Withholding Tax Filling Business
Withholding tax is an advance tax deducted at the source of income, meaning the payer of certain types of income must deduct tax before making the payment and then remit it to the government. In Pakistan, businesses are often required to withhold tax on various transactions and file returns for these withholdings.
1. Who needs to file it?
Employers who pay salaries and wages to employees are required to deduct withholding tax from salaries and remit it to the FBR.
Businesses making payments for goods and services must withhold tax from payments to suppliers, contractors, and service providers.
Banks that pay interest to account holders are required to withhold tax on these interest payments.
2. How can you file it?
Ensure your business is registered with the FBR and has a National Tax Number (NTN).
Deduct the appropriate withholding tax from each payment as required.
Deposit the withheld tax to the government through designated banks or online banking.
Keep detailed records of all transactions and the tax amounts withheld.
3. What is the benefits?
Ensures adherence to tax laws and regulations, avoiding penalties and legal issues.
Maintains clear records of transactions and taxes withheld, promoting financial transparency.
Facilitates the tax audit process by providing organized records of tax deductions and payments.
Withholding tax collections contribute to the government's revenue, supporting public services .
