Prize bond winnings in Pakistan are subject to withholding tax deducted at the time of prize payment by the State Bank of Pakistan. The rate depends on your filer status. This guide explains prize bond tax rules for 2026, which winnings are taxed, exemptions, and how to become a filer to save on prize tax.

Prize Bond Tax Rates Pakistan 2026

Prize CategoryWHT Rate (Filer)WHT Rate (Non-Filer)
First Prize (all denominations)15%25%
Second Prize15%25%
Third Prize15%25%
Premium Prize Bond10%20%

Big Saving Example: If you win the first prize on a Rs 40,000 prize bond (prize: Rs 75 million), a filer pays 15% WHT = Rs 11.25 million. A non-filer pays 25% = Rs 18.75 million. The filer saves Rs 7.5 million on a single win. Even for smaller prizes, becoming a filer before claiming is worth it.

Are Prize Bond Winnings a Final Tax?

Yes. The WHT deducted by the State Bank of Pakistan on prize bond winnings is a final tax under Section 156 of the Income Tax Ordinance. You do not need to include prize winnings in your annual income tax return as taxable income. However, if you file a return for other reasons, you should show the prize as final-tax income.

How to Become a Filer Before Claiming Your Prize

  • Check your filer status: send CNIC to 9966
  • If not a filer: WhatsApp 0328-4675162 immediately
  • We register your NTN and file your return same day
  • ATL status activates within 3-7 days
  • Wait for ATL confirmation before claiming prize
  • Present ATL status proof at State Bank to get the filer rate

Timing is Critical: You must be on the ATL before claiming your prize to get the filer WHT rate. The State Bank deducts at the rate applicable on the day of payment. File early; do not wait until after you win.

Become a Filer Before Claiming Prize - Save Lakhs

WhatsApp 0328-4675162 immediately. We file your return same day and get you on ATL in 3-7 days.

Become Filer Now 0328-4675162

Frequently Asked Questions

Do I need to declare prize bond winnings in my income tax return?
The WHT on prize bond winnings is a final tax, so it does not need to be included in your taxable income in your annual return. However, if you file a return for other reasons, show the prize amount under final-tax income. The prize bond itself should be declared as an asset in your wealth statement.
Can I recover WHT paid on prize bonds?
No. Since prize bond WHT is a final tax, it cannot be refunded or offset against other income tax. The only way to minimize the tax is to ensure filer status before claiming the prize to get the lower 15% rate instead of 25%.
Do I pay tax on small prize bond wins (third prize, Rs 1,000)?
WHT is deducted on all prize payments by the State Bank. Even small prizes have WHT applied at the point of encashment. For small amounts the absolute saving from filer status is small, but filer status benefits all your other financial transactions throughout the year.