Advance Tax & Withholding Tax Services in Pakistan

Advance tax under Section 147 of the Income Tax Ordinance, 2001 is a quarterly pre-payment of estimated income tax liability. It is paid in four instalments due on 15 September, 15 December, 15 March, and 15 June each year. The amount is based on the prior year tax liability and is adjusted against the final annual tax return.

Every company, AOP, and individual whose last year tax liability exceeds PKR 1,000 is required to pay advance tax in quarterly instalments. Individuals with salary income who have had tax withheld by their employer may be exempt if the deduction covers their full liability.

The four quarterly advance tax instalments are due on: 15 September (Q1), 15 December (Q2), 15 March (Q3), and 15 June (Q4). Missing any instalment triggers a 12% default surcharge on the unpaid amount under Section 205 of the Income Tax Ordinance.

Withholding tax is tax deducted at source by a withholding agent before making a payment. Employers, companies, and businesses are required to deduct WHT on salary (Section 149), vendor payments (Section 153), rent (Section 155), and other specified payments — and deposit it with FBR by the 15th of the following month.

Under Section 161, failure to deduct or deposit WHT makes the withholding agent personally liable for the undeducted tax amount. Additional penalties under Section 182 and 205 apply — including 12% surcharge on late deposits and disallowance of the related business expense in the annual return.

Advance tax (U/S 147) and WHT services with TaxAccountant.pk start from PKR 5,000, excluding applicable government fees (challan amount). Pricing depends on the volume of transactions, number of WHT heads, and whether monthly statement filing is included. Contact us for a free quote.

The monthly withholding tax statement is a mandatory FBR filing (separate from challan payment) listing all payments made and WHT deducted during the month. It must be filed on FBR IRIS by the 15th of each month. Failure to file attracts penalties under Section 182 of the Income Tax Ordinance.

For companies, each quarterly advance tax instalment equals 25% of the prior year tax liability (or estimated current year liability if higher). TaxAccountant.pk handles the computation, challan generation, and timely deposit so the correct amount is paid each quarter.

Yes. TaxAccountant.pk can assess outstanding advance tax instalments, compute default surcharges, prepare reconciliation statements, and file regularisation returns to clear FBR default notices under Sections 147, 161, and 205.

Yes. TaxAccountant.pk provides advance tax and WHT compliance services in Islamabad, Lahore, Karachi, Rawalpindi, Faisalabad, and all 13 major cities. All services are available fully online — share documents via WhatsApp or email.