Withholding tax calculator: section 153
How much income tax to deduct when you pay a supplier, service provider or contractor, and what to transfer to them.
The payment
Deposit the tax with the FBR and report it in your quarterly withholding statement. Sales tax withholding is separate.
See statement deadlines →Rates: FBR withholding tax rate card updated to 30 June 2026 per the Finance Act 2026 (tax year 2027). Estimates for guidance only, not advice on your case. Exemptions, credits and special regimes can change the result.
Section 153 rates, tax year 2027
| Payment | On ATL | Not on ATL |
|---|---|---|
| Supplies of goods, by a company | 5% | 10% |
| Supplies of goods, by an individual or AOP | 5.5% | 11% |
| Services: IT and IT-enabled | 4% | 8% |
| Services: independent professional (doctor, lawyer, accountant, architect…) | 15% | 30% |
| Services: other services | 14% | 28% |
| Contracts, by a company | 7.5% | 15% |
| Contracts, by any other person | 8% | 16% |
Who must deduct?
Prescribed persons, including companies, AOPs and registered businesses above set thresholds, must deduct tax when they pay for goods, services and contracts, then deposit it and report it in the quarterly statement under section 165.
What if you don't deduct?
The FBR can treat you as the taxpayer for the amount not deducted under section 161, plus default surcharge and penalty. These proceedings are among the most common notices we handle.
Common questions
What if the supplier is not on the Active Taxpayer List?
The rate roughly doubles. Check the payee's status on the FBR ATL search before you pay.
Is this tax final for the supplier?
For some categories it is a minimum or final tax; for others it is adjustable. That affects the supplier's return, not the amount you deduct.
Are the rates the same for every service?
No. Some services have special rates, and some payments are exempt or covered by exemption certificates under section 159. Ask us if your case is unusual.
Want a partner to check your figures?
Send your numbers on WhatsApp. First review is free.