Income Tax
Withholding Tax Deduction & Statements
Businesses, companies and AOPs that act as withholding agents must deduct income tax on payments such as salaries, supplies, services, contracts and rent. They deposit it with the FBR through a PSID and file periodic withholding statements. Errors lead to default surcharge and penalties. Tax Services PK manages the full withholding cycle for you.
Who needs it
Who is this service for?
- Companies and AOPs paying salaries, suppliers or contractors
- Businesses paying commercial rent
- Employers with payroll
- Withholding agents who received an FBR notice for short deduction
Our process
How it works
Review payments
We identify which payments require withholding and at what rate.
Compute & deposit
We compute tax and generate PSIDs for deposit.
File statements
We file withholding statements on IRIS by the due dates.
Issue certificates
We prepare tax deduction certificates for your employees and vendors.
Checklist
Documents required
- Payroll records
- Payment ledgers to suppliers and contractors
- Rent agreements
- Previous withholding statements
What we handle
What's included
- Withholding tax computation
- PSID generation and deposit
- Withholding statement filing
- Responses to short-deduction notices
FAQs
Withholding Tax Statements: frequently asked questions
What is a withholding agent?
A person, such as a company, AOP or prescribed individual, required by law to deduct tax at source from certain payments and deposit it with the FBR.
What happens if tax is not deducted?
The withholding agent can be held personally liable for the tax not deducted, plus default surcharge and penalties.
Where can I check current withholding rates?
The FBR publishes a withholding tax rate card each year after the Finance Act. Rates change, so we apply the rates in force for the payment date.
Need help with withholding tax statements?
Talk to a tax consultant with 30+ years of experience. Call or WhatsApp us today.