15pc WHT on independent professional services from July 1
- The FBR’s budget explanatory circular has clarified changes in Withholding Tax Rates on Services and on Certain Debt Securities
ISLAMABAD: The withholding tax at the rate of 15 percent would be applicable on independent professional services covering doctors, lawyers, architects, accountants, and software engineers or developers from July 1, 2026.
The FBR’s budget explanatory circular has clarified changes in Withholding Tax Rates on Services and on Certain Debt Securities.
The rates of advance withholding tax for rendering of or providing of services in Division III of Part III of the First Schedule have been amended. In paragraph (2) of said Division III the rate in sub-paragraph (i) has been increased from six percent to seven percent.
Sub-paragraph (ii) has been substituted to provide a rate of 15 percent in the case of independent professional services such as doctors, lawyers, architects, accountants, and software engineers or developers working independently.
Further amendments made in paragraph (2) provide a rate of 12 percent of the gross amount payable to companies for terminal and port operating services and a rate of 14 percent of the gross amount in the cases of other services not specified in paragraph (2) of the said Division III.
The rate of withholding tax under section 151A, at the time of disposal of debt securities on the gross amount of capital gain specified in Division IIIAA of Part III, has been increased from 15 percent to 20 percent, FBR added.
Copyright Business Recorder, 2026
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