SECTION 153 ยท GOODS, SERVICES AND CONTRACTS
Contractor & Services Withholding Tax Calculator Pakistan 2026
Calculate the income tax a buyer must withhold when paying you for goods, services or a contract.
What Section 153 withholding means
When a company, government office or registered withholding agent pays a supplier, service provider or contractor, it must deduct income tax and deposit it with FBR. This is Section 153. For most taxpayers the amount withheld is an advance tax that is adjusted against the final tax liability in your return, so you can claim it as a credit or refund if it exceeds what you owe (see the tax refund calculator).
Section 153 rates, Tax Year 2027
| Payment type | Filer | Non-filer |
|---|---|---|
| Supply of goods by companies (not toll manufacturing) | 5% | 10% |
| Supply of goods by non-companies (not toll manufacturing) | 5.5% | 11% |
| Supply of rice, cotton seed or edible oils | 1.5% | 3% |
| Toll manufacturing by companies | 9% | 18% |
| Toll manufacturing by non-companies | 11% | 22% |
| IT and IT-enabled services | 4% | 8% |
| Certain services (specified list) | 7% | 14% |
| Independent professionals | 15% | 30% |
| Advertising to electronic or print media | 1.5% | 3% |
| Other services | 14% | 28% |
| Contracts by companies | 7.5% | 15% |
| Contracts by others | 8% | 16% |
| Services to exporters or export houses | 1% | 2% |
Example
A filer company supplies goods worth Rs 500,000 to another company. Section 153 withholding at 5% is Rs 25,000, so Rs 475,000 is paid. This Rs 25,000 is claimed as a credit when the supplier files its return.
How to use this withholding tax calculator for Pakistan
Enter the payment amount, choose the type of payment from the list and your status as a filer or non-filer. The withholding tax calculator for Pakistan applies the Section 153 rate and shows the tax to be deducted and the net payment.
- Suppliers use it to see how much will be held back from an invoice.
- Buyers and finance teams use it to check the amount they must deduct and deposit with FBR.
- Services and goods have different rates, so pick the closest category.
The tax withheld is normally an advance tax. Keep the deduction certificates and claim them when you file; if the total exceeds your final liability see the tax refund calculator.
Frequently Asked Questions
What is the withholding tax rate on services in Pakistan?
It depends on the service. For example IT services 4%, independent professionals 15% and other services 14% for filers, and double those for non-filers.
Is Section 153 tax final?
It is generally an adjustable advance tax for most suppliers, although some categories are treated as final. Check the specific provision.
Who must deduct the tax?
Companies, government departments, AOPs and other designated withholding agents who make the payment.
How do I claim the tax that was withheld?
Declare the income in your annual return and claim the withholding as a tax credit. Use the withholding certificate or IRIS record as proof.
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