Business · Section 153 · Tax Year 2026-2027
WHT on Services & Contracts Calculator
Calculate Section 153 withholding tax on services, goods or contract payments — with separate filer/non-filer rates for each category.
Step by step
How Section 153 WHT is worked out
Choose your category
Services, goods, or contracts — each has its own rate.
Enter the invoice amount
The gross value before deduction.
Confirm your filer status
Non-filers pay exactly double the filer rate in every category.
See the tax withheld
And what you actually receive after deduction.
Reading the result
Picking the wrong category is the usual error
Section 153 covers three different things at three different rates: supplying goods, rendering services, and executing a contract. Most disputes about a deduction are really disagreements about which of the three a payment was.
Supplying printed material is goods. Designing it is a service. Being engaged to design, print and install it as one job looks like a contract. The same supplier can fall into all three across a year.
Composite invoices should be split
Where one invoice covers goods and the labour to fit them, the sensible approach is to show them separately so each part is withheld at its own rate. A single line withheld at one rate is the version that gets queried later, and the withholding agent carries the risk of getting it wrong.
The agent is personally liable
A payer who under-deducts can be pursued for the shortfall themselves under Section 161, along with default surcharge. That is why companies deduct at the higher rate when a category is unclear — it is the cheaper mistake. A supplier who believes the lower rate applies should say so before invoicing, not after being paid.
Where this stops
This applies a rate to an amount. It does not verify the payee's filer status on the date of payment, and it does not account for exemption or reduced-rate certificates, which override the standard rate when validly held.
FAQs
Services & contracts WHT FAQs
What does Section 153 cover?
Section 153 requires "prescribed persons" to withhold tax when paying for services, supply of goods, or execution of contracts. Each category has its own filer/non-filer rate. For tax year 2027 the FBR card lists specified services at 7%/14% (general services 14%/28%, IT and IT-enabled services 4%/8%, independent professionals 15%/30%), supply of goods by a company at 5%/10% (5.5%/11% for others) and contracts by a company at 7.5%/15% (8%/16% for others). The defaults here are the company figures — edit the rate for your category.
How do I know which category applies?
Services means fees for rendering a service (e.g. consultancy, IT services); goods means supply of physical goods; contracts means executing a construction or similar contract. Pick whichever matches your invoice.
Is this tax adjustable?
For most recipients, Section 153 withholding is adjustable against their final tax liability, though some categories may face minimum tax treatment — confirm with a tax advisor.
Who withholds this tax?
The payer (company, exporter, or other notified withholding agent) deducts the tax before paying the service provider, goods supplier or contractor.
Related tools
Just supplying goods?
Use the dedicated supply of goods calculator for a simpler, focused view.
Open Supply of Goods Calculator