Section 153 Withholding Tax Calculator
Sale of goods 153(1)(a), services 153(1)(b) and execution of contract 153(1)(c) — pick the transaction, enter the amount, and see filer vs non-filer tax. Tax Year 2026-27.
Under Section 153, a withholding agent deducts tax when paying for goods (5%–5.5% filer), services (7% specified / 4% IT / 15% professionals / 14% other) or a contract (7.5%–8% filer). Non-filers generally pay double (Tenth Schedule). Select your transaction below.
Section 153 — Complete Rate Tables (FY 2026-27)
153(1)(a) — Sale / Supply of Goods
| Payment | Filer | Non-Filer | Nature of Tax |
|---|---|---|---|
| Sale of goods — company | 5% | 10% | Minimum / Adjustable¹ |
| Sale of goods — individual / AOP | 5.5% | 11% | Minimum |
| Goods — company (toll manufacturing) | 9% | 18% | Minimum / Adjustable¹ |
| Goods — individual/AOP (toll manufacturing) | 11% | 22% | Minimum |
| Rice / cotton seed / edible oil | 1.5% | 3% | Minimum |
| Cigarette distributors | 2.5% | 5% | Minimum |
| Pharmaceutical distributors | 1% | 2% | Minimum |
| FMCG distributors/dealers (on ATL) | 0.25% | 0.5% | Minimum |
| Gold, silver & articles thereof | 1% | 2% | Minimum |
¹ Adjustable (not minimum) where the seller is a company that is a manufacturer of the goods, or a public company listed on a registered stock exchange — otherwise minimum tax.
153(1)(b) — Specified Services (7% bucket)
| Service | Filer | Non-Filer | Nature of Tax |
|---|---|---|---|
| Transport services | 7% | 14% | Minimum |
| Freight forwarding services | 7% | 14% | Minimum |
| Air cargo services | 7% | 14% | Minimum |
| Courier services | 7% | 14% | Minimum |
| Manpower outsourcing services | 7% | 14% | Minimum |
| Hotel services | 7% | 14% | Minimum |
| Security guard services | 7% | 14% | Minimum |
| Software development services | 7% | 14% | Minimum |
| Tracking services | 7% | 14% | Minimum |
| Advertising services (other than print/electronic media) | 7% | 14% | Minimum |
| Share registrar services | 7% | 14% | Minimum |
| Engineering services (incl. architectural) | 7% | 14% | Minimum |
| Warehousing services | 7% | 14% | Minimum |
| Non-banking finance company (NBFC) services | 7% | 14% | Minimum |
| Data services (under PTA licence) | 7% | 14% | Minimum |
| Telecom infrastructure (tower) services | 7% | 14% | Minimum |
| Car rental services | 7% | 14% | Minimum |
| Building maintenance services | 7% | 14% | Minimum |
| Pakistan Stock Exchange & PMEX services | 7% | 14% | Minimum |
| Inspection, certification, testing & training services | 7% | 14% | Minimum |
| Oilfield services | 7% | 14% | Minimum |
| Telecommunication services | 7% | 14% | Minimum |
| Collateral management services | 7% | 14% | Minimum |
| Travel & tour services | 7% | 14% | Minimum |
| REIT management services | 7% | 14% | Minimum |
| National Clearing Company (NCCPL) services | 7% | 14% | Minimum |
153(1)(b) — Services (other rates)
| Service | Filer | Non-Filer | Nature of Tax |
|---|---|---|---|
| IT & IT-enabled services | 4% | 8% | Minimum |
| Independent professionals (doctor/lawyer/architect/accountant/software engineer) | 15% | 30% | Minimum |
| Electronic / print media advertising | 1.5% | 3% | Minimum |
| Terminal & port operating services (company) | 12% | 24% | Minimum |
| Oil tanker contractor services | 2% | 4% | Minimum |
| Export house — stitching/dyeing/printing/embroidery/washing | 1% | 2% | Minimum |
| Other services (not covered above) | 14% | 28% | Minimum |
Tax on all services under 153(1)(b) is minimum tax (expressly provided in the Ordinance).
153(1)(c) — Execution of Contract
| Contract | Filer | Non-Filer | Nature of Tax |
|---|---|---|---|
| Contract — company | 7.5% | 15% | Minimum / Adjustable² |
| Contract — individual / AOP | 8% | 16% | Minimum |
| Contract — sportsperson | 15% | 30% | Minimum |
² Adjustable for a public company listed on a registered stock exchange; minimum tax for everyone else.
153(2A) — E-commerce (digitally ordered)
| Payment | Rate | Collected by | Nature of Tax |
|---|---|---|---|
| Digital / banking channel payment | 1% | Payment intermediary | Minimum |
| Cash on Delivery (collected by courier) | 2% | Courier business | Minimum |
Frequently Asked Questions
What is Section 153 withholding tax?
It is advance/withholding income tax that a "prescribed person" (withholding agent) deducts when paying for the sale of goods, rendering of services, or execution of a contract, and deposits it with FBR on the payee's behalf.
What is the withholding tax on services under 153(1)(b)?
Specified services (transport, courier, hotel, car rental, engineering and 21 more) are 7% for filers; IT & IT-enabled services 4%; independent professionals 15%; media advertising 1.5%; terminal/port operating 12%; and any other service 14%. Non-filers pay double.
How much tax is deducted on a contract?
Execution of a contract is 7.5% for a company, 8% for an individual/AOP, and 15% for a sportsperson (filer rates; non-filers double).
Is there a minimum amount before tax is deducted?
Yes — goods payments up to Rs 75,000 and services up to Rs 30,000 in a tax year (in aggregate) are not subject to deduction.
Is 153 tax final or adjustable?
For most taxpayers it is minimum tax; for companies on goods and listed-company contracts it can be adjustable. Check your specific status.
Sources & References
- Income Tax Ordinance, 2001 — Section 153; First Schedule, Part III, Division III
- Rates as amended up to the Finance Act, 2026 (Tax Year 2026-27)
- Reduced rates — Second Schedule; non-filer increase — Tenth Schedule
- Federal Board of Revenue — fbr.gov.pk