Any business in Pakistan that makes payments to employees, contractors, suppliers, or service providers above certain thresholds must register as a withholding tax agent and file monthly WHT statements with FBR. Kamboh Associates handles WHT agent registration and all monthly filings for businesses across Pakistan.
Withholding tax is deducted at source by banks, employers, and clients. Collect all WHT certificates and claim credit in annual FBR return. Filers pay half the WHT rate of non-filers.
Who Must Register as WHT Agent?
Under the Income Tax Ordinance 2001, any person making the following payments must deduct WHT at source and deposit it with FBR: salary payments to employees, payments for services above Rs 30,000, payments for supply of goods above Rs 75,000, rent payments above Rs 25,000/month, and various other payments. Failure to deduct and deposit WHT results in penalties equal to the amount of tax not deducted.
Penalty Warning: If you make qualifying payments without deducting WHT, you (the payer) are personally liable for the tax not deducted, plus a penalty equal to the same amount. This can double your unexpected tax cost. Register and comply proactively.
Monthly WHT Compliance Process
- Identify all qualifying payments made during the month
- Deduct applicable WHT from each payment before disbursing
- Deposit all deducted WHT to FBR's treasury account by the 15th of the following month
- File monthly WHT statement (Form CPR/PSID) on FBR IRIS by the 15th
- Issue WHT certificates to payees (required for their annual returns)
Common Mistakes When Registering as a Withholding Agent
One of the most frequent errors businesses make is selecting the wrong NTN category during registration. A sole proprietor registering under the company category, or vice versa, creates mismatches in IRIS that cause statement rejections later. Always confirm your legal entity type with a tax consultant before completing the registration form on FBR IRIS.
Another common mistake is failing to update the taxpayer profile when the business structure changes — for example, when a proprietorship converts to an AOP or a private limited company. The withholding agent registration must reflect the current legal entity at all times. Additionally, many agents overlook the monthly statement deadline under Section 149A: statements must be filed by the 15th of the following month, and missing even one month triggers a 0.1% per day default surcharge on the deducted but unreported amount. Kamboh Associates manages monthly WHT filing for businesses across Pakistan — WhatsApp 0328-4675162.
Finding the Right Rate for Each Payment
Rates for services, goods, contracts and rent are set in the First Schedule and differ by the payee's status, the type of payee and the nature of the payment. They also change with each budget. Before setting up your payment system, take the rates from FBR's Withholding Tax Regime Card for the current tax year and check each supplier's status on the Active Taxpayers List on the payment date.
Fees
Monthly withholding statement filing is Rs 3,000 per month on our pricing page.
Frequently Asked Questions
Where can a business find current withholding rates?
In FBR's Withholding Tax Regime Card for the tax year, which lists sections, rates and responsibilities after each Finance Act.
What is the penalty for not deducting WHT as an agent?
The person responsible for deducting WHT who fails to do so is personally liable for the full amount of tax not deducted plus a penalty equal to the same amount under Section 161 of the Income Tax Ordinance. This can be recovered from the payer even if the payee later pays their own tax.
WHT Compliance - Never Miss a Monthly Deadline
WhatsApp 0328-4675162. Kamboh Associates files your monthly WHT statements on time every month.