Withholding Tax Statement in Pakistan
Every withholding agent registered with FBR is legally required to file monthly and annual withholding tax statements under Section 165 of the Income Tax Ordinance 2001. Irshad & Co. manages your WHT statement filing accurately and on time — so you stay compliant and penalty-free.
UNDERSTANDING WHT
What is Withholding Tax in Pakistan?
Withholding tax (WHT) is a tax collection mechanism under the Income Tax Ordinance 2001, where tax is deducted at source before payment reaches the recipient. The person making the payment — called a withholding agent — is legally responsible for deducting and depositing this tax with FBR.
Under Section 165 of the Income Tax Ordinance 2001, every withholding agent must file a monthly withholding statement by the 15th of the following month, and an annual consolidation by 31st August.
Failure to file WHT statements on time attracts penalties under Section 182 — Rs. 2,500 per day of default, plus potential prosecution. Irshad & Co. ensures your statements are filed accurately and on time, every month.
15th
Monthly filing deadline (following month)
Rs.2,500
Penalty per day of default under Section 182
165
Section of ITO 2001 governing WHT statements
LEGAL REQUIREMENT
Who is Required to File Withholding Tax Statements?
Under FBR regulations, the following persons and entities are classified as withholding agents and must file monthly and annual WHT statements:
Companies & AOPs
All registered companies and Association of Persons making taxable payments
Government Departments
Federal, provincial, and local government offices disbursing salaries or payments
Business Individuals
Sole proprietors and business individuals whose last declared turnover exceeds Rs. 50 million
Employers
All employers deducting salary tax under Section 149 of Income Tax Ordinance 2001
Banks & NBFIs
Banking companies and non-banking financial institutions making profit/interest payments
Registered Persons
Any person notified by FBR through official SRO as a designated withholding agent
Why Withholding Statements Generate Notices
Withholding is the area where FBR has the most independent visibility. The department already holds the other side of most transactions, which means discrepancies surface without anyone reporting them.
The most frequent trigger is a mismatch between what a business withheld and what it declared. Tax deducted from a supplier or contractor but not deposited, or deposited but not reported in the statement, creates a gap that reconciliation software finds automatically.
The second is missing the withholding obligation entirely. Businesses above the prescribed thresholds become withholding agents by operation of law — not by choice or notification. Payments made without deduction remain the withholding agent’s liability, recoverable from them rather than from the payee.
The third is applying filer rates to non-filers. ATL status must be checked at the time of payment, not assumed from a past transaction. The shortfall lands on the withholding agent.
The fourth is treating the statement as a formality separate from the books. When the ledger and the statement do not agree, the notice that follows asks for both — and the answer has to reconcile.
We prepare and file monthly statements, verify ATL status before each deduction, reconcile deposits against challans, and keep records in a form that answers a query rather than inviting one.
If a notice has already arrived, our guide explains what each type means and how to respond: FBR Notice in Pakistan: All 17 Types
HOW IT WORKS
Our Withholding Tax Statement Filing Process
01
Collect Payment Data
You share monthly payment details — salaries, contractor payments, rent, dividends, and other deductible payments made during the month
02
We Compute WHT
Our team calculates the correct withholding tax amount for each payment category under the applicable section of ITO 2001
03
File on IRIS Portal
We prepare and submit your monthly WHT statement (Form 165) on FBR's IRIS portal before the 15th deadline
04
Confirmation & Records
You receive the filed statement acknowledgment — we maintain your WHT records for annual consolidation and audit purposes
FAQ
Frequently Asked Questions — Withholding Tax Pakistan
Monthly WHT statements must be filed by the 15th of the following month. For example, July 2026 payments must be reported by 15th August 2026 on FBR's IRIS portal.
Under Section 182 of the Income Tax Ordinance 2001, a penalty of Rs. 2,500 per day applies for each day of default. Continued non-compliance can lead to FBR prosecution and blacklisting.
Companies, AOPs, government departments, employers, banks, and any person notified by FBR via SRO are classified as withholding agents and must file WHT statements.
Monthly statements (Form 165) cover payments made each month and are due by the 15th. The annual WHT statement consolidates all 12 monthly statements and is due by 31st August each year.
Yes — we handle the complete WHT compliance cycle: data collection, tax computation, IRIS filing, and record maintenance. Contact us for a quote tailored to your payment volume.
Stay Compliant — File Your WHT Statement on Time
Let Irshad & Co. handle your monthly withholding tax statements so you never miss a deadline or face FBR penalties.
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