Who can be withholding agent in Pakistan?

Who can be withholding agent in Pakistan?

Who is Withholding Agent? Who has to file Withholding Statement under section 165

  • A Company.
  • An Association of Persons Constituted by, or under law.
  • A Non-profit organization.
  • A foreign contractor or consultant.
  • A Consortium or joint venture.
  • An exporter or an export house for the purpose of sub-section 2.

Who is withholding agent in FBR?

Individuals or association of persons paying gross rent of rupees on and a half million and above in a year. Brokerage & Commission Federal Government, Provincial Government, Local authority, Company AOP constituted by or under any law.

Who are the withholding tax agents?

You are a withholding agent if you are a U.S. or foreign person that has control, receipt, custody, disposal, or payment of any item of income of a foreign person that is subject to withholding.

What is withholding tax in Pakistan?

Withholding Taxes in Pakistan Withholding is an act of deduction or collection of tax at source, which has generally been in the nature of an advance tax payment. It is an effective mechanism and important/timely source of revenue. Their contribution is about 41 percent of total direct tax revenues.

What is difference between withholding tax and income tax?

Tax withholding is a way for the U.S. government to maintain its pay-as-you-go (or pay-as-you-earn) income tax system—taxing at the source of income, rather than trying to collect income tax after wages are earned.

Why is withholding tax deducted?

Governments use tax withholding as a means to combat tax evasion, and sometimes impose additional tax withholding requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common.

Who are exempt from withholding tax in Pakistan?

Foreign-source income of returning expatriates (citizens of Pakistan who were not resident in Pakistan during any of the preceding four tax years) shall be exempt from tax in the tax year of return and the succeeding tax year.

How do I get a tax withholding certificate from FBR?

Zong Tax Certificate 2021 | How to get Zong Tax Certificate

  1. Just open your MyZong app on your mobile phone.
  2. Click on Tax Certificate icon from the menu (as shown in the picture below).
  3. Enter the start and end dates and press the “Download Tax Certificate” button.

Why do we pay withholding tax?

Is withholding tax refundable in Pakistan?

The FBR collect withholding tax through withholding tax agents from persons filing or not filing income tax returns. But in case a person is non-filer paid higher amount as withholding tax can claim refund or adjustment after filing income tax return for the tax year in which the deduction was made.