Finance Act 2024-25 · FY 2025-26
Pakistan Withholding Tax Rates — Filer vs Non-Filer
FBR applies higher withholding tax rates to non-filers across every major financial transaction. The table below shows the full rate comparison for FY 2025-26.
Filer (ATL registered)
Late Filer
Non-Filer
| Category | Transaction | Filer | Late Filer | Non-Filer |
|---|---|---|---|---|
| Banking | Cash withdrawal (above Rs. 50k/day) | 0.3% | 0.6% | 1.0% |
| Real Estate | Property purchase advance tax | 2% | 4% | 7% |
| Vehicles | Registration (up to 1000cc) | Rs. 10,000 | Rs. 20,000 | Rs. 30,000 |
| Registration (1001–2000cc) | Rs. 50,000 | Rs. 100,000 | Rs. 150,000 | |
| Registration (above 2000cc) | Rs. 200,000 | Rs. 300,000 | Rs. 400,000 | |
| Investments | Dividend income | 15% | 25% | 30% |
| Securities (CGT) | 15% flat | 30% | Up to 45% | |
| Govt. Contracts | Public procurement / tenders | Eligible | Eligible | Barred |
Frequently asked questions
- What is withholding tax in Pakistan?
- Withholding tax (WHT) is tax deducted at the source of a transaction by the payer before the payment reaches the recipient. Banks, property registrars, employers, and companies withhold tax on behalf of FBR. The rate you pay depends on whether you are on the Active Taxpayers List (ATL).
- Why do non-filers pay higher withholding tax rates?
- FBR uses withholding tax differentials as an enforcement mechanism — making non-filing financially painful. The government doubled and tripled rates for non-filers under Finance Act 2024-25 to encourage compliance. Getting on the ATL immediately unlocks lower rates on all future transactions.
- How long does it take to become a filer in Pakistan?
- Once you file your income tax return and it is accepted by FBR, you appear on the Active Taxpayers List. The ATL updates monthly. WeCertify can have your return filed and submitted within 24-48 hours.
- What is a Late Filer in Pakistan?
- A Late Filer is someone who filed their income tax return after the September 30 deadline by paying an ATL surcharge (Rs. 1,000 for salaried individuals). Late filers get intermediate rates — better than non-filers but slightly higher than on-time filers for some transactions.
- Are these rates applicable for FY 2025-26?
- Yes. These rates are based on the Finance Act 2024-25 and apply to the tax year FY 2025-26 (July 2025–June 2026). Rates may change with each Finance Act — check back after the federal budget for any updates.
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