Is there any withholding tax on international credit card transactions?

Question

I use my credit card for payments to foreign websites. Does the bank deduct any tax on these transactions?

Answer 1

1️⃣ Yes, banks in Pakistan deduct withholding tax on international transactions made through credit/debit cards.
2️⃣ This is treated as an advance tax under Section 236Y of the Income Tax Ordinance, 2001.
3️⃣ The rate is 5% for filers and 10% for non-filers of income tax returns.
4️⃣ The deducted amount is automatically shown in your bank statement
5️⃣ You can adjust this tax against your liability when filing your annual income tax return.