WHT on payments of royalty and FTS, when royalty or FTS is not attributable to a PE in Pakistan, is 15% or a lower treaty rate of royalty or gross fees. The tax withheld is deemed to be the final tax liability of the non-resident. In the case of a non-resident where royalty or FTS is attributable to a PE in Pakistan, the amount of royalty/FTS shall be chargeable to tax as normal income. If a reduced rate is available in a tax treaty, such rate would be applicable. Royalty payment made to resident persons is also subject to WHT at 15%, which is adjustable in nature.
Resident corporations making certain types of payments must withhold tax as follows:
Last Reviewed - 06 August 2019