Recently, the Federal Board of Revenue (FBR) has published the guideline on withholding taxes updated up to 22 March 2017. The guideline covers all requirements for both final and non-final withholding taxes under the territory of Pakistani tax law.
The following items are summarised in the guideline:
- The applicable tax rates;
- the persons liable to withhold tax;
- the person to whom withholding tax is charged;
- the relevant withholding tax legislation under the Income Tax Ordinance 2001;
- the time at which the withholding tax is imposed;
- the deadline for remitting the withholding tax; and
- the question as to whether the withholding tax is a final tax.
However, if any inconsistencies exist between the guideline and the Income Tax Ordinance 2001, the Income Tax Ordinance 2001 will prevail.