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.
Every employer and registered business must deduct and deposit withholding tax monthly. Missing the 20th deadline means Rs. 2,500 per day penalty. We handle your complete WHT compliance.
From salary deductions to contractor payments, import tax to rent WHT — we calculate, deposit, and file monthly statements for every WHT category your business needs.
Monthly income tax deduction from employee salaries. We calculate correct deduction per slab and prepare Salary Register.
WHT on payments to contractors at 7% (filer) or 14% (non-filer). Monthly statements filed on FBR IRIS.
15% WHT on commercial rent to non-ATL landlords. Monthly deduction, deposit, and statements managed.
Monthly withholding statements filed on FBR IRIS by 20th of following month. Avoid Rs. 2,500/day penalty.
Advance tax on imports calculated and reconciled with customs payments. Annual adjustable tax treatment handled.
Year-end reconciliation of all WHT deducted, deposited, and declared. Clean reconciliation prevents audit triggers.
Send monthly salary register, contractor invoices, and other payments. We extract all WHT data automatically.
We calculate correct WHT per section, prepare CPR challans, and guide payment through banking channel.
WHT statement filed on FBR IRIS by the 20th. Acknowledgment and filed statement sent to you.
Year-end reconciliation with annual return. WHT certificates issued to all payees.
One of the most frequent errors businesses make is deducting WHT at the filer rate when the payee is actually a non-filer — or vice versa. The correct rate depends on the payee's ATL status at the time of payment, not their status from a previous year. If you apply the wrong rate, you — as the deducting agent — become personally liable for the shortfall under Section 161 of the Income Tax Ordinance 2001. This liability cannot be passed back to the payee after the fact. Always verify ATL status before processing any payment subject to withholding.
Another common failure is missing the monthly deposit deadline. Tax deducted during a month must be deposited with FBR by the 15th of the following month, and the Section 165 statement must also be filed by that date. Many businesses treat WHT as an afterthought and miss this deadline repeatedly, triggering a Rs. 2,500 per day penalty under Section 182 as well as a default surcharge on the outstanding amount. A third critical mistake is failing to issue withholding tax certificates to payees — these are legally required so the payee can claim WHT credit in their own return. Kamboh Associates manages all three obligations as part of our monthly WHT compliance package, so nothing slips through.
Pakistan's WHT regime covers over 50 payment categories. These are the sections that affect most businesses:
| Section | Payment Type | Filer Rate | Non-Filer |
|---|---|---|---|
| Sec. 149 | Salaries | Slab rate | Slab rate |
| Sec. 153(1)(a) | Supply of goods | 4.5% | 9% |
| Sec. 153(1)(b) | Services | 7% | 14% |
| Sec. 155 | Rent of property | 15% | 30% |
| Sec. 151 | Bank profit / profit on debt | 15% | 30% |
| Sec. 236A | Sale of immovable property | 1–4% | Varies |
Verify rates against Finance Act 2025-26 gazette for your specific category.
Monthly withholding statements (filed under Section 165) require meticulous data entry. Each payment and corresponding deduction must be entered individually. Here is the full process Kamboh Associates follows on your behalf every month.
All payments made to vendors, contractors, service providers, landlords, and employees during the month. Each payment needs: payee CNIC or NTN, payment amount, payment category (goods/services/contract/salary), ATL status of payee.
The correct WHT rate depends on whether the payee is an active filer. We check the FBR Active Taxpayer List (ATL) for each payee's CNIC or NTN before calculating deductions. This step is critical — applying the wrong rate (filer vs non-filer) makes the payer liable for the difference.
Total WHT for the month is calculated. A PSID (Payment Slip ID) is generated on IRIS and tax is paid at any commercial bank or via mobile banking within 7 days of each deduction (or by 15th of the following month for accumulated deductions).
Log into iris.fbr.gov.pk, navigate to Withholding Statements, enter each payee record with CNIC/NTN, amount, category, and tax deducted. Submit by the 15th. Kamboh Associates prepares and submits this statement on your behalf and sends acknowledgment for your records.
In addition to monthly statements, employers must file an annual WHT statement by September 30 of each year summarising all deductions made during the tax year. This is separate from the monthly return and is required even if all monthly statements were filed correctly. Kamboh Associates includes annual statement filing in all WHT compliance packages at no extra charge.
Many small business owners are surprised to find they must deduct withholding tax even on routine vendor payments. Here is what you need to know as a small business paying contractors, landlords, or service providers.
Yes. If you pay commercial rent above Rs. 15,000 per month, you must deduct WHT under Section 155. The tenant is the withholding agent. You deduct the tax, deposit it with FBR, and give the landlord a deduction certificate. Failure makes you liable to pay the tax from your own funds.
WHT on contractor payments under Section 153 applies from the first rupee with no minimum threshold. In practice, FBR enforcement targets payments above Rs. 75,000. Kamboh Associates applies the correct approach based on your business type and payment patterns, ensuring you are covered without over-filing.
No. The deducted tax belongs to the payee as their advance tax credit. Your obligation is to deduct accurately, deposit on time, and issue a deduction certificate. The payee claims this credit in their own annual return. You cannot recover it once deposited with FBR.
Withholding tax compliance in Pakistan is one of the most complex and frequently missed obligations for growing businesses. With over 50 payment categories, dual filer and non-filer rates, monthly filing deadlines, and Section 165-A annual requirements, it is easy to make errors that result in penalties or FBR audit exposure. Kamboh Associates has managed monthly WHT compliance for over 200 active business clients since 2008 without a single missed deadline. WhatsApp 0328-4675162 to put your WHT compliance on autopilot today. Our team is available six days a week to assist you.
One missed WHT filing = Rs. 2,500 per day. Let us handle your monthly filings so you never miss a deadline.