If your employer, bank, client or another organisation deducts income tax before paying you, you should receive proof of that deduction. In Pakistan, this document is commonly known as a withholding tax certificate.
It is important for salaried employees, freelancers, contractors, suppliers, landlords, investors and business owners. You may need it when filing your annual income tax return, checking tax already paid on your behalf or supporting a refund claim.
However, receiving a certificate does not automatically mean that the deducted amount can be claimed as adjustable tax. The treatment depends on the relevant section of the Income Tax Ordinance, 2001.
This guide explains what a withholding tax certificate is, who must issue it, how to obtain it, how to check deductions through FBR IRIS and how to use it correctly when filing your income tax return.
What Is a Withholding Tax Certificate in Pakistan?
A withholding tax certificate is an official document issued by a person or organisation that has collected or deducted tax from a payment made to you.
For example, if your employer deducts Rs. 15,000 from your monthly salary as income tax, your employer should provide a certificate showing the tax deducted. Similarly, if a company deducts tax from a payment to your business, it should provide evidence of that deduction.
The person responsible for collecting or deducting the tax is called the withholding agent. The person whose payment is reduced by the deduction is commonly called the recipient or withholdee.
The certificate helps you confirm:
- How much tax was deducted or collected.
- Under which section of the Income Tax Ordinance the tax was deducted.
- Which payment or transaction was involved.
- The period covered by the certificate.
- Which organisation or person deducted the tax.
In simple words, it is proof that tax has already been collected from you.
Which Law Requires a Withholding Tax Certificate?
The main legal provision is Section 164 of the Income Tax Ordinance, 2001, read with Rule 42 of the Income Tax Rules, 2002.
Section 164 requires the person collecting or deducting tax to furnish a certificate to the relevant person. The certificate must state the amount of tax collected or deducted and other prescribed particulars. The provision also refers to providing the relevant Computerised Payment Receipt (CPR) or equivalent document.
Rule 42 provides the prescribed requirements for the certificate.
You can read the relevant provisions in the Income Tax Ordinance, 2001 and the Income Tax Rules, 2002.
Important: A withholding tax certificate is different from an exemption or lower-rate certificate. The withholding tax certificate confirms tax already deducted. An exemption or lower-rate certificate is issued by the tax authority to allow a qualifying person to receive payment with reduced or no deduction, subject to the applicable law.
Who Issues a Withholding Tax Certificate?
The organisation or person that deducted or collected the tax is responsible for issuing the certificate.
Depending on your income or transaction, it may be:
| Tax deduction | Who issues the certificate? | Relevant section |
|---|---|---|
| Salary tax | Employer | Section 149 |
| Payment for goods, services or contracts | Customer or paying company | Section 153 |
| Profit on bank deposits | Bank or financial institution | Section 151 |
| Dividend tax | Company or relevant paying agent | Section 150 |
| Rent payment | Tenant or prescribed withholding agent | Section 155 |
| Payment to a non-resident | Relevant withholding agent | Section 152 |
| Export proceeds | Relevant bank or authorised collecting agent | Section 154 |
| Property purchase or sale | Relevant collecting authority or agent | Sections 236C and 236K |
| Electricity bill tax | Relevant electricity distribution company | Section 235 |
| Telephone and mobile services | Relevant service provider or collecting agent | Section 236 |
The exact legal treatment depends on the transaction and the law applicable to that tax year.
What Information Should a Withholding Tax Certificate Contain?
Before using a certificate in your income tax return, check whether it contains the correct information.
A certificate should include the prescribed particulars under Rule 42. These generally cover:
- Certificate number and date of issue.
- Name and tax identification details of the withholding agent.
- Name, CNIC or NTN of the person whose tax was deducted.
- Relevant section of the Income Tax Ordinance, 2001.
- Nature of the payment or transaction.
- Gross amount on which tax was deducted.
- Amount of tax collected or deducted.
- Relevant date and period of deduction.
- Whether the certificate is an original or duplicate, where applicable.
For example, if a company deducts tax from your business payment, check that the certificate shows your correct NTN, the relevant section, the gross payment and the actual tax deduction.
A certificate with an incorrect CNIC, NTN or tax year may create problems when you try to claim the deduction.
Why Is a Withholding Tax Certificate Important?
A withholding tax certificate is more than a record for your files. It can affect the amount of tax payable when you submit your annual income tax return.
1. Claim Credit for Tax Already Deducted
If the deduction is adjustable under the applicable law, you can claim it against your annual income tax liability.
For example, suppose your annual income tax liability is Rs. 100,000 and you have Rs. 70,000 in eligible adjustable withholding tax.
You may claim the Rs. 70,000 as tax credit and pay the remaining Rs. 30,000, subject to the applicable rules.
2. Support a Tax Refund Claim
If eligible adjustable tax already paid exceeds your final tax liability, you may be entitled to claim a refund under Section 170 of the Income Tax Ordinance, 2001.
The certificate supports your claim, but it does not guarantee that FBR will approve the refund. The relevant tax credit, payment record and return must meet the legal requirements.
3. Verify Your Tax Record
You can compare the certificate with the tax deduction information available in your FBR IRIS account.
This helps identify missing deductions, incorrect amounts or reporting errors before you submit your return.
4. Maintain Proper Business Records
Businesses receiving payments after tax deduction should collect certificates from their customers. These documents help reconcile sales, receipts, tax credits and accounting records.
Types of Withholding Tax Certificates in Pakistan
There is no need to assume that every type of income has a completely separate legal certificate. The certificate records the tax collected or deducted, while the relevant section and transaction determine its treatment.
Here are common examples.
Salary Tax Certificate
Employers deduct income tax from salaries under Section 149, where applicable.
A salary tax certificate normally summarises the salary paid and tax deducted during the relevant period. Employees use it when preparing their annual income tax returns.
If you changed jobs during the tax year, obtain a certificate from each employer for the period you worked there.
Business and Contractor Tax Certificate
Companies and other prescribed withholding agents may deduct tax from payments for supplies, services and contracts under Section 153.
If you supply goods or provide services to a company and tax is deducted from your invoice, request a certificate from the paying company.
Keep the certificate with your sales invoice, payment receipt and bank statement.
Bank Profit Tax Certificate
Banks may deduct tax from profit on debt under Section 151.
You can request an annual certificate from your bank showing the profit credited and tax deducted during the relevant period.
Dividend Tax Certificate
Companies or relevant paying agents may deduct tax from dividends under Section 150.
Investors should keep dividend statements and tax certificates for their investment records and income tax returns.
Rental Income Tax Certificate
Where tax is deducted from rent under Section 155, the relevant withholding agent should provide evidence of the deduction.
Landlords should compare the certificate with their rental agreements, rent receipts and bank statements.
Property Transaction Tax Certificate
Tax may be collected in property transactions under Sections 236C and 236K.
The seller or buyer should retain the relevant tax payment evidence issued by the collecting authority or agent. The correct treatment depends on the applicable law and the person’s circumstances.
Electricity, Telephone and Mobile Tax Certificates
Tax may be collected through electricity and telephone bills under the relevant provisions of the Ordinance.
If you need these deductions for your return, request an annual tax certificate from the relevant service provider and check that the connection details belong to you.
How to Get a Withholding Tax Certificate in Pakistan
You should request the certificate from the organisation that deducted the tax. The process depends on the type of payment.
1. How to Get a Salary Tax Certificate From Your Employer
If you are a salaried employee, contact your employer’s HR or accounts department.
Request a salary tax certificate for the relevant tax year. Check that it includes your salary details and the income tax deducted during your employment.
If you leave your job during the year, request the certificate for your employment period rather than waiting until the end of the tax year.
2. How to Get a Certificate From a Bank
Most banks provide tax deduction information through their digital banking services or customer support channels.
You can:
- Log in to your bank’s official mobile app or internet banking.
- Look for a tax certificate or withholding tax option.
- Select the relevant account and tax year.
- Download the certificate if the service is available.
- Contact the bank if you cannot find the required option.
The exact process varies between banks.
3. How to Get a Certificate From an Electricity Company
If tax has been collected through your electricity bills, contact your electricity distribution company.
Check its official website, customer portal, mobile application or customer service centre for the annual tax certificate facility.
Before requesting the document, confirm that the electricity connection is registered in your name or that you have the required supporting documents.
4. How to Get a Certificate From a Mobile Network or Telephone Company
Mobile network operators and telephone service providers may provide tax deduction details through their official applications, websites or customer service centres.
Select the relevant period and request the certificate or annual tax summary.
Do not use unofficial websites that promise to generate tax certificates. Never share your CNIC details, passwords or OTPs with an unknown service.
5. How to Get a Certificate From a Customer or Client
If you are a freelancer, contractor, supplier or service provider and a customer deducts tax from your payment, contact its accounts or finance department.
Provide your business name, CNIC or NTN, invoice details and payment period. Ask for the certificate showing the gross amount and tax deducted.
For regular business transactions, it is sensible to request certificates periodically instead of waiting until the annual return deadline.
How Long Does It Take to Get a Withholding Tax Certificate?
Rule 42 of the Income Tax Rules, 2002 provides time requirements for issuing certificates.
FBR’s published guidance explains that, for deductions other than the specific employment-related timing, a certificate is generally issued within 15 days after the end of the financial year or discontinuation of business, as applicable. If the recipient requests it before the end of the financial year, the certificate for the requested period is to be issued within seven days of the request.
Special timing applies to employment-related certificates when employment ends during the year. The certificate for the employment period is to be issued within seven days of cessation of employment or at the time of final settlement, whichever is later.
If a certificate is lost, stolen or destroyed, the recipient may request a duplicate. The duplicate should be clearly marked as a duplicate.
Always check the current wording of Rule 42 for the situation involved.
How to Check Withholding Tax Deductions on FBR IRIS
You do not have to depend only on paper certificates to verify your tax deductions. FBR provides access to withholding tax information through its digital systems.
According to FBR, information about deductions under most sections can be viewed through the Maloomat portal or through the Tax Payments tab under the MIS link in your IRIS account.
Follow these general steps:
- Open the official FBR IRIS portal.
- Log in using your registered credentials.
- Open the relevant tax payment information under MIS.
- Select the relevant tax period or tax year, where available.
- Review the withholding tax entries.
- Compare the information with the certificates you received.
You can also use FBR’s Maloomat facility to review available tax information.
Remember: IRIS information is useful for verification, but it does not replace the certificate that the withholding agent is required to issue.
If a deduction is missing from IRIS, contact the withholding agent and ask it to check its reporting and payment records.
How to Use a Withholding Tax Certificate in Your Income Tax Return
Collecting a certificate is only the first step. You must also report the deduction correctly in your income tax return.
Follow this process:
Step 1: Collect All Certificates
Collect certificates from every employer, bank, customer, company, utility provider or other organisation that deducted tax from you.
If you have multiple income sources, prepare a separate record for each one.
Step 2: Check the Details
Review the name, CNIC or NTN, tax year, section, gross amount and tax deducted.
Ask the issuer to correct any error before relying on the document.
Step 3: Compare the Certificate With IRIS
Check whether the deduction appears in your FBR record.
If the certificate and IRIS show different amounts, investigate the difference before filing.
Step 4: Identify the Tax Treatment
This is a very important step.
Not every withholding tax deduction is adjustable. Some deductions are treated as final tax, while others may be credited against your annual liability. The treatment depends on the relevant section and applicable provisions.
Do not claim every deduction as adjustable tax simply because you have a certificate.
Step 5: Enter the Tax in the Correct Place
Enter the eligible tax deduction in the appropriate section of your IRIS income tax return.
The correct reporting depends on the source of income and the applicable tax provision.
Step 6: Keep Supporting Documents
Save the certificates, CPRs, invoices, bank statements and other supporting records.
You may need them if FBR asks you to explain a tax credit or refund claim.
Practical Example: How a Withholding Tax Certificate Reduces Tax Payable
Suppose a salaried person has the following annual tax position:
| Particulars | Amount |
|---|---|
| Annual income tax liability | Rs. 100,000 |
| Eligible adjustable tax deducted during the year | Rs. 120,000 |
| Excess adjustable tax | Rs. 20,000 |
In this example, the taxpayer has Rs. 120,000 in eligible adjustable tax deductions, while the annual tax liability is Rs. 100,000.
The taxpayer may claim the excess Rs. 20,000 as a refund, subject to the conditions and verification under Section 170.
Now consider a different situation:
| Particulars | Amount |
|---|---|
| Annual income tax liability | Rs. 150,000 |
| Eligible adjustable tax deducted during the year | Rs. 120,000 |
| Remaining tax payable | Rs. 30,000 |
The taxpayer can use the eligible Rs. 120,000 as a tax credit and pay the remaining Rs. 30,000.
These figures are illustrative only. They are not withholding tax rates.
Can You Claim a Refund Through a Withholding Tax Certificate?
Yes, a taxpayer may claim a refund where eligible adjustable tax paid or deducted exceeds the final tax liability.
Section 170 of the Income Tax Ordinance, 2001 deals with refunds.
However, there is an important difference between adjustable and final tax.
Adjustable withholding tax: This can generally be credited against the taxpayer’s annual tax liability, subject to the relevant provisions.
Final withholding tax: This is treated according to the final tax regime applicable to that income. It is not automatically available as an adjustable credit against tax on other income.
Therefore, before claiming a refund, confirm the legal treatment of every deduction.
A certificate alone does not make a final tax deduction refundable.
Difference Between a Withholding Tax Certificate, CPR and Withholding Statement
These documents are related, but they serve different purposes.
| Document | Purpose |
|---|---|
| Withholding tax certificate | Shows the tax deducted or collected from the recipient |
| CPR | Provides evidence that tax was deposited with the government |
| Withholding tax statement | Reports tax deductions or collections to FBR |
| Income tax return | Declares the taxpayer’s income, tax liability and eligible tax credits |
| PSID | Payment slip or reference used to make a tax payment |
For example, a company deducts tax from your invoice. It should provide you with a certificate. The company also deposits the tax and receives a CPR. It reports the deduction to FBR through the applicable withholding statement.
You should compare these records where available, especially if the tax deduction does not appear correctly in your IRIS account.
What If Your Withholding Tax Certificate Is Missing?
If an employer, bank or company has deducted tax but has not provided a certificate, contact the issuing organisation.
Send a written request and mention the relevant tax year, payment period and transaction details.
Keep a copy of your request for your records.
You can also check whether the deduction appears in your IRIS account. If it does not, ask the withholding agent to verify whether the tax was correctly reported and deposited.
Do not create your own certificate or alter an old certificate.
What If the Certificate Has Incorrect Information?
An incorrect certificate can cause problems when you claim tax credit.
Common errors include:
- Incorrect CNIC or NTN.
- Wrong tax year or deduction period.
- Incorrect gross payment.
- Incorrect tax amount.
- Wrong section of the Income Tax Ordinance.
- Incorrect name of the recipient.
Contact the issuing organisation and request a corrected certificate.
Do not change the figures yourself, even if you have an invoice or bank statement showing a different amount.
You should also check whether the corrected information appears in the FBR system.
What If the Certificate and IRIS Show Different Amounts?
This is one of the most common problems faced by taxpayers.
For example, your certificate may show Rs. 50,000 in tax deducted, but your IRIS account may show only Rs. 35,000.
There may be several reasons:
- The withholding agent has not filed its statement correctly.
- The agent has reported an incorrect CNIC or NTN.
- The tax payment has not been deposited or processed correctly.
- The transaction has been reported under an incorrect section.
- The information has not yet appeared in the available FBR record.
Contact the withholding agent and request a reconciliation of the certificate, CPR and statement filed with FBR.
Do not claim an unsupported amount simply because it appears on a certificate. Keep the supporting documents and resolve the mismatch before filing wherever possible.
FBR’s provisions under Sections 161 and 162 may also become relevant where tax was not deducted or was deducted but not paid to the government.
Common Mistakes When Using Withholding Tax Certificates
Many taxpayers collect certificates but still make mistakes while preparing their returns.
Avoid these common problems:
1. Using the wrong tax year: A certificate for Tax Year 2026 should not be entered as a deduction for Tax Year 2027.
2. Claiming final tax as adjustable: The tax treatment depends on the relevant section. Check it before entering the amount as a credit.
3. Ignoring IRIS mismatches: Always compare the certificate with available FBR records.
4. Forgetting certificates from previous employers: If you changed jobs during the year, collect certificates from both employers.
5. Claiming tax deducted from someone else’s account: A certificate issued against another person’s CNIC or NTN cannot simply be claimed in your return.
6. Not keeping supporting documents: Save certificates, CPRs, bills, invoices and payment records.
7. Waiting until the last day: Request certificates early so you have time to correct errors.
What Records Should You Keep?
Keep a separate digital or physical folder for each tax year.
It should contain:
- Withholding tax certificates.
- CPRs and relevant payment receipts.
- Salary slips and employment records.
- Sales invoices and customer payment details.
- Bank statements.
- Electricity and telephone bills, where relevant.
- IRIS tax payment records.
- Copies of filed income tax returns.
- Correspondence about missing or corrected certificates.
Businesses should also reconcile certificates received from customers with their sales ledger and tax records.
Latest Withholding Tax Updates for Tax Year 2027
Tax Year 2027 runs from 1 July 2026 to 30 June 2027.
If you are preparing your Tax Year 2027 return, collect certificates covering deductions made during this period. Certificates relating to deductions from 1 July 2025 to 30 June 2026 generally belong to Tax Year 2026.
FBR’s current withholding tax rate card for Tax Year 2027 has been updated up to 30 June 2026 in accordance with Finance Act 2026.
The applicable tax rate and whether a deduction is adjustable or final should be checked against the relevant section and current law. Do not rely on an old certificate or rate chart to determine the treatment of a new transaction.
FBR is also working on the Synchronized Withholding and Payment System (SWAPS) under Section 164A. Designated withholding agents are subject to the applicable requirements for integration. Taxpayers should follow official FBR announcements rather than assume that every withholding transaction is already processed through SWAPS.
For updated rates, refer to the official FBR Withholding Tax Rate Cards.
Frequently Asked Questions
1. What is a withholding tax certificate in Pakistan?
It is a document issued by the person or organisation that deducted or collected tax from a payment. It records the amount, relevant section and other prescribed details.
2. Who issues a withholding tax certificate?
The withholding agent issues the certificate. This may be your employer, bank, customer, company, utility provider or another person responsible for deducting or collecting tax.
3. Does FBR issue withholding tax certificates?
No. The certificate is issued by the withholding agent. FBR provides tax information through systems such as IRIS and Maloomat, which taxpayers can use to verify available deductions.
4. Which section covers withholding tax certificates?
Section 164 of the Income Tax Ordinance, 2001 deals with certificates of collection or deduction of tax. Rule 42 of the Income Tax Rules, 2002 provides the prescribed requirements.
5. Can I download my withholding tax certificate from IRIS?
IRIS provides information about tax deductions reported to FBR under most sections. However, the formal certificate should be obtained from the withholding agent.
6. Can I claim withholding tax without a certificate?
You should retain proper supporting evidence for any tax credit you claim. Section 164 and the applicable return requirements should be considered. If the certificate is missing, request it from the withholding agent and check the available FBR payment record before filing.
7. Can a non-filer receive a withholding tax certificate?
Yes. The obligation to issue a certificate is not limited to people appearing on the Active Taxpayer List. If tax has been deducted or collected from a person, the relevant certificate requirement applies.
8. Can I claim a refund using a withholding tax certificate?
You may claim a refund where eligible adjustable tax exceeds your final tax liability, subject to Section 170 and the applicable conditions. A final tax deduction is treated differently.
9. What should I do if my employer refuses to issue a salary tax certificate?
Make a written request to the employer’s HR or accounts department. Keep a copy of the request and compare your salary slips with the available FBR tax deduction information. If the issue remains unresolved, seek professional tax advice.
10. What is the difference between a withholding tax certificate and a tax exemption certificate?
A withholding tax certificate records tax that has already been deducted or collected. An exemption or lower-rate certificate is an approval issued by the tax authority that may allow a person to receive payment with reduced or no deduction under the applicable law.
11. How many years should I keep withholding tax certificates?
Keep certificates and supporting tax records for the period required under the applicable record-retention provisions. Businesses should maintain them with their accounting and tax records rather than deleting them after filing a return.
12. Is a withholding tax certificate required for every tax deduction?
Where Section 164 applies, the withholding agent is required to furnish the certificate and relevant payment evidence in accordance with the law. The exact documentation and reporting requirements depend on the nature of the deduction and applicable provisions.
Final Words
A withholding tax certificate helps you prove that tax has already been deducted from your income or payment. It is an important document for salaried individuals, freelancers, contractors, suppliers, landlords, investors and businesses.
Collect your certificates from the relevant withholding agents, check the tax year and amounts, and compare them with your FBR IRIS records. Most importantly, confirm whether each deduction is adjustable or final before claiming it in your income tax return.
Keeping these records organised throughout the year can save time, reduce filing errors and help you support a tax credit or refund claim when required.
