Presentation on

Applicability of Different
Tax Regimes in Pakistan

Type of Taxes:
Applicable
tax
regime

Income
tax

Sales Tax

Income Tax
Things to be covered:
Withholding Rules
Active Tax Payers List (ATL)
E-filing of withholding statement

Withholding Rules:
Purcha
ses
Companie
s

Supply
of
goods

Filer
4%

NonFiler
6%

Supply
of
service
s

Filer
8%

NonFiler
10%

Other than
Companie
s

Supply
of
goods

Filer
4.5
%

NonFiler
6.5
%

Supply
of
service
s

Filer
10%

NonFiler
15%

Withholding Rules:
Withholding rates on some other transactions of
routine nature are as follows:
Transportat
ion services
2%

Advertis
ing
services

Filer
1%

NonFiler
12%

Payment
of
Dividend

Filer
12.5
%

NonFiler
17.5
%

Payment
of
Commiss
ion

Filer
12%

NonFiler
15%

For more details complete schedule of withholding

rates are already mailed to you.

Withholding Rules:
Following are the issues which have been noticed in
respect of withholding of income tax at the time of
payment:
Misconception with respect to identification of
Company and Non-Company resulting in
application of wrong withholding rate.
No record keeping and timely updating of
exemption certificates and other details of
suppliers such as NTN, address, phone number,
etc.

Active Tax Payers List

(ATL)
From July 2015 onwards FBR have issued a list of
tax payers who have been complying with the
provisions of Income Tax Ordinance 2001 & Sales
Tax Act 1999 called Active Taxpayers List.
Separate list for both Income tax and Sales tax is
issued by the FBR and as per the notification of FBR
same is updated on weekly basis.

Active Tax Payers List

(ATL)

E-Filing of withholding
Statement
As per Section 160 of the Income Tax Ordinance
2001 (ITO), any tax deducted or collected as per
the provision of ITO shall be paid to the
commissioner by the person collecting or deducting
the tax on within seven days after the end of the
each fortnight , that is, 7th and 21st of every month.
As per section 165 of ITO every person collecting or
deducting the tax from payment shall furnish to the
Commissioner a monthly statement in the
prescribed format by the 15th day of the month
following the month to which the withholding tax
pertains.

Sales Tax
FB
R

Withholding
rules
E-filing of
Monthly Return

SR
B
PR
A

Withholding
rules
E-filing of
Monthly
Return

Withholding
rules
E-filing of
Monthly
Return

FBR
Applicable rate
rate of
Applicable
ofsales
salestax
tax

17%

Sales tax on sale of tractors

10%

Period for claiming of input tax

6 months

Sales tax withholding of dealers ,

distributors & wholesaler

10%

Sales tax withholding of other than

dealers , distributors & wholesaler

20%

Sales tax withholding of unregistered

suppliers

1% of
invoice
amount

SRB
Applicable rate
rate of
Applicable
ofsales
salestax
tax

14%

Period for claiming of input tax

6 months

Sales tax withholding of

registered suppliers

20%

Sales tax withholding of unregistered

suppliers

14% of
invoice
amount

PRA
Applicable rate
rate of
Applicable
ofsales
salestax
tax

16%

Period for claiming of input tax

6 months

Sales tax withholding of

registered suppliers

100%

Sales tax withholding of unregistered

suppliers

16% of
invoice
amount

Issues:
Following are the issues which have been noticed in
respect of withholding of Sales tax at the time of
payment:
Incorrect withholding of Sales Tax. For example:
Withholding sales tax on insurance companies
Applying incorrect withholding rates
Claiming non claimable sales tax and vise versa.

E-Filing of Monthly
Return:
The amount of Sales Tax withheld is required to
be paid to the commissioner by the 15th day of the
month following the month to which the
withholding tax pertains.

Every registered person shall furnish not later 18th

of the month following the month to which the
return pertains a true and correct return in the
prescribed form to a designated bank [or any
other office] specified by the Board, indicating the
purchases and the supplies made during a tax
period, the tax due and paid and such other
information, as may be prescribed .

THANK
YOU