Search the Tax Year 2027 withholding tax rate card, compare Active Taxpayer (ATL) and non-ATL rates, estimate the Section 182 late-filing penalty and Section 182A surcharge, and read key provisions of the Income Tax Ordinance 2001 and the Sales Tax Act 1990.
Key rules from the Income Tax Ordinance 2001, the Sales Tax Act 1990 (updated to 30 June 2026) and the withholding tax regime under the First Schedule, explained by our tax team.
Important: Persons not on the Active Taxpayers List (ATL) generally suffer 100% higher withholding rates under the Tenth Schedule (200% higher for vehicle-related collections). Minimum = tax deducted is the minimum liability; Adjustable = credited against final tax; Final = discharges liability on that income. Rates for TY 2027 per Finance Act 2026; conditions and exemptions apply.
Estimate only. Exemption certificates, reduced-rate certificates and specific conditions can change the actual deduction.
Every company, every non-profit organisation, every person whose taxable income exceeds the taxable limit (Rs 600,000 for individuals), and persons whose income is subject to final tax. Certain property and vehicle owners must also file.
Individuals & AOPs: 30 September after the tax year.
Companies: 31 December (tax year ending Jan–June) or 30 September (other cases). Salaried individuals file electronically on IRIS.
Individuals filing a return must also file a wealth statement showing assets, liabilities, and a reconciliation of wealth from last year to this year.
Every person deducting or collecting tax must file a quarterly withholding statement with the name, CNIC/NTN, amount paid and tax deducted for each person.
Every taxpayer must register and obtain an NTN. Filing on time puts you on the ATL. Late filers must pay a Sec 182A surcharge to rejoin: Rs 25,000 (individual), Rs 50,000 (AOP), Rs 100,000 (company).
The Commissioner may call for information (Sec 176) and amend a deemed assessment (Sec 122). Replies must be filed within the time given — we prepare documented responses.
Section 182(1), Serial 1 — failure to file a return within the due date.
Sales tax is charged at 18% of the value of taxable supplies made by a registered person and on goods imported into Pakistan.
Supplies made to a person who is not registered, or not an active taxpayer, attract an additional 4% further tax — a key reason for customers to register.
Manufacturers (other than cottage industry), retailers liable to sales tax, importers, exporters seeking refunds, wholesalers, dealers and distributors — and online sellers of digitally ordered goods.
The due date is the 15th of the month following the tax period, or another date notified by the Board for different parts of the return. We file on time, every month.
Rs 50,000 for failing to file a return by the due date. If filed within 10 days of the due date, the penalty is Rs 2,000 per day of default.
Tax paid late attracts default surcharge in addition to penalties — timely payment through PSID on IRIS avoids this.
Standard rate 18% + further tax 4% on supplies to unregistered / non-active buyers.
Summaries are for general guidance only and do not replace professional advice on your specific facts. Sources: Income Tax Ordinance 2001, Sales Tax Act 1990 (updated to 30.06.2026), First Schedule withholding rates for TY 2027.
Non-filers pay much higher withholding taxes on everyday transactions. Filing your return puts you on FBR’s ATL.
Lower withholding tax when buying or selling property.
Reduced advance tax on vehicle registration and token tax.
Lower tax deduction on profit on savings and bank transactions.
Reduced tax on dividends and capital gains.
Avoid higher advance tax on tickets, phone and electricity bills.
Required for tenders, loans, import/export and corporate contracts.
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