Withholding Tax Statement Filing
Withholding Tax (WHT) Statement Filing Services in Pakistan
- Salaries and wages
- Services
- Dividends
- Interest income
- Capital gains
- Royalties and technical fees
Who Is Required to File WHT Statements?
Any person or business making payments subject to withholding tax must file quarterly statements with the Federal Board of Revenue (FBR). This includes individuals, companies, and other entities collecting or deducting taxes from payments made to others.
The statement should include the name, CNIC, NTN, and address of the person or entity from whom the collection or deduction was made. It should also provide details of the payment made/ received and the total tax collected/ deducted.
Additionally, any other particulars as prescribed by the FBR should be included in the statement.
Since the due dates for filing quarterly statements differ from those of tax returns, staying updated and filing your statements on time is essential to avoid penalties. Our team can assist you in meeting these compliance deadlines and ensuring accurate and timely filing of WHT statements.
The Benefits of Withholding Tax
The primary purpose of withholding tax is to increase tax compliance and improve revenue collection for the government. By deducting taxes at the source, the government can ensure that taxpayers accurately report their income and pay the required taxes.
Additionally, withholding tax can benefit companies by helping them manage their cash flow. By deducting taxes from payments made to others, businesses can avoid large tax bills at the end of the year and spread out their tax payments throughout the year.
How Are Payments for Withholding Tax Processed?
The person or entity making payments subject to withholding tax is responsible for deducting the required amount from the payment and depositing it with the government.
Time of Payment
The time of payment for withholding tax depends on the entity collecting or deducting the tax:
- If the tax has been collected or deducted by the Federal Government or a Provincial Government, it should be paid on the day it was collected or deducted.
- If the tax has been collected or deducted by a person other than the Federal Government or a Provincial Government, it can be paid in two ways:
1) By remittance to the Government Treasury or deposit in an authorized branch of the State Bank of Pakistan or the National Bank of Pakistan within seven days from the end of each week ending every Sunday.
2) By remittance abroad to a non-resident through the State Bank or any other banking company before remitting abroad the amount from which tax is to be deducted or collected.
In both cases, the tax amount should be paid promptly and per the relevant laws and regulations. Non-compliance may result in penalties and fines.
Why Choose Our WHT Statement Filing Services?
Withholding tax is a crucial aspect of tax compliance for businesses. So, it is essential to ensure accurate and timely filing of WHT statements. Choosing the services of Shoro & Shoro Advocates and Tax Consultants can bring the following benefits:
- Identification of applicable WHT rates and thresholds for different types of payments
- Calculation and deduction of tax at source from payments made to employees, suppliers, and other parties
- Preparation and filing of monthly or quarterly withholding tax statements with the relevant tax authorities
- Assistance in obtaining exemption certificates or reduced WHT rates for non-resident taxpayers
- Timely and accurate submission of WHT statements to avoid penalties and fines
- Professional guidance on tax compliance matters and updates on any changes in tax laws and regulations
- Efficient record-keeping to facilitate future tax audits or inquiries
Our WHT statement filing services can help businesses comply with tax laws and avoid potential legal or financial consequences. We strive to provide quality and reliable services to ensure peace of mind for our clients regarding their tax obligations.