Business
December 23, 2020
KARACHI: The Federal Board of Revenue (FBR) has seen a massive 63 percent growth in withholding tax revenue in five months since the authority joined forces with banks to check unjustified exemptions to service payments abroad, sources said on Tuesday.
The sources said the banks were allowing payments to non-residents by resident Pakistanis under various heads without deduction of withholding income tax.
An individual is liable to withholding tax on payments to non-resident under a section (152 of the Income Tax Ordinance 2001). There are certain payments to non-residents requiring deduction of withholding tax, which include royalty, fee for technical services, reimbursement of expenses, contracts and dividends.