Withholding tax is tax deducted at source on various transactions in Pakistan. The rate you pay depends on whether you are a filer (on the Active Taxpayer List) or a non-filer. The difference is massive. Here is a complete breakdown for 2026.
Why Filer Status Matters
Being on the Active Taxpayer List (ATL) can save you hundreds of thousands of rupees every year. The FBR uses a two-tier system. Filers pay lower rates. Non-filers pay significantly higher rates. The difference is designed to encourage tax compliance.
Property Transaction Rates
- Filer: 3% of the total property value
- Non-Filer: 10% of the total property value
On a PKR 10,000,000 property, a filer pays PKR 300,000 in withholding tax. A non-filer pays PKR 1,000,000. That is a PKR 700,000 difference for the same property.
Bank Profit Rates
- Filer: 20% of the profit amount
- Non-Filer: 40% of the profit amount
If you earn PKR 200,000 in bank profit, a filer pays PKR 40,000 tax. A non-filer pays PKR 80,000. Half your profit gone just for not filing.
Dividend Income Rates
- Filer: 15% of the dividend amount
- Non-Filer: 30% of the dividend amount
Contract Payments
- Filer: 3% of the contract value
- Non-Filer: 7.5% of the contract value
How to Check Your ATL Status
SMS your CNIC number (without dashes) to 9966. You will receive an instant reply from the FBR confirming whether you are on the Active Taxpayer List. You can also check online at iris.fbr.gov.pk.
How to Become a Filer
Filing your income tax return is the only way to get on the ATL. Even if you had zero income or your income was below the taxable threshold, filing a nil return gets you on the list. We can file your return and have you on the ATL within days.