Contractors in Pakistan have 7% WHT deducted on every payment received from companies and government. This is adjustable. File return to claim credits and maintain filer status.
WHT on Contractor Payments
Under Section 153, any company, AOP, or government body paying a contractor must deduct WHT before making payment. This WHT is adjustable against the contractor annual income tax return.
Contractor WHT Rates 2026
| Type | Filer Rate | Non-Filer Rate |
|---|---|---|
| Supply of goods | 4% | 8% |
| Services rendered | 8% | 16% |
| Execution of contracts | 7% | 14% |
Why Contractors Must Be Filers
- Non-filer pays double WHT on every contract
- Government contracts require active filer status
- Excess WHT refunded after filing annual return
Contractor or sub-contractor? WhatsApp 0328-4675162 - NTN registration and annual return from Rs. 3,500. Recover your excess WHT.
Frequently Asked Questions
My client deducted 7% on my contract payment. Can I get it back?
Yes if your total tax liability is less than WHT deducted. File annual income tax return, declare all income, claim WHT credits, and FBR will refund the excess within 60 days.