Calculators › Withholding tax calculator
Tax deducted from a supplier or service payment at the rate you enter, the amount the supplier receives, and the difference if they are not on the ATL.
Also searched as: withholding tax kaise katein · ATL aur non ATL · tax deduction on payment
When a business pays a supplier, a service provider or a landlord above certain limits, the law can require it to deduct tax from the payment and deposit it with FBR. The supplier gets the rest, and the tax counts towards their own return.
The rate depends on what is being paid for (goods, services, rent, contracts) and on whether the person paid is on FBR's Active Taxpayers List (ATL). For most payments, people not on the ATL face a much higher rate. Rates change with each budget, so take them from FBR's current withholding tax rates card. This calculator does the sum once you know the rate.
Keep the challan number for every deposit and give the supplier a certificate. Your accountant will need both at year end.
Tax the payer deducts from a payment and deposits with FBR for the person paid, for example on supplies, services or rent above set limits.
It depends on the section (supply, service, rent, contract) and whether the person paid is on the Active Taxpayers List. Rates change with each budget, so check FBR's current withholding tax rates card.
For most sections the rate for a person not on the ATL is much higher, often double. Ask suppliers for their NTN and check the ATL before paying.
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