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Filer vs Non-Filer: Withholding Rates in Pakistan
What being on the Active Taxpayer List actually saves you, item by item. The gap is largest on property, and it repeats every year on your vehicle.
Free reference. Rates are held in one file and updated with each Finance Act.
These rates are pending final verification against the current Finance Act. Confirm with us before relying on them for a transaction.
The short version
- Most of what is withheld from a filer is adjustable against their annual liability, and refundable if it exceeds it. A non-filer pays more and reclaims none of it.
- On property the gap is measured in lakhs, usually more than a lifetime of filing fees on a single transaction.
- Vehicle advance tax repeats every year, at roughly double, for as long as you own the car.
- A "late filer" sits between the two on property transactions. Filing before 30 September is worth money, not just tidiness.
Banking & investments
The everyday cost of staying off the ATL: it comes out of your account automatically, and you cannot claim it back unless you file.
| What it applies to | Section | Filer | Non-filer |
|---|---|---|---|
| Cash withdrawal over Rs. 50,000 in a day Charged per day, per bank. Withdraw Rs. 500,000 as a non-filer and Rs. 4,000 is gone. | 231AB | 0% | 0.8% |
| Profit on bank deposits & savings Deducted by the bank before the profit reaches you. | 151 | 15% | 35% |
| Dividends from a listed company Rate varies where the payer is exempt from tax or an IPP. | 150 | 15% | 30% |
| Prize bond & lottery winnings Deducted at the counter when you encash. | 156 | 15% | 30% |
Property
The largest single cost of being a non-filer. On a Rs. 2 crore plot the gap runs into lakhs, usually more than a lifetime of filing fees.
| What it applies to | Section | Filer | Late filer | Non-filer |
|---|---|---|---|---|
| Buying property, value up to Rs. 50 million Collected by the registering authority at transfer. | 236K | 1.5% | 4.5% | 10.5% |
| Buying property, Rs. 50m to Rs. 100m | 236K | 2% | 5.5% | 14.5% |
| Buying property, above Rs. 100 million | 236K | 2.5% | 6.5% | 18.5% |
| Selling property, value up to Rs. 50 million Adjustable against your final tax when you file. | 236C | 4.5% | 7.5% | 11.5% |
| Selling property, Rs. 50m to Rs. 100m | 236C | 5% | 8.5% | 11.5% |
| Selling property, above Rs. 100 million | 236C | 5.5% | 9.5% | 11.5% |
Vehicles
Charged at registration and again at every annual token. The non-filer rate is roughly double throughout.
| What it applies to | Section | Filer | Non-filer |
|---|---|---|---|
| Vehicle registration, up to 850cc | 231B | Rs. 10,000 | Rs. 30,000 |
| Vehicle registration, 1001cc to 1300cc | 231B | Rs. 25,000 | Rs. 75,000 |
| Vehicle registration, 1601cc to 1800cc | 231B | Rs. 150,000 | Rs. 450,000 |
| Vehicle registration, above 2000cc Charged on invoice value for locally assembled vehicles. | 231B | 6% of value | 18% of value |
| Annual token tax (advance tax) Applied every year for as long as you own the vehicle. | 234 | Standard | Double |
Business & everyday payments
If you invoice a company, a filer keeps materially more of every payment. Non-filer deduction is broadly double.
| What it applies to | Section | Filer | Non-filer |
|---|---|---|---|
| Payment for supply of goods Deducted by your customer before they pay you. | 153(1)(a) | 5.5% | 11% |
| Payment for services The rate most consultants, agencies and freelancers meet. | 153(1)(b) | 11% | 22% |
| Payment on a contract | 153(1)(c) | 8% | 16% |
| Commission & brokerage | 233 | 12% | 24% |
| Rent of immovable property Tenants who are withholding agents must deduct this. | 155 | Slab rate | Slab rate + 100% |
| International credit / debit card transactions Applies to remittances abroad through a card. | 236Y | 5% | 10% |
| Children's school fee above Rs. 200,000 a year Collected by the school and shown on the fee voucher. | 236I | 0% | 5% |
It is not only about rates any more
Under section 114C an "eligible person" must appear on the ATL and have declared sufficient resources in their wealth statement. Being off the list can stop a transaction outright, not merely tax it more.
- Registering or transferring a motor vehicle above the prescribed value.
- Registering or transferring immovable property above the prescribed value.
- Investing in securities, mutual funds or debt instruments beyond the prescribed limit.
- Opening or operating certain bank accounts, and making bank transfers beyond a threshold.
Rates are those applying to individuals. Companies, banks and certain sectors have separate rates, ask us if you are filing for a company.
Not on the list?
Getting on the Active Taxpayer List takes two steps: registration, and then filing a return. For most people it is a matter of days.
Check your ATL status
Send us your CNIC number and we'll tell you where you stand and what it takes to get on the list.