 to 30 June 2027.

Non-resident payments, contracts under section 153(1)(c), exporter payments under section 153(2), e-commerce collections under section 153(2A), imports under section 148, sales tax withholding and provincial taxes need separate treatment. The tool does not determine minimum/final/adjustable tax status or automatically assess every Second Schedule exemption. For example, qualifying unchanged goods sold by the importer after payment of section 148 tax may be excluded under section 153(5)(a).

Rates checked on 26 October 2026 against the official FBR Tax Year 2027 rate card (section 153 rows), Income Tax Ordinance amended to 30 June 2026 (section 153; First Schedule, Part III, Division III; Tenth Schedule) and FBR Circular No. 02 of 2026–27. Figures are estimates rounded to two decimal places; verify the operative law and any later changes before payment.

Need help classifying a payment? Speak with Meet Legal ↗