FBR notifies withholding tax rates for brokerage, commission income


KARACHI: Federal Board of Revenue (FBR) has notified withholding tax rates to be deducted from filers and non-filers on brokerage and commission income.
According to Withholding Tax Card for 2017/2018, the federal government, provincial government, local authority, company, Association of Person (AOP) constituted by or under any law or principal shall deduct withholding tax under Section 233 from recipient of brokerage or commission or agent at the time the brokerage or commission is actually paid. The tax will be treated final tax liability.
In case advertising agents the rate of withholding tax for filer will be 10 percent and for non-filers it will be 15 percent.
In case of life insurance agents where commission received is less than Rs0.5 million per annum the filer will pay 8 percent and non-filer will pay 16 percent.
Persons not covered under both categories, the filer will pay 12 percent and non-filer will pay 15 percent.