Is both apply?if PRA applied then why WHT applicable?

Question

Two taxes applicable in Punjab,FBR WHT & PRA ST on Rent(16%).Is both apply?if PRA applied then why WHT applicable?

Answer 1

Taxes on Rental Income in Punjab: There are three types of taxes on rent in Punjab.

1. WHT on Rent: This is the tax which is to be withheld by the tenant from total rent and will be paid to FBR. It is the advance income tax. Owner is liable to pay. Rates depends on the taxpayer status.

2. Sales Tax: This tax is collected by the owner and will be paid to PRA. Tenant is liable to pay this tax at the rate of 16% on total invoice.

3. Income Tax: This tax is to be paid by the owner at the time of filing tax-returns. This is the actual income tax and WHT if paid, will be adjustable here.

For further details and explanations you can visit rental income tax rates and deductions in Pakistan or approach your tax-consultant.