Withholding Tax Rates on Income from Property

Federal board of revenue (FBR) has issued rate of withholding tax to be collected on income from property during tax year 2019.

The withholding agent is responsible for collecting under section 155 of income tax ordinance, 2001 from recipient of rent of immovable property at the time the rent is actually paid, according to withholding tax card for tax year 2019 issued by the FBR.

Any payment made on account of rent of immovable property

(a)   In case of individual or AOP:

i.      Where the gross amount of rent does not exceed Rs, 200,000: NIL

ii.     Where the gross amount of rent exceeds Rs, 200,000 but does not exceed Rs, 600,000: 5 percent of the gross amount exceeding Rs, 200,000

iii.    Where the gross amount of rent exceeds Rs, 600,000 but does not exceed Rs, 1,000,000: Rs, 20,000 + 10 percent of the gross amount exceeding Rs, 600,000

iv.    Where the gross amount of rent exceeds Rs, 1,000,000 but does not exceed Rs, 2,000,000: Rs, 60,000 + 15 percent of the gross amount exceeding Rs, 1,000,000 Where the gross amount of rent exceeds Rs, 2,000,000: Rs, 210,000 + 20 percent of the gross amount exceeding Rs, 2,000,000

(b) In case of company the tax rate shall be:

Filer: 15 percent

Non-filer: 17.5 percent