15pc WHT on independent professional services from July 1

Islamabad, July 1, 2026 -- The Federal Board of Revenue (FBR) has announced a change in withholding tax rates effective from July 1, 2026. Independent professionals, including doctors, lawyers, architects, accountants, and software engineers or developers, will now face a 15 percent withholding tax on their services. This amendment follows an FBR circular clarifying adjustments to withholding tax rates on services and certain debt securities.

Previously, the withholding tax for such services was set at six percent. The FBR has increased this rate to seven percent for sub-paragraph (i) within Division III of Part III of the First Schedule. However, for independent professionals, sub-paragraph (ii) now mandates a 15 percent withholding tax.

The FBR also revised rates for other service categories. Companies providing terminal and port operating services will now pay a 12 percent withholding tax on their gross income. For all other services not specifically listed in paragraph (2) of Division III, the withholding tax rate stands at 14 percent of the gross amount.

Additionally, the tax on capital gains from debt securities, as outlined in Section 151A of the Income Tax Ordinance, has been raised from 15 percent to 20 percent when the securities are disposed of.